Solar Incentives in New England

Every New England state has its own solar incentive programs — and the difference between knowing them and guessing at them is real money. Here's the complete, accurately framed 2026 incentive picture for Massachusetts, Connecticut, New Hampshire, Rhode Island, Vermont, and Maine — documented by the same team that files the paperwork on every install.

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How New England Solar Incentives Actually Work

What You Need to Know Before You File

New England has some of the strongest solar incentive programs in the country — and some of the most complicated. Programs vary by state, by utility, and by program year. Getting the right programs on the first filing matters more than most homeowners realize. Here's what shapes the incentive picture across the region. See the state-by-state breakdown below, and our full solar services hub for what we install across all six states.

Performance vs. Upfront

Two Types of Solar Programs

New England solar incentives fall into two main categories. Performance-based programs — like Massachusetts SMART and Rhode Island REG — pay you over time based on what your system actually produces. Upfront programs — like Rhode Island's REF grant — reduce your out-of-pocket cost at the point of installation. Some states offer both, and in Rhode Island the two are mutually exclusive. Knowing which type applies to your state and which option fits your situation is the first decision to get right.

Capacity Caps

First-Come, First-Served Programs

Several New England solar programs allocate incentives on an annual capacity basis — Rhode Island's REG program caps at 3 MW per program year, and Connecticut's programs have block structures that fill as applications come in. Once a block or allocation fills, the next applications either wait for the following year or receive a lower rate. Filing correctly and early within a program year matters. We track program capacity across all six states on every project we quote.

Net Metering vs. Tariff

How Your Utility Credits Work

Every New England state has a utility credit mechanism for solar — but the structure differs. Massachusetts, New Hampshire, and Vermont use net metering models where surplus electricity is credited against your bill. Rhode Island's REG program replaces net metering with a fixed production tariff. Maine uses Net Energy Billing. Connecticut runs through Eversource and United Illuminating with their own tariff structures. The credit rate and how long it's locked in varies significantly by state and program.

Stacking Programs

What You Can Combine

In most New England states, solar programs stack with battery storage programs rather than competing with them. Massachusetts SMART pays a storage adder and stacks with ConnectedSolutions battery income. Vermont's GMP BYOD battery rebate stacks with net metering. Rhode Island REF's $2,000 battery adder requires storage to be installed at the same time as solar, and ConnectedSolutions pays RI battery owners on top of that. We document every applicable stacking combination on every project we quote.

Tax Exemptions

Sales & Property Tax Relief

Every New England state exempts solar equipment from some form of sales or property tax — but the structure varies. New Hampshire has no state sales tax so no exemption is needed. Maine's property tax exemption is 100% statewide, while some other states have municipality-dependent exemptions. Rhode Island's 7% sales tax exemption applies at point of purchase with no additional filing. These exemptions don't require a program application — they apply automatically when confirmed at your address.

Federal Programs

Confirm at Filing Time

Federal clean energy incentive programs have been subject to significant legislative changes in 2025 and 2026. When solar is installed alongside battery storage, potential federal incentive eligibility may apply under current or future provisions. We provide all necessary installation documentation — system specs, equipment data sheets, commissioning dates — regardless of incentive structure. Confirm current federal program status with your tax advisor at the time of filing, not at the time of signing your installation contract.

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2026 Incentive Stack by State

New England Solar Incentives — State by State

Every program listed below is currently active in 2026. Rates and allocations are subject to annual adjustment — we confirm current program status for your specific utility and address on every quote.

Massachusetts

Massachusetts Solar Incentives →

  • SMART Program — performance-based solar incentive paying a fixed rate per kWh produced over a 10 to 20-year term through Eversource or National Grid. Battery storage increases the SMART rate adder.
  • ConnectedSolutions — Eversource and National Grid demand-response program paying battery owners a per-kW seasonal incentive for allowing grid dispatch during summer peak events. Stacks with SMART on the same system.
  • State Income Tax Credit — 15% state income tax credit for solar, capped at $1,000 per installation. Applied at tax filing.
  • Sales Tax Exemption — solar equipment exempt from Massachusetts 6.25% sales tax at point of purchase.
  • Property Tax Exemption — 20-year exemption on added solar value statewide.
Rhode Island

Rhode Island Solar Incentives →

  • REF Grant (Net Metering path) — $0.65 per watt upfront cash grant capped at $5,000, plus a $2,000 flat battery adder if storage is installed simultaneously. First-come, first-served by program round.
  • REG Program (Tariff path) — alternative to REF; pays 31.55¢ per kWh produced over a 15-year contract locked at PY2026 rate. 3 MW annual capacity cap. REF and REG are mutually exclusive — choose one.
  • ConnectedSolutions — Rhode Island Energy demand-response program paying $225 to $250 per kW per season for battery owners who allow grid dispatch during June–September peak events.
  • Net Metering — 80% of retail rate for exported surplus under the REF/net metering path. Systems sized up to 125% of annual consumption.
  • Sales Tax Exemption — 7% RI sales tax exemption on solar equipment at purchase.
  • Property Tax Exemption — 20-year exemption on added solar value statewide.
Connecticut

