Massachusetts Solar Incentives, Cost & Payback (2026)
Written by Aditya Patil · Last updated 2026-09-24
Massachusetts continues to be one of the best states for residential solar in 2026, combining high electricity rates with lucrative state incentives like 1:1 net metering, the SMART 3.0 program, and ConnectedSolutions for battery storage.
$171
Avg. monthly bill
29.61¢/kWh
Avg. rate
$3.9/W
Real installed cost
LBNL Tracking the Sun
9 yrs
Est. payback (solar only)
typical household
How much does solar cost in Massachusetts?
Based on public data from LBNL's Tracking the Sun (2023-2024), the median cost to install residential solar in Massachusetts is $3.9/watt. A typical home installation is around 10.13 kW with a gross price tag of roughly $41,740 prior to any incentives.
If we consider a household that consumes the state average of 6,912 kWh per year, they would need approximately a 5.13 kW system. At $3.9/W, the gross cost comes out to $19,992. With the federal residential clean energy credit expiring for systems completed after 2025, the 2026 net purchase price (before state incentives) is $19,992.
Solar only, no battery
Thanks to strong 1:1 net metering in MA, exporting midday excess power yields full credit value against evening usage.
$2,047 / yr
9-year payback · $69,773 over 25 years
Solar + battery
Includes greater self-consumption, plus you can earn massive payouts via the ConnectedSolutions demand response program.
$2,047 / yr
9-year payback · $69,773 over 25 years
Battery hardware cost isn't included in the estimate above, and neither is the added revenue from SMART or ConnectedSolutions — check out our best solar battery guide for storage prices.
Massachusetts solar incentives, tax credits & rebates
Massachusetts offers a highly supportive environment for solar energy with several active state-level programs.
| Program | Amount / Benefit | Status |
|---|---|---|
| SMART 3.0 (Solar Massachusetts Renewable Target) | Flat performance-based incentive on top of net metering: $0.03/kWh for 20 years for residential systems 25 kW or smaller (up from the old declining-block SREC-II style structure); $0.06/kWh for 20 years for income-qualified low-income households. Larger non-residential systems and community solar use separate rate calculations set by DOER. Residential (≤25 kW) and behind-the-meter commercial (<250 kW) systems are cap-exempt, meaning they can still enroll even where a utility's block capacity has filled. | open |
| Massachusetts Residential Renewable Energy (Solar and Wind) Income Tax Credit | 15% of net expenditure for a solar or wind energy system installed at a principal residence, capped at $1,000. Filed on Schedule EC with the MA personal income tax return. | open |
| Sales and Use Tax Exemption for Solar, Wind, and Heat Pump Equipment | 100% exemption from the Massachusetts 6.25% sales and use tax on equipment for a solar, wind-powered, or heat pump system used as a primary or auxiliary energy source for a principal residence. Since 2021 this has explicitly included battery storage equipment installed with a qualifying solar system. | open |
| Renewable Energy (Solar/Wind) Property Tax Exemption | 100% of the added assessed value from a qualifying solar or wind system is exempt from local property tax — installing solar does not raise your property tax bill. The system must be sized to produce no more than 125% of the property's annual electricity needs. | open |
| ConnectedSolutions Battery Storage Demand Response Program | $275 per average kW of battery discharge performance during summer demand response events (June 1 - September 30, called between 3-8 p.m., up to ~30-60 events per summer, 2-3 hours each). A typical 5 kWh-class residential battery earns roughly $1,200-$1,400/year. The incentive rate is locked in for a customer's first 5 summers of enrollment. As of this research neither Eversource's nor National Grid's standard program page lists a separate winter incentive component (some third-party guides reference an older/smaller winter rate — we could not confirm this is still current on either utility's official page, so treat winter figures as unverified). | open |
Net metering & export rates
Most residential solar installations in Massachusetts fall under Class I net metering (systems up to 60 kW). This guarantees 100% of the retail electric rate value for electricity exported back to the grid. Because of this policy, every kilowatt-hour you send to the utility offsets a kilowatt-hour you draw from them later in the month.
