As of July 2026, Massachusetts still has some of the strongest solar incentives in the country, and the centerpiece is the redesigned SMART 3.0 program, which pays a home system a flat $0.03 per kWh for a full 20 years, not the 10 years many older guides and even Google’s AI answer still show (Mass.gov SMART 3.0 program details, as of July 2026). According to MySolarFY’s July 2026 analysis, a typical 8 kW rooftop system here makes about 10,300 kWh a year and returns roughly $3,400 in first-year value: about $3,100 in net-metering bill offset valued near the state’s 30.21 cents per kWh retail rate (EIA, March 2026) plus about $300 from SMART. The 30% federal homeowner tax credit ended December 31, 2025 (IRS), so a 2026 buyer’s savings now rest on these state programs.
Massachusetts solar incentive numbers, dated
- 30.21 cents per kWh Massachusetts residential electricity rate, as of March 2026 (EIA).
- $0.03 per kWh, flat, for 20 years SMART 3.0 incentive for a residential system of 25 kW or less in program year 2026, set annually (Mass.gov DOER).
- $0.06 per kWh, flat, for 20 years SMART 3.0 rate for an income-eligible residential system (Mass.gov DOER).
- 15% of cost, capped at $1,000 Massachusetts state income tax credit (Schedule EC), still active in 2026 (Mass.gov DOR).
- about 10,300 kWh a year production a typical 8 kW rooftop system makes in Massachusetts (SolarFY estimate from NREL PVWatts runs).
Does Massachusetts still have strong solar incentives in 2026?
Yes, and the state stack is why solar still pays here even though the federal credit is gone. Massachusetts layers four things a homeowner who owns the system can use: the SMART production incentive, near-retail net metering, a set of state tax breaks, and, for battery owners, a utility performance program. The one that changed most recently is SMART, which the state redesigned as SMART 3.0. The redesign was written into Department of Energy Resources regulations in 2025 (225 CMR 28.00), and the Department of Public Utilities approved the new tariff on May 19, 2026 (Mass.gov SMART 3.0 program details, as of July 2026; Healey-Driscoll administration launch announcement, as of 2026). Because the program is mid-transition, a lot of pages you will find still describe the old rules, so the dated numbers below matter.
What did not survive into 2026 is the federal homeowner credit. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Massachusetts homeowner who buys solar in 2026 with cash or a loan cannot claim it (IRS; SEIA, as of 2026). That makes the Massachusetts programs the whole story for a 2026 buyer, which is exactly why getting the SMART numbers right is worth a few minutes. For the broad state picture, see our Massachusetts solar guide; this page drills into the money math.
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What is SMART 3.0 and how much does it pay?
SMART, the Solar Massachusetts Renewable Target, pays the system owner a fixed amount for every kilowatt-hour the panels make, on top of net metering. It is a production incentive, not an up-front rebate. In program year 2026, a residential system of 25 kW or less earns a flat Incentive Rate of $0.03 per kWh, and an income-eligible residential system earns a flat $0.06 per kWh (Mass.gov SMART 3.0 program details, as of July 2026). The Department of Energy Resources runs the program, your installer files the application, and the payment reaches you as a check or a bill credit. SMART is open only to customers of the three investor-owned utilities, Eversource, National Grid, and Unitil; Municipal Light Plant (MLP) customers are not eligible (Mass.gov SMART municipalities Q&A, as of 2026).
The flat rate is the headline number, and it is set fresh each program year. The $0.03 figure is the PY2026 residential rate; the program adjusts the Flat Incentive Rate annually and holds a $0.01 per kWh floor, so a system that qualifies later could lock a different starting number (Mass.gov SMART 3.0 program details, as of July 2026). Whatever rate you lock at qualification is the rate you keep. Ask your installer for the current program-year figure rather than budgeting around a number from an old blog post.
| SMART 3.0 participant (PY2026) | Flat incentive rate | Term | Notes |
|---|---|---|---|
| Residential system, 25 kW or less | $0.03 per kWh, flat | 20 years, locked | The standard home rate; exempt from capacity-block step-downs |
| Income-eligible residential system | $0.06 per kWh, flat | 20 years, locked | Higher flat rate for qualifying low-income customers |
| Rooftop (building-mounted) array | Base rate plus a $0.03 per kWh building-mounted adder | 20 years, locked | A roof-mounted home system typically qualifies for the adder |
| System paired with a qualifying battery | Base rate plus a formula-based storage adder | 20 years, locked | Adder value varies by storage-to-PV ratio and duration; confirm per project |
Rates from Mass.gov SMART 3.0 program details (as of July 2026), set annually by the DOER. The payment goes to the system owner, so on a lease or PPA the company that owns the panels keeps it. If you are weighing a /bin/zsh-down deal, see our guide to no upfront cost solar in Massachusetts. Adders confirmed against the SMART 3.0 program details and Energy Storage guideline.
