15% state tax credit
Up to $1,000 with the Solar, wind, and energy credit
Massachusetts Solar Incentives, Explained and Stacked
Massachusetts backs solar with one of the strongest incentive stacks in the country: a flat per-kWh payment through SMART, full retail-rate net metering, a 15% state tax credit, and two separate tax exemptions. Most homeowners never see the full math. We’re putting it in one place.
Massachusetts solar incentives at a glance
Massachusetts homeowners who go solar in 2026 can stack five state and utility-level incentives on top of each other: the SMART 3.0 production payment, full retail-rate net metering, a 15% state tax credit (capped at $1,000), a 100% sales tax exemption, and a 20-year property tax exemption. Mass Save adds separate rebates for heat pumps and battery storage. The federal residential tax credit (Section 25D) expired December 31, 2025, so it no longer applies to purchased or loan-financed systems, but Massachusetts’ own stack still makes solar pencil out for most homeowners without it.
$0.03/kWh
SMART 3.0 base rate locked for 20 years once enrolled
100%
property tax exemption on added home value for 20 years
How the solar incentives stack together
None of these programs are either/or. A typical Massachusetts homeowner installing an 8 kW system (roughly $28,000–$32,000 before incentives) is layering value from multiple directions at once:
- Up front, at purchase: the sales tax exemption removes roughly $1,750–$2,000 from the invoice immediately.
- The following tax season: the state credit knocks up to $1,000 off your Massachusetts income tax bill.
- Every year for 20 years: the property tax exemption shields $15,000–$25,000 in added home value from local tax, every year, for two decades.
- Every month, ongoing: net metering is what actually erases most of your monthly bill.
- Every year for 20 years, separately: SMART pays you directly for what your system produces — at the current $0.03/kWh base rate, an 8 kW system generating roughly 9,600 kWh/year earns approximately $288/year, on top of (not instead of) your net metering savings.
- If you add a battery: ConnectedSolutions adds a separate seasonal payment on top of everything else.
Stacked together, most homeowners see the sales tax and state credit reduce the project cost on day one, while net metering and SMART work together to reduce or eliminate the monthly bill for two decades. Your Venture Home advisor will model this against your actual usage and your utility before you sign anything — the ranges above are illustrative, not a quote.
Federal Tax Credits
What happened to the federal tax credit?
The federal residential solar tax credit (Section 25D) (the 30% credit many homeowners planned around) expired December 31, 2025. If you buy or finance a system with a loan in 2026, there is no federal credit attached to it.
There’s one exception: if you go solar through a lease or Power Purchase Agreement (PPA), the third-party company that owns your system may still claim a separate business-side credit (Section 48E) and, in some cases, pass part of that savings through as a lower monthly payment. That pass-through isn’t automatic or guaranteed dollar-for-dollar — it depends on the specific lease structure, so ask directly how (or whether) it factors into your quote.
This is also exactly why Massachusetts’ own stack; SMART, net metering, the state tax credit, and both exemptions, matters more in 2026 than it did a few years ago. It’s not a substitute for the old federal credit, but it’s a real, still-available stack that doesn’t depend on Washington.
Current SMART Rates for Massachusetts
SMART 3.0: what it pays and how it works
SMART (Solar Massachusetts Renewable Target) is the state’s production incentive, a direct per-kWh payment from your utility for the electricity your system generates, separate from net metering.
SMART moved to a flat-rate structure in its third phase (SMART 3.0), replacing the old declining capacity-block model that determined earlier enrollees’ rates by how full each utility’s block was when they signed up.
Current SMART 3.0 rates (2026):
- Base rate: $0.03 per kWh
- Low-income qualified rate: $0.06 per kWh
- Contract term: locked in for 20 years from enrollment
- System size: flat rate applies to residential systems up to 25 kW, which covers essentially every home installation
- Eligible utilities: National Grid, Eversource, and Unitil. All three investor-owned utilities in Massachusetts participate, and the rate itself doesn’t vary by utility
Eligibility: your system must not have started on-site construction before June 20, 2025, and you can’t have previously received a SMART or Renewable Portfolio Standard incentive on the same property.
How you apply: you don’t file anything yourself. Your installer applies for SMART enrollment on your behalf as part of the interconnection paperwork — ask your Venture Home advisor to confirm your SMART application was submitted before your system is activated.
Net metering, utility by utility
Net metering is what actually offsets your monthly bill. When your system produces more than your home uses, the surplus exports to the grid and your utility credits your account at the full retail rate — not a discounted wholesale rate. Massachusetts law requires this for residential (Class I) systems up to 25 kW, and unlike some states, Massachusetts residential systems are exempt from the statewide net metering capacity cap that applies to larger commercial arrays.
A system sized close to your annual usage (which is how Venture Home designs every system) rarely leaves much on the table. The retail rate is different for each Massachusetts utility, because it’s based on that utility’s current supply and delivery rates:
National Grid
Effective net metering credit value is approximately $0.39/kWh as of early 2026. National Grid serves the Worcester area and parts of Western Massachusetts within Venture Home’s footprint.
