Is Solar Worth It in Massachusetts? 2026 Guide

Published April 19, 2026  ·  11 min read  ·  Part of our Solar by State series

Massachusetts does not have the most sun. At 4.0 to 4.5 peak sun hours per day, the state is near the bottom of the national range. What makes Massachusetts consistently rank among the best solar markets in the country is the electricity rate: at $0.29 to $0.32 per kilowatt-hour, Massachusetts homeowners pay more for grid electricity than residents of almost any other state in the continental US. When every kilowatt-hour of solar production is worth that much, the financial case for solar is strong even with a modest sun resource.

Layer on top of that the SMART program, ConnectedSolutions battery payments, a state tax credit, and two automatic tax exemptions, and Massachusetts presents one of the deepest incentive stacks in the country. This guide explains what each piece does and what it is actually worth in 2026.

The federal tax credit: not available in 2026

Many solar guides and installer websites still describe a 30% federal solar tax credit as available. It is not, for homeowners who purchase their systems directly. The Section 25D Residential Clean Energy Credit was repealed by the One Big Beautiful Bill Act, signed July 4, 2025. The IRS confirms the credit is not available for systems placed in service after December 31, 2025.

Homeowners financing through a lease or power purchase agreement (PPA) can still benefit indirectly, since the third-party system owner can claim the commercial Section 48E Investment Tax Credit through July 4, 2026, and typically passes savings through as a discounted rate. Massachusetts allows solar leases and PPAs, but as with New Jersey, carefully check whether you retain SMART payments or whether the system owner captures them.

Electricity rates in Massachusetts: why they drive the solar case

Massachusetts residential electricity rates average $0.29 to $0.32 per kWh as of early 2026, depending on utility and season. This is roughly 60 to 75 percent above the national average of about $0.18/kWh. Rates have risen approximately 34 percent since 2020 and continue trending upward, driven by natural gas price volatility, grid modernization costs, and the transition away from fossil fuel generation.

The practical effect on solar math is significant. In Texas, a kilowatt-hour of solar production saved from the grid is worth about $0.15. In Massachusetts, the same kilowatt-hour is worth $0.30 or more. That difference roughly halves the effective payback period of a solar system compared to a lower-rate state with equivalent sun hours.

The three investor-owned utilities serving most Massachusetts homeowners are:

• Eversource serves eastern and central Massachusetts including Greater Boston, the South Shore, the North Shore, and Cape Cod. Residential rates average approximately $0.28 to $0.29/kWh as of early 2026. Eversource customers also access the highest ConnectedSolutions battery payment rates ($275/kW summer).
• National Grid (Massachusetts Electric) serves western Massachusetts, Worcester, and parts of the North Shore and MetroWest. Residential rates are approximately $0.31 to $0.32/kWh as of early 2026 — somewhat higher than Eversource, which means net metering credits are slightly more valuable per kilowatt-hour. National Grid also participates in ConnectedSolutions at $225/kW summer.
• Unitil serves a small territory in the Fitchburg area of north-central Massachusetts. Unitil participates in SMART but does not offer ConnectedSolutions battery demand response. Unitil offers a one-time battery rebate of $100 per kWh instead.

Approximately 40 Massachusetts municipalities are served by Municipal Light Plants (MLPs) rather than investor-owned utilities. These include communities such as Concord, Reading, Taunton, and Westfield. MLP customers are not eligible for the SMART program or ConnectedSolutions. If you are in an MLP town, contact your utility directly for local solar and battery incentives, which vary significantly by municipality.

The SMART 3.0 program

The Solar Massachusetts Renewable Target (SMART) program, administered by the Massachusetts Department of Energy Resources (DOER), is the Commonwealth's core solar incentive. Under SMART, your solar system generates a fixed payment for every kilowatt-hour it produces, separate from and in addition to net metering credits. You receive both simultaneously.

SMART has gone through three iterations since 2018. SMART 3.0, the current version, was adopted in 2025 and uses a flat-rate model rather than the declining capacity block structure of SMART 1.0 and 2.0. Under SMART 3.0:

• Base residential rate: $0.03 per kWh for systems up to 25 kW. Payments are monthly for a 20-year term from the date of your system's Final Statement of Qualification. Note: the SMART 3.0 tariff was submitted to the Department of Public Utilities (DPU) for approval in November 2025 and remained under review as of April 2026. DOER is accepting applications and issuing Preliminary Statements of Qualification, but Final Statements (which lock in the 20-year payment term) are pending DPU tariff approval. Confirm current status with your installer before basing investment decisions on the full 20-year term.
• Low-income rate: $0.06 per kWh for income-qualified households (typically at or below 60% of state median income on a utility R-2 discount rate).
• Adders stack on top of the base rate: battery storage adds approximately $0.04/kWh; building-mounted systems add $0.03/kWh; canopy or carport systems, brownfields, and dual-use agricultural installations each add further amounts. A typical residential rooftop system with battery storage could earn a combined SMART rate of $0.08 to $0.10/kWh.

