Massachusetts Solar 2026: SMART Payments, 15% Credit & Payback
Massachusetts pays SMART performance incentives for 20 years plus a 15% state credit. See why MA still has one of the fastest solar paybacks despite high install costs.
By The PVFig Editorial Team · 2026-08-10 · reviewed against EIA, NREL and DSIRE sources
SMART payments add real income
The Massachusetts SMART program pays a per-kWh performance incentive for 20 years (~$0.03/kWh, ~$0.06 for income-eligible). On a typical 7 kW system producing ~9,100 kWh/year, that adds roughly $270–$550/year on top of bill savings.
State credit and exemptions
Massachusetts also offers a 15% state income tax credit (cap $1,000), sales tax exemption, and 20-year property tax exemption. Electricity at ~30.2¢/kWh is among the highest in the nation, so every kWh you produce offsets a lot.
2026 payback estimate
Despite ~$3.10/W install costs, a typical MA system pays back in 7–8 years — among the fastest in the US. High rates + SMART + tax breaks more than offset the price premium. Run the ROI calculator for your exact system.
FAQ
What is the SMART program in Massachusetts?
A performance incentive paying roughly $0.03–$0.06/kWh for 20 years on top of net metering bill savings (MA DOER).
Does Massachusetts have a solar tax credit?
Yes — 15% of net cost, capped at $1,000, plus sales tax and 20-year property tax exemptions.
Is solar worth it in Massachusetts in 2026?
Yes — 7–8 year payback for typical systems, one of the fastest in the US.
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Sources
- U.S. EIA — electricity rates by state, eia.gov/electricity/monthly
- NREL PVWatts v8 — solar production by location, pvwatts.nrel.gov
- DSIRE — state incentives and net metering, dsireusa.org
- See how every figure on this page is calculated — PVFig methodology.
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