The Ultimate Guide to Massachusetts Solar Tax Credits & Incentives in 2026
Spoke ArticleMassachusetts2 min readVerified Q1 · 2026

The Ultimate Guide to Massachusetts Solar Tax Credits & Incentives in 2026

SBI Editorial DeskUpdated Q1 · 20264 sections

Massachusetts offers one of the most powerful and structured tax incentive stacks in the Northeast. By combining federal credits with state income tax credits and direct performance payments, Bay State homeowners can drastically reduce the cost of transitioning to clean energy.

01

The 30% Federal Investment Tax Credit (ITC)

The primary driver of your upfront savings is the Federal ITC. This allows you to deduct 30% of your total gross solar and battery system cost directly from your federal income taxes. If your system costs $28,000, you are eligible for an $8,400 federal tax credit. There is no maximum cap, and the credit rolls over to the next year if your tax liability is lower than the credit amount.

02

Massachusetts State Solar Tax Credit

Massachusetts provides a direct state-level income tax credit for primary residences. You can claim 15% of your eligible solar system costs against your Massachusetts state income taxes, up to a maximum of $1,000. This provides a clear, dollar-for-dollar reduction of your state tax burden.

Commercial rooftop deployment — high-density bifacial array
Fig · 02Commercial rooftop deployment — high-density bifacial array
03

The SMART Program (Solar Massachusetts Renewable Target)

Replacing the old SREC program, the SMART program is a long-term, block-based incentive program. Participating utilities (like Eversource, National Grid, and Unitil) pay you a fixed rate per kilowatt-hour (kWh) for the solar energy your system produces over a 10-year period. By installing a battery alongside your solar panels, you can earn an "Energy Storage Adder," significantly increasing your monthly cash payout.

04

100% Sales and Property Tax Exemptions

Massachusetts completely exempts solar energy systems from the state's 6.25% sales tax, giving you an immediate discount at purchase. Additionally, under Massachusetts General Law, the added market value your solar system brings to your home is exempt from local property taxation for 20 years, meaning your annual property taxes won't increase due to your clean energy upgrade.

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