At $0.03/kWh, the base SMART rate is much lower than the $0.18 to $0.28/kWh rates that older SMART 1.0 and 2.0 enrollees locked in. The program design has evolved because Massachusetts electricity rates have risen so far that solar is now financially compelling through net metering alone; the SMART program no longer needs to carry the full incentive load it once did. An 8 kW system producing 9,600 kWh per year at $0.03/kWh earns about $288 per year in SMART income, or approximately $5,760 over 20 years. Add the battery adder and you get closer to $0.07/kWh, worth about $672 per year for the same system.

A practical note on SMART vs. net metering: unlike the old SMART 1.0/2.0 structure where the SMART rate included the value of electricity (netting it against the retail rate), SMART 3.0 pays a fixed $0.03/kWh on top of whatever you earn from net metering. The two programs are completely separate and both run simultaneously. Your installer handles SMART enrollment as part of the installation and interconnection process through the DOER portal.

SMART is available to customers of Eversource, National Grid, and Unitil only. Program Year 2026 has 600 MW of available capacity for systems subject to the capacity cap. Historically, residential capacity has not exhausted within a program year, but confirm availability with your installer at the time of application.

Net metering in Massachusetts

Massachusetts offers near-full retail net metering for residential solar systems up to 25 kW. When your panels export surplus electricity to the grid, you receive a credit at approximately 90 to 98 percent of the full retail rate, depending on utility and rate class. Credits roll over month to month indefinitely — there is no annual true-up expiration the way some other states structure their programs. Any excess credits remaining at the end of the year are paid out at the lower default service rate (approximately $0.03 to $0.05/kWh).

At $0.29 to $0.32/kWh retail, Massachusetts net metering credits are among the most valuable in the country. An 8 kW system that offsets 9,000 kWh of grid electricity annually saves approximately $2,600 to $2,900 per year in net metering value alone.

Massachusetts solar incentives in 2026

State income tax credit

Massachusetts offers a state income tax credit equal to 15% of the total solar system cost, capped at $1,000. Any system costing $6,667 or more will hit the $1,000 cap, which includes virtually all residential installations. The credit is nonrefundable but can be carried forward for up to three years if your state tax liability in year one is less than $1,000. File Schedule EC with your Massachusetts state return to claim it.

For more information see the Massachusetts Department of Revenue solar tax credit page.

Sales tax exemption

Solar energy equipment and installation are exempt from Massachusetts' 6.25% state sales tax. The exemption applies automatically at the time of purchase. On a $30,000 system, the exemption saves approximately $1,875 upfront.

Property tax exemption

Under Massachusetts General Law Chapter 59, Section 5, the added home value from a solar installation is exempt from property tax assessment for 20 years from installation. Massachusetts has some of the highest property tax rates in the country, and solar systems typically add $15,000 to $25,000 in home value. Without the exemption, that could add $300 to $600 or more per year to your property tax bill depending on your town's tax rate. The exemption is automatic and requires no separate application.

ConnectedSolutions battery demand response

The ConnectedSolutions program, administered through Mass Save in partnership with Eversource, National Grid, and Cape Light Compact, pays homeowners annual cash incentives for enrolling their battery storage system in demand response. During summer peak demand events (typically 50 to 60 hours across June through September), the utility dispatches stored energy from your battery to help stabilize the grid.

Payment rates as of 2026:

• Eversource: approximately $275 per kilowatt of average contribution in summer, plus $50/kW in winter. A 13.5 kWh Tesla Powerwall 3 (rated at approximately 11.5 kW) can earn roughly $3,163 in summer plus $575 in winter, totaling $3,738 per year in the first enrollment period.
• National Grid: approximately $225/kW summer plus $50/kW winter. A comparable Powerwall earns approximately $2,588 per year.

The ConnectedSolutions rate is locked in for the first five years of enrollment and typically renewed thereafter. For most Massachusetts homeowners considering battery storage, ConnectedSolutions is the single most financially compelling reason to add a battery. The annual payments alone can generate $5,000 to $15,000 over a five-year enrollment — often enough to recover a significant portion of the battery's cost.

ConnectedSolutions stacks with the SMART battery storage adder. Both programs pay separately and simultaneously for the same battery system. Unitil customers do not have access to ConnectedSolutions, but Unitil offers a one-time battery rebate of $100/kWh instead.

Community solar

Massachusetts homeowners who cannot install rooftop solar, including renters, condo owners, and homeowners in MLP towns or with unsuitable roofs, can access savings through community solar. Subscribers receive 10 to 20 percent bill savings by purchasing a share of an offsite solar farm, with no installation required. Find available projects in your area at the Massachusetts Clean Energy Center's Energy Savings Finder.

New England housing and solar: what to know

Massachusetts housing stock presents a few considerations that are less relevant in newer suburban markets in other states.

