Residential Solar Incentives

Incentives for Going Solar in Massachusetts

Going solar in Massachusetts means more than just clean energy—it’s a smart way to cut your electric bill, protect against rising utility rates, and invest in your home. What makes it even better? Massachusetts offers some of the strongest solar incentives in the country, making it easier and more affordable to make the switch.

Homeowners can take advantage of the 30% federal tax credit (ITC), a $1,000 MA State Solar Tax Credit, monthly savings through net metering, cash earnings from Renewable Energy Credits (RECs), and even performance-based payments through the SMART program—especially when solar is paired with battery storage.

At Future Energy Solar, we make sure you get the full value of every available program. We handle the paperwork, help you qualify, and design your system for maximum return. Below, we break down the current incentives available to Massachusetts homeowners—and how we help you take advantage of them.
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Federal Solar Incentives:

30% Federal Solar Tax Credit (ITC)

The federal Investment Tax Credit (ITC) is one of the most valuable incentives available for solar homeowners. It allows you to claim 30% of the total cost of your solar energy system as a credit on your federal income taxes. This includes equipment (panels, inverters, and batteries over 3 kWh), installation labor, permitting, and other associated costs.
For example, if your system costs $30,000, you can reduce your federal tax liability by $9,000—bringing your effective system cost down to $21,000. There’s no maximum credit, and if your tax liability is lower than the credit amount, you can roll the unused portion forward to future tax years.

To qualify:
  • Your system must be new and installed at a U.S. residence that you own
  • You must own the system (not lease it)
  • You must have taxable income
  • Your system must be installed and operational by December 31 of the tax year you're claiming the credit
Thanks to the Inflation Reduction Act, the 30% credit is locked in through at least 2032. It's one of the fastest ways to reduce your upfront investment and boost your long-term return.
Note: We recommend consulting with a licensed tax professional to confirm eligibility and properly claim your credit.

Massachusetts State Solar Tax Credits & Exemptions

Massachusetts homeowners who install a solar energy system may qualify for a state income tax credit worth 15% of their total system cost, up to $1,000. This credit directly reduces your state tax liability and can be used alongside the 30% federal tax credit to increase your savings.
  • You must own the system (leased systems are not eligible)
  • The system must be installed and operational before December 31 of the tax year you’re claiming the credit
  • It must be installed on your primary residence in Massachusetts
  • You must have state income tax liability
In addition to the $1,000 credit, Massachusetts also offers:
  • No sales tax on solar installations (a 6.25% savings)
  • 20-year property tax exemption on the added home value from your solar system
These state-level incentives make Massachusetts one of the most financially attractive states for going solar. At Future Energy Solar, we’ll guide you through claiming every benefit you qualify for and make the process simple from start to finish
Be sure to consult with your tax advisor to confirm eligibility and how to properly file for these incentives.
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Massachusetts Solar Incentives:

Net Metering

Net metering allows you to earn credits for the excess electricity your solar panels send back to the grid. When your system produces more energy than your home uses, the extra power is exported and credited to your electric bill at the full retail rate. These credits roll over month to month and can be used to offset your usage during times when your system produces less—like during the winter or on cloudy days.

Many homeowners significantly reduce or even eliminate their monthly electric bills through net metering. The exact savings depend on your system size, energy usage, and utility provider. Massachusetts offers some of the most favorable net metering policies in the country, making it a key part of the long-term value of going solar.

01

How it works

Every kilowatt of solar energy your system produces that you don’t use goes back to the grid, and you receive a credit on your electricity bill at a dollar-for-dollar value.

02

Monthly credits

Your excess credits can carry over to the next month, helping offset your electric bills during times when your system isn’t producing as much energy (like during the winter months).

03

Benefits

Some customers have accumulated over $1,000 in energy credits, reducing their monthly electric costs to near zero.

04

Important

Not all homes will accumulate enough credits to offset their entire electric bill, so the system size and your energy use will play a role in how much you can save.

Renewable Energy Credits (RECs)

When your solar system generates electricity, you’re not just lowering your electric bill—you’re also producing Renewable Energy Credits (RECs). In Massachusetts, every 1,000 kilowatt-hours (kWh) your system generates earns 1 REC. These credits can be sold to utilities that are required to source a portion of their energy from renewable sources, giving homeowners the opportunity to earn additional income on top of their utility savings.

Best of all, you can benefit from both RECs and net metering credits. While net metering reduces your electric bill based on how much energy you send back to the grid, RECs are earned from your system’s total solar production—regardless of how much energy you use or export.

To sell RECs, your system must be:
  • Certified by the Massachusetts Department of Energy Resources (DOER)

  • Registered with NEPOOL GIS, the official platform for tracking and issuing RECs in New England

Future Energy Solar takes care of the full setup. We submit the necessary documentation, coordinate with a certified third-party verifier, and ensure your system is approved to start generating RECs. RECs are created quarterly, and values typically range from $30 to $50 per credit, depending on market conditions.

Example: A 10 kW solar system in Massachusetts can produce around 12,000 kWh per year, which equals 12 RECs annually. At $40 per REC, that’s $480 in extra earnings each year—on top of your bill savings.

We’ll make sure your system is REC-eligible and guide you through the process—so you get the full value of everything your system produces.

SMART & MLP Programs

SMART Program (Eversource, National Grid, Unitil)
Massachusetts’ SMART Program offers monthly payments based on the amount of solar energy your system produces. As of 2025, incentives are only available for solar systems paired with battery storage. For qualifying systems, homeowners can earn additional income for 10 years—on top of savings from net metering and tax credits.
MLP Solar Rebate Program
If your home is served by a Municipal Light Plant (MLP) instead of a major utility, you may qualify for a separate rebate through the Massachusetts MLP Solar Rebate Program. Rebates are typically based on system size, with payouts around $1.20 per watt, though amounts vary depending on your local utility and funding availability.

At Future Energy Solar, we’ll help you determine which program applies, calculate your potential earnings, and handle the paperwork to get your system enrolled.
Note: Incentives, eligibility, and payment amounts may change. We assist in filing applications but cannot guarantee outcomes.
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Why These Incentives Matter

These incentives aren’t just nice to have—they’re how you make solar pay off fast. With the federal tax credit, MA state rebate, net metering, RECs, and programs like SMART and MLP, you can cut thousands off your system cost and start saving from day one.

At Future Energy Solar, we make sure you get every dollar you’re eligible for. We handle the paperwork, the strategy, and the install—so you get maximum value without the hassle.

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Not sure which incentives you qualify for or how the process works? Our team is here to walk you through it, step by step.
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