Does SMART really last 20 years and not step down?
Yes. For a residential system of 25 kW or less, SMART 3.0 pays a flat rate for a full 20-year term, and it does not decline as you go. This is the single most common error in Massachusetts solar content right now, and it is worth being blunt about: Google’s own AI answer and many installer pages still say the incentive runs for 10 years. That 10-year figure describes the legacy SMART 1.0 and 2.0 program (225 CMR 20.00), not the redesigned SMART 3.0 program (225 CMR 28.00) that governs systems qualifying in 2026 (Mass.gov SMART 3.0 program details; SMART Program Year 2025 Annual Report, as of July 2026). Under the current tariff, the flat rate is locked in at qualification and guaranteed for a 20-year term.
The “step-down” worry is also aimed at the wrong systems. Earlier SMART used a declining-block model where the rate fell as capacity filled up. Under SMART 3.0, small residential systems of 25 kW or less are exempt from those capacity allocations, so the declining, block-based Base Compensation Rates apply to larger projects, not to a home (Mass.gov SMART 3.0 program details, as of July 2026). Once your home system is accepted, its flat rate is fixed under the tariff for the full 20 years, no matter what future program years set for new applicants.
Why the 10-year vs 20-year gap matters: the term doubles the lifetime SMART payment. On the 8 kW system below, a flat $0.03 per kWh over 20 years is worth roughly $6,200 to the owner, versus about $3,100 if you (wrongly) assumed a 10-year term. If a quote or a calculator shows a 10-year SMART term for a 2026 home system, it is using the old program rules.
The SMART adders: building-mounted and battery storage
SMART 3.0 raises the rate for two things a lot of homes have: a roof-mounted array and a battery. The building-mounted adder adds $0.03 per kWh for a system mounted on a building, which a typical residential rooftop array is, so many homes stack it on the base rate (Mass.gov SMART 3.0 program details, as of July 2026). That can bring a rooftop home’s effective SMART rate close to the low-income rate, though eligibility depends on the specifics of your project, so confirm it on your own quote.
The battery adder is real but it is not a single flat number. You will see “$0.04 per kWh” quoted for the storage adder; that $0.04 is an Energy Storage Multiplier used inside a formula, and the actual per-kilowatt-hour value depends on your battery’s storage-to-solar ratio and its duration, so it differs from project to project (Mass.gov SMART 3.0 program details and the linked Energy Storage guideline, as of July 2026). We do not publish a flat battery-adder figure here because there is not an honest one to publish; your installer can run the storage formula for your exact system. A battery can also earn a separate utility payment through the ConnectedSolutions demand-response program, where Eversource and National Grid pay for summer peak battery dispatch; see our full guide to Massachusetts solar batteries and ConnectedSolutions.
What net metering pays on top of SMART
Net metering is the bigger of the two credits, but it is a formula, not a fixed cents-per-kWh rate, and the two big utilities compute it differently. When your panels make more than your home is using, the surplus flows to the grid, your utility credits your account in dollars, and those credits roll forward month to month (Mass.gov net-metering guide, as of 2026). Eversource values a small residential system’s credit as the sum of its Basic Service and delivery charges (distribution, transmission, and transition), which lands close to the full retail rate (Eversource Massachusetts net-metering FAQ, as of March 2026). National Grid works differently: under its current tariff, the standard credit for excess power floats with the monthly ISO-NE wholesale price, while the higher “market” credit, which uses the same delivery-charge formula, applies to systems paired with SMART (National Grid net-metering provision, M.D.P.U. 1625, effective March 2026).
That is why you should not budget around a single “credit rate.” The flat “$0.28 to $0.32 per kWh net-metering credit” you see in some installer marketing is an estimate of one utility’s formula at one point in time, not a published fixed number, so we do not repeat it as a rate. What is reliable is the benchmark it is measured against: the state’s 30.21 cents per kWh retail average (EIA, March 2026). For an Eversource rooftop home the credit lands close to that, which is why net metering is the largest single driver of solar savings here, worth far more per kilowatt-hour than the $0.03 SMART payment. For the plain-English version of how a credit is created and applied, see how net metering credits your solar exports.
