The details below were last reviewed in August 2026. Program rules, capacity, and tax treatment can change, so use the linked state pages and your project documents before relying on a benefit.
Federal incentives
The former federal Residential Clean Energy Credit under Section 25D was generally 30% of qualified costs for eligible residential clean-energy expenditures made through 2025. The credit was nonrefundable, and unused qualifying credit may carry forward. Section 25D ended for new expenditures after December 31, 2025, so do not include the former 30% credit in a new 2026 installation model.
Massachusetts-level incentives
Massachusetts allows an eligible owner or tenant who occupies a Massachusetts property as a principal residence to claim the lesser of 15% of the net expenditure or $1,000 for qualifying renewable-energy property. Unused credit can carry forward for up to the next three tax years, subject to state rules and the taxpayer’s tax liability.
Massachusetts provides a property-tax exemption for eligible solar and wind systems that generally lasts 20 years. The property owner must demonstrate that the system qualifies, so ask the local assessor what documentation is required.
Massachusetts also provides a sales and use tax exemption for equipment directly related to solar, wind, or heat-pump systems used as a primary or auxiliary energy source for a principal residence. Confirm that the equipment and transaction meet the exemption requirements before including it in a quote.
Net metering and utility programs
Net metering is related to the value of eligible electricity sent to the grid, but its treatment is not interchangeable with every incentive. Utility territory, system eligibility, interconnection status, project size, and program rules may matter. Read the net-metering guide for the conceptual flow.
SMART and other applicable programs
SMART 3.0 is Massachusetts’ production-based solar incentive administered by DOER. For Program Year 2026, applications are accepted from January 1 through December 31. Small tariff generation units at or below 25 kW AC receive a flat $0.03 per kWh, while qualifying low-income units receive $0.06 per kWh. Systems over 25 kW use different base compensation rates and may qualify for adders based on project characteristics.
The project must meet the SMART rules and receive the required qualification. DOER reports that DPU approved the company-specific SMART 3.0 tariffs in July 2026. SMART payments are separate from net metering. An eligible facility may participate in both, but it cannot receive net-metering credits and alternative on-bill credits at the same time.
Sources: DOER SMART 3.0 Program Details, Massachusetts residential property credits, Massachusetts property-tax guidance, Massachusetts sales and use tax guidance, Mass.gov net-metering eligibility, and IRS Residential Clean Energy Credit.
Property and sales-tax considerations
Tax treatment depends on the property, equipment, transaction, installation date, and the homeowner’s tax situation. Keep the state forms, receipts, system documents, and utility or program records with the project file. Confirm tax questions with current state and federal guidance or a qualified tax professional.
Incentive eligibility checklist
- What is the current official program name, administrator, and rate?
- What date, capacity, application, interconnection, or placement-in-service rule applies?
- Who owns the system and who is expected to receive the benefit?
- Does the structure change if the project is financed, leased, or a PPA?
- What documentation, tax liability, utility approval, or equipment condition is required?
- What happens if the project, utility approval, or program funding changes?
Cash versus financed ownership
Cash ownership, a loan, a lease, and a PPA can place incentives and obligations in different hands. Ask for a written explanation of who owns the equipment, who receives any benefit, what happens to the benefit if a homeowner sells, and how the total economics change if the assumption is not met.
Solar incentives FAQ
Which solar incentives are available in Massachusetts?
Massachusetts homeowners may evaluate the SMART 3.0 production incentive, the state residential energy credit, sales-tax treatment, property-tax treatment, and net-metering value separately. The former federal Residential Clean Energy Credit ended for new expenditures after December 31, 2025.
Do I automatically qualify for every incentive?
No. Eligibility can depend on system size and type, the property and its occupancy, the owner or contract structure, tax liability, utility, interconnection, program capacity, and the date the property is placed in service. Verify each benefit against the current program rules.
Does financing change how incentives work?
It can. Ownership and contract structure affect who may claim or receive a benefit, how it appears in the economics, and what obligations remain. Review the documents carefully.
Are SMART and net metering the same thing?
No. SMART is a production-based incentive program, while net metering describes how eligible exported electricity may create value through the utility billing system. An eligible facility may participate in both, subject to the applicable rules.