Massachusetts offers some of the country’s most generous solar incentives, combining federal tax credits with state-specific programs like SMART (Solar Massachusetts Renewable Target) to reduce installation costs. The SMART program provides fixed incentive rates for 10 years, while utility companies offer additional rebates to help offset upfront expenses.
We analyzed the latest solar incentives, rebate programs, and policy requirements in the Bay State to create this guide for Massachusetts residents. Whether you’re comparing installers or calculating potential savings, you’ll find the essential information needed to make an informed decision about going solar in Massachusetts.
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What Solar Tax Credits and Rebates Does Massachusetts Offer?
Massachusetts distinguishes itself as one of the most solar-friendly states in the nation. While states like California and Arizona focus primarily on net metering and tax exemptions, Massachusetts takes a diversified approach by combining production-based incentives, tax benefits, and specialized programs for low-income households. These incentives dramatically reduce the upfront costs of going solar and speed up the return on investment (ROI).
Below, we examine the specific solar incentives available to MA residents:
| Incentive | Type | Where It Comes From | What It Provides |
|---|---|---|---|
| ConnectedSolutions Program | Performance payment | Utility | Provides additional incentives for installing solar panels with battery storage and payments for participating in demand response events |
| Federal Solar Tax Credit (ITC) | Tax credit | Federal | Reduces federal tax liability by 30% of total solar system cost, including installation. Available through 2032, then drops down to 26% in 2033 and 22% in 2034 |
| Massachusetts Personal Income Tax Credit | Tax credit | State | Offers 15% of total system cost up to $1,000 maximum credit against state income tax liability |
| Mass Save® HEAT Loan | Financing | State | Offers 0% interest loans up to $50,000 for qualified solar installations, available through participating lenders |
| Municipal Light Plant Solar Rebates | Rebate | Local | Some towns offer additional upfront rebates ranging from $0.50–$1.25 per watt installed. Varies by location |
| Property Tax Exemption | Tax exemption | State | Provides a 20-year exemption from additional property taxes on the added home value from solar installation |
| Sales Tax Exemption | Tax exemption | State | Offers 100% exemption from the state’s 6.25% sales tax on solar equipment and installation costs |
| SMART Program | Production-based incentive | State | Provides fixed monthly payments based on system size and location for 10 years. Rates vary by utility territory and block allocation but typically range from $0.13–$0.35 per kWh produced |
Can You Qualify for a Federal Solar Tax Credit in Massachusetts?
Massachusetts residents can qualify for the federal solar tax credit, which currently offers a substantial 30% reduction in your total solar installation costs. The credit applies to both the equipment and installation costs, meaning if you spend $20,000 on your solar system, you could receive a $6,000 credit on your federal taxes.
To qualify, you need to own your solar system (rather than lease it) and install it on your primary or secondary residence in Massachusetts. The system must be new or being used for the first time, and you need to have sufficient tax liability to claim the full credit. However, any unused portion can be carried forward to future tax years. This credit is valuable because it has no upper limit on its dollar value, unlike many state-level incentives.
You’ll need to complete IRS Form 5695 with your federal tax return, documenting your solar expenses with receipts and contracts from your installation. The current 30% rate is guaranteed through 2032, after which it will step down to 26% in 2033 and 22% in 2034, making this the best time for MA homeowners to invest in solar.
Does Massachusetts Offer Net Metering?
Massachusetts not only offers net metering but has some of the best net metering policies in the country. When your panels generate more electricity than you’re using, your utility company credits your bill at nearly the full retail rate for that excess power sent back to the grid. The specific net metering rates in Massachusetts vary depending on your utility company and system size, but most residential customers receive credits worth 90%–100% of the retail electricity rate.
For example, if your retail electricity rate is $0.25 per kilowatt-hour (kWh), you’ll receive around $0.22–0.25 in credits for each excess kWh your system produces. These credits typically roll over month to month and don’t expire for up to a year, giving you the flexibility to use them during Massachusetts’ less sunny winter months when your system’s production naturally decreases.
