Net Metering in Massachusetts: 2026 Homeowner Guide
Net metering in Massachusetts is a billing mechanism that allows utility customers with solar renewable energy systems to receive credits for excess electricity exported to the grid, which offsets their energy costs. Credits are applied to the customer’s bill at full retail rates for supply, distribution, and transmission charges.
Massachusetts has one of the strongest net metering programs in the country and is especially advantageous given that the Federal residential solar tax credit expired on December 31, 2025. Residential solar systems up to 25kW receive full credits (1:1 net metering). This is among the most favorable programs in the country.
What Net Metering is and How it Works
Net metering in Massachusetts works by crediting your account when solar panels generate more electricity than your home uses. When solar panels generate more electricity than your home uses, the excess flows to the utility grid. This excess energy is credited to your account, acting as a virtual storehouse for nighttime or high-usage periods.
Net metering is available through state-regulated utility companies: Eversource, National Grid, and Unitil. Some municipal utilities, including Braintree, Concord, Westfield, and Danvers, may not offer the same state-mandated net metering program. Check with your utility company for eligibility.
In 2026, retail credit rates are approximately $.28 per kWh for Eversource customers; $.32 per kWh for National Grid, and $.28 per kWh for Unitil customers. These include both the supply charge and the delivery charge.
An additional advantage is that excess credits roll over monthly. At year-end, some utilities pay out remaining credits. Check with your utility company for their rollover policy.
The Cap-Exempt Expansion – a Recent Change in MA Net Metering
Cap-net Expansion in Massachusetts refers to the regulatory change that increased or lifted the net metering capacity caps – the limit on how much solar energy can receive full retail credit from utilities. Under updated regulations, new systems between 10 kW and 25 kW can now net meter without a cap allocation (called cap-exempt Nameplate facilities). Previously, only systems 10 kW or smaller were guaranteed net metering without a cap allocation.
Larger solar systems between 26 kW and 60 kW can qualify as cap-exempt if they serve on-site load and have an interconnection agreement dated January 1, 2021, or later.
This expansion is especially important for homeowners who add an electric heat pump or EV charging, which increases electricity consumption and justifies larger solar systems.
This expansion encourages local on-site energy production and reduces the strain on the distribution grid. This regulatory update makes net metering in Massachusetts one of the most accessible programs for larger residential systems in the country.
Net Metering vs. the SMART Program: What Is the Difference?
It can be confusing, but Net metering in Massachusetts and the SMART program are distinct solar incentives. Net metering enables homeowners to get credit on their utility bills for excess energy produced by their solar systems. The Massachusetts SMART program (Solar MA Renewable Target, now in version 3.0) is a 10-year performance-based incentive that pays for every kWh generated, regardless of consumption.
Net metering provides electric bill credits for excess electricity exported to the grid. It reduces what you owe your utility company.
The SMART program pays residential homeowners a flat $.03 per kWh produced for 20 years. Low-income qualified households receive $.06 per kWh.
It is important to understand that homeowners can receive both net metering credits and SMART payments at the same time. They are completely separate programs, running in parallel.
It has been reported that the SMART program is facing declining, lower rates compared to its launch, making it a smart thing to get on board now..
A mathematical example: If your home has an 8kW solar system that produces 9,000 kWh per year, it can earn approximately $270 per year from the SMART program ($.03 x 9,000) for 10 years, totaling $2,700. If you use 7,000 kWh of energy and return 2,000 kWh to the grid, your excess energy and net metering earn you $567.20 ($0.2836 x 2,000) in credits from Eversource each year.
The SMART Battery Storage Adder
Homeowners taking advantage of net metering in Massachusetts can earn even more by pairing their solar system with battery storage by receiving an additional SMART “adder” of $.04 per kWh, bringing the total SMART rate to $.07 per kWh.
Note that the battery adder incentive is separate from ConnectedSolutions. A MA homeowner with a solar system and battery storage can simultaneously receive the SMART battery adder incentive, ConnectedSolutions demand response payments, and standard MA net metering credits.
For an 8 kW solar system with a battery, the battery adder alone adds approximately $438.30 per year ($.0487 x 9,000 kWh), for 20 years, totaling $7,200 in additional incentives.
Adding a residential battery backup not only qualifies you for the adder incentive but also ensures uninterrupted power during a grid outage. In addition, using a battery to store solar energy produced during the day to use at night or during peak energy usage periods, reduces reliance on the grid and maximizes the adder benefits.
Virtual Net Metering in Massachusetts
Virtual net metering in Massachusetts allows renters, condo owners, and shaded properties to a share of a community solar project and receive net metering utility credits proportional to their share. This is called virtual net metering and is a meaningful option for apartment dwellers and others excluded from rooftop solar.