Eversource
Effective net metering credit value is approximately $0.36/kWh as of early 2026. Eversource is the largest utility in the state by far, covering Greater Boston, the North Shore, the South Shore, and Cape Cod.
Unitil
Effective net metering credit value is approximately $0.45/kWh as of early 2026 — the highest of the three, because Unitil’s residential electric rate is also the highest in the state. Unitil serves Fitchburg, Gardner, Leominster, Lunenburg, and Townsend in North Central Massachusetts.
The Massachusetts solar tax credit: 15%, up to $1,000
Massachusetts offers a state income tax credit equal to 15% of the net cost of your solar system, capped at $1,000.
- The credit applies to a system installed on your primary residence in Massachusetts.
- You claim it by filing Schedule EC (Solar and Wind Energy Credit) with your Massachusetts state income tax return, for the tax year the system was installed.
- It’s non-refundable and any unused portion carries forward for up to three years.
- You have to own the system through a cash purchase or solar loan. Leased systems and PPAs don’t qualify for this specific credit, since the credit follows system ownership.
- The cap is $1,000, almost every residential system (nearly all of which cost well above the roughly $6,667 breakeven point) hits the maximum regardless of final project size.
Sales tax and property tax exemptions
These two run automatically in the background and don’t require the ongoing attention SMART or net metering do, but they’re worth understanding because they add up.
Sales tax exemption
Solar equipment — panels, inverters, racking, and battery storage — is 100% exempt from the Massachusetts 6.25% state sales tax, under M.G.L. c.64H §6(dd). This is applied at the point of sale by your installer; you don’t file anything separately.
Property tax exemption
Under M.G.L. c.59 §5, clause 45, the value your solar system adds to your home is 100% exempt from local property tax assessment for 20 years. Battery storage systems like a Tesla Powerwall installed alongside solar are generally covered under the same exemption.
Massachusetts municipalities are required to apply this exemption, and many do so automatically based on your building permit. Even so, it’s worth confirming directly with your local Board of Assessors — some towns want a written notice or a Form CL-1 on file to make sure your system is correctly excluded from your next assessment.
Mass Save: heat pump and battery rebates
Mass Save runs alongside the state’s solar-specific incentives and covers the parts of a whole-home energy system that aren’t panels — mainly heat pumps and battery storage.
Heat pump rebates
- Up to $8,500 depending on utility and system type.
- Eversource: up to $8,500.
- National Grid: $2,650 per ton, up to $8,500.
Mass Save HEAT Loan
- 0% APR financing, up to $25,000, over a 7-year term.
- Covers heat pumps, weatherization, and residential battery storage, as long as the battery is enrolled in ConnectedSolutions.
ConnectedSolutions battery incentive:
- A separate, ongoing seasonal payment for letting your utility draw from your home battery during a limited number of peak summer demand events.
- Eversource: $275 per kW of your battery’s average contribution during those events.
- National Grid: $225 per kW.
- Unitil: participates in ConnectedSolutions, but published per-kW rates are less consistently documented than the other two utilities — ask your advisor to pull Unitil’s current rate before you count on a specific number.
We manage all local permits and utility interconnection with Eversource, National Grid, or Unitil
How to Apply for Massachusetts Solar Incentives: Step-by-Step
1. Free home energy assessment.
A Venture Home advisor reviews your usage, your roof, and your specific utility account, and models what your incentive stack actually looks like in dollars, before you commit to anything.
2. System design and proposal.
We size the system to your usage (not oversized to inflate SMART payments), and hand you an itemized proposal showing the sales tax exemption, projected SMART income, and net metering value specific to your utility.
3. Choose how you’re financing it.
Cash, loan, or lease/PPA — this decision determines whether you’re eligible for the 15% state tax credit, since leased systems don’t qualify.
4. Permitting and utility interconnection.
Your installer files your building permit and the interconnection application with your utility. This step also includes your SMART enrollment — your installer applies on your behalf.
5. Installation.
Most Venture Home installations are completed in 1–2 days by a local W-2 crew.
6. Inspection and Permission to Operate (PTO).
Your town’s electrical inspector signs off, and then your utility issues Permission to Operate. Your system can’t be turned on until PTO is granted.
7. Activation.
Net metering credits and SMART payments begin accruing once your system is live. Your advisor confirms your SMART enrollment is active and your first billing cycle reflects it correctly.
8. Claim your credits.
File Schedule EC with your Massachusetts state tax return the following tax season for the 15% credit. The sales tax exemption is already reflected in your original invoice. The property tax exemption is typically automatic, but confirm with your local Board of Assessors.
