Massachusetts Solar Incentives: Tax Credits & Rebates Guide
Written by Luke Daugherty
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Edited by Hannah Whatley
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Last updated 09/11/2023
Estimate your home’s solar cost and savings
20-year savings
$24,593
Incentives
$6,090
Upfront cost
$20,300
Payback period
7 years
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Key Points
The average cost of solar panels in Massachusetts is $4.06 per kilowatt hour (kWh), totaling around $24,400.
The average payback period for solar in Massachusetts is a little under nine years.
SaveOnEnergy can help you compare solar quotes and find an installer that fits your needs.
Solar power in Massachusetts
Massachusetts was an early adopter of solar energy, and the state has been successful in replacing much of its traditional electricity generation with solar power. Thanks to the Bay State’s investment and incentives, it now produces enough solar energy to power nearly 740,000 homes.
As Massachusetts continues to expand its solar infrastructure, residents across the state can take advantage of Massachusetts solar incentives and other credits to bring down costs and maximize long-term savings. The cost of solar panels typically represents an upfront cost of $20,000 or more, but it can save you far more in the long run.
Are you considering installing solar panels on your home? Keep reading to learn about the costs and benefits of solar panels in Massachusetts and how to decide if they’re right for you.
Ready to go solar? Call 866-288-9807to be connected with a solar expert today!
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Massachusetts solar panel cost
The cost of a solar panel system depends on various factors, including the size of your system, the type of solar panels you choose, your roof’s age and condition, installation costs, and more. Since solar installations are customized to your individual residence, final costs can range significantly.
According to data from Find Energy, a typical Massachusetts solar panel system costs $4.06 per watt. A state-average 6-kilowatt (kW) system would total $24,364 before any tax credits or other solar incentives. Here’s how that compares to the U.S. average:
System
size
Installed
cost
Number of
solar panels*
Massachusetts
6 kW
$24,364
15–20
U.S.
8.6 kW
$31,558
22–29
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
How does Massachusetts solar save you money?
It’s important to put the cost of solar in Massachusetts’s in context. First, you can lower your upfront cost significantly by taking advantage of state and federal solar incentives. The federal tax credit alone is good for 30% of the cost of your system, which can help you recover around $7,300 from the cost of a typical set of panels in Massachusetts.
You will also experience long-term energy savings, which can be substantial. The average Massachusetts resident pays $161.64 per month for electricity, and the right solar setup could eliminate that expense entirely. At that rate, you could earn back the cost of your panels in just under nine years. Your solar panels could last another several decades beyond that point, and any additional energy savings represent a return on your upfront investment.
System
size
Total cost
Number
of panels
4 kW
$16,240
10–13
6 kW
$24,360
15–20
8 kW
$32,480
20–27
10 kW
$40,600
25–33
12 kW
$48,720
30–40
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
The best Massachusetts solar panel incentives or rebates
There’s no doubt that solar energy in Massachusetts represents a major investment. The good news is there are federal and state incentives that can help you cut the total cost of solar in Massachusetts.
The federal solar tax credit, known as the Residential Clean Energy Credit (formerly the Investment Tax Credit), is a 30% credit off your next tax return for solar panels purchased between 2022 and 2032. It will then drop incrementally over the next few years before expiring in 2035, unless Congress extends it. There is no upper limit on this incentive.
There are also numerous Massachusetts solar incentives that can help you save further with solar energy. The most popular programs are summarized below.
Incentives
Details
State tax credit
Massachusetts provides financial incentives to help consumers save on solar panels. The state currently offers a 15% income tax credit for a maximum of $1,000. If you have excess credit, you can carry it over for three consecutive years.
Tax exemptions
Massachusetts offers sales and property tax exemptions, meaning you won’t pay additional taxes on your solar panel purchase or the value it adds to your home. You must install an energy storage system such as a solar battery to qualify for the property tax exemption.
Solar Massachusetts Renewable Target (SMART)
The SMART program pays customers of three major utilities in the state — National Grid, Eversource, and Unitil — a fixed rate per kilowatt-hour (kWh) for the power that residential solar panels generate. Projects with less than 25 kW capacity receive the highest base compensation rates. The rates vary between the three utilities.
Customers of Eversource, National Grid, or Unitil can establish net metering with their utility. This allows you to sell back excess solar energy to the grid in return for credits against your energy bills.
Supplier rebates
Several electric suppliers throughout Massachusetts offer rebate programs with one-time payments based on the size of system you buy. Explore your options through the Database of State Incentives for Renewable Energy (DSIRE).
Solar incentives in Boston
Like residents throughout Massachusetts, those in Boston can take advantage of the state income tax credit for installing solar panels.
The credit is good for 15% (up to $1,000) of the net purchase and installation cost after subtracting federal credits and rebates.
You’ll apply for the credit when you file your annual state income taxes.
If the credit is worth more than what you owe in taxes, you may carry it forward for up to three years.
Boston residents can also claim the same exemptions for property tax and sales tax noted previously. Customers of Eversource, National Grid, or Unitil can sell their energy back to the grid through net metering.
Why choose Massachusetts solar power?
There are three major benefits to going solar in Massachusetts, including lowering energy expenses, becoming less reliant on tradition electricity, and reducing your impact on the environment.
Lower energy costs
One of the biggest perks of installing solar panelson your home is the ability to reduce your energy costs. Massachusetts has one of the highest electricity rates in the country. A residential solar owner in Massachusetts can save nearly$2,000 on annual energy costs. Additionally, solar panels can increase the value of your home.
