Massachusetts Solar Incentives in 2026: SMART, Net Metering, ConnectedSolutions & More

If you're researching solar in Massachusetts, understanding the incentive programs is one of the most important things you can do before you talk to anyone. These programs are what make solar financially compelling here — and Massachusetts has some of the best in the country.

But here's what most homeowners don't realize: the programs don't work the same in isolation as they do together. SMART, net metering, ConnectedSolutions, and the state tax exemptions each do something different — and when a system is designed to take full advantage of all of them at once, that's when the numbers really work in your favor.

I'm Dave Simmer, a NABCEP-trained solar designer based in Scituate. I've designed and overseen over 1,800 residential and commercial solar installations across the South Shore since 2011 — in Hingham, Duxbury, Cohasset, Marshfield, Plymouth, and the towns in between. This guide covers every major incentive available to Massachusetts homeowners in 2026 and explains exactly how each one works.

The Massachusetts SMART Program

SMART — which stands for Solar Massachusetts Renewable Target — is a state-run program that pays you a fixed rate for every kilowatt-hour your solar system produces. It's administered by the Department of Public Utilities and runs through the major utilities including National Grid and Eversource.

The idea behind SMART is straightforward: the state wants to grow residential solar capacity, so it creates a financial incentive for homeowners to install systems by guaranteeing a payment per unit of production over a set contract period.

How the SMART program works

Once your system is installed, inspected, and approved, you're enrolled in SMART and begin earning a fixed payment for every kWh your system produces — regardless of whether you use that electricity yourself or send it back to the grid. SMART is based purely on production.

The contract runs for 10 years from your system's approval date, and the rate is locked in at whatever the rate is when you're approved. That predictability is one of SMART's biggest advantages — you know exactly what you're going to earn from it over the contract term.

What does SMART pay in 2026?

As of 2026, the base SMART rate for most residential systems is approximately $0.03 per kWh produced. The program has gone through multiple "blocks" since its launch, and rates have declined as each block fills — which is typical for incentive programs designed to phase down over time as adoption grows.

SMART isn't the largest piece of the financial picture on its own — net metering typically delivers far more value in dollar terms. But SMART adds consistent, predictable income that improves your overall payback and ROI, particularly in the early years of ownership.

SMART vs. Class I RECs — which is better?

Some homeowners ask about selling their solar production into the Class I Renewable Energy Credit (REC) market as an alternative to enrolling in SMART. RECs are certificates representing one megawatt-hour of renewable energy production, and they can be sold on the open market.

The tradeoff is predictability vs. potential upside. SMART gives you a fixed, guaranteed rate for 10 years. REC prices fluctuate based on market demand and can go up or down. For most residential homeowners, SMART is the simpler and more reliable choice — but it's worth evaluating both options based on your specific system before committing. Read the full SMART program guide.

Net Metering in Massachusetts

Net metering is where the majority of your solar savings will come from in Massachusetts. It's the program that gives full financial value to every kilowatt-hour your system produces — not just what you use in real time.

How net metering works

When your solar panels are producing more electricity than your home is consuming at that moment — which happens regularly during sunny daytime hours — the excess electricity flows back to the grid. Your utility meter tracks this flow, and you receive a credit on your electric bill for the energy you've exported.

In Massachusetts, that credit is applied at the full retail rate — meaning you're credited at the same rate you'd pay to buy electricity from the grid. As of 2026, that rate is approximately $0.34 per kWh for most South Shore homeowners on National Grid, which includes the full delivery charges, fees, and taxes — not just the base energy rate.

How the credits balance out over the year

Solar production is seasonal — which means your monthly credit balance will fluctuate. In spring and summer, when days are long and sun angles are high, your system will typically produce more than your home uses. You'll build up a credit surplus during these months.

In fall and winter, your system produces less — and you'll draw down those credits to offset your grid usage. Over the course of a full year, the goal is for your annual production to roughly match or offset your annual consumption. A well-designed system targets that balance based on your actual usage history.

Does net metering stay with the home?