Massachusetts incentives at a glance, by utility
| Venture Home | National Grid | Eversource | Unitil | |
|---|---|---|---|---|
| Service Area | Installs across the entire state of Massachusetts | Worcester area, parts of Western MA | Greater Boston, North Shore, South Shore, Cape Cod | Fitchburg, Gardner, Leominster, Lunenburg, Townsend |
| SMART 3.0 Rate | Applies for your SMART enrollment on your behalf, no separate paperwork | $0.03/kWh base, $0.06/kWh low-income (same across all utilities) | $0.03/kWh base, $0.06/kWh low-income (same across all utilities) | $0.03/kWh base, $0.06/kWh low-income (same across all utilities) |
| Net Metering Credit Value (approx., early 2026) | Sizes your system to your actual usage so you capture the full credit | ~$0.39/kWh | ~$0.36/kWh | ~$0.45/kWh (highest — reflects the state’s highest residential electric rate) |
| Mass Save Heat Pump Rebate | Not a Venture Home install — ask your advisor how to coordinate with your HVAC contractor | $2,650/ton, up to $8,500 | Up to $8,500 | Confirm current amount with advisor |
| ConnectedSolutions Battery Incentive | Installs and enrolls Tesla Powerwall / Enphase batteries in ConnectedSolutions for you | $225/kW | $275/kW | Confirm current amount with advisor |
| State Tax Credit, Sales Tax Exemption, Property Tax Exemption | Sales tax exemption applied directly on your invoice, nothing to file | Apply the same way regardless of utility — these are state, not utility, programs | n/a | n/a |
Save with solar
Frequently Asked Questions
What solar incentives are available in Massachusetts right now?
Massachusetts stacks five state and utility-level incentives: the SMART 3.0 production payment, full retail-rate net metering, a 15% state tax credit up to $1,000, a 6.25% sales tax exemption, and a 20-year property tax exemption. Mass Save adds separate rebates for heat pumps and battery storage. The federal residential credit expired at the end of 2025 and is no longer part of the stack for purchased systems. See the section-by-section breakdown above for how each one actually works.
What’s the difference between SMART and net metering?
SMART pays you directly, per kilowatt-hour your system produces, regardless of whether you use that electricity or export it. Net metering only credits the electricity you actually export to the grid, valued at your utility’s retail rate. The two stack on the same production — a home that uses some of its solar power and exports the rest earns a SMART payment on everything it generates and a net metering credit on whatever gets exported.
Detailed breakdown:
- If your system produces more than your home uses in a given hour, then the surplus is what net metering credits — SMART pays on the full output regardless of whether it’s used or exported.
- If you’re comparing the two programs’ payout, then SMART is a small, steady per-kWh check (see the rates above); net metering is what actually offsets your bill, since it’s valued at the full retail rate rather than a flat cents-per-kWh rate.
Which utility gives me the best net metering deal?
The utility with the highest retail electric rate gives you the highest net metering credit value, because the credit is based on that rate. As of early 2026, Unitil customers see the highest effective credit (~$0.45/kWh), followed by National Grid (~$0.39/kWh) and Eversource (~$0.36/kWh).
Detailed breakdown:
- If you’re comparing quotes across utility territories, then don’t read a higher net metering rate as the better deal on its own — Unitil’s higher credit value tracks its higher retail rate, so the bill it’s offsetting is bigger too.
- If you’re on Cape Cod or the Islands and served by Cape Light Compact, then your terms run through a separate program — ask your advisor to confirm the current Cape Light Compact rate rather than assuming Eversource’s rate applies.
Do I still get a federal tax credit for going solar in 2026?
Not if you buy or finance the system with a loan — the 30% federal residential credit (Section 25D) expired December 31, 2025. If you go solar through a lease or PPA, the company that owns your system may still claim a separate business credit and could pass some of that value through in your monthly payment, but it’s not guaranteed or automatic.
Detailed breakdown:
- If you’re unsure whether your financing counts as ownership for credit-eligibility purposes, then ask your advisor directly — the distinction is ownership, not monthly payment size. A $0-down solar loan still counts as ownership; a $0-down lease does not.
- If a lease or PPA quote claims to “pass through 30%,” then ask specifically how that number is calculated and whether it’s reflected in your monthly payment or just marketing language.
How much can I actually expect to save with all of this stacked together?
It depends on your system size, your utility, your usage, and how you finance it — which is exactly why Venture Home models your specific numbers instead of quoting a generic range.
Detailed breakdown:
- If you’re an 8 kW system on Eversource, then expect roughly $1,750–$2,000 off at purchase from the sales tax exemption, $1,000 back at tax time, and about $288/year in direct SMART income at the $0.03/kWh base rate — separate from whatever net metering saves you monthly.
- If you’re comparing Venture Home’s estimate to a number from another company, then ask specifically which of the five Massachusetts incentives (and any Mass Save rebates) they included — some quotes only reflect net metering and skip the rest of the stack.
Do I need to do anything myself to get these incentives, or does Venture Home handle it?
Venture Home’s installer team files the SMART enrollment and the interconnection paperwork with your utility as part of your installation. The sales tax exemption is applied automatically on your invoice. You’re responsible for two things: filing Schedule EC with your state tax return the year after installation, and confirming the property tax exemption with your local Board of Assessors if your town doesn’t apply it automatically.
Is a battery worth it just for the Mass Save incentive?
ConnectedSolutions pays you for letting your utility draw from your battery during a small number of summer peak-demand events, and that payment stacks on top of your battery’s main job — keeping your home powered during an outage. Whether it’s worth it depends more on outage risk and backup priorities in your home than the incentive alone; ask your advisor to walk through both sides before deciding.
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Office Location
2 Kane Industrial Dr, Hudson, MA 01749
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