Massachusetts Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows Massachusetts homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $18,540 in Massachusetts, that's a direct tax credit of $5,562. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

In addition to the federal ITC, Massachusetts offers its own state solar tax credit: 15% of costs, up to $1,000. This state credit can be claimed alongside the federal credit, stacking your total tax savings. For a 6kW system, the Massachusetts state credit saves you approximately $1,000.

Combined with the federal ITC, your total tax credits amount to $6,562 — reducing your net system cost to just $11,978. That's a 35% reduction from the gross cost.

Great news for Massachusetts homeowners: Solar energy systems are exempt from property tax assessments. 20-year property tax exemption Studies show solar adds 3-4% to home values. For a $300,000 home, that's roughly $12,000 in added value — and with Massachusetts's property tax exemption, you save approximately $132 per year in property taxes you'd otherwise owe on that increased value.

Massachusetts exempts solar energy equipment from state sales tax. On a 6kW system costing $18,540, this saves you approximately $1,205 at the point of purchase. This is an immediate, upfront savings that reduces your out-of-pocket cost before even accounting for tax credits.

Net metering policy: Full Retail Rate. Full retail rate for residential under 25 kW The current system size cap is 25 kW residential.

Massachusetts's full retail rate net metering is one of the strongest solar policies available. Every excess kWh your system sends to the grid earns you a credit at the full retail rate of 30.48¢/kWh. This means your solar panels generate maximum value — surplus energy produced during sunny hours offsets your evening and nighttime consumption at the same rate you'd pay to buy that electricity.

SMART program performance payments; Mass Save energy efficiency rebates

Utility rebates and state programs can change frequently. We recommend checking with your local utility and the Database of State Incentives for Renewables & Efficiency (DSIRE) for the most current programs available in your area.

Massachusetts has a mandatory Renewable Portfolio Standard (RPS) target of 35% Class I by 2030, 50% by 2035, 100% clean by 2050. This legally binding target drives continued investment in renewable energy infrastructure and often supports solar-friendly policies like net metering and SREC programs. A strong RPS is generally good news for solar homeowners, as it creates market demand for renewable energy and helps maintain favorable solar policies.