Other Ways To Save on Solar in Massachusetts
MA homeowners have several additional paths to make solar more affordable beyond the major incentive programs we’ve discussed. These savings opportunities can reduce both your upfront costs and ongoing expenses when combined. Here are some key ones to consider:
- Community solar programs: These programs offer an alternative to installing solar panels if your roof isn’t suitable or you’re renting. You use a local solar farm and receive credits on your utility bill, typically saving 5%–10% on electricity costs without any upfront investment. Many Massachusetts utilities now offer simplified enrollment in these programs.
- Local municipal incentives: These benefits vary by city and town but can provide substantial additional savings. For instance, Cambridge offers an extra $1,000 solar rebate, while Newton provides property tax exemptions beyond the state program. Check with your local sustainability office for city-specific opportunities.
Solar Panel Cost in Massachusetts
The average cost of a 5 kW solar panel installation in Massachusetts ranges from $13,728–$18,572 before incentives, with most homeowners paying around $3.23 per watt installed. However, thanks to the state’s generous incentive programs and the 30% federal tax credit, Massachusetts residents can significantly reduce these upfront costs and often see a complete return on investment within five to seven years.
The table below breaks down the typical costs and savings for different system sizes in Massachusetts:
| System Size | Total Cost Before Incentives* | Cost After Federal Tax Credit (30%) | Cost After MA Incentives** | Estimated First Year Savings*** |
|---|---|---|---|---|
| 5 kW | $16,150 | $11,305 | $10,305 | $1,500 |
| 6 kW | $19,380 | $13,566 | $12,566 | $1,800 |
| 7 kW | $22,610 | $15,827 | $14,827 | $2,100 |
| 8 kW | $25,840 | $18,088 | $17,088 | $2,400 |
| 9 kW | $29,070 | $20,349 | $19,349 | $2,700 |
| 10 kW | $32,300 | $22,610 | $21,610 | $3,000 |
*Cost data via EnergySage
**Includes state tax credit ($1,000) SMART program benefits
***Based on average electricity rates of $0.25/kWh and typical system production in Massachusetts
- In 2025, we surveyed 1,000 U.S. homeowners who have had solar panels installed. The 35 respondents in Massachusetts reported paying an average of $18,538 for their solar panel installations, compared to a national average of $16,129.
Do Massachusetts Utility Companies Offer Solar Rebates?
Massachusetts utility companies offer several solar rebate programs thanks to the state’s competitive energy market structure. The Bay State operates under a partially deregulated electricity market, which means the traditional utility functions of electricity generation, transmission, and retail sales have been separated. This market structure creates healthy competition among energy providers while maintaining reliability through regulated distribution utilities.
For solar customers, this arrangement is particularly beneficial because both your distribution utility company (like Eversource or National Grid) and competitive suppliers can offer incentives to encourage solar energy, giving you multiple opportunities to save. The deregulated environment has spurred utilities to develop innovative solar programs as they compete to meet state renewable energy requirements and attract customers.
Your utility’s rebate programs typically work alongside other state incentives like SMART rather than replacing them. Here’s a current overview of the major utility solar programs in Massachusetts:
| Utility Company | Program Name | Rebate Amount | Additional Benefits | Eligibility |
|---|---|---|---|---|
| Eversource | ConnectedSolutions | Up to $1,500/year | Extra incentives for battery storage; demand response payments | Must install eligible inverter and/or battery system; residential customers only |
| National Grid | Solar Rewards | $0.50/W up to $5,000 | Additional performance-based incentives available | System size 10kW or less; primary residence only |
| Reading Municipal Light Department | Residential Solar Program | $0.70/W up to $3,500 | Free energy audit included | Must complete energy audit before installation |
How To Apply for Solar Incentives in Massachusetts
Here’s a step-by-step guide to applying for solar incentives in your area.
- Evaluate your eligibility: Own or lease property suitable for solar installation. Confirm your location meets the criteria for specific incentive programs. Use a licensed and approved solar installer as required by the program.
- Choose a qualified solar installer: Research local installers with strong reviews and certifications. Verify that the installer is approved for the incentives you’re applying for. Obtain multiple quotes to compare costs and system options.
- Schedule a solar assessment: Your chosen installer will assess your property to ensure it’s suitable for solar. The company will design a system tailored to your energy needs and help maximize eligibility for incentives.
- Submit applications for incentives: Work with your installer to submit necessary documentation to state or local authorities. Save all invoices and receipts to include with your federal tax filing.
