Massachusetts Solar Incentives, Rebates and Grants (2026)

Federal Tax Credit Update

The 30% federal residential clean energy credit (Section 25D) ended for systems placed in service after December 31, 2025. Homeowners who buy solar in 2026 can no longer claim it on their own taxes. Some third-party ownership programs (like a Propel lease) can still use commercial credits and pass part of that value to you as a discount.

State Programs

• SMART 3.0: homes with systems 25 kW AC or smaller earn a flat $0.03 per kWh produced for 20 years ($0.06 per kWh for income-eligible customers). https://www.mass.gov/info-details/smart-30-program-details
• State income tax credit: 15% of system cost, up to $1,000, for your principal residence; unused credit can carry forward up to 3 years. https://www.mass.gov/regulations/830-CMR-6261-residential-energy-credit
• Sales tax exemption: residential solar equipment is generally exempt from Massachusetts sales tax. Ask us or a tax professional for details.
• Property tax exemption: qualifying solar systems (generally 25 kW or smaller, or sized to your home) are exempt from local property tax for 20 years. https://www.mass.gov/info-details/ask-dls-solar-abatement-applications
• Net metering: your utility credits the extra power your system sends to the grid.
• Financing: state-backed solar loan programs change often (the Massachusetts Solar for All program is paused). Ask us about current financing options. https://www.masscec.com

Utility Programs

• Mass Save ConnectedSolutions: payments for letting your home battery support the grid during peak times. https://www.masssave.com
• Mass Save: home energy assessments, heat pump rebates and 0% HEAT Loans for efficiency upgrades. https://www.masssave.com

Official Resources

• Mass.gov DOER: https://www.mass.gov/orgs/massachusetts-department-of-energy-resources
• DSIRE incentive database: https://programs.dsireusa.org

Disclaimer

Incentive programs, rates and funding change often and are subject to eligibility, approval and available funds. This page is a general guide as of late 2026, not tax or legal advice. Always verify current terms with the official program and a tax professional.

Talk to a Local Installer

Local Solar and Electric is a locally owned, owner-installed solar and electrical company based in Warwick, RI, serving Rhode Island and Southeastern Massachusetts.

• Call: (401) 206-5532
• Email: operations@localsolarandelectric.com
• RI Class A Electrical License A-005417

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