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.
- Massachusetts state solar tax credit (up to a state cap).
- SMART program — performance-based payments 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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FAQ
What is the SMART program?
SMART is Massachusetts's performance program that pays you a set rate for the solar electricity your system generates.
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.
Related
General 2026 guidance, not tax advice. Verify current MA program rules before purchasing.