Updated September 27, 2026. This replaces our earlier 2025 guide. The former federal-credit timeline, SMART capacity figures, rebate examples, and general payback claims should not be used for a new proposal.
Federal homeowner credit: the rules changed
The IRS states that the Section 25D Residential Clean Energy Credit is not available for property placed in service after December 31, 2025. Do not include a federal residential credit in the economics of a new homeowner-owned solar or battery installation placed in service in 2026. See the current IRS guidance.
Massachusetts residential solar and wind tax credit
Eligible Massachusetts owners or tenants who occupy the property as their principal residence may qualify for a state credit equal to 15% of qualifying net expenditure, capped at $1,000. Eligibility and the calculation are subject to the state’s requirements; the maximum is not an automatic rebate for every project. Review the Massachusetts residential energy credit rules with your tax adviser.
SMART: check the current program and project eligibility
SMART is a solar production incentive program, separate from net metering. Current applications must be assessed using the applicable program rules, utility, project category, and timing. Old capacity-block rates and examples do not establish a new project’s payment. Refer to DOER’s SMART 3.0 program details for current guidance.
Net metering: utility bill credits
Eligible facilities can receive credits for electricity sent to the utility. Eligibility and credit treatment depend on the utility and project. It is not a universal cash purchase of all solar production. Check the Massachusetts net-metering eligibility guidance and your utility’s requirements.
Municipal utilities and business projects
If your property is served by a municipal utility, confirm current programs directly with that utility. Do not assume a historical municipal rebate amount remains available.
Business-owned and third-party-owned projects require a separate tax and ownership review. A homeowner credit rule does not determine business eligibility, depreciation, or benefits available to a system owner under a lease or power purchase agreement.
Ask for a transparent proposal
Your comparison should separate installed cost, financing, estimated production, bill credits, and verified incentives. Ask which party receives each benefit and what approvals are required. BD Electrical & Solar can help define the electrical scope and project assumptions; your tax adviser confirms tax treatment.
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