Solar incentives and tax credits available in Boston, MA

Solar Incentives in Boston, MA

Complete guide to solar tax credits, rebates, and incentive programs available to Boston homeowners in 2026.

%

Federal Solar Investment Tax Credit (ITC)

30% of total system cost

Boston homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Boston, MA.

Massachusetts State Solar Incentives for Boston Homeowners

SMART Program (Solar Massachusetts Renewable Target)

Rebate

The SMART program provides fixed incentive payments per kWh of solar production for 10 years, replacing the previous SREC-II program.

$0.03-$0.10/kWh for 10 years

Massachusetts State Tax Credit

Tax Credit

Massachusetts offers a state income tax credit for solar installations.

15% of system cost, up to $1,000

Sales Tax Exemption

Sales Tax

Solar energy equipment is exempt from the state's 6.25% sales tax.

100% sales tax exemption

Property Tax Exemption

Property Tax

Solar installations are exempt from local property tax increases for 20 years.

100% property tax exemption for 20 years

Mass Save Rebates

Rebate

Additional rebates available through Mass Save for battery storage and energy efficiency paired with solar.

Up to $1,250 for battery storage

Net Metering in Boston, MA

Available

Massachusetts has strong net metering policies. Residential solar customers receive full retail rate credits for excess generation up to a system capacity of 10 kW.

Solar Renewable Energy Credits (SRECs) in Boston

Available

The SREC-II program has been replaced by the SMART program, which provides production-based incentives. Existing SREC-II systems continue to earn SRECs under the previous program.

Average SREC Price: $250-$350 per SREC (legacy SREC-II)

Tax Exemptions in Boston

Property Tax Exemption
Solar systems in Boston are exempt from property tax assessment increases
Sales Tax Exemption
Solar equipment purchases are exempt from state sales tax

How to Claim Solar Incentives in Boston

  1. Install your solar system: Work with a qualified Boston solar installer to design and install your system.
  2. Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
  3. Apply for state programs: Contact your Massachusetts energy office or local Boston utility to apply for available incentives.
  4. Set up net metering: Contact your utility in Boston to set up net metering and start earning credits.
  5. Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.

Solar Incentives FAQ - Boston, MA

Boston homeowners can take advantage of the 30% federal solar tax credit, plus 5 state-level incentive programs, net metering, and SRECs. These incentives can reduce your total solar cost by 30-50%.

The 30% federal tax credit alone can save Boston homeowners approximately $5.7k on a typical system. Combined with Massachusetts state programs and SREC income, total savings over 25 years can reach $42k or more.

Massachusetts has strong net metering policies. Residential solar customers receive full retail rate credits for excess generation up to a system capacity of 10 kW.

To claim the 30% federal ITC, Boston homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.

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30%Federal Tax Credit
25+Year Savings
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