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Mar 16 2025
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massachusetts solar incentives

Massachusetts Solar Rebates & Incentives

By Solar Incentives by State No Comments

Sticker shock is often the biggest barrier to installing a home solar system and enjoying the energy cost savings that come with it. However, Massachusetts has a handful of solar incentives that reduce this barrier and increase the benefits of going solar.

These incentives include:

  • Sales and property tax exemptions
  • State and federal solar tax credits
  • Solar Massachusetts Renewable Target (SMART) program
  • Net metering
  • Municipal solar rebates

In this article, we’ll explore Massachusetts solar incentives and show you how they reduce the cost of an average-sized solar system.

So, let’s say you have a quote for a 6.5 kW solar system for $26,000. Here’s how the incentives would reduce the cost of that system.

Compare multiple quotes from local solar installers.

Sales and property tax exemptions

The first Massachusetts solar incentive that would apply to your system is a state sales tax exemption. The sales tax rate in Massachusetts is currently 6.25%, so this exemption would save you $1,625 on a $26,000 system.

Massachusetts also has a 20-year property tax exemption for the home value added by your solar system. So, going solar can increase your home value, but it won’t increase your property taxes.

Related reading: 5 Reasons to Go Solar In Massachusetts

Solar tax credits

Next, there are two solar tax credits you can claim if you buy a solar system in Massachusetts.

First, there is the federal solar tax credit worth 30%* of the price paid for the system. Then, there is a Massachusetts state solar tax credit worth 15% of the price paid for the system or $1,000 – whichever is less.

*Note: The homeowner-claimed federal solar tax credit was terminated at the end of 2025. Homeowners can still benefit from a federal tax credit for Third-Party Owned solar arrangements through the end of 2027. Learn more about Third-Party Ownership in our resource center below:

Here’s how solar tax credits would reduce the cost of a $26,000 system:
Price paid for system $26,000
30% federal tax credit -$7,800
15% MA state tax credit -$1,000 (max amount)
Net cost $17,200

It’s important to note that solar tax credits are claimed when you file your state and federal income tax returns for the year the system was deemed operational (passed inspection). The credits reduce your tax liability which can increase your refund and/or reduce how much you owe in taxes for the year.

If you don’t have enough tax liability to claim the entire credit in one year, they can be rolled into future tax years.

 

 

Solar Massachusetts Renewable Target (SMART) program

In addition to tax incentives, there’s the Solar Massachusetts Renewable Target program, known as SMART.

Through the SMART program, Massachusetts’ three investor-owned utilities – National Grid, Eversource, and Unitil – compensate homeowners on a monthly basis for their solar generation. Each utility has a series of capacity blocks that determine the compensation rate, and the incentive decreases as the program progresses through the blocks. So, the sooner you go solar, the larger your compensation rate will be.

This table shows the base compensation rates for each service area as of March 2024. However, compensation rates include the price of electricity. So, to get the true incentive value, you must subtract the price of electricity from the base incentive rate. Given the rapid electricity price increases in recent years, true incentive rates for SMART are down to zero for solar-only systems, but the program can be quite valuable for solar systems with battery storage.

By adding a battery to our solar system, you can increase your SMART incentive rate to 4.87 cents per kWh — which would add up to around $5,000 over 10 years for an 8 kW solar system with 10 kWh of battery storage.

Related reading: Are Solar Panels Worth It in Boston?

Municipal solar rebates

There are also incentives for Bay Staters who get their electricity from municipal utilities. Several municipal utilities in Massachusetts offer rebates that can reduce the cost of going solar, including:

These municipal rebates can be quite substantial. For example, the Wakefield Municipal Gas and Light Department offers $1.20 per watt of solar capacity installed. That adds up to $7,800 for a 6.5 kW system (6,500 watts).

It’s important to note that rebates effectively reduce the price paid for the system, which changes the value of the federal and state tax credits. Here’s how combining municipal rebates and solar tax credits works in Massachusetts:

Wakefield Municipal Gas and Light Department ($1.20 per W) Concord Municipal Light and Power ($625 per kW)

 
Gross cost of system $26,000 $26,000
Municipal solar rebate -$7,800 -$4,062.50
Price paid for system $18,200 $21,937.50
30% federal tax credit -$5,460 -6,581.25
15% MA state tax credit -$1,000 (max amount) -$1,000 (max amount)
Net cost of system $11,740 $14,356.25

While available to a small group of Bay Staters, municipal solar rebates are some of the most valuable solar incentives in Massachusetts.

See which solar incentives you qualify for.

Strong net metering policies

Perhaps the strongest solar incentive Massachusetts has to offer is the strong net metering policies available to most homeowners.

Net metering is the billing structure that allows solar owners to earn credit for the excess electricity their system pushes onto the grid. This credit can then be used to offset the cost of the electricity they pull from the grid when their panels aren’t producing enough electricity.

In other words, net metering allows homeowners to use both solar and grid electricity, while only paying for their solar system.

