Residential Solar Incentives in Massachusetts

Solar Incentives & Cost-Saving Options for Homeowners

Going solar in Massachusetts is about more than clean energy; it's about controlling your energy costs in a market where utility rates continue to rise year after year. While some federal incentives that were previously available are no longer offered, homeowners still have access to strong state programs and flexible solar options that make switching to solar both practical and affordable.

At Future Energy Solar, we focus on what works today. We help homeowners understand current incentives, compare solar options, and choose the path that delivers long-term savings and predictable energy costs

Federal Solar Incentives – What’s Changed

In previous years, homeowners could take advantage of a federal solar tax credit that helped reduce the upfront cost of purchasing a solar system. As of this year, that federal incentive is no longer available.

While this change affects traditional solar ownership, it has also shifted the focus toward solutions that do not rely on tax credits, especially Solar Power Purchase Agreements (PPAs). These options allow homeowners to go solar with no upfront cost while still benefiting from long-term savings and energy rate stability.

Solar Options That Don’t Rely on Tax Credits

Solar Power Purchase Agreements (PPAs)

A Solar Power Purchase Agreement (PPA) allows you to go solar with $0 down and without purchasing the system. Our expert team installs the system, a third party owns and maintains the panels on your home, and you enjoy clean solar energy at a locked-in rate for the next 25 years.

While utility rates can, and often do, increase over time, a PPA gives you predictable energy costs and long-term protection from rising prices.

Key benefits of a solar PPA include:
  • No upfront cost to go solar
  • Locked-in energy rate for 25 years
  • Utility rates may increase, but your PPA rate does not
  • Immediate savings compared to standard utility pricing
  • No maintenance or repair responsibilities
  • No dependence on federal tax incentives or tax liability
For homeowners focused on budget stability, long-term savings, and simplicity, PPAs are one of the most popular solar options in Massachusetts today.

At Future Energy Solar, we’ll compare your current utility rates to a fixed PPA rate so you can clearly see how solar helps control your energy costs over time.
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Massachusetts State Solar Incentives & Exemptions

Massachusetts continues to offer valuable state-level solar incentives, which may apply depending on the type of solar option you choose.

Massachusetts State Solar Tax Credit (Ownership Only)

Homeowners who purchase a solar energy system may qualify for a Massachusetts state income tax credit worth 15% of the system cost, up to $1,000, subject to eligibility requirements.

Additional Massachusetts Benefits
  • No sales tax on solar installations (6.25% savings)
  • 20-year property tax exemption on the added home value from a solar system
  • Net metering credits through your electric utility
Eligibility varies based on system ownership and utility provider. Our team will explain which incentives apply to your situation and assist with required documentation where applicable.

We recommend consulting with a licensed tax professional to confirm eligibility.
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Net Metering in Massachusetts

Net metering allows solar customers to receive bill credits for excess electricity sent back to the grid. These credits can roll over month to month and help offset future energy usage when your system produces less power.

Savings depend on system size, energy usage, and utility provider. Net metering remains one of the most valuable state-level benefits of going solar in Massachusetts.

Renewable Energy Credits (RECs)

Homeowner-owned solar systems may generate Renewable Energy Credits (RECs) based on the amount of electricity produced. These credits can be sold to utilities that must meet renewable energy requirements.

REC eligibility depends on system ownership and program registration. Future Energy Solar assists with certification and enrollment when applicable.
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SMART 3.0, ConnectedSolutions & MLP Programs (Availability Varies)

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SMART 3.0 Program

The Solar Massachusetts Renewable Target (SMART) Program is Massachusetts’ long-term solar incentive program. It allows eligible solar owners to receive fixed payments for the electricity their system produces for up to 20 years. SMART 3.0 incentives are set by the state and vary based on:

  • System size and project type
  • Utility service territory
  • Available program capacity
  • Eligibility for enhanced incentives, such as low-income or energy-storage adders

Once enrolled, the incentive rate is locked in, providing long-term savings and improving the overall return on a solar investment.

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ConnectedSolutions Program

Massachusetts ConnectedSolutions Battery Program

The Massachusetts ConnectedSolutions program allows homeowners with battery storage to earn incentives for supporting the electric grid during periods of high demand through utilities like National Grid and Eversource. By enrolling your battery system, homeowners can earn an average of $1,500 per year when their battery discharges energy during peak demand events—without affecting everyday home usage. For example, a home with battery storage enrolled in ConnectedSolutions may automatically send power to the grid on hot summer days and receive incentive payments in return. Eligible homeowners may also qualify for 0% interest financing through the Mass Save HEAT Loan, which can be used to cover the equipment and labor costs of installing a battery system. When combined with annual ConnectedSolutions incentives, this zero-interest financing makes battery storage an affordable way to strengthen energy resilience and pay off your investment faster
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Municipal Light Plant (MLP) Solar Rebates

Homes served by a Municipal Light Plant (MLP) may qualify for local solar rebates. Incentives vary by municipality and funding availability.

We help determine program eligibility and assist with applications where available.

Incentives, eligibility, and payment amounts are subject to change and cannot be guaranteed.

Why Solar Still Makes Sense in Massachusetts

Even without federal tax credits, solar remains a strong financial option for Massachusetts homeowners. With $0-down PPAs, locked-in energy rates, net metering, and state-level benefits, many homeowners are choosing solar as a way to protect themselves from rising utility costs.

At Future Energy Solar, we don’t rely on outdated incentives. We focus on long-term value, cost control, and transparency, so you know exactly what to expect before making a decision.
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