2026 Solar Incentives for New England Homeowners

Federal tax credits, state rebates, and net metering can cut the cost of going solar by 30-50%. Here is everything you need to know about the incentives available in Massachusetts, Connecticut, Rhode Island, New Hampshire, and Maine.

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Federal Solar Investment Tax Credit (ITC)

The single most valuable solar incentive is the federal Investment Tax Credit (ITC), which allows homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. This credit applies to the full installed cost, including equipment, labor, permits, and even battery storage when installed alongside solar panels.

The 30% rate is locked in through 2032 under the Inflation Reduction Act. After 2032, the credit steps down to 26% (2033) and then 22% (2034) before expiring for residential systems in 2035. There is no cap on the credit amount, making it the most significant cost reduction available.

Example: On a $30,000 solar + battery installation, the 30% ITC saves you $9,000 on your federal taxes.

Net Metering: Get Paid for Extra Solar Energy

Net metering allows you to send excess solar electricity back to the utility grid and receive credits on your electric bill. All five New England states offer some form of net metering, though the programs vary by state and utility.

During sunny hours, your solar panels often produce more electricity than your home uses. Instead of wasting that energy, it flows to the grid and your utility credits you — usually at or near the full retail rate. Those credits offset your electricity costs during cloudy days, nighttime, and winter months when production dips.

Net metering effectively turns the grid into a virtual battery, making solar economical even without physical battery storage. However, adding a battery provides backup power during storms and outages — a major benefit for New England homeowners who experience nor'easters and severe weather.

State-by-State Incentives

Massachusetts

  • SMART 3.0 Program: Massachusetts pays you for every kWh your solar panels produce for 10 years through the Solar Massachusetts Renewable Target program. This is one of the most generous production-based incentives in the nation.
  • State Tax Credit: Up to $1,000 state income tax credit for residential solar installations.
  • Net Metering: Full retail rate credits for excess solar production, available through National Grid, Eversource, and Unitil.
  • Sales Tax Exemption: Solar equipment is exempt from the 6.25% Massachusetts sales tax.
  • Property Tax Exemption: Solar installations are exempt from property tax increases for 20 years.
  • ConnectedSolutions: Earn payments from your utility for sharing stored battery energy during peak demand periods.
Learn more about solar in Massachusetts

Connecticut

  • RSIP Rebate: Connecticut's Residential Solar Investment Program offers upfront rebates based on system size, reducing your out-of-pocket costs.
  • Property Tax Exemption: 100% property tax exemption on the added value of solar equipment for the life of the system.
  • Net Metering: Full retail rate credits for excess solar production through Eversource and United Illuminating.
  • Sales Tax Exemption: Solar energy systems are exempt from Connecticut's 6.35% sales tax.
Learn more about solar in Connecticut

Rhode Island

  • Renewable Energy Fund (REF): Grants up to $7,000 for residential solar installations, one of the most generous state-level grants available.
  • Property Tax Exemption: Solar installations are exempt from property tax assessments.
  • Net Metering: Generous net metering credits through Rhode Island Energy at full retail rate.
  • Sales Tax Exemption: Solar equipment is exempt from Rhode Island's 7% sales tax.
Learn more about solar in Rhode Island

New Hampshire

  • Solar Rebate Program: Utility rebates up to $1,000 for residential solar installations through Eversource, Liberty, and Unitil.
  • Property Tax Exemption: Solar energy systems are exempt from local property taxes.
  • Net Metering: Credits for excess solar production sent to the grid, available through all major NH utilities.
  • No Sales Tax: New Hampshire has no state sales tax, so solar equipment is automatically tax-free.
Learn more about solar in New Hampshire

Maine

  • Efficiency Maine Rebate: Rebates for residential solar installations to reduce upfront costs, administered through Efficiency Maine Trust.
  • Net Energy Billing: Maine credits you at the full retail rate for excess solar energy, one of the strongest net metering programs in New England.
  • Property Tax Exemption: Solar energy equipment is exempt from property taxes for the life of the system.
  • Sales Tax Exemption: Solar equipment is exempt from Maine's 5.5% sales tax.
Learn more about solar in Maine

$0 Down Solar Financing

You do not need to pay anything upfront to go solar. Solarize NE offers $0 down financing options including solar loans, leases, and power purchase agreements (PPAs). Most homeowners see immediate monthly savings — your solar payment is typically less than what you were paying the utility company.

With the 30% federal tax credit, state incentives, and net metering credits, the effective cost of solar in New England is lower than it has ever been. Read our FAQ for detailed answers about financing, installation, and what to expect.

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