In Massachusetts, most investor-owned and municipal utilities offer 1-to-1 net metering policies. That means that the value of solar electricity pushed onto the grid is the same as the value of electricity pulled off the grid.

Massachusetts net metering policy is especially strong because it lasts for 25 years from the day a solar system is granted permission to operate (PTO) – which is the same as the typical warranty period for most solar panels.

Several states, including California and New York, are transitioning from net metering to other solar billing structures that are less favorable to homeowners. However, Massachusetts’ net metering policy seems to be safe for the time being.

Incentives make Massachusetts a great state for solar

What Massachusetts lacks in sunshine it more than makes up for in solar incentives. Between tax breaks, rebates, and the SMART program, Bay Staters can substantially reduce the cost of buying a solar system and increase their energy cost savings.

These incentives are especially important as Massachusetts’ electricity prices are among the highest in the nation. Solar incentives reduce the cost barrier of going solar and make clean energy and bill savings accessible to more homeowners.

See how much you could save by going solar.

 

Frequently asked questions

Is there a tax incentive for solar in Massachusetts?

Yes, there are several tax incentives for going solar in Massachusetts. Massachusetts has a tax credit worth 15% of the price paid for a solar system or $1,000, whichever is less.

Massachusetts also has sales and property tax exemptions for solar purchases. The sales tax exemption waives the 6.25% state sales tax on solar expenditures, worth $1,250 on a $20,000 system. The property tax exemption applies to the additional property value added by a solar system.

Are there rebates for solar in Massachusetts?

At least seven municipal utility providers (listed above) in Massachusetts offer rebates for residential solar projects. Although limited to small populations of municipal utility customers, these rebates can substantially reduce the cost and increase the savings of going solar.

 

Mar 12 2025
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Con Edison Electricity Rates Are Rising – Here’s How Solar Can Help

By How Do Solar Panels Lower Your Electric Bill?, The Pros and Cons of Rooftop Solar in 2026 No Comments

Con Edison, a major utility company serving New York City and Westchester County, has proposed substantial electricity rate increases set to take effect on January 1, 2026.  The proposed Con Edison electricity rates would result in an 11.4% increase in the average electricity bill.

If approved, a homeowner whose current average bill is $200 would see their electricity costs rise by $23 per month or nearly $275 per year. That’s in addition to the 13.3% proposed increase to the average Con Edison gas bill.

With Con Edison electricity rates much higher than the national average — and rising sharply in 2026 — many New Yorkers are in a position to see significant savings by going solar. With the fate of the 30% federal solar tax credit uncertain beyond 2025, now is the best time to lock in a low, flat cost for solar power.

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Why Is My ConEd Bill So High?

ConEd electricity bills fluctuate throughout the year based on weather, electricity usage, and market conditions. For instance, bills tend to be higher in the summer due to power-hungry air conditioners and in the winter when the price of natural gas (used to generate most of NY’s electricity) increases.

There’s also a general trend of Con Edison electricity rates rising over time. A customer with an average bill of $175 per month in 2022 would pay $225 per month in 2026, if the proposed rate hikes are approved. That’s $50 more per month or $600 more per year for using the same amount of electricity.

Chart showing Con Edison electricity bill increases from 2022 to 2026

The rationale behind these 2026 increases is to fund $1.6 billion in investments in clean energy initiatives, infrastructure upgrades, and expanded support for low-income customers. However, these added costs place a significant burden on households already managing tight budgets.

 

How Rooftop Solar in NY Can Lower Your Energy Costs

Investing in rooftop solar panels gives you control over your electricity cost by replacing your Con Edison electricity bill with a flat payment for solar that won’t rise over time. This can lead to substantial savings — especially with New York’s favorable incentives and solar policies.

  • The NY State solar tax credit, worth 25% of your project costs up to $5,000
  • The Federal Solar Tax Credit, worth 30% of your project cost
  • The NY-Sun solar rebate, currently worth $150 per kW of solar capacity for Con Edison customers
  • Sales tax exemption for solar purchases
  • Property tax abatement for homes with solar in NYC

Plus, New York offers 1 to 1 net metering, which means you can sell your excess solar electricity back to Con Edison at the same rate you purchase grid electricity. With net metering, you can easily offset nearly 100% of your Con Edison electric bill, with the exception of around $20 in non-bypassable charges and fees.

 

How Much Can Con Edison Customers Save With Solar?

Let’s say your Con Edison electricity bill is currently $200 per month, on average. If Con Edison electricity rates rise at 3% per year, you’d pay over $81,000 for electricity over the next 25 years (assuming your usage stays the same).

How does that compare to solar?

  • The cost of a solar system to offset a $200 Con Edison bill is typically between $23,000 and $27,000
  • This system would qualify for $12,500-$13,700 in state and federal incentives
  • Instead of paying $81,000 to Con Edison, you could pay $10,500-$13,300 for a solar system with a 25-year performance warranty.

With high (and rising) electricity rates and great incentives, Con Edison customers have a golden opportunity to save money with rooftop solar. Don’t wait for the 2026 rate hike to kick in—get custom solar proposals on solar.com to see your savings potential.

 

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