Massachusetts homeowners can unlock significant savings with home solar panels thanks to a combination of high electricity rates and strong solar incentives. Both help to make Massachusetts one of the best states for solar savings and, despite its size, one of the leading states for total solar installations.
Here's what you need to know about the solar incentives that can help you save more when you switch to solar.
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Solar Rebates, Tax Credits, and Incentives in Massachusetts
In 2025, Massachusetts residents may be able to qualify for federal and 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 two separate tax credits, at the federal and state level.
Massachusetts homeowners can earn a state income tax credit (up to $1,000) totaling 15% of the net system costs of a solar energy installation. 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.
Federally, Massachusetts residents may also qualify for the Residential Clean Energy Credit to claim up to 30% of the total installation costs against their federal income tax liability. Recently extended by the Inflation Reduction Act, the Residential Clean Energy Credit (formerly known as the solar Investment Tax Credit) is a federal solar tax credit that has helped drive significant growth in solar power capacity across the United States since 2006.
Massachusetts Net Energy Metering
Net energy metering, or simply net metering, is a longstanding Massachusetts solar incentive that allows homeowners to sell the excess electricity produced by their solar panel system directly to the utility in the form of an electricity bill credit.
In Massachusetts, all three major investor-owned utilities (National Grid, Eversource, and Unitil) offer monthly net metering. This means home solar producers are compensated for their power 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 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. Research them there or reach out directly to your local utility to learn more.
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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, though older systems 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.
If you own a solar energy system in MA that generates renewable energy credits, Palmetto and SRECTrade can help you sell your SRECs at a flat compensation rate for up to 10 years of power production. SRECTrade will monitor and report on production data, create and trade SRECs in the open market, and issue payment to homeowners for those SRECs.
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. Essentially, this means there will be no surprise expenses when you adopt solar in MA.
Sales tax exemption: In 2025, 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 has been proven to 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.
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Local Utility Rebates
When going solar in Massachusetts, you 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 extremely localized and vary in value across the state.
For example, customers of Concord Municipal Light Plant can receive a one-time $650 per kilowatt rebate (up to $3,125) for installing solar panels and connecting 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.
Former Solar Incentives
Not all solar incentives last forever. Massachusetts has had renewable energy credit programs that are now closed to new participants. If you’re talking to friends and neighbors who have gone solar before you, you might find that they participate in programs not available to you.
Massachusetts SMART Program
Launched in 2018, the Solar Massachusetts Renewable Target (SMART) program was how homeowners generated renewable energy credits for the power they produce and sent to the grid.
Solar producers enrolled in the MA SMART program are compensated for their energy at various rates, based on their electricity provider and the “block” for which they were enrolled. They must be customers of Eversource, Unitil, or National Grid. After slowly losing value for four years, the remaining incentives for the Massachusetts SMART Program are worth nothing.
Go Solar in Massachusetts Today
With such a wide variety of local incentives, paired with multiple Massachusetts solar tax credits and state-wide programs, 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.
Whether you’re ready to go solar today or are just starting to explore your options, you can see your estimated energy savings in Massachusetts, including any available incentives, instantly with our free solar savings estimate and design tool.
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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, and the federal government offers a 30% tax credit with no dollar limit. 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.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
