- The state’s SMART program pays system owners a per-kWh production incentive for a 20-year term; the Program Year 2026 residential rate is about $0.03/kWh ($0.06 for qualifying low-income), and it resets each year (Mass.gov SMART 3.0; DSIRE).
- Massachusetts residential power runs about 30.21 cents per kWh, among the highest in the country, so every kWh your roof makes offsets an expensive grid kWh (EIA, as of March 2026).
- The Massachusetts Residential Energy Credit (Schedule EC) is a state income-tax credit worth 15% of net expenditure, up to $1,000 (Mass.gov 830 CMR 62.6.1).
- Net metering is cap-exempt for residential systems up to 25 kW AC, with credits valued close to the retail rate (Mass.gov net metering).
- Solar is exempt from the 6.25% state sales tax, and a system’s added home value is exempt from property tax for 20 years (DSIRE).
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
Massachusetts homeowners pay about 30.21 cents per kWh for electricity (EIA retail sales, residential MA, as of March 2026), nearly double the U.S. average, which is exactly why rooftop solar pencils out here. For every rate, cost, and payback figure in one place, each dated and sourced, see our Massachusetts solar data and statistics. Massachusetts also runs one of the deepest state incentive stacks in the country, and none of it depends on the federal tax credit that ended after 2025. This page covers what Massachusetts actually pays, how the SMART program and net metering work, and how to tell if your home qualifies. For a deep dive on the credits, see our guide to Massachusetts net metering and the SMART program.
Why solar pays in Massachusetts
High rates plus a strong state program is the reason. At about 30.21 cents per kWh, a Massachusetts home with a $150 to $300 monthly bill offsets expensive grid power with every kilowatt-hour the roof makes. Your production is what drives both your bill savings and your SMART payments, so estimate your roof’s likely output with NREL’s free PVWatts calculator; actual output depends on your roof’s pitch, orientation, and shading. The unusual part of Massachusetts is that two separate programs pay you for the same solar production, which is what makes the state’s economics strong even now that the federal homeowner credit has ended.
Massachusetts solar incentives at a glance
Massachusetts stacks five state-level benefits on top of your bill savings. Here is what each one pays in 2026 and who actually receives it.
| Incentive | What it pays | 2026 value | Who receives it | Source |
|---|---|---|---|---|
| SMART program | A per-kWh production payment for 20 years | About $0.03/kWh standard ($0.06 low-income), resets yearly | The system owner (not lease or PPA homeowners) | Mass.gov, DSIRE |
| Residential Energy Credit (Schedule EC) | A state income-tax credit | 15% of net expenditure, up to $1,000 | The homeowner who owns the system | Mass.gov |
| Net metering | A bill credit for power you export | Close to retail rate, cap-exempt up to 25 kW | The homeowner | Mass.gov |
| Sales-tax exemption | Waives state sales tax on equipment | 100% of the 6.25% rate | The buyer | DSIRE |
| Property-tax exemption | Excludes solar’s added value from assessment | 100% of added value, for 20 years | The owner | DSIRE |
| Federal residential (Section 25D) | A 30% homeowner credit | Ended for expenditures made after December 31, 2025 | No 2026 homeowner-buyer | IRS |
The headline is the SMART program. The Solar Massachusetts Renewable Target (SMART) program, run by the Department of Energy Resources, pays residential system owners (systems up to 25 kW AC) a per-kWh production incentive on their electric bill for a 20-year term (Mass.gov SMART; DSIRE). Under the current SMART 3.0 rules the 20-year term applies, and the base rate resets each program year, so the per-kWh value changes annually; for Program Year 2026 the standard residential rate is about $0.03/kWh ($0.06/kWh for qualifying low-income systems). Massachusetts retired its old SREC market for new systems, so SMART is now the production incentive. For the full worked math on what SMART 3.0 actually pays over its verified 20-year term, see our 2026 Massachusetts solar incentives breakdown. These payments go to the system owner, which matters if you lease or sign a PPA.
Heads up: the SMART payment, the Schedule EC tax credit, and the two tax exemptions all go to the party that owns the system. If you lease your panels or sign a PPA, the company that owns them keeps those incentives, and your benefit is a lower or fixed power price with no up-front cost. Confirm every figure against the linked Mass.gov or DSIRE source before you decide, and ask a tax professional about your situation. MySolarFY does not provide tax advice.
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Two ways Massachusetts solar pays you
The thing that makes Massachusetts strong is that the SMART payment and net metering are separate, and you get both for the same production. One pays you for generating; the other credits you for exporting.
| SMART payment | Net metering | |
|---|---|---|
| What it rewards | Every kWh your system generates | Every kWh you export to the grid |
| How you are paid | A per-kWh incentive on your electric bill | A bill credit at close to the retail rate |
| How long | 20-year term (rate set by program year) | Ongoing while you stay a customer |
| Who receives it | The system owner | The homeowner |
| Source | Mass.gov SMART | Mass.gov net metering |
Net metering, briefly. Residential Class I systems up to 25 kW AC are cap-exempt, so a typical home system does not compete for limited program space, and exported power earns credits valued close to the retail rate (roughly 90% of retail, depending on your tariff). Excess credits roll forward to offset later bills (Mass.gov net metering; DSIRE). For the mechanics of how export credits work, see how net metering credits your solar exports, and to see how the credit lowers your monthly cost, read how solar lowers your electricity bill.
