Massachusetts Clean Energy Incentive Programs
The SMART program provides a long-term performance-based incentive for solar projects, while Mass Save offers heat pump and efficiency rebates. Together with the MA state solar tax credit and federal credits, they make up the main layers of Massachusetts clean energy incentives.
IncentEdge's verified catalog currently covers New York only. This page is general information about Massachusetts programs that IncentEdge has not verified. Confirm current rules and amounts with each program administrator before relying on them. Federal credits apply in every state; see the federal credit guides.
Overview
Massachusetts' clean energy programs are led by MassCEC (Massachusetts Clean Energy Center), the Department of Energy Resources (DOER), and the state's three major utilities — Eversource, National Grid, and Unitil. The combination of the SMART solar program, Mass Save efficiency programs, and offshore wind development creates a multi-layered incentive ecosystem for clean energy developers of all sizes.
Federal credits changed in 2025. Under the One Big Beautiful Bill Act, wind and solar projects must have begun construction by July 4, 2026, or be placed in service by December 31, 2027, to claim the §48E investment or §45Y production credit; storage keeps a longer phase-down.
SMART Program — Solar Massachusetts Renewable Target
The SMART program is Massachusetts' primary solar incentive, providing a fixed per-kWh compensation rate over a multi-year term to qualifying solar projects. Base rates decline as capacity blocks fill. SMART also includes adder categories, for features such as storage, building-mounted systems, and low-income projects, that increase the base compensation rate. Terms, rates, and adders have changed between program versions.
SMART capacity blocks are allocated by utility territory (Eversource, National Grid, Unitil) and system size category. When a block fills, the next block opens at a lower rate. Current block status and rates are published by the MA DOER and should be verified before project financial modeling.
Mass Save
Mass Save is the statewide energy efficiency program funded through utility customer charges, with rebates for heat pumps, weatherization, and other efficiency measures. Rebate amounts change from year to year, so confirm current amounts with Mass Save before relying on the figures below.
Heat Pump Systems
Cold-climate heat pumps for heating and cooling. Includes mini-splits, central ducted systems, and ground-source heat pumps.
Heat Pump Water Heaters
High-efficiency heat pump water heaters replacing electric resistance or gas water heating.
Insulation & Air Sealing
Comprehensive weatherization for residential properties, including 75–100% of insulation costs for income-eligible households.
Commercial HVAC & Lighting
Commercial and industrial equipment rebates for qualifying HVAC, lighting, motors, and building systems upgrades.
0% HEAT Loan
Zero-interest financing for qualifying energy efficiency and heat pump improvements. Administered by Mass Save partners.
EV Charging
Rebates for Level 2 EV charging installation for residential and commercial properties.
Green Communities Program
The Green Communities program provides annual grants to Massachusetts municipalities that achieve Green Community designation by meeting five qualifying criteria. Since 2010, over $240M in grants have been awarded to more than 250 communities for clean energy projects, fleet electrification, municipal building retrofits, and renewable energy installations.
MassCEC Programs
The Massachusetts Clean Energy Center (MassCEC) is the state's clean energy agency, administering programs across offshore wind, clean transportation, energy storage, and workforce development.
Offshore Wind
Vineyard Wind, SouthCoast Wind, and New England Wind development support; supply chain investment programs.
Clean Transportation
Fleet electrification grants, EV adoption programs, and charging infrastructure development.
Energy Storage
Advancing Commonwealth Energy Storage (ACES) program; demonstration grants for novel storage technologies.
Massachusetts State Solar Tax Credit
Massachusetts offers a residential income tax credit equal to 15% of the cost of a qualifying solar energy system, capped at $1,000. The credit is non-refundable but can be carried forward for up to 3 years if it exceeds annual state tax liability.
Utility Programs
Eversource
Eastern + Central MACommercial efficiency rebates, heat pump incentives, EV charging infrastructure programs, and SMART administration for the Eversource territory.
National Grid (MA)
Central + Western MABusiness energy efficiency rebates, industrial process improvement incentives, and SMART administration for the National Grid MA territory.
Unitil
Northern MACommercial and residential efficiency programs in the Unitil service territory, including heat pump and insulation rebates.
Frequently Asked Questions
What is the Massachusetts SMART program?
The Solar Massachusetts Renewable Target (SMART) program is a performance-based incentive administered by the Massachusetts DOER. SMART pays a fixed per-kWh compensation rate for solar energy produced over a multi-year term, with rates varying by utility, system size, and capacity block. Adder categories for features such as storage, building-mounted systems, and low-income projects increase the base rate. Terms, rates, and adders have changed between program versions, so check the current SMART rules published by DOER.
What rebates does Mass Save offer?
Mass Save is the statewide energy efficiency program administered by Massachusetts electric and gas utilities. Residential customers can receive rebates of up to $10,000 for heat pump installations, $1,000+ for insulation, and significant rebates for heat pump water heaters. Commercial and industrial customers can access rebates for qualifying HVAC, lighting, motors, and building envelope improvements. Mass Save also offers 0% HEAT Loan financing. Rebate amounts change from year to year, so confirm current amounts with Mass Save.
What is the Massachusetts 15% solar tax credit?
Massachusetts offers a state income tax credit equal to 15% of the cost of a solar installation, capped at $1,000. While the cap limits the credit for larger systems, it stacks directly with the federal ITC and SMART program incentives. The credit applies to residential solar installations and can be carried forward for up to 3 years if it exceeds annual tax liability.
What is the Green Communities program in Massachusetts?
Green Communities is a Massachusetts DOER grant program that provides funding to municipalities for clean energy projects, energy efficiency improvements, and renewable energy installations. Municipalities must meet five criteria to qualify as a Green Community, then receive annual grant funding. Over $240M has been awarded to more than 250 communities since the program launched.
Can Massachusetts solar projects stack SMART, Mass Save, and federal ITC?
Often, yes. Massachusetts projects may be able to combine the federal investment tax credit, the SMART performance-based incentive, Mass Save rebates for associated efficiency measures, and the MA state solar tax credit, but each program sets its own rules on combining incentives. For solar and wind, the federal credit now carries the construction-start and placed-in-service deadlines set by the One Big Beautiful Bill Act.
Check the Federal Credits for Your Massachusetts Project
IncentEdge's verified catalog covers New York programs and federal credits. For a Massachusetts project it can check the federal credits; the Massachusetts programs on this page are background to confirm with each administrator.
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