Massachusetts operates a unique two-track compensation system for solar owners that no other state in this dataset replicates. Net metering and the SMART program are separate programs that run simultaneously — and a Boston homeowner with solar can benefit from both at the same time.
Net metering works the way it does in most states: excess electricity exported to the Eversource grid earns you a bill credit at the full retail rate (approximately 27¢/kWh in Boston). Unlike in North Carolina, where Duke Energy’s Net Metering Bridge pays only 3.4¢/kWh for exports, Massachusetts law requires investor-owned utilities to credit exports at the full retail rate — including delivery charges and most surcharges, not just the supply component. At 27¢/kWh, every kilowatt-hour your system produces and exports earns more than double what a Charlotte homeowner receives. Net metering credits roll forward month to month without expiration; a homeowner who banks summer surplus draws it down through winter without losing a cent.
SMART 3.0 — the Solar Massachusetts Renewable Target program administered by the Massachusetts Department of Energy Resources — operates entirely separately. Under SMART 3.0, Eversource pays a fixed rate of $0.03/kWh for every kilowatt-hour your system produces for 20 years, tracked by a dedicated “SMART meter” installed alongside your standard utility meter. This payment is for production, not exports — you receive it regardless of whether the electricity you generate is self-consumed or sent to the grid. On a 10kW Boston system producing approximately 12,000 kWh per year, SMART 3.0 yields approximately $360/year in utility payments — $7,200 over the 20-year term. Low-income households qualify for double the standard SMART rate ($0.06/kWh). Systems paired with battery storage earn an additional SMART adder on top of the base rate.
The two programs are additive: your net metering credit offsets your Eversource bill at 27¢/kWh for excess generation, while SMART 3.0 writes you a check or bill credit for total production at 3¢/kWh for 20 years. No other state in this dataset offers a production-based utility payment running parallel to full retail net metering.
The federal residential solar tax credit (Section 25D) expired December 31, 2025, following the One Big Beautiful Bill Act. For cash or loan purchases, there is no federal offset available in 2026. For Boston homeowners, however, Massachusetts’s state incentive structure is robust enough that the economics remain compelling.
The Massachusetts $1,000 state income tax credit (MGL Ch. 62, §6(d)) applies to solar installations and reduces your state tax liability directly — it is the only state income tax credit for solar in this dataset. The 6.25% state sales tax exemption (MGL Ch. 64H, §6(dd)) applies to all solar equipment and installation labor; on a $33,585 average Boston system, that saves approximately $2,100 upfront. The 20-year property tax exemption (MGL Ch. 59, §5) fully excludes the solar system’s added value from your property’s assessed value for two decades — on a Boston home where solar might add $15,000–$20,000 in market value, this avoids hundreds of dollars annually in otherwise-increased property taxes.
Solar leases and PPAs remain eligible for the commercial investment tax credit (Section 48/48E at 30%, still available through July 4, 2026) because the leasing company — not the homeowner — owns the equipment. This is why lease and PPA pricing remains competitive in 2026: the financing entity claims the tax credit and passes savings through in the form of below-retail per-kWh rates. Boston homeowners who cannot access state tax credits (due to limited state tax liability) or who prefer not to tie up capital should evaluate leases and PPAs from national providers operating in Eversource territory, understanding that long-term savings are lower than for purchased systems but immediate bill reduction is possible with no upfront cost.
Battery storage in Massachusetts carries its own incentive layer. ConnectedSolutions, the demand response program run by Eversource and National Grid, pays approximately $275 per kW of battery capacity dispatched during peak grid events. During peak summer and winter demand periods, Eversource may call on enrolled batteries 10–15 times per season; enrolled homeowners receive bill credits or checks for the capacity provided. The MassCEC Mass Save program offers a $2,000 rebate for battery installations between 5 and 20 kWh, contingent on enrollment in the Connected Homes demand response program. SMART 3.0 also provides an adder above the standard $0.03/kWh rate for systems paired with batteries. The combination of SMART adder, ConnectedSolutions payments, and the MassCEC battery rebate makes Boston one of the most financially attractive markets for solar-plus-storage in the country.
Boston’s housing density affects solar in familiar ways — triple-deckers, attached rowhouses, and multifamily buildings dominate the urban core, and roof ownership and shared-meter configurations require more planning than single-family suburban installations. But Boston’s housing stock has a unique solar characteristic not seen in other dense cities in this dataset: the triple-decker. These three-story, three-unit wooden-frame buildings are a distinctly Boston architectural form, and many have a single shared electric meter covering common area loads. A properly sized solar array on a triple-decker’s roof can feed the shared meter, qualifying the owner for SMART 3.0 payments and net metering credits on the common area load while building equity in a state with rising utility rates. The economics for triple-decker owners are generally faster to pencil than for single-family homes because the owner absorbs all the financial benefit without splitting it with tenants, while common area loads like laundry, lighting, and HVAC provide steady consumption to absorb solar production.
Detached single-family homes in neighborhoods like Jamaica Plain, Roslindale, West Roxbury, and Hyde Park have larger roof footprints and more standard installation profiles. These neighborhoods represent Boston’s strongest single-family solar market — south- and west-facing roofs with minimal shading produce reliably at Boston’s 4.2–4.4 peak sun hours, and the combination of high Eversource rates and the full incentive stack produces payback well under 10 years for well-sited systems.
A critical market nuance for the Greater Boston area: not all municipalities are served by investor-owned utilities like Eversource or National Grid. Municipal Light Plants (MLPs) — which serve towns including Braintree, Reading, Taunton, Shrewsbury, and others in the metro area — are not required to offer SMART program participation or full retail-rate net metering. MLP solar customers typically access a local buy-back rate rather than the investor-owned utility net metering framework, which can significantly reduce solar economics. Boston proper is Eversource territory, but residents of adjacent towns should verify their utility provider before assuming SMART eligibility.
Massachusetts also has a deregulated electricity supply market, meaning Boston residents can choose their electricity supplier — a competitive supplier rather than Eversource Basic Service. Net metering credits, however, are applied against the Eversource bill at the Basic Service rate, not a competitive supply rate. Homeowners on competitive supply contracts should understand how net metering credits interact with their supply arrangement before installing solar.
