Massachusetts solar incentives in 2026, in one line: no federal credit for a system you buy, but SMART 3.0 payments, a 15% state tax credit, tax exemptions and some of the highest electricity rates in the U.S. keep solar paying off. Last updated: 16 October 2026.
Massachusetts Solar Incentives 2026 at a Glance
| Incentive | Status in 2026 | What it is worth |
|---|---|---|
| Federal residential credit (Section 25D) | Ended 31 Dec 2025 | $0 on a 2026 cash or loan purchase |
| Federal Section 48E (lease / PPA) | Claimed by the system owner, not you | Indirect – may show up as a lower lease or PPA rate; tightens after 2027 |
| Massachusetts solar tax credit | Active | 15% of system cost, up to $1,000; unused credit carries forward up to 3 years |
| SMART 3.0 | Active | Flat base rate of $0.03 per kWh produced for most home systems up to 25 kW in 2026; higher for income-qualified homes |
| Sales tax exemption | Active | The 6.25% sales tax is waived on solar equipment |
| Property tax exemption | Active | Added home value exempt for 20 years |
| Net metering | Active | Exports credited against your bill at most utilities |
Massachusetts combines high electricity prices with strong incentives, which makes solar pay off quickly here in 2026. The 30% federal credit expired at the end of 2025, so what is left is the state layer: a Massachusetts tax credit and the SMART performance program. Here is what you can claim.
Massachusetts Solar Incentives in 2026
- No federal tax credit on a 2026 cash or loan purchase - Section 25D expired 31 December 2025. See solar tax credit 2026.
- Massachusetts state solar tax credit - 15% of the cost, up to $1,000.
- SMART 3.0 - a per-kWh payment for the electricity your system produces.
- Sales and property tax exemptions.
- Net metering for excess power.
What Solar Costs in Massachusetts
A typical 7 kW system is around $21,000 before incentives. High local electricity rates mean each kWh you offset is worth more, so savings and payback are strong.
Is Solar Worth It in Massachusetts?
Yes for most homeowners. Among the highest electricity rates in the country plus the SMART program and tax credits make Massachusetts a top solar state.
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Massachusetts Solar Incentives FAQ
What solar incentives does Massachusetts offer in 2026?
The 15% state tax credit (up to $1,000), SMART 3.0 production payments, a sales tax exemption, a 20-year property tax exemption and net metering. There is no federal credit for a system you buy.
What is the SMART program?
SMART (Solar Massachusetts Renewable Target) pays you for the solar electricity your system generates. Under SMART 3.0 most home systems up to 25 kW get a flat base rate - $0.03 per kWh in 2026 - with the rate reset each year for new systems. Check the current term and adders with your installer or MassCEC.
How much is the Massachusetts solar tax credit?
15% of the system cost, capped at $1,000. Unused credit carries forward for up to 3 years.
Are MA electricity rates really that high?
Yes, among the highest in the U.S., which is part of why solar pays off so quickly in the state.
Can I combine Massachusetts and federal incentives?
There is no federal credit left to stack on a 2026 cash or loan purchase - Section 25D ended 31 December 2025. Massachusetts incentives still stack with each other. With a lease or PPA, the system owner may claim Section 48E - see solar tax credit 2026.
Related
- Solar incentives by state
- Solar tax credit 2026: what changed
- New York solar incentives
- New Jersey solar incentives
- Net metering explained
- Solar panel cost
- Is solar worth it?
General 2026 guidance, not tax advice. Verify current MA program rules before purchasing.