2026 Solar Incentives & Rebates

Tap your state on the map to jump straight to the programs, tax breaks, and net-metering rules that apply to you.

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Federal 30% Tax Credit Ended December 31, 2025

The One Big Beautiful Bill Act (signed July 4, 2025) terminated the Section 25D Residential Clean Energy Credit for expenditures made after Dec 31, 2025. Homeowners purchasing solar in 2026 cannot claim the 30% federal credit. Leased/PPA systems may still benefit from the separate commercial §48E credit through 2027 — talk to your installer and CPA.

State Tax Credits & Exemptions

New England states offer property tax exemptions, sales tax exemptions, and — in Massachusetts — a state income tax credit that directly reduces what you owe when you install solar.

State Programs & Tariffs

Each state runs its own performance-based program: Connecticut's RRES tariff, Massachusetts' SMART 3.0, Rhode Island's REF grant and REG tariff, plus Maine and New Hampshire net energy billing.

Net Metering Credits

When your panels produce more electricity than you use, the excess feeds the grid. Your utility credits your account — reducing future bills and boosting long-term savings.

Compare 2026 Incentives Side-by-Side

Search any keyword (e.g. "SMART", "property tax", "$5,000") or toggle states to compare.

Incentive	CTConnecticut	MEMaine	MAMassachusetts	NHNew Hampshire	RIRhode Island
Program	Residential Renewable Energy Solutions (RRES)	Net Energy Billing (NEB) — kWh Credit Program	SMART 3.0 (Solar Massachusetts Renewable Target)	Net Metering (NEM 2.0)	REF Grant + Net Metering, or REG Tariff
Who Qualifies	Owner-occupied CT homes served by Eversource or United Illuminating, with a suitable roof or ground-mount site and a system sized to on-site load.	Maine homeowners and renters served by CMP or Versant — either through a rooftop system on their own property, or by subscribing to a community solar farm in the same utility territory.	MA homeowners served by Eversource, National Grid, or Unitil who own their system (cash or loan). Renters, condo owners without roof rights, and municipal-light customers have limited options.	NH homeowners served by Eversource, Unitil, Liberty, or NH Electric Cooperative with a suitable site and an executed utility interconnection agreement.	RI homeowners served by Rhode Island Energy who own their system and work with a DBR-registered installer. Choose REF+Net Metering for one-time cash, or REG for 15 years of fixed per-kWh payments.
Net Metering	RRES replaces net metering for systems interconnected on or after Jan 1, 2022. Pre-2022 systems remain grandfathered.	1:1 kWh credits under NEB; systems capped at 5 MW. Governed by MPUC Chapter 313.	Full retail-rate net metering remains active for investor-owned utility customers and stacks with SMART incentive payments.	NEM 2.0 applies to Eversource and Unitil customers; NH Electric Co-op sets its own terms. Typical system cap: 1 MW.	Under the Net Metering pathway, credits cover up to 125% of on-site consumption. Systems must be sized to on-site loads based on 3-year usage.
Property Tax	100% exemption under CGS §12-81(57).	100% Renewable Energy Investment Exemption in effect since April 1, 2020. File with your municipal assessor by April 1 of the first year claimed.	20-year exemption on assessed value added by solar (MGL Ch. 59, §5, Clause 45).	Local-option only under RSA 72:61–72:72. Many towns have adopted an exemption; confirm with your municipal assessor.	Full exemption under RI Gen. Laws §44-3-3.
Sales Tax	Fully exempt from the 6.35% state sales tax (CGS §12-412(117)).	Exempt from Maine's 5.5% state sales tax.	Exempt from the 6.25% state sales tax.	New Hampshire has no state sales tax — solar equipment is tax-free by default.	Exempt from Rhode Island's 7% sales tax.
State Income Tax Credit	No state income tax credit.	No state income tax credit.	Massachusetts Solar & Wind Energy Credit: 15% of net system cost, up to $1,000 (Schedule EC). One-time credit, carry-forward allowed.	No state income tax on wages, so no solar income tax credit.	No standalone residential solar income tax credit.
What's New in 2026	Buy-All rate rose from $0.3195 to $0.3289/kWh. New Solar Energy Adjustment charge of $0.0402/kWh on total solar production applies to 2026 Netting enrollees — ask installers to model both tariffs.	Efficiency Maine's residential solar rebate remains closed with no replacement announced. Community solar continues to expand as an alternative for non-rooftop customers.	SMART 2.0 replaced by SMART 3.0: annual rate resets, contract term extended from 10 to 20 years, and stronger consumer disclosure requirements. Emergency regulations filed June 26, 2026.	The Residential Renewable Electrical Generation Rebate was permanently repealed by Senate Bill 303 (2024). NEM 2.0 grandfathering through 2040 is now the state's most durable solar advantage.	2026–2027 REG program launched (RIPUC Docket 25-52-REG). All residential solar retailers must now maintain annual registration with the Dept. of Business Regulation under the Homeowners Bill of Rights Act. REF grant funding is round-based and can exhaust — confirm availability before signing.

