The Federal Solar Credit Expired — Here's What Massachusetts Still Pays You in 2026

Let me give you the straight answer first, because a lot of what's online right now is wrong: the federal residential solar tax credit — the 30% one, Section 25D — expired on December 31, 2025. If you're a homeowner buying a system in 2026, that credit is gone. Any quote that still bakes in 30% off from the feds is using numbers that no longer exist for purchases.

The good news: Massachusetts is still one of the best states in the country for solar, and that's because of state and utility programs, not the federal credit. Here's everything that's still on the table in 2026.

What Solar Incentives Are Available in Massachusetts Now That the Federal Credit Is Gone?

There are four big ones still active for Massachusetts homeowners in 2026:

• The SMART program (state production incentive)
• True 1:1 net metering
• The Massachusetts state tax credit, up to $1,000
• The ConnectedSolutions battery incentive

And if you're in Hingham, there's a separate HMLP cash rebate worth up to $6,000. Let's go through each.

The SMART Program — Still Active

SMART is Massachusetts's solar production incentive. You get paid a set rate for the energy your system produces over a fixed term. It's still running in 2026 and it's one of the main reasons Massachusetts solar pencils out without the federal credit. The exact rate depends on your utility and current block, which I calculate for your specific address. You can read the full SMART program guide.

True 1:1 Net Metering — The Biggest Hidden Value

This is the one most people underestimate. In National Grid and Eversource territory, Massachusetts still offers true 1:1 net metering for properly sized residential systems — meaning every kilowatt-hour you send to the grid is credited at the full retail rate, not a reduced "net billing" rate like many other states have moved to. Keeping this 1:1 credit is a big part of why payback periods here stay attractive. You can read more about how net metering works in Massachusetts. Hingham/HMLP works differently — see the Hingham guide linked below.

The Massachusetts State Tax Credit — Up to $1,000

Massachusetts offers a personal income tax credit for residential solar of 15% of the system cost, capped at $1,000. It's modest compared to the old federal credit, but it's a straight reduction in what you owe the state, and almost every buyer qualifies. Read the Massachusetts state tax credit details in the full incentives guide.

ConnectedSolutions — Get Paid for a Battery

If you add a qualifying battery, ConnectedSolutions pays you for letting your utility draw on it during peak summer demand events. It's recurring money on top of the backup protection a battery already gives you. Learn more about the ConnectedSolutions battery program.

Is Solar Still Worth It in Massachusetts Without the Federal Credit?

Yes, for most homes — it just changes the math, and you need accurate numbers to see it. Losing 30% off the top is real, but between SMART payments, 1:1 net metering keeping your bill near zero, the state credit, and high Massachusetts electric rates, the payback for a well-designed system is still solid. What matters now more than ever is that the system is sized right and the quote is honest. A national company padding the price and assuming a dead federal credit will give you a payback that never materializes.

One note for completeness: third-party-owned arrangements where a company owns the panels on your roof can still touch federal commercial incentives under Section 48E through 2027. I focus on ownership because it almost always beats those structures long-term for South Shore homeowners, but if you want me to compare, I will. You can read more in my is solar worth it guide.

Frequently Asked Questions

What solar incentives are available in Massachusetts now that the federal credit is gone?

In 2026, Massachusetts homeowners can still use the SMART production incentive, true 1:1 net metering, the state tax credit of up to $1,000, and the ConnectedSolutions battery incentive. Hingham residents also have a separate HMLP rebate up to $6,000.

Did the federal solar tax credit really expire?

Yes. The 30% residential federal solar tax credit (Section 25D) expired on December 31, 2025. Homeowners who purchase a system in 2026 can no longer claim it.

Is solar still worth it in Massachusetts without the federal credit?

For most homes, yes. SMART payments, 1:1 net metering, the state credit, and high electric rates keep payback periods solid for a well-designed system — but accurate, honest numbers matter more now than ever.

How much is the Massachusetts state solar tax credit?

The Massachusetts residential solar tax credit is 15% of system cost, capped at $1,000, applied against your state income tax.

What is the SMART program and is it still active in 2026?

SMART is Massachusetts's solar production incentive that pays you a set rate for the energy your system produces over a fixed term. It is still active in 2026.