Massachusetts Residential Solar Incentives

The Federal Investment Tax Credit (ITC) is the largest solar incentive available, allowing you to deduct 30% of your total system cost from your federal taxes.

Example: If your solar system costs $25,000, you can claim a $7,500 tax credit when you file your taxes!

The 30% rate is available through 2032, then decreases to 26% in 2033 and 22% in 2034. This applies to the full cost including equipment, installation, permits, and even battery storage.

The Solar Massachusetts Renewable Target (SMART) program pays you for every kilowatt-hour (kWh) of solar electricity your system produces for 10 years.

You literally get paid just for having solar panels! The payment rate varies by utility company and location, but most homeowners receive $0.20-$0.30 per kWh generated.

This adds thousands of dollars in additional value over the program's 10-year term, significantly improving your return on investment.

Net metering allows you to send excess solar energy back to the grid in exchange for credits on your electric bill. When your panels produce more than you use, your meter runs backward!

These credits offset your electricity costs during times when your panels aren't producing enough (nights, cloudy days, winter). Massachusetts has strong net metering policies with 1:1 credit rates.

Result: You only pay for your "net" electricity usage, dramatically reducing or even eliminating your electric bill.

Solar panels increase your home's value by an average of 4-6%, but thanks to Massachusetts law, this added value is 100% exempt from property taxes.

Example: If solar adds $30,000 to your home's value, you won't pay a single penny more in property taxes. You get all the value appreciation without the tax burden!

This exemption continues for the full 20-year duration, saving you thousands over time.

Massachusetts offers a 100% sales tax exemption on solar panel systems. With the state's 6.25% sales tax rate, this saves homeowners an additional $1,500+ on a typical installation.

This exemption applies to all residential solar equipment including panels, inverters, mounting hardware, and battery storage systems.

On top of the federal credit, Massachusetts offers a state income tax credit of 15% of your system cost, up to $1,000.

While smaller than the federal credit, this is essentially free money that reduces your state tax burden the year you install solar.

Combined with the federal credit, you're getting over 30% of your system cost back in tax incentives alone!