State-by-State 2026 Guide

CTConnecticut

Full Connecticut guide →

Residential Renewable Energy Solutions (RRES)

PURA's 20-year successor to net metering, offered through Eversource and United Illuminating. Homeowners choose one of two tariffs: Buy-All at $0.3289/kWh (2026) where the utility purchases all production, or Netting where excess exports are credited at retail rate. Income-eligible and distressed-municipality adders available.

Who Qualifies in Connecticut

Owner-occupied CT homes served by Eversource or United Illuminating, with a suitable roof or ground-mount site and a system sized to on-site load.

Eligibility Checklist

Property is a 1–4 unit residential building in CT
Electric service from Eversource or United Illuminating
System ≤25 kW AC (residential RRES cap)
PURA-approved contractor and utility interconnection agreement
Homeowner selects Buy-All or Netting tariff at enrollment (locked for 20 years)
Adders available: income-eligible households and distressed municipalities

Common Disqualifiers

Municipal utility customers (e.g., Norwich Public Utilities, Wallingford) — not eligible for RRES
Systems interconnected before Jan 1, 2022 stay on legacy net metering, not RRES

Net Metering: RRES replaces net metering for systems interconnected on or after Jan 1, 2022. Pre-2022 systems remain grandfathered.
Property Tax: 100% exemption under CGS §12-81(57).
Sales Tax: Fully exempt from the 6.35% state sales tax (CGS §12-412(117)).
State Income Tax Credit: No state income tax credit.
What's New in 2026: Buy-All rate rose from $0.3195 to $0.3289/kWh. New Solar Energy Adjustment charge of $0.0402/kWh on total solar production applies to 2026 Netting enrollees — ask installers to model both tariffs.

MEMaine

Full Maine guide →

Net Energy Billing (NEB) — kWh Credit Program

Maine's primary residential solar mechanism, administered by the MPUC. Customers earn 1:1 kWh bill credits at roughly the retail rate (~$0.28/kWh) from their rooftop system or a shared community solar project in the same utility territory. Unused credits expire after 12 months.

Who Qualifies in Maine

Maine homeowners and renters served by CMP or Versant — either through a rooftop system on their own property, or by subscribing to a community solar farm in the same utility territory.

Eligibility Checklist

Electric account with Central Maine Power (CMP) or Versant Power
For rooftop NEB: system sized to on-site load, ≤5 MW cap
For community solar: subscribe to a farm in your utility service territory
Executed interconnection agreement with the utility
File Renewable Energy Investment Exemption with municipal assessor by April 1

Common Disqualifiers

Consumer-owned utility customers may have different rules — confirm with your co-op
Unused NEB credits expire after 12 rolling months

Net Metering: 1:1 kWh credits under NEB; systems capped at 5 MW. Governed by MPUC Chapter 313.
Property Tax: 100% Renewable Energy Investment Exemption in effect since April 1, 2020. File with your municipal assessor by April 1 of the first year claimed.
Sales Tax: Exempt from Maine's 5.5% state sales tax.
State Income Tax Credit: No state income tax credit.
What's New in 2026: Efficiency Maine's residential solar rebate remains closed with no replacement announced. Community solar continues to expand as an alternative for non-rooftop customers.