Connecticut Solar Incentives →

  • CT Green Bank Programs — CT Green Bank coordinates residential clean energy financing and program access across Connecticut, including the Smart-E Loan for qualified solar and storage installations.
  • Energy Storage Solutions — Connecticut's statewide battery incentive program, administered through CT Green Bank with Eversource and United Illuminating, provides upfront and performance incentives for residential batteries paired with solar.
  • Net Metering — net metering available through Eversource (most of CT) and United Illuminating (New Haven, Bridgeport corridor). Rates and structures subject to PURA regulation.
  • Sales Tax Exemption — solar equipment exempt from Connecticut 6.35% sales tax at point of purchase.
  • Property Tax Exemption — exemption on added solar value; confirm current municipal treatment at your address.
New Hampshire

New Hampshire Solar Incentives →

  • No State Sales Tax — New Hampshire has no state sales tax (0%). No solar-specific exemption is needed — no tax applies to any purchase statewide.
  • Municipal Property Tax Exemption — most NH municipalities offer a property tax exemption for residential solar. The exact treatment varies by town — some exempt the full added value, others apply a fixed amount. Confirmed per municipality on every quote.
  • Net Metering (Eversource + Unitil) — NH net metering credits surplus solar at the retail rate for both Eversource (most of NH) and Unitil (Seacoast corridor). Credits roll over monthly. Systems sized to offset up to 100% of annual consumption.
  • PACE Financing (Select Towns) — Property Assessed Clean Energy financing is available through select NH municipalities, letting homeowners finance solar through a property tax assessment with no upfront payment. Availability and terms vary by town.
Vermont

Vermont Solar Incentives →

  • GMP Net Metering — 10-Year Rate Lock — Green Mountain Power customers on Category I (15 kW or smaller) receive $0.1839/kWh base rate plus $0.01/kWh credit adjuster, locked for 10 years from enrollment. Optional +$0.03/kWh for REC transfer to GMP.
  • GMP BYOD Battery Rebate — $850 to $950 per kW of battery capacity upfront, typically $9,000 to $10,500 for a standard home battery, paid by GMP. GMP manages pre-storm charging for backup readiness.
  • GMP Battery Lease — alternative to BYOD purchase; $55 per month or $5,500 one-time payment over a 10-year lease term.
  • Sales Tax Exemption — 6% Vermont sales tax exemption on solar equipment at purchase.
  • Property Tax Exemption — 20-year exemption on added solar value statewide.
  • No VT State Solar Income Tax Credit — Vermont does not offer a state income tax credit specifically for solar. The financial case is built on GMP programs and tax exemptions.
Maine

Maine Solar Incentives →

  • Net Energy Billing (NEB) — Maine's solar credit program through CMP and Versant Power credits surplus solar electricity at the avoided cost rate, rolling over monthly. Enrolled simultaneously with interconnection filing.
  • Sales Tax Exemption — solar equipment exempt from Maine's 5.5% sales tax at point of purchase.
  • Property Tax Exemption — 100% property tax exemption on added solar value for 20 years, statewide and municipality-independent.
  • No ME State Solar Income Tax Credit — Maine does not offer a dedicated state income tax credit for solar. The financial case is built on NEB credits, the sales and property tax exemptions, and long-term electricity rate avoidance.

Solar Installation Across All Six States

Every incentive program we document, we also file. In-house crews, utility interconnection handling, permit filing, and program enrollment across Massachusetts, Connecticut, New Hampshire, Rhode Island, Vermont, and Maine — on one project timeline with one warranty contact.

Roof Mounts

Put solar panels directly on your roof to turn the sunlight already hitting it into long-term savings. Engineered for your roof's pitch, orientation, structural capacity, and snow load — with proper flashing and weatherproofing across all New England climate zones and housing types.

Ground Mounts

Install panels in your yard or field and put unused space to work generating clean energy. Strong fit for rural properties across Vermont, Maine, New Hampshire, and western Massachusetts where roof-constrained systems can be supplemented or replaced by a properly oriented ground array.

Commercial Mounts

Install solar panels at your business location to reduce operating costs and build long-term energy predictability. Flat-roof commercial installations across New England's office, warehouse, and industrial building stock — ballasted or attached mounting based on roof structure, sized to offset your business electrical load and applicable state program eligibility.

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Hear It from the Homeowners

Real reviews from real customers across New England and beyond. Every star is earned — by showing up, doing the work right, and standing behind it.

