Massachusetts Solar Incentives 2026: SMART, MassSave, and Hidden Rebates

Massachusetts consistently ranks among the top five states for residential solar, and it's not just because of New England electricity rates (which averaged 28-32 cents per kWh in 2025). The Bay State stacks incentives in a way that can cut your total solar-plus-battery cost by 40-60% — if you know where to look.

Here's your complete guide to every Massachusetts solar and battery incentive available in 2026.

The Federal Foundation: 30% Investment Tax Credit

Before diving into state programs, remember that the federal ITC remains the single biggest incentive for residential solar. Through 2032, homeowners who purchase (not lease) a solar system can claim 30% of the total installed cost as a dollar-for-dollar federal tax credit.

For a typical Massachusetts 8 kW system costing $28,000 before incentives, that's an $8,400 tax credit. Batteries qualify too — a Tesla Powerwall 3 at roughly $12,500 installed would generate an additional $3,750 credit.

Key detail: the system must be placed in service by December 31 of the tax year you claim the credit. If your tax liability is less than the credit amount, you can carry the unused portion forward to future tax years.

SMART: The Solar Massachusetts Renewable Target Program

The SMART program is Massachusetts' primary solar incentive, and it works differently than traditional rebates. Instead of a one-time payment, SMART provides a per-kilowatt-hour tariff payment for the electricity your solar system generates over 10 or 20 years (depending on system size).

How SMART works in 2026:

• Systems under 25 kW (most residential) receive a fixed per-kWh rate for 10 years
• The base compensation rate varies by utility territory and capacity block, but residential systems in Eversource territory typically receive 12-16 cents per kWh
• National Grid territory rates are similar, ranging from 11-15 cents per kWh
• These payments are on top of any net metering credits you receive

SMART Adders for Batteries:

SMART includes an energy storage adder that increases your per-kWh payment if you pair solar with a battery. To qualify, your battery must be at least 70% charged from your solar system (not the grid) and must be enrolled in a utility demand response program. The storage adder can increase your SMART rate by 3-5 cents per kWh, adding $300-$600 annually in additional payments.

Current SMART Status:

The program operates in capacity blocks — when one block fills, the next opens at a slightly lower rate. As of early 2026, most utility territories are in their later blocks, meaning rates are lower than early adopters received but still meaningful. Check the SMART program tracker for current block status.

ConnectedSolutions: Get Paid for Your Battery

ConnectedSolutions is Massachusetts' battery demand response program, and it's one of the most lucrative battery incentive programs in the country. If you have a home battery, your utility will pay you to discharge it during peak demand events (typically summer afternoons and winter evenings).

2025-2026 ConnectedSolutions payments:

• Eversource: Approximately $225 per kW of battery capacity per year (a 13.5 kWh Tesla Powerwall 3 with 11.5 kW output could earn roughly $1,500-$1,800 per year)
• National Grid: Approximately $200-$250 per kW per year, with similar annual earning potential
• Unitil: Smaller territory but offers competitive per-kW rates

The program typically runs from June through September for summer events and December through March for winter events. You'll receive 10-30 dispatch signals per year, each lasting 2-3 hours. Your battery discharges to the grid during these events, and you get paid based on your enrolled capacity.

Important: ConnectedSolutions payments stack with SMART adders and the federal ITC. A homeowner with a Powerwall 3 could receive the 30% ITC ($3,750), SMART storage adder payments ($300-600/year), and ConnectedSolutions payments ($1,500-1,800/year) — potentially recovering the battery cost in 4-5 years.

MassSave: Heat Pump and Weatherization Rebates

While MassSave is primarily known for energy efficiency, it connects directly to your solar economics. Here's why it matters:

Weatherization First, Solar Second: MassSave offers up to $10,000 in insulation and air sealing rebates. Reducing your home's energy waste before going solar means you need a smaller (cheaper) solar system to offset your bills.

Heat Pump Rebates: MassSave offers $1,250-$10,000 in rebates for heat pump installations (amounts vary by system type and income level). When you electrify heating with a heat pump, your electricity usage increases — making solar even more valuable.

Income-Qualified Enhanced Incentives: Households earning below 80% of area median income can receive significantly enhanced MassSave rebates, sometimes covering 100% of weatherization costs and receiving higher heat pump rebates.

The strategy: weatherize through MassSave first, install heat pumps second, then size your solar system to cover your new all-electric load. This maximizes the value of every panel on your roof.

Massachusetts Net Metering

Massachusetts net metering allows solar homeowners to send excess electricity to the grid and receive credits on their utility bill. While net metering rules have evolved, residential systems under 10 kW still receive full retail-rate credits.

For systems between 10-25 kW, credits are calculated slightly differently but remain favorable. The credits roll over month to month, so summer overproduction can offset winter shortfalls.

One important note: net metering credits and SMART payments interact. Your SMART facility can be net metered, but the economics work differently depending on whether you opt for SMART-only or SMART-plus-net-metering. Your installer should model both scenarios to determine which maximizes your total return.

Massachusetts Sales Tax Exemption

Solar energy systems are exempt from Massachusetts sales tax. On a $28,000 system, this saves you approximately $1,750 (the state sales tax rate is 6.25%). This exemption applies automatically at the point of sale — you don't need to file for it separately.

Massachusetts Property Tax Exemption

Under Massachusetts law (Chapter 59, Section 5, Clause 45), solar energy systems are exempt from local property tax assessment for 20 years from the date of installation. This means your home's value increases (solar typically adds 3-4% to home value according to the Lawrence Berkeley National Laboratory) but your property taxes don't.

Stacking It All Together: A Real-World Example

Let's walk through a realistic Massachusetts scenario for a homeowner in Eversource territory installing an 8 kW solar system with a Tesla Powerwall 3 in 2026:

System costs:

• 8 kW solar array: $28,000
• Tesla Powerwall 3: $12,500
• Total before incentives: $40,500

Incentives and savings:

• Federal ITC (30%): -$12,150
• MA sales tax exemption: -$2,531
• Net cost after upfront incentives: $25,819

Annual ongoing income/savings:

• Electricity bill savings (net metering): ~$2,800/year
• SMART payments (with storage adder): ~$1,600/year
• ConnectedSolutions battery payments: ~$1,600/year
• Total annual benefit: ~$6,000/year

Payback period: approximately 4.3 years — one of the fastest in the country.

After the payback period, that's roughly $6,000 per year in savings and income for the remaining 20+ year life of the system.

How to Get Started

The order of operations matters in Massachusetts:

1. Schedule a MassSave energy audit (free) and weatherize your home first
2. Get solar quotes from at least three NABCEP-certified installers
3. Ask about SMART enrollment — your installer should handle the application
4. Enroll your battery in ConnectedSolutions after installation
5. Claim your federal ITC on your next tax return

Use the EnergyScout savings calculator to get a personalized estimate based on your Massachusetts zip code. Our tool factors in SMART rates, ConnectedSolutions payments, and your specific utility territory to give you an accurate payback projection.

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Sources

1. SMART Program — Solar Massachusetts Renewable Target
2. MassSave — Residential Rebates and Incentives
3. ConnectedSolutions — Battery Demand Response Program
4. DSIRE — Massachusetts Solar Incentives
5. U.S. Department of Energy — Federal Solar Tax Credit Guide
6. Lawrence Berkeley National Laboratory — Selling Into the Sun: Price Premium Analysis
7. SEIA — Massachusetts Solar Market Data
8. Massachusetts General Laws — Chapter 59, Section 5, Clause 45