A normal home system is exempt from the net-metering cap. As of 2026 the cap-exempt threshold for a small residential (Class I) facility is a single 25 kW nameplate limit; the old 10 kW single-phase versus 25 kW three-phase split was superseded when the DPU expanded the program (DPU expands net metering, announced November 29, 2024). Because a typical Massachusetts home installs well under 25 kW, your system is cap-exempt and earns the standard near-retail credit. MLP customers are the exception: they are not on the investor-owned utilities’ net-metering tariff and follow their town’s own rules instead.
| Massachusetts utility | Net metering in 2026 | SMART 3.0 eligible | Cap-exempt residential size |
|---|---|---|---|
| Eversource | Credit = Basic Service plus delivery charges, close to retail | Yes | 25 kW nameplate or less |
| National Grid | Standard credit floats with the ISO-NE wholesale price; the near-retail “market” credit applies to SMART-paired systems | Yes | 25 kW nameplate or less |
| Unitil | Formula-based credit, rolled forward | Yes | 25 kW nameplate or less |
| Municipal Light Plant (MLP) towns | Set by the town utility, not the state tariff | No | Varies; check your MLP |
The cap-exempt threshold is set by the DPU (Mass.gov net-metering guide, as of 2026); the crediting formulas are each utility’s own tariff (Eversource MA net-metering FAQ, March 2026; National Grid M.D.P.U. 1625, March 2026). For your utility’s specifics, see our pages on Eversource Massachusetts and National Grid Massachusetts.
If you add a battery, a third payment opens up. Massachusetts battery owners on the investor-owned utilities can enroll in the Mass Save ConnectedSolutions program, which pays $275 for each kilowatt of average battery output during summer peak events, so a typical home battery can earn on the order of $1,000 or more a year for letting the utility draw stored energy at peak (Mass Save battery storage; DSIRE, as of 2026). That is separate from the SMART storage adder and from net metering, so a battery owner can have three value streams running at once. Confirm the current ConnectedSolutions rate with your utility, since it is set outside SMART.
What SMART and net metering are worth on a typical home
Put together, net metering and SMART return roughly $2,600 to $4,300 in the first year across a typical 6 to 10 kW home system, most of it the near-retail bill credit and only a small slice from SMART. The table below is our own estimate for three common system sizes, built from the state’s electricity rate and the PY2026 SMART base rate, using real NREL PVWatts production runs for Massachusetts (about 1,290 kWh per kW of system each year, from 6 kW runs of 7,833 kWh in Brockton and 7,682 kWh in Worcester). Your roof will differ with pitch, shading, and orientation, so estimate yours with NREL’s free PVWatts calculator before you size a system.
| System size | Est. annual production | Net-metering value at 30.21 cents per kWh | SMART at $0.03 per kWh (year 1) | SMART over 20 years |
|---|---|---|---|---|
| 6 kW | about 7,700 kWh | about $2,330 | about $231 | about $4,620 |
| 8 kW | about 10,300 kWh | about $3,110 | about $309 | about $6,180 |
| 10 kW | about 12,900 kWh | about $3,900 | about $387 | about $7,740 |
Estimate only, computed by MySolarFY (July 2026). Inputs: Massachusetts residential rate 30.21 cents per kWh (EIA, March 2026); SMART base residential rate $0.03 per kWh (Mass.gov, July 2026); production about 1,290 kWh per kW per year from NREL PVWatts v8 runs for Brockton (02301) and Worcester (01608). The net-metering value is the retail value of the power a system this size can offset or bank, not a guaranteed bill cut; the actual credit is formula-based and can land somewhat under retail, especially National Grid’s standard tier, and a fixed monthly customer charge stays on your account. SMART pays on total production and is shown at the flat base rate; a rooftop building-mounted adder or a low-income rate raises it, and the 20-year column holds production level as a simplification.
Against a typical price, that points to roughly a 6 to 7 year payback. A representative 8 kW Massachusetts install runs about $2.96 per watt, or near $23,700 before incentives (EnergySage Massachusetts data, as of 2026). Take off the $1,000 Schedule EC state credit and the 6.25% sales-tax exemption on equipment, and the combined net-metering and SMART value of about $3,400 a year puts the estimated simple payback near 6 to 7 years for that system, a touch faster if the building-mounted adder applies. Because the 30% federal residential credit (Section 25D) ended for systems placed in service after December 31, 2025, there is nothing federal to subtract from a 2026 purchase, so this payback rests entirely on the state programs. Your own price depends on your roof and your quotes, so check what you qualify for at your address.
