Updated September 27, 2026. Earlier versions of this article included historical federal tax-credit percentages, SMART block examples, municipal rebate amounts, and typical payback periods. Those examples have been removed because they do not establish eligibility or savings for a new project.
Solar proposals are easier to compare when each financial assumption is visible. These five questions help homeowners and businesses understand which benefits are actually included.
1. Who owns the system and receives the benefits?
Identify whether the proposal is a purchase, financed purchase, lease, or power purchase agreement. Confirm who owns the equipment, receives any program payments, holds renewable-energy attributes, and is responsible for maintenance. Do not assume the property occupant receives benefits assigned to a separate system owner.
2. Which tax rules apply to this project?
The IRS says the homeowner Section 25D credit is unavailable for property placed in service after December 31, 2025. Historical homeowner percentages are not a valid assumption for a new 2026 installation. Business tax treatment and any state credit require their own eligibility review with your tax adviser.
3. How will the utility treat generation and exports?
Separate electricity used on site from electricity exported to the grid. Ask which utility tariff or credit arrangement applies, which approvals are needed, and how the estimate treats fixed charges and future rates. A production estimate is not a guarantee that the entire bill disappears.
4. Are program payments current and confirmed?
Request the program name, applicable version, eligibility requirements, application status, and the party receiving payments. An old SMART block example or municipal rebate should not be copied into a new proposal without verification. Ask how renewable-energy attributes are handled before assuming multiple revenue streams can be combined.
5. What assumptions drive the projected payback?
Review installed cost, financing fees and interest, estimated production, electricity use, maintenance, and verified benefits separately. Ask which results are estimates and how lower production or different utility rates would affect them. There is no single payback period that fits every Massachusetts property.
Use current guidance, then assess your project
Our updated Massachusetts Solar Incentives Planning Guide links to current IRS, Massachusetts tax-credit, SMART, and net-metering resources. You can also review the IRS homeowner credit guidance directly.
BD Electrical & Solar can review your property, electrical scope, electric bill, and goals to develop project-specific assumptions.