Many Massachusetts homes, particularly in Greater Boston, are triple-deckers (three-story multi-family buildings) or older single-family homes built in the late 1800s and early 1900s. Before any solar installation, your installer should assess roof age and structural condition. Installing solar on a roof that needs replacement within 10 years means paying to remove and reinstall the panels — a cost that can run $2,000 to $5,000 and significantly extends payback. A roof inspection before signing a solar contract is not optional in Massachusetts; it is standard practice.

Snow is not a significant performance problem for well-installed solar. Panels are dark and tilted, so they shed snow faster than most surfaces. A few days of snow cover per year has minimal impact on annual production. The panels themselves do not require clearing; attempting to remove snow from a roof in winter creates more risk than the modest production loss is worth.

Historic districts exist in many Massachusetts communities, and some local historic district commissions have authority to regulate the visual appearance of solar installations. Your installer should be familiar with local historic district requirements if applicable. Massachusetts law generally protects homeowners' right to install solar, but aesthetic review processes in historic districts can add time to the approval process.

System costs and payback in 2026

Massachusetts is one of the more expensive states for solar installation, reflecting higher labor costs and the complexity of older housing stock. Average residential installation costs run $3.00 to $3.40 per watt in 2026. A typical 10 kW system runs $30,000 to $34,000 before incentives.

Applying the available incentives for an Eversource customer purchasing in cash with a battery system:

• Sales tax exemption: saves approximately $1,875 to $2,125 at purchase
• State income tax credit: $1,000
• SMART 3.0 income (base $0.03 + battery adder $0.04 = $0.07/kWh) on 12,000 kWh/yr for 20 years: approximately $16,800
• ConnectedSolutions (Eversource, $3,738/yr for 5 years): approximately $18,690
• Net metering savings at $0.28/kWh on 10,000 kWh/yr: approximately $2,800 per year
• Property tax exemption: approximately $400 to $600 per year for 20 years

A solar-plus-battery system in Eversource territory typically pays back in 6 to 8 years for a cash purchase. Solar-only (no battery) payback runs 7 to 9 years, without the ConnectedSolutions income. National Grid customers with higher retail rates see similar or faster payback despite slightly lower ConnectedSolutions payments, because net metering credits are worth more per kWh.

Over 25 years, a Massachusetts homeowner with a well-sized solar system can expect to avoid $50,000 to $80,000 in electricity costs and generate $15,000 to $25,000 in SMART and ConnectedSolutions income, depending on utility, system size, and rate trajectory. Given Massachusetts' rate history, the higher end of those ranges is realistic.

Installer and interconnection responsibilities

Understanding who handles what avoids delays and surprises.

• Your installer is responsible for: system design and engineering, a pre-installation roof assessment, pulling all local permits, submitting the interconnection application to your utility, handling SMART program enrollment and Statement of Qualification through the DOER portal, coordinating the utility inspection and meter installation, and activating the system once Permission to Operate is granted. A good Massachusetts installer will also enroll you in ConnectedSolutions for the battery at the time of activation.
• You are responsible for: selecting a Massachusetts Clean Energy Center approved installer, ensuring your roof is in good condition before installation, choosing between direct purchase and a lease or PPA (and understanding which incentives you retain in each case), signing the interconnection agreement with your utility, filing Schedule EC with your state tax return to claim the 15% credit, and notifying your homeowner's insurance provider.
• Your utility is responsible for: reviewing and approving the interconnection application, installing or upgrading the bi-directional meter and SMART production meter, conducting the utility-side inspection, and activating net metering and SMART billing on your account.

Interconnection timelines in Massachusetts average 3 to 6 weeks from application to Permission to Operate. Eversource has invested in grid modernization and generally has a faster interconnection process for residential projects. National Grid territory has some areas with higher grid saturation from existing solar, which can occasionally require additional review. Ask your installer for a current timeline estimate based on recent projects in your specific area.

Bottom line: Is solar worth it in Massachusetts in 2026?

Yes, by a significant margin. Massachusetts regularly ranks among the top states for solar ROI precisely because the high electricity rates make every kilowatt-hour of solar production exceptionally valuable. The loss of the federal tax credit is real but relatively less impactful here than in lower-rate states, because the state incentive stack is deep enough to produce strong returns independently.

The strongest financial case is for homeowners adding battery storage: SMART battery adders plus ConnectedSolutions create an income stream that pays for a significant portion of battery cost while also providing resilience during New England winter storms and summer grid stress events. Solar-only is also financially solid; battery is not required to justify the investment.

Get at least three quotes from MassCEC-approved installers, confirm each proposal includes SMART 3.0 enrollment, ask about ConnectedSolutions enrollment for battery systems, and verify that no quote includes a federal tax credit. If you are in an MLP town, ask specifically what local incentives apply since SMART and ConnectedSolutions will not be available.