Heads up on two things: first, the 30% federal residential credit (Section 25D) ended for systems placed in service after December 31, 2025, so a 2026 cash or loan install cannot claim it (IRS, 2026). Second, size your system close to your annual usage, not far above it: net-metering credits roll forward, but a large year-end surplus is trued up at a lower rate than the near-retail credit you bank month to month, so an oversized array gives back some of its value.
The Massachusetts tax incentives that still apply in 2026
Beyond SMART and net metering, Massachusetts keeps three state tax breaks that a homeowner who owns the system can use. These are still active in 2026; only the federal homeowner credit ended.
State income tax credit (Schedule EC)
15% of the net system cost, capped at $1,000, for your principal residence, with a three-year carryforward if your tax bill is smaller than the credit (Mass.gov DOR, 830 CMR 62.6.1, as of 2026).
Sales tax exemption
A 100% exemption on qualifying solar equipment removes the state’s 6.25% sales tax, claimed with Form ST-12 (Mass.gov sales and use tax, as of 2026).
Property tax exemption
A 20-year exemption on the value a qualifying solar system adds, so your assessment does not rise because of the panels for two decades (M.G.L. c.59 s.5, Clause 45, as of 2026).
| Massachusetts benefit (2026) | What it is worth | Who claims it |
|---|---|---|
| Net metering | Near-retail bill credits on exported power | The utility account holder |
| SMART incentive | $0.03 per kWh flat ($0.06 low-income), 20 years | The system owner |
| State income tax credit (Schedule EC) | 15% of net cost, up to $1,000 | The system owner (a purchaser) |
| Sales tax exemption | 100% of the 6.25% state sales tax | The purchaser |
| Property tax exemption | 20 years on the added system value | The homeowner |
| Federal residential credit (Section 25D) | Ended for systems placed in service after December 31, 2025 | Not available to 2026 homeowner-buyers |
State tax figures per Mass.gov DOR and the Massachusetts General Laws (as of 2026); federal posture per IRS (as of 2026). Confirm current terms before filing. For programs in other states, see the solar incentives that still apply in 2026.
What Massachusetts does not have in 2026
Knowing what is gone or off-limits keeps you from budgeting around a number that will not show up. Three things trip people up:
- No 30% federal homeowner credit. Section 25D ended for systems placed in service after December 31, 2025, so a 2026 cash or loan buyer cannot claim it (IRS, as of 2026). The only federal solar credit left, Section 48E, is a commercial credit claimed by the business that owns a leased or PPA system, not by the homeowner. See what the federal solar tax credit change means in 2026.
- No new SRECs. The older SREC I and SREC II markets are closed to new systems, so you cannot enroll in them; SMART is the successor incentive (Mass.gov Solar Carve-out, as of 2026). If a neighbor “sells SRECs,” they enrolled years ago and are finishing an old term.
- No SMART or standard net metering for MLP customers. If your town runs a Municipal Light Plant, you are not on the investor-owned utilities’ SMART or net-metering tariffs, though some MLP towns run their own solar rebates instead, such as Reading’s municipal utility (RMLD), which has paid up to about $1.20 per watt (Mass.gov SMART municipalities Q&A; RMLD residential solar rebate, as of 2026). Check your town utility’s program directly.
How to make sure an installer quotes SMART 3.0 correctly
Because the program is mid-transition, the most useful thing you can do is pressure-test the SMART line on any quote. Rather than chasing a “best installer” list, screen any company against objective criteria and check that its numbers match the current program:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid Massachusetts Home Improvement Contractor (HIC) registration and electrical licensing.
- A clear workmanship and equipment warranty in writing.
- A SMART estimate that uses a 20-year term and the current program-year flat rate, not a 10-year term or an old declining-block number. If the quote shows a 10-year SMART term for a 2026 home system, it is using the old program rules.
- A written production estimate for your actual roof, so the SMART and net-metering figures are tied to real output. For a full checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
How MySolarFY researches these numbers
Every rate, term, and cap on this page comes from a primary source and is dated: the electricity rate from the EIA, the SMART 3.0 rate, term, and adders from Mass.gov and the Department of Energy Resources, the tax breaks from the Massachusetts Department of Revenue and the General Laws, and the production figures from real NREL PVWatts runs for Massachusetts ZIP codes. Each material claim was fact-checked against those primary sources, and the SMART term was corrected from the “10 years” figure still circulating in older content. Programs change and SMART rates reset each year, so we date every figure and re-check it. See our data sources and how we research each page and how MySolarFY works and how we choose installers.
For the utilities most Massachusetts homeowners deal with and the mechanics behind net metering, see Eversource Massachusetts net metering and rates, National Grid Massachusetts solar and net metering, and our deeper explainer on Massachusetts net metering and SMART. Weighing whether it all pencils out for you? Start with is solar worth it in 2026 or your city in Boston or Worcester.
