{"id":5891,"date":"2025-03-16T08:30:00","date_gmt":"2025-03-16T08:30:00","guid":{"rendered":"https:\/\/www.portal.solar.com\/learn\/massachusetts-solar-rebates-incentives\/"},"modified":"2025-12-31T21:41:16","modified_gmt":"2025-12-31T21:41:16","slug":"massachusetts-solar-rebates-incentives","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/massachusetts-solar-rebates-incentives\/","title":{"rendered":"Massachusetts Solar Rebates &#038; Incentives"},"content":{"rendered":"<p>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.<\/p>\n<p>These incentives include:<\/p>\n<ul>\n<li>Sales and property tax exemptions<\/li>\n<li>State and federal solar tax credits<\/li>\n<li>Solar Massachusetts Renewable Target (SMART) program<\/li>\n<li>Net metering<\/li>\n<li>Municipal solar rebates<\/li>\n<\/ul>\n<p>In this article, we\u2019ll explore Massachusetts solar incentives and show you how they reduce the cost of an average-sized solar system.<\/p>\n<p>So, let\u2019s say you have a quote for a 6.5 kW solar system for $26,000. Here\u2019s how the incentives would reduce the cost of that system.<\/p>\n<p><a href=\"https:\/\/www.solar.com\/dashboard\">Compare multiple quotes from local solar installers.<\/a><\/p>\n<h2>Sales and property tax exemptions<\/h2>\n<p>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.<\/p>\n<p><a id=\"video\"><\/a>Massachusetts also has a 20-year property tax exemption for the home value added by your solar system. So, going solar can <a href=\"https:\/\/www.solar.com\/learn\/do-solar-panels-increase-home-value\/\">increase your home value<\/a>, but it won\u2019t increase your property taxes.<\/p>\n<p><iframe loading=\"lazy\" title=\"Are Solar Panels Worth It in Massachusetts?\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/8kciDPNLHIE?start=210&#038;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Related reading: <\/strong><a href=\"https:\/\/www.solar.com\/learn\/5-reasons-to-go-solar-in-massachusetts\/\" target=\"_blank\" rel=\"noopener\">5 Reasons to Go Solar In Massachusetts<\/a><\/p>\n<h2>Solar tax credits<\/h2>\n<p>Next, there are two solar tax credits you can claim if you buy a solar system in Massachusetts.<\/p>\n<p>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 \u2013 whichever is less.<\/p>\n<p>*<em>Note: The homeowner-claimed federal solar tax credit was <a href=\"https:\/\/www.solar.com\/learn\/trump-and-the-fate-of-the-30-solar-tax-credit\/\" target=\"_blank\" rel=\"noopener\">terminated at the end of 2025<\/a>. 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:<br \/>\n<\/em><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.solar.com\/learn\/solar-lease\/\"><span style=\"font-weight: 400;\">Leasing Solar Panels: The Complete Guide<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.solar.com\/learn\/power-purchase-agreement\/\"><span style=\"font-weight: 400;\">Solar PPA: The Simple Guide to Power Purchase Agreements<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.solar.com\/learn\/prepaid-solar-leases-ppas\/\"><span style=\"font-weight: 400;\">Prepaid Solar Leases &amp; PPAs: A New Path to Owning Solar<\/span><\/a><\/li>\n<\/ul>\n<p>Here\u2019s how solar tax credits would reduce the cost of a $26,000 system:<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"312\"><\/td>\n<td width=\"312\">\n<p style=\"text-align: left;\">\n<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"312\">Price paid for system<\/td>\n<td width=\"312\">$26,000<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"312\">30% federal tax credit<\/td>\n<td width=\"312\">-$7,800<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"312\">15% MA state tax credit<\/td>\n<td width=\"312\">-$1,000 (max amount)<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"312\"><strong>Net cost<\/strong><\/td>\n<td width=\"312\"><strong>$17,200<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>It\u2019s important to note that solar tax credits are claimed when you <a href=\"https:\/\/www.solar.com\/learn\/how-to-file-the-federal-solar-tax-credit-a-step-by-step-guide\/\" target=\"_blank\" rel=\"noopener\">file your state and federal income<\/a> 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.