Solar Incentives in Massachusetts (2026)
Massachusetts homeowners pay an average of $0.27/kWh for electricity. With the right incentives, solar can offset a significant portion of that cost. Below are the 5 active programs available in Massachusettsas of February 2026.
Federal ITC Update: The federal residential solar tax credit (Section 25D) expired December 31, 2025 per the One Big Beautiful Bill Act (Public Law 119-21). The commercial ITC (Section 48E) remains active at 30% for systems under 1 MW through 2032. State and utility programs listed below remain in effect.
Active Incentive Programs
| Program | Type | Authority | Amount | Description |
|---|---|---|---|---|
| Tax Credit | Massachusetts Department of Revenue State | 15% of system cost, capped at $1,000 | Massachusetts state income tax credit for residential solar installations. Massachusetts resident taxpayers who install a qualifying renewable energy system. | |
| Rebate | Massachusetts DOER (Department of Energy Resources) State | Performance-based incentive ~$0.05-0.10/kWh for 20 years. Rate varies by utility territory, block, and adders (low-income, battery storage, etc.). | Solar Massachusetts Renewable Target program. Fixed incentive payments for 20 years based on energy generated. Includes adders for battery storage (~$0.0487/kWh for 10 kWh battery) and low-income installations. Solar installations up to 5 MW AC in National Grid, Eversource, or Unitil territory. Residential and commercial. | |
| Net Metering | Massachusetts Department of Public Utilities State | Full retail rate credit for residential systems. Credits carry forward monthly. | Net metering at full retail rate for residential solar systems. Private systems (Class I) receive full retail net metering credits. Residential customers of investor-owned utilities. Systems up to 10 kW for guaranteed net metering. | |
| Property Tax Exemption | Massachusetts Department of Revenue State | 20-year exemption. Added value from solar excluded from property tax. | Solar energy systems are exempt from property tax increases for 20 years in Massachusetts. All residential solar installations in Massachusetts. | |
| Sales Tax Exemption | Massachusetts Department of Revenue State | Exempt from MA 6.25% sales tax on solar equipment | Solar energy system equipment is exempt from Massachusetts sales tax. All solar energy equipment purchases in Massachusetts. |
Data sourced from DSIRE, EnergySage, and state energy offices. Last verified February 2026. Verify all programs directly with the administering authority.
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Programs vary by utility and municipality within Massachusetts. Enter your ZIP code to see exactly which incentives apply to your address.
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Open ROI CalculatorFrequently Asked Questions
Does Massachusetts have a solar tax credit in 2026?
Yes. Massachusetts offers a state solar tax credit in 2026. See the incentives table above for current amounts and eligibility. Note: the federal residential ITC (Section 25D) expired December 31, 2025.
What is the average electricity rate in Massachusetts?
The average residential electricity rate in Massachusetts is approximately $0.27/kWh as of 2026. Higher utility rates generally improve solar ROI.
Does Massachusetts have net metering?
Yes. Massachusetts has a net metering or net billing policy that credits solar owners for excess electricity exported to the grid. See the incentives table above for current rates and program details.
Is solar equipment exempt from sales tax in Massachusetts?
Yes. Massachusetts exempts solar energy equipment from state sales tax, reducing upfront system costs.
Does going solar increase property taxes in Massachusetts?
No. Massachusetts offers a property tax exemption for solar energy systems, meaning the added home value from solar is not included in your property tax assessment.
Did the federal solar tax credit expire?
Yes. The federal residential solar tax credit (Section 25D) expired December 31, 2025 per the One Big Beautiful Bill Act (Public Law 119-21). The commercial ITC (Section 48E) remains active at 30% for systems under 1 MW through 2032.