Yes — and this is an important point for homeowners thinking about long-term value. Net metering agreements in Massachusetts are set up as long-term arrangements, typically running 25 years, and they transfer with the property when you sell. The next owner steps right into the same agreement and continues receiving the same benefits. This is one of the reasons solar consistently adds resale value to Massachusetts homes. Read the full net metering guide.

ConnectedSolutions Battery Program

ConnectedSolutions is a demand response program run by National Grid and Eversource that turns your home battery into an income-generating asset — not just a backup power device. If you're adding a battery to your solar system, this program is one of the most financially compelling reasons to do it in Massachusetts.

How ConnectedSolutions works

During summer months — typically June through September — the electric grid experiences periods of peak demand, usually on hot afternoons when air conditioning usage spikes across the region. These high-demand periods are expensive and stressful for the grid.

ConnectedSolutions allows your utility to call "demand response events" during these peak periods. When an event is called, your battery automatically discharges — providing power to your home from stored energy rather than drawing from the grid. You don't have to do anything. It's fully automated.

In exchange for participating, you receive a payment based on how much energy your battery contributes during these events.

What ConnectedSolutions doesn't affect

It's worth being clear about what ConnectedSolutions doesn't do. It doesn't drain your battery during events to the point where you lose backup capability — the program is designed to dispatch a portion of stored capacity, not empty it. Your home still has backup power available. Events are limited in number and duration throughout the summer season.

For South Shore homeowners who've dealt with storm outages or are concerned about grid reliability, ConnectedSolutions makes the battery decision much easier financially. Instead of paying for backup power alone, you're getting paid for it too. Learn more about ConnectedSolutions: how much your battery actually pays.

Massachusetts Solar Tax Exemptions

State income tax credit

Massachusetts offers a state income tax credit of up to $1,000 for residential solar installations. It's a straightforward, one-time credit applied against your state tax liability in the year your system is installed. While it's not the largest incentive in the stack, it's a direct reduction in what you owe the state — not a deduction.

Property tax exemption

One of the most underrated incentives in Massachusetts is the property tax exemption on solar. When you install a solar system, it adds value to your home — and that added value is fully exempt from property taxes.

In practical terms, this means if your $35,000 solar installation increases your home's assessed value, you won't see a corresponding increase in your annual property tax bill. Over 20–25 years of ownership, this exemption represents a meaningful financial benefit that rarely gets factored into standard solar ROI calculations.

Sales tax exemption

The purchase of residential solar equipment in Massachusetts is exempt from the state's 6.25% sales tax. On a system in the $25,000–$40,000 range, that exemption saves you between $1,500 and $2,500 automatically — without any application or paperwork required.

How these incentives stack together

The real power of Massachusetts solar incentives isn't any single program — it's how they work together. Here's a simplified picture of what a well-designed system can generate annually for a South Shore homeowner:

These numbers will vary based on your system size, utility, usage, and when you enroll. But the combined effect is significant — and it's why Massachusetts consistently ranks among the best states in the country for residential solar ROI. Find out how to calculate your total solar savings.

A note on alternative ownership structures

Some homeowners ask about prepaid lease arrangements — sometimes called energy service agreements — as an alternative to outright purchase or traditional financing.

In this structure, a third party owns the solar system for the first several years and captures certain commercial tax benefits and depreciation during that period. Those savings are then passed through to you upfront in the form of a lower overall project cost.

It's not the right fit for everyone, and the details matter a lot. But for homeowners where it makes sense, it can reduce the effective cost of the system meaningfully. I can walk you through the comparison side by side based on your specific situation. Read more on leasing vs. buying solar in Massachusetts.

The bottom line on Massachusetts solar incentives

Massachusetts has built one of the strongest stacks of solar incentives in the country — net metering at full retail value, a production-based SMART payment, ConnectedSolutions income for battery owners, and tax exemptions that protect your savings at both the purchase and ownership stage. (If you live in Hingham, see our Hingham HMLP rebate guide).

The key is understanding how to design a system that captures all of these benefits, not just one or two of them. That's what I focus on for every homeowner I work with across the South Shore.

If you want to understand what this looks like for your specific home — your roof, your usage, your utility — I'm happy to walk through the real numbers with you.

Frequently Asked Questions