Massachusetts Solar Tax Credits and Incentives in 2025
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Author
Andrew Blok
Electrification and Solar Writer and Editor
Editor
Ryan Barnett
SVP, Policy & New Market Development
Massachusetts might be better known for its fall and winter weather than its sunny days, but the Bay State is still a great place for homeowners to go solar. Given the state's higher than average electric rates and monthly bills, home solar panels can offer real savings to homeowners. It makes Massachusetts a leading state for total solar installations.
Despite the end of the longstanding federal solar tax credit for purchased systems at the end of 2025, some solar incentives remain in some states, including Massachusetts. Here’s what Massachusetts solar incentives are available at the start of 2026.
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Solar rebates, tax credits, and incentives in Massachusetts
In 2026, Massachusetts residents may be able to qualify for state tax incentives as well as a few local programs designed specifically to incentivize residential renewable energy production and storage.
Note: Your eligibility can depend on your location, electric utility provider, income level, interest in battery storage, and more. This is not tax advice, and you should always consult a tax professional.
Residential renewable energy tax credits
If you’re installing a photovoltaic (PV) solar energy system in Massachusetts, you may be eligible for a state income tax credit.
Massachusetts homeowners can claim a state income tax credit of 15% of the net system costs of a solar energy installation up to $1,000. Officially known as the Massachusetts Residential Renewable Energy Income Tax Credit, this incentive can be claimed for up to three years against a property owner’s state income tax liability.
Tax credits go to the owner of the system. If you get solar via a lease or power purchase agreement, you won't be able to claim tax credits, but you won't pay upfront to purchase the system and have it installed. The leasing company may use the incentive to reduce your lease payments.
While the federal tax credit for purchased systems expired at the end of 2025, a tax credit for leased systems remains. Again, the leasing company may use the tax credit to reduce your lease payments.
Massachusetts net energy metering
Net energy metering, or simply net metering, compensates homeowners when they send excess electricity produced by their solar panel system to the utility. Massachusetts’ investor owned utilities — National Grid, Eversource, and Unitil — credit their solar-adopting customers with bill credits through a system called monthly net metering.
Under monthly net metering home solar producers are compensated for the power they send to the grid at the same retail rates for which it is purchased in the month it is produced. Energy sent to the grid offsets any energy bought from the grid during that billing cycle.
Extra net metering credits roll over to the next month at nearly the full retail rate. Credits that carry forward are worth the distribution, delivery, supply, and transmission charges.
Residential solar systems up to 25 kilowatts are eligible for monthly net metering in Massachusetts.
If you get your electricity from a utility other than National Grid, Eversource, or Unitil, your policies may vary. Net metering is voluntary for the many small municipally-owned electric companies in Massachusetts so the policy governing your system might look different. Most utilities have their policies posted online. A reputable solar company can help you understand the policy in your area.
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Massachusetts REC program
On top of net metering credits, Massachusetts solar producers can also earn renewable energy credits (RECs) for every 1,000 kilowatt-hours of power they generate. These credits can then be sold on the open market to entities required to use a certain amount of renewable energy. Prices vary by supply, demand, and several other local factors.
New solar panel systems will generate Class I RECs, which can be sold via one of several trading platforms. Older systems may participate in now-closed programs that generate solar specific SRECs that are worth more.
Massachusetts ConnectedSolutions program
If you have a battery or smart thermostat, you could be eligible for demand response programs from your utility. In the ConnectedSolutions program, you agree to automatically discharge your battery to the grid or adjust your thermostat by up to four degrees during times of peak demand.
Eligibility varies by device and utility, as do the rewards available. See if your utility has a program for your device. Batteries from many major manufacturers like Tesla (Powerwall), Enphase, SolarEdge, and more are eligible for Eversource, National Grid, and Cape Light Compact customers. Smart thermostats from many leading brands like ecobee, Google Nest, and Honeywell are eligible for customers of those three utilities and Unitil.
State sales and property tax exemption
Like many states, Massachusetts offers both a sales and property tax exemption for solar energy systems.
Sales tax exemption: In 2026, renewable energy equipment is completely exempt from sales and use tax in Massachusetts, which saves solar adopters an average of 6.25% on most transactions.
Property tax exemption: Although adding solar can increase the value of a home, Massachusetts homeowners do not have to worry about a PV installation raising their property taxes. Whenever the value of MA property is assessed, renewable energy equipment is completely exempt for a 20-year period. Homeowners should check with their local assessor’s office, since some localities interpret the policy differently.
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Local utility rebates
Massachusettsans may qualify for a variety of solar installation rebates dependent on your home’s location and electricity utility. Small municipal utilities (also known as “munis”) supply 13% of MA’s electricity across 50 different communities. Individual rebates are localized and vary in value across the state.
For example, Concord Municipal Light Plant lists a one-time $650 per kilowatt rebate (up to $3,125) for homeowners when they install solar panels and connect them to the grid.
Like with net metering policies, more information about local solar rebates from MA’s municipal utilities can be found by contacting your electricity provider directly, or visiting their website.
Massachusetts SMART program
The Solar Massachusetts Renewable Target (SMART) program generates renewable energy credits for the power they produce and send to the grid.
Solar producers enrolled in the MA SMART program are compensated for the energy they produce, with adders available for income level and systems.
Go solar in Massachusetts today
The best way to go solar in Massachusetts is with an expert by your side.
If you’re interested in going solar in Boston, down the Cape, or anywhere else across the Bay State, Palmetto can help maximize your savings by identifying all of the available Massachusetts solar incentives and designing a high-quality PV system to fit the unique demands of your property.
See your estimated solar savings when you get a free quote today.
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Frequently asked questions
Does Massachusetts have a solar tax credit?
Yes. Massachusetts homeowners who go solar may be eligible to claim both a federal and state tax credit for their solar panels. Massachusetts offers a 15% tax credit, up to $1,000. Consult with a tax professional about your eligibility.
Does Massachusetts offer a solar rebate?
Some of Massachusetts’ many utilities offer solar rebates.
Can you save money with solar panels in Massachusetts?
Massachusetts is considered one of the best states for solar energy savings. Find out how much you can save by reaching out for a solar quote today.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