How you pay changes which incentives you keep
The way you finance solar decides who owns the system, and ownership decides who collects the SMART payments and the tax credit. This is the most misunderstood part of a Massachusetts solar quote.
| How you pay | Up-front cost | Who owns the system | SMART + Schedule EC | Net metering |
|---|---|---|---|---|
| Cash | Full system price | You | You earn them | Yours |
| Solar loan | Little or none, financed over time | You | You earn them | Yours |
| Lease or PPA | $0-up-front where you qualify | A third-party company | The company keeps them | You still see net-metering bill credits |
If you own the system (cash or loan), you keep the SMART income, the Schedule EC credit, the net-metering credits, and the tax exemptions. If you lease or sign a PPA, the company that owns the panels keeps the SMART payments and the Schedule EC credit, and your benefit is a lower or fixed power price with no up-front cost. Neither path gives a 2026 Massachusetts homeowner the federal residential credit, since that credit ended after December 31, 2025. For a deeper payback comparison, see the financial case for whether solar panels are worth it.
What changed federally, and what it means for Massachusetts
The federal homeowner credit is gone, but Massachusetts’ incentives are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a Massachusetts homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ; SEIA). The state’s SMART payments, Schedule EC credit, net metering, and tax exemptions were not affected by that change, and for many homeowners they add up to more than the old one-time federal credit over the life of a system. For the full timeline, see what the federal solar tax credit change means in 2026, and for the paths that still pay in its place, see solar without the federal tax credit in 2026.
One federal exception exists, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner, and it runs for projects placed in service through 2027, with a begin-construction safe harbor by July 4, 2026 (IRS Clean Electricity Investment Credit; SEIA tax policy). For a leased system in Massachusetts you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025.
How to choose a solar installer in Massachusetts
Massachusetts has a deep market of licensed installers. Rather than chasing a “best” list, screen any installer against objective criteria:
- 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.
- Real Massachusetts experience and verifiable reviews, plus help enrolling your system in SMART and net metering.
- A written production estimate and a transparent quote you can compare. For a 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. Local economics vary by town, so if you are on Cape Cod, see our Falmouth solar guide for the local numbers.
Exploring a specific Massachusetts market? See our local solar guides for Boston, Worcester, Cambridge, Lowell, Lynn, Quincy, Newton, Springfield, Fall River, Framingham, Brockton, New Bedford, Woburn, Barnstable, Falmouth, Lawrence, and Andover.
To see exactly how your utility credits solar, read our net metering guides for Eversource Massachusetts, Eversource Western Massachusetts, and National Grid Massachusetts.
Frequently asked questions
What solar incentives does Massachusetts offer in 2026?
Massachusetts offers five main state benefits on top of your bill savings: SMART per-kWh production payments for 20 years, the Residential Energy Credit (Schedule EC) worth 15% of net expenditure up to $1,000, net metering cap-exempt up to 25 kW, a 100% exemption from the 6.25% state sales tax on equipment, and a 20-year property-tax exemption on the value solar adds to your home (Mass.gov; DSIRE). Confirm the current SMART rate with Mass.gov before you sign, since it resets each program year.
What happened to the federal solar tax credit?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act. A Massachusetts homeowner who buys solar in 2026 with cash or a loan cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. Massachusetts’ own incentives, SMART, Schedule EC, net metering, and tax exemptions, were not affected. See our guide on what the federal solar tax credit change means in 2026.
How does the SMART program pay me?
SMART pays the system owner a per-kWh incentive on the electric bill for every kWh the system generates, over a 20-year term (Mass.gov SMART). Under SMART 3.0 the base rate resets each program year, so the per-kWh value changes annually; for Program Year 2026 the standard residential rate is about $0.03/kWh, or $0.06/kWh for qualifying low-income systems. Because the payment goes to the owner, you collect it if you buy the system with cash or a loan, but not if you lease or sign a PPA. Verify the current rate with Mass.gov before you commit.
How does net metering work in Massachusetts?
Residential Class I solar systems up to 25 kW AC are cap-exempt, so a typical home system always has room in the program (Mass.gov net metering). When your panels make more than you use, the excess is exported and credited to your bill at close to the retail rate, roughly 90% of retail depending on your tariff, and any surplus credit rolls forward to future months. Net metering stacks with the SMART payment, so the same kWh can both earn a SMART incentive and reduce your bill through net-metering credits.
Do I qualify for MA solar incentives if I lease or sign a PPA?
It depends on the incentive. The SMART payments, the Schedule EC tax credit, and the two tax exemptions go to whoever owns the system, so on a lease or PPA the third-party company keeps them, not you. What you get instead is a lower or fixed power price with no up-front cost. Net-metering bill credits still reduce your usage charges either way. If keeping the SMART income and the state credit matters to you, owning the system through cash or a loan is the path that captures them.
Is solar worth it in Massachusetts?
For many homeowners, yes, because the math is strong here: among the highest retail rates in the country near 30.21 cents per kWh, 20 years of SMART payments, a state tax credit, full net metering, and two tax exemptions (EIA, as of March 2026). Whether it pays for your home depends on your roof, your usage, your utility, and how you finance it. Savings are not guaranteed, so get a written production estimate and compare more than one quote before you decide.
Reviewed by the MySolarFY team. Figures were verified against the linked Massachusetts (Mass.gov / DOER), DSIRE, EIA, and IRS sources as of June 2026; incentive amounts and dates change, and the SMART rate resets each program year, so confirm current terms with each source before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
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 typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the SMART payments and the Schedule EC credit go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit 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.
