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Home solar in Massachusetts

Massachusetts has the highest power prices in the region (about 30.5 cents/kWh), near-retail net metering, and a new SMART 3.0 payment of $0.03/kWh ($0.06 low-income) for up to 20 years on home systems 25 kW or smaller.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

30.5¢average home price per kWh (EIA, August 2026)

Strong case for solarVery high electric rates, net metering credits close to the full retail rate, SMART 3.0 payments, a state tax credit, a 20-year property tax exemption and sales tax exemption make one of the strongest cases in the country.

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Net metering Net metering available

Solar systems up to 60 kW get credits for exported power valued at the sum of the default service (supply), distribution, transmission and transition per-kWh charges, which is close to the retail rate. Credits carry forward month to month. Systems 25 kW or smaller are exempt from the statewide net metering caps. Source

Solar credits (SRECs) Limited

The old SREC I/II markets are closed to new systems. New home systems get SMART 3.0 instead: a fixed $0.03 per kWh produced (2026 base rate, $0.06 for qualified low-income customers), locked for up to 20 years, paid by check or bill credit on top of net metering. Source

Rebates and incentives

SMART 3.0 (Solar Massachusetts Renewable Target)

$0.03/kWh (2026 base) or $0.06/kWh low-income, up to 20 years

Home systems 25 kW or smaller; construction started on or after June 20, 2025; no prior SMART/RPS incentive

open performance payment Source

Residential renewable energy income tax credit

15% of net cost, up to $1,000; unused amount carries forward 3 years

Massachusetts taxpayers installing solar at their home

open tax credit Source

Taxes

Property tax: exempt - solar systems are exempt for 20 years if 25 kW or less or producing no more than 125% of the property's yearly use (c.59 s.5 cl.45)
Sales tax: exempt - equipment for a solar system serving your main Massachusetts home is exempt (c.64H s.6(dd)) Source

Solar laws

M.G.L. c.184 s.23C - solar access (). Deed or property rules that forbid or unreasonably restrict solar are void. A bill to spell this out for HOAs and condo associations (H.3496, 2025-26) was pending, not confirmed passed. Source
M.G.L. c.164 s.138-139 - net metering (). Sets near-retail credits for small solar and exempts systems 25 kW or smaller from net metering caps. Source
225 CMR 28.00 - SMART 3.0 (2025). New SMART rules effective September 12, 2025; 2026 program year opened January 1, 2026. Source

Community solar

Available: community shared solar projects can enroll in SMART and offer subscribers bill credits.

Timeline

2025-06-20 Earliest construction start date for SMART 3.0 eligibility
2025-09-12 SMART 3.0 rules (225 CMR 28.00) take effect
2026-01-01 SMART 3.0 2026 program year opens; federal 25D home solar credit no longer available for new systems
2026-05-19 DPU approves SMART 3.0 redesign (per trade press)
2027-01-01 Next SMART program year opens; rates may change

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

We give free home reviews in Maryland, DC and Virginia today. How to compare solar options