MassachusettsSolar Incentives 2026: Tax Credits, Rebates & Net Metering
Massachusetts homeowners can reduce solar installation costs by up to 45% through state and federal incentives. With average monthly bills of $195 and 4.4 peak sun hours per day, the average MA homeowner saves $52,600 over 25 years.
State Solar Tax Credit
Massachusetts offers a 15% state income tax credit on residential solar installations, capped at $1,000. The credit applies to panels, inverters, mounting hardware, and labor. It is non-refundable but can typically be carried forward to subsequent tax years if your liability in the install year is too low to absorb the full credit.
The Massachusetts state credit stacks with the federal 30% Residential Clean Energy Credit. On a typical $24,000 installation, that combination returns roughly $8,200 in combined credits.
Net Metering in Massachusetts
Massachusetts requires investor-owned utilities to offer net metering on residential solar systems. The credit rate is a modified rate (typically retail rate minus a small grid utilization fee).
In practice, this means a properly sized Massachusetts system can drive net annual electricity costs to within tens of dollars of zero. Top utilities operating under MA net metering rules include Eversource, National Grid, Unitil.
Utility Rebate Programs
3 major utilities operate in Massachusetts: Eversource, National Grid, Unitil. Specific rebate availability varies year to year and is typically distributed first-come, first-served until annual budget caps are reached.
Before scheduling any installation, verify current rebate status directly with your utility — programs open and close throughout the year. Most Massachusetts installers will pull up-to-date rebate data during a site assessment.
Property & Sales Tax Exemptions
Massachusetts excludes the added value of a residential solar system from property tax assessments. A homeowner whose property gains $15,000 in assessed value from a solar install pays no additional property tax on that increase, saving roughly $250 to $400 annually depending on local mill rates.
Massachusetts also exempts solar equipment from state sales tax, removing roughly 4% to 7% from the up-front cost of panels, inverters, and racking depending on local rate.
MA SREC Market
Massachusetts has an active Solar Renewable Energy Certificate (SREC) market. Homeowners earn one SREC for every megawatt-hour produced and sell them on the MA compliance market.
At current clearing prices, the average MA homeowner earns approximately $11,200 in SREC income over the first five years of operation. SREC values are volatile and depend on the state's Renewable Portfolio Standard compliance demand each year.
How Massachusetts Compares to Neighboring States
Compare Massachusetts's solar incentive package side-by-side with adjacent states to see whether you live in a relatively high- or low-incentive market.