MAMassachusetts

Full Massachusetts guide →

SMART 3.0 (Solar Massachusetts Renewable Target)

DPU-approved on May 19, 2026 with 600 MW AC available for Program Year 2026. Residential systems ≤25 kW receive a locked-in $0.03/kWh incentive for 20 years ($0.06/kWh for low-income). Available to Eversource, National Grid, and Unitil customers. SMART payments stack on top of net metering.

Who Qualifies in Massachusetts

MA homeowners served by Eversource, National Grid, or Unitil who own their system (cash or loan). Renters, condo owners without roof rights, and municipal-light customers have limited options.

Eligibility Checklist

Primary or second residence located in Massachusetts
Electric service from Eversource, National Grid, or Unitil
Residential SMART: system ≤25 kW AC (single-phase)
SMART capacity block for your utility zone still open at reservation
System owned outright (purchase or loan) to claim the $1,000 Schedule EC credit
Low-income adder: household qualifies under MassCEC LMI guidelines ($0.06/kWh)

Common Disqualifiers

Municipal light plant customers (e.g., Concord, Belmont, Wellesley) — not eligible for SMART or state net metering
Leased/PPA systems: SMART payments go to the third-party owner, and the homeowner cannot claim the MA income tax credit
Systems >25 kW AC move into the small commercial SMART tariff

Net Metering: Full retail-rate net metering remains active for investor-owned utility customers and stacks with SMART incentive payments.
Property Tax: 20-year exemption on assessed value added by solar (MGL Ch. 59, §5, Clause 45).
Sales Tax: Exempt from the 6.25% state sales tax.
State Income Tax Credit: Massachusetts Solar & Wind Energy Credit: 15% of net system cost, up to $1,000 (Schedule EC). One-time credit, carry-forward allowed.
What's New in 2026: SMART 2.0 replaced by SMART 3.0: annual rate resets, contract term extended from 10 to 20 years, and stronger consumer disclosure requirements. Emergency regulations filed June 26, 2026.

NHNew Hampshire

Full New Hampshire guide →

Net Metering (NEM 2.0)

New Hampshire's primary solar benefit. Under NEM 2.0, exports are credited at 100% of energy and transmission charges plus 25% of distribution — roughly 75–80% of the retail rate. Systems on this tariff are grandfathered through December 31, 2040.

Who Qualifies in New Hampshire

NH homeowners served by Eversource, Unitil, Liberty, or NH Electric Cooperative with a suitable site and an executed utility interconnection agreement.

Eligibility Checklist

Residential property in New Hampshire
Electric account with Eversource, Unitil, Liberty, or NH Electric Co-op
System size ≤100 kW to enroll on NEM 2.0 residential terms (1 MW absolute cap)
Signed interconnection agreement with the utility on or before enrollment
For property tax exemption: your municipality has adopted RSA 72:61–72:72 — file with assessor

Common Disqualifiers

The state cash rebate ended — SB 303 (2024) permanently repealed it, no replacement
Towns that have not adopted the local-option exemption will reassess added value

Net Metering: NEM 2.0 applies to Eversource and Unitil customers; NH Electric Co-op sets its own terms. Typical system cap: 1 MW.
Property Tax: Local-option only under RSA 72:61–72:72. Many towns have adopted an exemption; confirm with your municipal assessor.
Sales Tax: New Hampshire has no state sales tax — solar equipment is tax-free by default.
State Income Tax Credit: No state income tax on wages, so no solar income tax credit.
What's New in 2026: The Residential Renewable Electrical Generation Rebate was permanently repealed by Senate Bill 303 (2024). NEM 2.0 grandfathering through 2040 is now the state's most durable solar advantage.

RIRhode Island

Full Rhode Island guide →

REF Grant + Net Metering, or REG Tariff

Homeowners pick one of two pathways. Option A: Net Metering plus a Renewable Energy Fund (REF) grant of $0.65/watt (max $5,000) — with a flat $2,000 adder for paired storage. Option B: the Renewable Energy Growth (REG) program, a 15-year fixed-price contract at roughly $0.27/kWh (2026 residential ceiling), opening April 1 each year on a first-come basis.