- Install your solar system: Work with your installer to schedule the installation. Check that local authorities and your utility company complete proper inspections.
- Start saving and monitoring: Once your system is operational, track your production using monitoring tools. Review your electricity bills to see how net metering credits are applied.
Massachusetts Solar Companies We Recommend
When going solar in Massachusetts, choosing a reliable installer is crucial for maximizing your investment and ensuring quality installation. Here are our top recommended solar companies in Massachusetts:
- Venture Solar: This provider leads the Northeast solar market with customized installations and superior customer service. Its expertise with Massachusetts building codes and weather considerations makes it especially valuable for local installations. It maintains an A+ BBB rating and offers comprehensive 25-year warranties.
- Momentum Solar: Momentum stands out for its high-quality panel selection and meticulous installation process. It performs excellent work assessing Massachusetts homes’ solar potential and handles all permitting paperwork. Its NABCEP certification and strong track record of successful installations in the state make it a reliable choice.
- Blue Raven Solar: This installer has built a strong reputation in Massachusetts through transparent pricing and quality workmanship. It offers innovative financing options and maintains consistently high customer satisfaction ratings, with more than 2,000 successful installations in the state.
Survey Insights from Massachusetts Solar Customers
In 2025, we surveyed 1,000 solar customers across the U.S., with 35 respondents living in Massachusetts, to understand their experience shopping for and installing solar panel systems. The average price for solar installation in Massachusetts, according to our survey, was $18,538. This is higher than the national average of $16,129. However, customers in the state also installed 16 solar panels on average, more than the national average of 14. We also found that 31% of Massachusetts customers used Sunrun, one of our top-recommended companies.
Is Going Solar in Massachusetts Worth It?
Yes, going solar in Massachusetts is generally worth it, with typical payback periods of five to seven years due to high electricity rates and strong solar incentives. MA residents can achieve solid returns on solar investments thanks to the state’s SMART program, which pays solar owners for generated electricity, and the 30% federal tax credit.
The state’s high average electricity rate makes the savings more impactful. Solar energy makes the most financial sense for homeowners who have unshaded, south-facing roof space, have high electricity bills (around $150+ per month), and plan to stay in their homes for at least five years. Those with flat or gently sloped roofs in good condition will see better ROI since installation costs are lower. However, homes with heavily shaded roofs or major structural issues or those needing imminent roof replacement may not see worthwhile returns due to higher upfront costs.
How We Evaluated Solar Panel Installation Companies
We ranked the top solar energy system installation companies on their service options, performance guarantees, certifications, and experience. We make sure every company offers at least high-quality monocrystalline solar panel installation and backup battery storage options.
Our Rating System
To determine the best of the best in residential solar energy, we’ve created a rigorous methodology that helps us analyze providers on significant service options to the most minute details of warranty coverage. We assess each company in six key areas.
Here’s a breakdown of our solar panel installer methodology:
- Solar equipment and services: We go through each provider’s service catalog to learn what residential solar services they offer and if they offer additional services that are helpful, such as a dedicated app or web portal, energy audits, monitoring services, and roofing services. These services help speed up and maintain solar panel installation. We also check into whether or not a provider uses in-house installation crews or outsources to a third-party company.
- Warranty and performance guarantees: We go through each company’s warranty coverage and guarantees to make sure you receive adequate coverage and protection for factory malfunctions or improper installation issues. Companies that offer 25 years or more on workmanship and performance receive the most points, while companies that include a production guarantee or roof leak coverage receive additional points.
- Brand reputation and professional certifications: We check each provider on the Better Business Bureau (BBB) and analyze hundreds of its most recent customer reviews to get realistic insight into what it’s like to work with that company. Additionally, we check that there are no ongoing lawsuits or company alerts and that the company holds NABCEP (North American Board of Certified Energy Practitioners) certification.
- Financing options: We go through each company’s payment and financing options. The more payment methods a company offers, the more points it receives. However, leasing and PPAs receive fewer points as we find them less desirable for long-term cost-effectiveness. We also give additional points if the company provides in-house financing rather than relying on your finding a third-party lender.
- Industry experience: The longer a company has been in the residential solar industry, the more points it receives.
- State availability: We go through and check each provider’s service area. The more states it offers solar panel and battery installation in, the more points it receives.
