Massachusetts Solar Tax Credits & Incentives
2026 Guide
Massachusetts offers a state tax credit, SMART 3.0 battery incentives, Connected Solutions rebates, and 20-year property tax protection.
Federal Solar Tax Credit Update — 2026
The 30% federal ITC expired for homeowner-owned systems on December 31, 2025.
If you installed solar by Dec 31, 2025, claim the 30% credit on your 2025 tax return. Massachusetts also offers its own 15% state credit (up to $1,000) and strong battery storage incentives.
Massachusetts Solar Tax Credits & Incentives
Every credit, exemption, and rebate available in MA
Federal ITC Carryforward
30% of system cost
Claim the full 30% Residential Clean Energy Credit on your 2025 return for pre-2026 installations.
Eligibility
- Installed solar/battery by December 31, 2025
- File 2025 tax return by April 15, 2026
- Nonrefundable — excess carries forward
Massachusetts State Solar Tax Credit
15% up to $1,000
Massachusetts offers a 15% state tax credit on solar system costs, capped at $1,000. Claimed on your state income tax return.
Eligibility
- MA resident homeowner
- Solar energy system installation
- Claimed on MA state income tax return
SMART 3.0 Battery Incentive
Meaningful ongoing incentive
The SMART 3.0 program heavily favors solar + battery paired systems with meaningful incentives. Rates are reviewed annually by the Department of Energy Resources.
Eligibility
- MA solar installation
- Solar + battery paired system
- Rates reviewed yearly by DOER
Connected Solutions Battery Rebate
$100/kWh
Earn $100/kWh rebate for sharing battery capacity. Example: a 15 kWh battery = $1,500 rebate. Limited to specific battery brands (Duracell, Emporia, Tesla).
Eligibility
- Duracell, Emporia, or Tesla battery
- MA utility customer
- Share battery capacity with utility
Sales Tax Exemption
Full exemption (6.25%)
No state sales tax on solar systems. Saves 6.25% on your total system cost.
Eligibility
- Any solar system purchase in MA
- Automatic at purchase
- No application needed
Property Tax Exemption
20-year exemption
20-year exemption from increased property taxes due to solar — one of the longest property tax protections in the country.
Eligibility
- Any MA homeowner with solar
- Residential property
- 20-year duration
Key Deadlines for Massachusetts Solar Owners
Don't miss these time-sensitive opportunities
April 15, 2026CRITICAL
Last day to file 2025 taxes and claim the 30% federal ITC
July 4, 2026
Deadline for third-party providers to begin construction for Section 48E credits
Battery Storage — The #1 Opportunity in Massachusetts
SMART 3.0 heavily favors paired solar+battery systems. Combined with the Connected Solutions $100/kWh rebate, adding battery storage delivers strong ROI in Massachusetts.
Net Metering in Massachusetts
Net metering available with credits at or near retail rate. Monthly credit rollover. Some caps on total net metering capacity by utility territory.
Frequently Asked Questions
Common questions about solar tax credits in Massachusetts
What is the Massachusetts state solar tax credit in 2026?
Massachusetts offers a 15% state income tax credit on solar system costs, capped at $1,000. This is claimed on your Massachusetts state income tax return. Combined with other incentives, total savings can exceed $10,000.
Can I still claim the federal solar tax credit in Massachusetts in 2026?
Only if you installed your system by December 31, 2025. You can claim the 30% federal ITC on your 2025 tax return (due April 15, 2026). The MA state credit remains available regardless.
What is the Connected Solutions battery rebate?
You receive $100/kWh for sharing your battery capacity with your utility. A 15 kWh battery earns you $1,500. As of 2026, the program is limited to Duracell, Emporia, and Tesla batteries.
How does SMART 3.0 work for solar in Massachusetts?
SMART 3.0 launched in 2025 and operates on an annual program-year structure with rates reviewed yearly. Solar-only systems currently receive $0/kWh incentive (due to high utility rates already making solar economic), but solar + battery paired systems still receive meaningful incentives.
How long is the Massachusetts solar property tax exemption?
Massachusetts provides a 20-year exemption from increased property taxes due to solar installation — one of the longest such protections in any state. This means your property taxes won't increase from the added value of your solar system for two full decades.
Solar Tax Credits in Massachusetts Cities
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