Frequently asked questions
What are the solar incentives in Massachusetts for 2026?
A homeowner who owns the system can use four things in 2026: the SMART production incentive (a flat $0.03 per kWh for 20 years for a residential system of 25 kW or less, $0.06 low-income), near-retail net metering, and the state tax stack (a 15% income tax credit capped at $1,000, a 100% sales tax exemption, and a 20-year property tax exemption) (Mass.gov SMART 3.0; Mass.gov net metering, as of 2026). Battery owners can also earn a Mass Save ConnectedSolutions payment. The 30% federal homeowner credit (Section 25D) ended after December 31, 2025, so it is not part of a 2026 purchase.
How much does the SMART program pay in 2026?
In program year 2026, a residential system of 25 kW or less earns a flat SMART incentive of $0.03 per kWh, and an income-eligible system earns a flat $0.06 per kWh, both for a 20-year term (Mass.gov SMART 3.0 program details, as of July 2026). A rooftop (building-mounted) system typically adds a $0.03 per kWh building-mounted adder, and a battery adds a separate formula-based storage adder. SMART pays the system owner on every kilowatt-hour the panels make, on top of the net-metering credit on your bill. The rate is set each program year, so confirm the current figure with your installer.
Does the SMART rate really last 20 years, not 10?
For a residential system of 25 kW or less, yes: SMART 3.0 pays a flat rate for a full 20-year term and does not step down (Mass.gov SMART 3.0 program details; SMART PY2025 Annual Report, as of July 2026). The “10 years” figure that Google’s AI answer and many installer pages still show describes the legacy SMART 1.0 and 2.0 program, not the redesigned SMART 3.0 that governs systems qualifying in 2026. Small residential systems are also exempt from the declining capacity-block rates, which apply to larger projects. If a quote shows a 10-year term for a 2026 home system, it is using the old rules.
Does Massachusetts offer a solar tax credit in 2026?
Massachusetts offers a state income tax credit worth 15% of the net system cost, capped at $1,000, for your principal residence, with a three-year carryforward, claimed on Schedule EC (Mass.gov DOR, as of 2026). This state credit is still active in 2026. The separate 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a 2026 buyer cannot claim the federal one (IRS, as of 2026). MySolarFY does not provide tax advice; consult a tax professional about your own situation.
Is it worth going solar in Massachusetts in 2026?
For most owner-occupied Massachusetts homes with decent sun, the math still works, because the state’s electricity is expensive and the state programs are strong. At about 30.21 cents per kWh (EIA, March 2026), net metering credits your power near that rate, and SMART adds a flat $0.03 per kWh for 20 years. Our estimate for a typical 8 kW system is roughly $3,400 in first-year value and a simple payback near 6 to 7 years, resting entirely on the state programs now that the federal credit has ended. Savings are not guaranteed and depend on your roof, usage, and how you pay.
Why is my electric bill still high after I go solar?
A few reasons. Your utility keeps a fixed monthly customer charge that solar does not erase, so you will always see some bill. If your system is sized below your usage, you still buy some grid power, especially in winter and at night. And net-metering credits you bank in summer are trued up at a lower rate if a big surplus is left at year end, so an oversized array gives back value. Sizing the system close to your annual usage and reading both the supply and delivery lines on your bill is the fix (Mass.gov net-metering guide, as of 2026).
Can I get solar in Massachusetts with no up-front cost?
Some homeowners can, through a lease or power purchase agreement (PPA) where eligible, which can mean no out-of-pocket cost at installation in exchange for monthly payments. This is not free solar; it is a long-term agreement, and total payments may exceed the cost of a cash purchase. On a lease or PPA the third-party owner, not you, collects the SMART payment and any tax benefits tied to owning the equipment, while your benefit is a lower or fixed power price. If you want to own the system and keep SMART and the state tax credit yourself, a cash purchase or solar loan is the path that keeps them. Check what you qualify for before deciding.
Reviewed by the MySolarFY editorial team, July 2026. Figures were verified against the linked Mass.gov (DOER, DPU, DOR), EIA, IRS, and SEIA sources as of July 2026, and the SMART term was corrected from the “10 years” figure still circulating in older content. The SMART 3.0 rate and adders are set each program year and the state tax benefits can change, so confirm current terms with Eversource, National Grid, Unitil, and Mass.gov before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY editorial team and how we research.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms are long-term agreements, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the SMART payment and any federal tax benefit go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit (Section 25D) that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