Increase energy independence
Another perk of installing solar panels is that you will gain more energy independence, meaning you won’t be as reliant on the traditional electricity grid to power your home. You will also be more protected from energy rate increases when demand is high. While most solar owners choose to remain connected to the grid, you’ll have more control over your electricity costs by relying more on the power your system produces.
Go green
Traditional electricity sources like oil and gas produce harmful greenhouse gasses that pollute the air and water. Greenhouse gases such as carbon dioxide contribute to climate change and are bad for the environment. Luckily, solar power is a form of clean and renewable energy. Generating solar energy doesn’t produce greenhouse gases and is considered a more sustainable and environmentally friendly source of electricity.
Should I buy or lease my solar panels?
When you decide to invest in solar panels, you’ll have the option to either buy or lease your solar panels. While both options have some key benefits, buying solar panels ultimately offers the most savings. Purchasing your solar panels with cash, or a loan, lets you take advantage of available federal and state tax credits. You will not qualify for many tax incentives, including the federal solar tax credit, if you lease your system.
Additionally, owning your solar panels will provide the greatest long-term energy savings. And if you own your solar system, the resale value of your home may increase by an average of $15,000.
While leasing solar panels may not be as cost-effective as buying, it still offers plenty of benefits. First, leasing eliminates the upfront cost of solar panels in Massachusetts. Leasing may also make more sense for people renting their homes or for consumers who may move to a new home sooner rather than later.
Another alternative to buying or leasing solar panels is participating in a community solar project. When you sign up for one of these shared solar programs, you’ll receive a portion of the power produced by a solar farm and save on your monthly electricity bills. You don’t have to pay the upfront costs of buying solar panels, nor do you have to install panels on your home.
Payment Method
Benefits
Drawbacks
Cash purchase
Largest long-term savings, eligible for solar incentives, increased property value, lower energy bills
Low upfront costs, not responsible for system maintenance, reduced energy bills
Ineligible for solar incentives, may need to pass the PPA to someone when moving, lower long-term savings
Community solar
Easy to join most projects, no long-term commitment, great for renters or those with shaded properties, no maintenance responsibilities
Ineligible for solar incentives, lower long-term savings
Massachusetts solar panel companies
With the rising popularity of solar panels in Massachusetts, there are also an increasing number of solar installers in Massachusetts. The solar installer you choose will guide you through the process of creating your home solar panel system.
SaveOnEnergy can connect you with a reputable solar company in Massachusetts that will help you design a solar system that is right for your home. We vet our solar panel companies to ensure you get the best experience. To learn more, fill out our solar estimator or call the number on your screen.
Solar Installer
Year founded
Financing options
Warranty terms
2011
Cash purchase or solar loan
25-year manufacturer warranty and production guarantee
30-year performance, 25-year panel, quality-of-work, and roofing warranty
1985
Cash purchase, solar loan, or lease
25-year full system warranty
What to look for in a solar contractor
As you are planning to go solar in Massachusetts, it’s important to do careful research and compare installers to find the right fit. Ensure that your contractor is certified by a reputable industry organization like the North American Board of Certified Energy Practitioners (NABCEP). Read reviews from other customers who have worked with that contractor to ensure they have a strong track record of customer service. Finally, review the solar panels, equipment, and warranties they offer to ensure they’re among the best in the industry so you can be confident in your solar panels for years to come.
Beware of free solar panels in Massachusetts scam
If you’re looking for free solar panels in Massachusetts, you may find some offers that sound too good to be true. That’s because they are — in fact, they’re scams designed to get your personal information or get you to sign a disadvantageous contract. Solar panels always come with a significant cost, but they will save you money in the long run.
Important solar installation factors to consider
Solar panels can be an excellent investment, but there are a few things to consider before you install them on your home:
Your roof: According to the Department of Energy, solar panels are most effective on south-facing roofs with slopes between 15 and 40 degrees. They are also best for roofs in good condition that won’t need to be replaced soon.
Access to sunlight: Solar panels can help drastically reduce your energy costs, but only if they can capture sunlight to produce solar energy. It’s important to consider your property’s exposure to sun and the amount of shade before installing the panels.
HOA rules: Some homeowners associations have restrictions on the use of solar panels. In Massachusetts, HOAs cannot fine homeowners for installing solar panels. However, they can place restrictions on solar panel placement and display.
The cost of solar panels depends on various factors, including the size of your system, thetype of solar panels you install, local installation costs, and more. On average, you can expect to pay around $24,400 in Massachusetts before factoring in tax credits and other incentives that can lower the total cost.
Solar power can be an excellent investment, helping you reduce your energy costs and gain more energy independence. However, it’s important to consider your energy usage habits and the amount of sunlight your property gets to determine if it’s the right decision.
The amount you could save by investing in solar power depends on the amount of energy your solar panels produce and your current energy usage habits. Massachusetts residents paid an average electricity bill of $161.64 as of June 2023. If your Massachusetts solar panels eliminate these costs, you could save nearly $2,000 per year, on average. To find out how much you might save, examine your typical monthly electricity bill.
With493 solar companies in Massachusetts, including manufacturers and installers, it can be daunting to find the trusted company. SaveOnEnergy provides many resources for homeowners thinking about going solar. Before working with a solar installer, research the company’s customer testimonials, experience, and reputation. Complete this form or call us at the number listed previously to get more information and find the solar installer in Massachusetts that suits your needs.
Unlike traditional electricity generation, solar power is a renewable resource. It doesn’t emit carbon dioxide or other harmful greenhouse gasses. Installing solar panels on your home can reduce your home’s environmental footprint because you will rely more on a green energy source than traditional power sources like oil and gas.