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Dennis Mason with Empower Energy Solutions IS the Solar Guy. He knows all. He’s very patient and will walk you through it every step of the way. Gives you the feeling that you are in good hands. Very easy to work with. His crew does a very professional and clean install. Give him a call and go solar !!!
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Big fan of My Local Pro! They were great about us cold calling them asking for help getting solar panels set up, and have been able to answer our questions and field our needs at every step of the process. Dave Wolfe is our representative, and he's been able to both get us the best possible solution and been a great comfort as we navigate everything. For a complete solution, we recommend reaching out to My Local Pro!
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I was very impressed with Empower Energy Solutions (SunGage), and would highly recommend them. I had a good experience so far. It's all installed, just waiting on inspectors. Dennis Mason is very pleasant to work with. He explained everything to me step by step and answered all my questions and concerns that I had, and will continue to work with me. I highly recommend Dennis!
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Ryan of My Local Pro was a pleasure to work with. His patience with my many questions and his knowledge of the industry made all the difference in helping me decide to install solar panels on my roof. His continuous availability and professionalism were highly appreciated.

New England Solar Incentives FAQ

It depends on what you're optimizing for. Massachusetts offers the most layered stack — the SMART performance program, a $1,000 state income tax credit, ConnectedSolutions battery income, and sales and property tax exemptions all stack on a single project. Rhode Island is the strongest upfront cash market — the REF grant plus the REG long-term tariff option give RI homeowners two distinct paths that no other state matches. Vermont is the strongest battery market in the region due to the GMP BYOD rebate of up to $10,500 upfront.

The right answer for your home depends on which state you're in, which utility serves your address, what programs are currently open and not at capacity, and whether you're also adding battery storage. We document the full applicable stack for your specific address on every quote — not a generic state overview.

Yes — New England consistently produces strong solar returns for several specific reasons. Electricity rates across the region are among the highest in the country, which means every kilowatt-hour offset by solar saves more than it would in a lower-rate market. State incentive programs in Massachusetts, Rhode Island, Connecticut, and Vermont are among the most active in the country. And the sun-hour profile across New England, while lower than the Southwest, is sufficient for systems sized against actual household consumption to produce meaningful annual offsets.

The strongest candidates are homes with south-facing roofs or open land with minimal shade, annual electricity consumption above the regional average, and households considering battery storage — which increases the total system value and unlocks additional state programs. We model actual production against your real utility usage history on every quote, not national averages.

The SMART (Solar Massachusetts Renewable Target) program is Massachusetts' primary solar performance incentive — a fixed payment per kilowatt-hour your system produces, paid over a 10 to 20-year contract term by your utility (Eversource or National Grid). The rate is set at the time of enrollment and locked in for the contract duration, giving Massachusetts solar owners predictable long-term income from their system's production regardless of how electricity rates change over that period.

SMART is organized into capacity blocks that fill as applications are submitted. The rate adjusts downward slightly with each block that fills — earlier enrollment generally means a higher locked rate. Adding battery storage to your system earns a rate adder on top of the base SMART compensation. We handle SMART enrollment simultaneously with interconnection filing on every Massachusetts install. See our Massachusetts solar page for the full MA program picture.

Net metering credits your bill for surplus solar electricity at a rate tied to what you'd pay the utility for that same electricity — effectively spinning the meter backward. The credit value fluctuates as utility rates change. In New England, Massachusetts, New Hampshire, Vermont, and Maine all use some form of net metering or net energy billing as the baseline solar credit mechanism.

A solar tariff program — like Rhode Island's REG or Massachusetts' SMART — pays a fixed rate per kilowatt-hour your system produces, regardless of what you would have paid the utility for that electricity. The rate is locked in at enrollment for the program term. Tariff programs generally provide more predictable long-term income than net metering because the payment rate doesn't fluctuate with utility pricing. In Rhode Island, the REG tariff and net metering are mutually exclusive — you choose one path at enrollment. We model both options side by side on every Rhode Island quote.

Yes — in most New England states, solar and battery incentives stack rather than competing. Massachusetts SMART pays a rate adder for systems with battery storage, and ConnectedSolutions pays annual demand-response income to battery owners on top of SMART. Rhode Island's REF program includes a flat $2,000 battery adder when storage is installed alongside solar. Vermont's GMP BYOD rebate of up to $10,500 specifically requires the battery to be paired with a solar installation.

The key exception in Rhode Island is the REF vs. REG choice — those two are mutually exclusive, so the REF battery adder only applies if you choose the REF/net metering path rather than the REG tariff. We document every applicable stacking combination for your state, utility, and address on every quote — including which programs require simultaneous installation to qualify for the stacking benefit. See our battery backup page for the full storage incentive picture.

The incentives that apply to your home depend on four specific factors: your state, your utility, whether any capacity-capped programs still have open allocation in the current program year, and whether you're installing battery storage alongside solar. National solar calculators and generic state guides can't answer those questions accurately for your specific address — they give you the state picture, not your utility's current program status or your municipality's specific exemption treatment.

On every quote we provide a written incentive breakdown specific to your address — not a generic state overview. That includes which programs you qualify for, whether any capacity-capped programs are still open, how programs stack with any other equipment you're considering, and what documentation you'll need at tax filing time. Start with the free design request and we'll include the full incentive picture for your home alongside the production estimate.

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Tell us about your New England home and we'll send a free solar design alongside a complete, address-specific incentive breakdown — every applicable program, accurately framed, with no guessing. No pressure, no obligation.

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