<\/p>\n<p>If you don\u2019t have enough tax liability to claim the entire credit in one year, they can be rolled into future tax years.<\/p>\n<p>&nbsp;<\/p>\n<gs-injectable background = 'true' border='true' primary_color = '#8b72d3' secondary_color='#f98d7e' utm_campaign = 'get_started_injectable' utm_medium='MA incentives' content_texts = 'true' upper_text='Team up with an dedicated' upper_text_span = 'Energy Advisor' lower_text='Capitalize on the many solar incentives' lower_text_span = 'in Massachusetts' get_started_text='Get started' only_community_solar='false'><\/gs-injectable>\n<p>&nbsp;<\/p>\n<h2>Solar Massachusetts Renewable Target (SMART) program<\/h2>\n<p>In addition to tax incentives, there\u2019s the <a href=\"https:\/\/www.solar.com\/learn\/massachusetts-smart-solar-program-complete-overview\/\" target=\"_blank\" rel=\"noopener\">Solar Massachusetts Renewable Target program<\/a>, known as SMART.<\/p>\n<p>Through the SMART program, Massachusetts\u2019 three investor-owned utilities \u2013 National Grid, Eversource, and Unitil \u2013 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.<\/p>\n<p>This table shows the <a href=\"https:\/\/www.mass.gov\/doc\/2023-btm-value-of-energy-workbook\/download\" target=\"_blank\" rel=\"noopener\">base compensation rates for each service area<\/a> 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, <a href=\"https:\/\/www.mass.gov\/doc\/declining-smart-incentive-rates\/download\" target=\"_blank\" rel=\"noopener\">true incentive rates for SMART are down to zero<\/a> for solar-only systems, but the program can be quite valuable for solar systems with battery storage.<\/p>\n<p>By adding a battery to our solar system, you can increase your SMART incentive rate to 4.87 cents per kWh &#8212; which would add up to around $5,000 over 10 years for an 8 kW solar system with 10 kWh of battery storage.<\/p>\n<p><strong>Related reading:<\/strong> <a href=\"https:\/\/www.solar.com\/learn\/5-reasons-solar-panels-are-worth-it-in-boston\/\" target=\"_blank\" rel=\"noopener\">Are Solar Panels Worth It in Boston?<\/a><\/p>\n<h2>Municipal solar rebates<\/h2>\n<p>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:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.ipswichma.gov\/814\/Solar-PV\" target=\"_blank\" rel=\"noopener\">Ipswich Electric Light Department<\/a><\/li>\n<li><a href=\"https:\/\/www.selco.shrewsburyma.gov\/solar\" target=\"_blank\" rel=\"noopener\">Shrewsbury Electric &amp; Cable Operations<\/a><\/li>\n<li><a href=\"https:\/\/wmgld.com\/energy-programs\/solar-rebate-program\/\" target=\"_blank\" rel=\"noopener\">Wakefield Municipal Gas and Light Department<\/a><\/li>\n<li><a href=\"https:\/\/www.rmld.com\/efficiency-electrification-programs\/renewable-generation\" target=\"_blank\" rel=\"noopener\">Reading Municipal Light Department<\/a><\/li>\n<li><a href=\"https:\/\/www.hudsonlight.com\/rebates\" target=\"_blank\" rel=\"noopener\">Hudson Light &amp; Power<\/a><\/li>\n<li><a href=\"https:\/\/concordma.gov\/2029\/Solar-Panels\" target=\"_blank\" rel=\"noopener\">Concord Municipal Light and Power<\/a><\/li>\n<li><a href=\"https:\/\/www.tmlp.com\/go-green\/residential-solar-net-metering\/\" target=\"_blank\" rel=\"noopener\">Taunton Municipal Lighting Plant<\/a><\/li>\n<\/ul>\n<p>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. <strong><em>That adds up to $7,800<\/em><\/strong><strong><em> for a 6.5 kW system (6,500 watts).<\/em><\/strong><\/p>\n<p>It\u2019s 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\u2019s how combining municipal rebates and solar tax credits works in Massachusetts:<\/p>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"208\"><\/td>\n<td width=\"208\"><strong>Wakefield Municipal Gas and Light Department ($1.20 per W)<\/strong><\/td>\n<td width=\"208\"><strong>Concord Municipal Light and Power ($625 per kW)<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"208\">Gross cost of system<\/td>\n<td width=\"208\">$26,000<\/td>\n<td width=\"208\">$26,000<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"208\">Municipal solar rebate<\/td>\n<td width=\"208\">-$7,800<\/td>\n<td width=\"208\">-$4,062.50<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"208\">Price