The One Big Beautiful Bill Act (OBBBA) signed in late 2024 ended the 30% federal Section 25D credit for residential solar bought with cash or loan, effective Dec 31, 2025. If you owned your system before that date, you can still claim it on your 2025 taxes. After that, the rules change.
What is still available
- SMART 3.0: Massachusetts SMART program pays roughly $0.03 per kWh produced for 20 years. A typical 10 kW MA install earns ~$360/year, ~$7,200 lifetime.
- Net metering: full retail-rate credit for systems up to 25 kW. Currently under DPU review (docket D.P.U. 25-200).
- Mass Save heat-pump rebates: up to $8,500 per home, plus 0% APR HEAT Loan up to $25,000.
- Section 48E for PPAs: third-party-owned solar (PPA) still qualifies for the federal credit through Dec 31, 2027. The PPA owner takes the credit, not the homeowner, but they typically price it into a lower per-kWh rate.
What this changes practically
For most MA homeowners who can afford to buy outright, solar is still strongly cash-flow positive on state incentives alone. The federal credit was about 25% of total project ROI; SMART 3.0 + net metering are about 60%. Losing the federal credit lengthens payback by roughly 2 years but doesn’t kill the deal.
For homeowners without tax appetite or upfront cash, PPA is now the most federal-friendly path. We model all three (cash / loan / PPA) for every customer and let the numbers decide.
What to watch in 2026
Two things: the DPU net-metering docket (could reduce credits for new installs), and any extension of Section 48E past 2027. Both are political; we’re tracking them weekly. If you’re sitting on a decision, the worst outcome is to wait and watch incentives shrink further.