Massachusetts Solar Incentives 2026
Complete guide to solar incentives and savings programs available to Massachusetts homeowners
Massachusetts offers various solar incentives and programs designed to make renewable energy more accessible for homeowners across the state. Solar incentives and savings can come from a mix of local and utility programs, plus bill savings from producing your own electricity. This comprehensive guide breaks down available incentives, rebates, and ways to reduce your solar installation costs in 2026.
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Key Takeaways
Solar incentives and savings can come from local and utility programs, plus bill savings from producing your own electricity
Net metering credits your utility bill for excess solar power sent to the grid at retail rates
Property tax exemption prevents solar from increasing your home's assessed value
SMART program provides ongoing incentives for solar energy production
Local utilities offer various incentive programs for solar customers
Combined incentives can total significant savings for typical residential solar systems
Solar Incentives and Savings in Massachusetts
Solar incentives and savings can come from a mix of local and utility programs, plus bill savings from producing your own electricity. Depending on where you live, you may be eligible for options such as:
Available Incentive Options
Solar savings opportunities vary by location and may include net metering, local programs, and tax incentives.
Types of Solar Incentives
- 1Net Metering / Bill Credits: Value for excess electricity your system exports to the grid (rules vary by utility)
- 2Local or State Programs: Rebates, performance-based incentives, or other programs that differ by location and may change over time
- 3Tax Exemptions or Credits (where available): Some areas offer property or sales tax relief related to solar
- 4Confirm Availability: Because incentives differ by location and can change, confirm what applies to your address before signing a contract
Important Note About Incentives
Incentive availability and terms vary significantly by location and may change over time. Always confirm with a qualified solar installer which incentives apply to your specific address and situation before committing to an installation.
SMART Program Incentives
SMART Program Incentives
The SMART program provides additional incentives for residential solar installations, helping to reduce costs further.
SMART Program Details
Eligibility Requirements
- Must be a Massachusetts resident and taxpayer
- Solar system must be installed at your primary or secondary residence in MA
- System must be owned, not leased or under a PPA
- Installation must be completed by a qualified contractor
How to Claim
- Check with your local utility provider for specific SMART program details
- Follow the utility's guidelines to claim your incentives
- Consult with a solar installer for assistance in navigating the program
Net Metering in Massachusetts
Net metering is Massachusetts's billing mechanism that credits solar system owners for the excess electricity they generate and send back to the grid. When your solar panels produce more power than your home uses, the surplus flows to the grid, and you receive credits on your electric bill.
How Net Metering Saves You Money
Sunny Days
Your panels produce more electricity than you need. Excess power flows to the grid, and you earn credits at the retail electricity rate (typically $0.11-$0.14/kWh in Massachusetts).
Cloudy Days & Nights
When your panels aren't producing enough, you draw power from the grid as usual. Your banked credits offset these charges.
Annual True-Up
Credits roll over month-to-month. Massachusetts utilities may have different policies for excess credits at year-end.
Annual Savings from Net Metering
For a typical Massachusetts home with a 7 kW solar system, net metering can save $1,000-$1,600 per year on electricity bills. Over 25 years, that's $25,000-$40,000 in cumulative savings.
Property Tax Exemption for Solar
Massachusetts offers a property tax exemption for solar energy systems, ensuring that adding solar panels to your home won't increase your property tax bill. Even though solar typically increases your home's market value by 3–4%, the added value from the solar system is exempt from property tax assessment.
Property Tax Exemption
Solar installations are exempt from property tax increases. This means you gain home value without paying higher property taxes.
Why This Matters
Let's say your solar system adds $15,000 to your home's value. In Massachusetts counties with property tax rates around 1%, you'd normally pay an extra $150 per year in property taxes. With the solar exemption, you avoid these additional taxes while still gaining the home value increase.
Local Utility Programs
Local utility providers in Massachusetts offer various programs for solar customers. These programs vary by utility provider and may include interconnection incentives, time-of-use rates, and community solar options.
Available Utility Programs
Interconnection Programs
Utilities offer standardized interconnection procedures to connect your solar system to the grid safely and efficiently.
Time-of-Use Rates
Some utilities offer time-of-use rate plans that can maximize your solar savings by crediting more during peak hours.
Community Solar Options
Some utility providers offer community solar programs for customers who can't install rooftop solar.
Frequently Asked Questions
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Last updated: January 2026
By: FreeSolarPanelsMA Editorial Team