Virtual net metering (VNM) allows multiple utility customers to share credits from a single, centralized renewable energy system. Often, these solar systems are off-site or on a common roof.
When a solar array is on a community solar farm or a condo complex roof, the energy produced is sent to the utility grid. The utility allocates credits to participants’ accounts based on a pre-arranged percentage. Multifamily buildings, community solar, and commercial businesses with multiple locations using one large solar installation are examples of virtual net metering.
Municipal vs Investor-Owned Utilities
Understanding net metering in Massachusetts requires knowing which type of utility serves your address. The MA SMART program is only available to customers of investor-owned utilities: Eversource, National Grid, and Unitil. Investor-owned utilities are private, for-profit corporations that provide essential services like electricity, natural gas, and water to consumers. Owned by shareholders, they serve roughly 72% of US electricity customers, functioning as regulated monopolies within defined service territories.
Customers of municipal light plants (MLPs) in towns like Braintree, Shrewsbury, Danvers, or Westfield are not eligible for SMART but may have local net metering programs with different structures. Check with your local utility company to check eligibility for SMART or another net metering program.
What Changed in 2026: The Federal Tax Credit Expiration
At the end of 2025, under legislation signed July 4, 2025, the federal government solar tax credit expired (Section 25D) which provided a 30% credit on the cost of a solar system. Despite this change, net metering in Massachusetts remains one of the most valuable residential solar incentives available.
Massachusetts homeowners who buy solar with cash or a loan in 2026 receive zero ($0) in federal tax credits. Many websites still advertise this credit; however, it is no longer available for homeowner-purchased solar systems.
Homeowners who lease solar or use a PPA (Power Purchase Agreement) may still benefit indirectly because the third-party system owner can claim the Section 48/48E commercial ITC (30%) for projects beginning construction before July 4, 2026.
However, the remaining Massachusetts solar incentives are still substantial. There is a state sales tax exemption (6.25%), the 20-year property tax exemption, the $1,000 state income tax credit, the SMART program, and net metering.
Your solar system installer should walk you through all the available incentives you are eligible for and explain each one fully. See our 2026 Massachusetts Solar Incentive Summary below for an at-a-glance guide.
2026 Massachusetts Solar Incentive Summary
The table below summarizes every active incentive alongside net metering in Massachusetts for 2026.
| Incentive | Value | Status in 2026 |
| Net metering (Class I, up to 25 kW) | ~$0.28-$0.32/kWh in bill credits | Active |
| SMART 3.0 base rate | $0.03/kWh for 20 years | Active |
| SMART battery storage adder | +$0.04/kWh for 20 years | Active |
| ConnectedSolutions (battery required) | $275/kW avg., ~$1,200-$1,500/yr | Active |
| State income tax credit | 15% of system cost, max $1,000 | Active |
| Sales tax exemption | 6.25% on equipment | Active |
| Property tax exemption | 100% for 20 years | Active |
| Federal residential ITC (Section 25D) | 0% (expired Dec 31, 2025) | EXPIRED |
Frequently Asked Questions about Net Metering in Massachusetts
“How does net metering work in Massachusetts?”
When solar panels generate more electricity than your home uses, the excess flows to the utility grid. This excess energy is credited to your utility account, acting as a virtual storehouse for nighttime or high-usage periods.
“Does Massachusetts have net metering in 2026?”
Yes. Net metering in Massachusetts is available through state-regulated utility companies: Eversource, National Grid, and Unitil.
“What is the difference between net metering and the SMART program?”
Net Metering and the Massachusetts SMART program are distinct solar incentives. Net metering gives homeowners credit on their utility bills for excess energy produced by their solar systems. The Massachusetts SMART program is a performance-based incentive that pays for every kWh generated, regardless of consumption.
“Did the Massachusetts solar tax credit incentive expire?”
No. Massachusetts offers a state income tax credit of 15% of the solar system cost (maximum of $1,000). MA also offers a sales tax exemption of 6.25% on solar equipment, and a property tax exemption (100% for 20 years), as well as net metering, the SMART program, SMART battery adder, and ConnectedSolutions.
While the federal tax credit for solar system installations is gone, Massachusetts offers a vigorous and multifaceted solar incentive program. Net metering in Massachusetts is strong and credits excess energy that flows back to the grid at full value 1:1 kWh. The SMART program pays for each kWh produced and has bonus incentives for adding battery storage to the system. In addition, ConnectedSolutions pays for each kWh produced, and there are state income tax credits and sales and property tax exemptions. It pays to have a Massachusetts solar home!
If you are thinking about a solar energy installation for your home, or if you have solar installed and you have questions about your eligibility for solar incentives, give us a call at (508) 873-1884 today or make an appointment for a free solar consultation.