If your system produces more than you consume in a given billing cycle, those extra credits roll over to future bills in dollars. Note that a formal proceeding (DPU docket 25-175) opened in December 2025 to evaluate the future of rate design and net metering value, though as of 2026, 1:1 net metering remains in full effect.
| Policy | Full Retail Net Metering (Class I) |
| System Size Limit | Up to 60 kW for Class I residential |
| Export Credit Rate | 100% of retail delivery + 3-yr avg supply (effectively 1:1) |
| Credit Rollover | Excess dollars roll over to future monthly bills |
| Added Incentives | SMART production incentive stackable on top of net metering |
| Regulatory Status | Pending DPU rate design review (as of Dec 2025) |
For a typical residential (Class I, cap-exempt) system, the export/net-metering credit is effectively the same as what the customer would otherwise pay for that kWh (100% of retail delivery + a 3-year average supply charge), not a separately published flat cents-per-kWh figure — DOER does not publish one statewide number because it is built from each utility's own tariffed rate components. Third-party estimates (not independently verified against the underlying tariffs, which we could not directly fetch) put this in roughly the $0.28-$0.32/kWh range depending on utility and rate class as of 2026; treat these as directional, not authoritative. Confirm exact current cents/kWh by utility using each company's published net metering tariff filed with the DPU.
Top Massachusetts utility companies
Your specific electricity rates and net metering terms will depend on your local utility provider. Below are a few of the largest providers in the state.
| Utility | Avg. Residential Rate | Customers |
|---|---|---|
| Massachusetts Electric Co | 33.6¢/kWh | 526,437 |
| Direct Energy Services | 15.14¢/kWh | 498,718 |
| NSTAR Electric Company | 29.91¢/kWh | 383,373 |
Battery storage & Virtual Power Plants (VPP)
Massachusetts is a pioneer in grid integration. Adding a battery not only provides backup power but can also act as an income generator through aggressive demand-response programs.
ConnectedSolutions Battery Program
Pays $275 per average kW discharged during utility-called summer events (June 1-Sept 30, 3-8 p.m., ~30-60 events/season) to residential customers with a qualifying battery from an approved manufacturer. Rate is locked for the first 5 summers of enrollment. Administered separately (but with matching statewide terms) by Eversource and National Grid; Unitil also participates per DSIRE. A newer, smaller-footprint 'ConnectedSolutions+' pilot pays an enhanced ~$400/kW to Eversource customers in select Greater Boston/Southeastern MA communities only.
SMART Program battery/storage adder
DOER's SMART 3.0 tariff includes additional compensation for solar paired with battery storage on top of the base $0.03-$0.06/kWh production incentive; exact current storage adder figures were not confirmed via primary DOER documentation during this research (mass.gov PDFs and tariff pages returned access-blocked responses) and should be verified directly against the DPU docket 25-175 filings before publishing a specific number.
ConnectedSolutions
The flagship Massachusetts VPP/demand-response program, run jointly by Eversource, National Grid, and Unitil under the Mass Save umbrella. It pays enrolled residential and commercial battery owners a performance incentive for discharging stored energy back to the grid during announced summer peak-demand events, effectively aggregating home batteries into a virtual power plant. Check the ConnectedSolutions program page for current per-kW incentive rates.
Lease vs. Buy in Massachusetts
While cash purchases and solar loans let you capture the $1,000 MA state income tax credit and the full SMART incentive directly, third-party-owned options like leases or PPAs are still popular. The leasing company retains ownership, so they claim any available federal corporate tax credits and pass savings to you in the form of a lower monthly payment. Be aware that you cannot claim the state personal tax credit if you choose a lease. Read our comprehensive lease vs. buy guide for more details.
Estimate your own numbers
The projections on this page use statewide averages. To get a customized look at your potential savings, head over to our solar calculator and input your own usage and quotes.
Frequently Asked Questions
Does Massachusetts have a state solar tax credit?
Yes. Massachusetts offers a Residential Renewable Energy Income Tax Credit equal to 15% of your net solar costs, capped at $1,000. It must be installed on your principal residence and you must own the system (via cash or loan, not a lease).
Is solar a good investment in Massachusetts right now?
With an average electric rate of 29.61¢/kWh and full retail 1:1 net metering for most home systems, solar pays for itself relatively quickly in Massachusetts. You can also earn extra income through the SMART 3.0 program, which pays a flat per-kWh rate on top of your standard net metering credits.
Do I need a battery with my solar system in MA?
Because Massachusetts still offers strong net metering credits for exported power, a battery isn't strictly necessary for solar savings. However, enrolling a battery in the ConnectedSolutions program can earn you an additional performance incentive (around $275 per kW discharged during summer peaks), making energy storage a very attractive upgrade.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil