The state is already setting money aside for you.
Everything we walk through with every customer — SMART payments, net metering, MA 15% tax credit, MACRS depreciation, Class I RECs — and how each applies to your specific address.
Massachusetts consistently ranks among the top states for solar energy, thanks to a combination of high electricity rates, strong state incentive programs, and progressive clean energy policies. These programs can reduce the effective cost of solar by 30-50% and provide ongoing financial benefits for years after installation.
SMART Program
Residential & CommercialSolar Massachusetts Renewable Target
The SMART program is Massachusetts' flagship solar incentive. It provides fixed monthly payments based on your solar system's energy production for 10 years (residential) or 20 years (commercial). The payment rate is locked in at the time of enrollment, providing predictable income over the program term. SMART payments are in addition to the electricity savings and net metering credits you receive, making the overall financial return on solar even more attractive. Adders are available for battery storage, low-income communities, and other qualifying factors.
Net Metering
Residential & CommercialCredits for excess electricity
Net metering allows you to send excess electricity from your solar panels back to the utility grid in exchange for credits on your electric bill. When your panels produce more than you're using, typically during sunny midday hours, the excess flows to the grid and you earn credits at or near the retail electricity rate. These credits can be used during times when your panels aren't producing enough (nighttime, cloudy days). Credits roll over month to month, allowing you to build up credits in sunny months for use in winter. Net metering is available through National Grid, Eversource, and other Massachusetts utilities.
Massachusetts 15% State Tax Credit
ResidentialUp to $1,000 back on your state taxes
Massachusetts offers a personal income tax credit equal to 15% of the cost of your solar installation, up to a maximum credit of $1,000. This credit is claimed on your Massachusetts state tax return in the year your system is installed. While the $1,000 cap limits the total benefit compared to larger federal programs, it's a straightforward incentive that reduces your effective cost of going solar. The credit is available to all Massachusetts taxpayers who install a qualifying solar energy system on their primary residence.
Federal Investment Tax Credit (ITC)
CommercialFederal solar tax credit for businesses
The federal Investment Tax Credit (ITC) is now a commercial-focused incentive following recent legislation. Businesses that install qualifying solar energy systems can deduct a significant percentage of the installation cost from their federal tax liability, which is one of the biggest reasons commercial solar projects deliver such a strong ROI. Credit percentages and eligibility requirements can change with each tax year. Reach out for a free consultation and we'll walk you through exactly how the ITC applies to your project under the current tax code.
MACRS Accelerated Depreciation
CommercialDepreciate your solar investment on a 5- to 6-year schedule
The Modified Accelerated Cost Recovery System (MACRS) lets businesses depreciate the cost of their solar energy system over a short, accelerated schedule, typically around five to six years for commercial solar. Because depreciation reduces taxable income, MACRS significantly boosts the after-tax economics of a commercial solar installation. For many projects, MACRS is second only to the federal ITC in terms of total tax benefit. We work alongside your accountant or tax advisor to make sure your depreciation schedule is set up correctly from the start.
Class I RECs
CommercialAlternative incentive when SMART rates aren't favorable
Not every commercial project is a good fit for the SMART program. In cases where the SMART rate is calculated at zero or is otherwise unfavorable, Massachusetts solar projects can generate Class I Renewable Energy Certificates (RECs) instead. Class I RECs typically pay an average of two to three cents per kilowatt hour of energy produced, and unlike SMART, the Class I REC program has no scheduled end date. That means an indefinite, production-linked revenue stream for the life of the system. We evaluate both SMART and Class I REC paths during every commercial proposal so you can see exactly which incentive structure produces the best return for your project.
Property Tax Exemption
Residential & CommercialSolar doesn't increase your property taxes
Massachusetts law exempts the value added by solar installations from property tax assessments for 20 years. This means that while solar panels typically increase your home's market value by approximately 4.1%, you won't pay higher property taxes as a result. This exemption applies automatically. You don't need to apply for it. It's one of the most underappreciated solar incentives, as it removes a common concern about installing solar.
Sales Tax Exemption
Residential & CommercialNo sales tax on solar equipment
Massachusetts exempts solar energy equipment from the state's 6.25% sales tax. This includes solar panels, inverters, racking, batteries, and other system components. The exemption is applied at the point of purchase, so you don't need to file for a refund. It's automatically reflected in your installation cost. On a typical residential solar installation, this exemption saves homeowners approximately $1,000-$2,000.
Local Utility Rebates
Residential & CommercialArea-specific programs
Some Massachusetts utilities offer additional rebates or incentive programs for solar and battery storage installations. National Grid, Eversource, and municipal utilities each have their own programs that may be available to homeowners and businesses in their service territory. The ConnectedSolutions program, for example, pays battery owners for participating in demand response events. During your free consultation, we'll identify all utility-specific incentives available for your specific location and utility provider.
Want to know exactly how much you could save?
Enter your address into our solar savings calculator for a quick estimate, or request a free custom proposal to factor in every incentive available for your specific property.