paid for system<\/td>\n<td width=\"208\">$18,200<\/td>\n<td width=\"208\">$21,937.50<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"208\">30% federal tax credit<\/td>\n<td width=\"208\">-$5,460<\/td>\n<td width=\"208\">-6,581.25<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"208\">15% MA state tax credit<\/td>\n<td width=\"208\">-$1,000 (max amount)<\/td>\n<td width=\"208\">-$1,000 (max amount)<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" width=\"208\"><strong>Net cost of system<\/strong><\/td>\n<td width=\"208\"><strong>$11,740<\/strong><\/td>\n<td width=\"208\"><strong>$14,356.25<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>While available to a small group of Bay Staters, municipal solar rebates are some of the most valuable solar incentives in Massachusetts.<\/p>\n<p><a href=\"https:\/\/www.solar.com\/dashboard\">See which solar incentives you qualify for.<\/a><\/p>\n<h2>Strong net metering policies<\/h2>\n<p>Perhaps the strongest solar incentive Massachusetts has to offer is the strong net metering policies available to most homeowners.<\/p>\n<p>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\u2019t producing enough electricity.<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" class=\"alignnone size-full wp-image-6078\" src=\"https:\/\/s3.amazonaws.com\/solarassets\/wp-content\/uploads\/2019\/06\/Solar_Home_Net_Metering.jpg\" alt=\"\" width=\"1000\" height=\"609\" \/><\/p>\n<p style=\"text-align: left;\">In other words, net metering allows homeowners to use both solar and grid electricity, while only paying for their solar system.<\/p>\n<p>In Massachusetts, most investor-owned and municipal utilities offer <a href=\"https:\/\/www.solar.com\/learn\/what-is-net-energy-metering\/\" target=\"_blank\" rel=\"noopener\">1-to-1 net metering policies<\/a>. That means that the value of solar electricity pushed onto the grid is the same as the value of electricity pulled off the grid.<\/p>\n<p>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) \u2013 which is the same as the typical warranty period for most solar panels.<\/p>\n<p>Several states, including <a href=\"https:\/\/www.solar.com\/learn\/nem-3-0-proposal-and-impacts-for-california-homeowners\/\" target=\"_blank\" rel=\"noopener\">California<\/a> and <a href=\"https:\/\/www.solar.com\/learn\/going-solar-in-new-york-state\/\" target=\"_blank\" rel=\"noopener\">New York<\/a>, are transitioning from net metering to other solar billing structures that are less favorable to homeowners. However, Massachusetts\u2019 net metering policy seems to be safe for the time being.<\/p>\n<h2>Incentives make Massachusetts a great state for solar<\/h2>\n<p>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.<\/p>\n<p>These incentives are especially important as Massachusetts\u2019 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.<\/p>\n<p><a href=\"https:\/\/www.solar.com\/dashboard\">See how much you could save by going solar.<\/a><\/p>\n<p>&nbsp;<\/p>\n<h2>Frequently asked questions<\/h2>\n<h3>Is there a tax incentive for solar in Massachusetts?<\/h3>\n<p>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.<\/p>\n<p>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.<\/p>\n<h3>Are there rebates for solar in Massachusetts?<\/h3>\n<p>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.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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&#8230;<\/p>\n","protected":false},"author":51,"featured_media":6070,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[90],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.5 (Yoast SEO v19.10) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Massachusetts Solar Rebates &amp; Incentives | Solar.com<\/title>\n<meta name=\"description\" content=\"If you live in Massachusetts and are planning on installing a system on your roof, be sure to take advantage of the following rebates.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solar.com\/learn\/massachusetts-solar-rebates-incentives\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Massachusetts Solar Rebates &amp; 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