Who Qualifies in Rhode Island

RI homeowners served by Rhode Island Energy who own their system and work with a DBR-registered installer. Choose REF+Net Metering for one-time cash, or REG for 15 years of fixed per-kWh payments.

Eligibility Checklist

Property located in Rhode Island, served by Rhode Island Energy
System owned (cash or loan) — REF grant is not available to lease/PPA hosts
Installed by a DBR-registered residential solar retailer
REF pathway: system sized to on-site load; grant capped at $5,000 (+$2,000 for storage)
REG pathway: apply during open enrollment (typically April 1) while capacity remains
Net Metering pathway: system sized based on 3-year usage; up to 125% of consumption

Common Disqualifiers

Pascoag Utility District and Block Island Utility District customers — separate programs apply
You can't stack REF (Option A) and REG (Option B) — choose one
REF funding is round-based and can exhaust between application windows

Net Metering: Under the Net Metering pathway, credits cover up to 125% of on-site consumption. Systems must be sized to on-site loads based on 3-year usage.
Property Tax: Full exemption under RI Gen. Laws §44-3-3.
Sales Tax: Exempt from Rhode Island's 7% sales tax.
State Income Tax Credit: No standalone residential solar income tax credit.
What's New in 2026: 2026–2027 REG program launched (RIPUC Docket 25-52-REG). All residential solar retailers must now maintain annual registration with the Dept. of Business Regulation under the Homeowners Bill of Rights Act. REF grant funding is round-based and can exhaust — confirm availability before signing.

Information current as of July 2026 and sourced from state energy offices, public utility commissions, DSIRE, and utility program filings. Program rates, caps, and availability change — confirm with your installer and a licensed tax professional before making financial decisions.

Frequently Asked Questions

Is the 30% federal solar tax credit still available in 2026?

No. The One Big Beautiful Bill Act, signed July 4, 2025, terminated the Section 25D Residential Clean Energy Credit for expenditures made after December 31, 2025. Homeowners purchasing solar in 2026 cannot claim the 30% federal credit. Third-party-owned (leased) systems may still benefit from the separate Section 48E commercial credit through 2027.

Which New England state has the best solar incentives in 2026?

Massachusetts remains the strongest overall thanks to SMART 3.0 20-year payments, full net metering, a $1,000 state income tax credit, and a 20-year property tax exemption. Connecticut's RRES Buy-All tariff at $0.3289/kWh is the most valuable single per-kWh rate, and Rhode Island's REF grant delivers up to $5,000 in upfront cash.

What is net metering and how does it work in New England?

Net metering credits homeowners for excess electricity their solar panels send to the grid. Massachusetts and Maine offer full retail-rate credits, New Hampshire credits roughly 75–80% of retail under NEM 2.0 (grandfathered through 2040), Rhode Island credits up to 125% of on-site use, and Connecticut has replaced net metering with the RRES tariff for systems interconnected after January 1, 2022.

How much is Massachusetts' state solar tax credit in 2026?

Massachusetts offers a one-time Solar & Wind Energy Credit worth 15% of the net system cost, capped at $1,000, claimed on Schedule EC. Any unused portion carries forward for up to three years. It stacks with SMART 3.0 payments and full retail-rate net metering.

What is Connecticut's RRES program paying in 2026?

PURA's Residential Renewable Energy Solutions (RRES) tariff pays $0.3289/kWh under the 20-year Buy-All option for 2026 enrollments. The Netting option credits exports at the retail rate but adds a new $0.0402/kWh Solar Energy Adjustment charge on total production. Both are offered through Eversource and United Illuminating.

Does Rhode Island still offer an upfront solar grant?

Yes. Rhode Island's Renewable Energy Fund (REF) grant pays $0.65/watt (capped at $5,000) for residential net-metered systems, with a flat $2,000 adder for paired battery storage. Funding is round-based through the RI Commerce Corporation and can exhaust — confirm availability before signing.

Are solar panels exempt from property tax in New England?

Yes in most cases. Connecticut, Maine, Massachusetts (20 years), and Rhode Island provide full statutory property tax exemptions on the added assessed value of a residential solar system. New Hampshire's exemption is local-option under RSA 72:61–72:72 — many towns have adopted it; confirm with your municipal assessor.

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