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Boston Solar Panels: Cost and Local Incentives

Written by Luke Daugherty/

Edited by Jamie Cesanek

Last updated 10/28/2022

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Get an estimate of solar cost and savings at your home.

Is solar right for your home?
Get an estimate of solar cost and savings at your home.


László Nagy / EyeEm/Getty images

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Boston solar panels

Rising energy costs and climate change are impacting U.S. residents from coast to coast. As people look for ways to confront these challenges, many are considering renewable energy sources such as solar power. That already includes more than 670,000 homes in Massachusetts, with more likely to come in major cities like Boston.

If you’re curious about solar panels in Boston, you’ve come to the right place. On this page, we’ll cover the cost of solar panel installation in Boston, along with ways to save and options to consider.

Ready to go solar? Call 866-288-9807to be connected with a solar expert today!

Cost of solar panels in Boston

The cost of solar panels in Boston varies depending on the installer you choose, along with the panel type and size of the system you install. In Massachusetts, the median price of a solar panel array is $3.51 per watt. That’s lower than the national U.S. median of $3.82. Based on the range of system costs and sizes, you could spend anywhere from $16,338 to $48,963 (before tax credits, which we’ll delve into) to outfit your Boston home with solar power.

How much do solar panels cost in Boston in 2022?

Solar system costs in Boston can range widely. The median solar system price in Massachusetts is $28,504, with a median size of 8.1 kilowatts (kW). 

When looking to purchase solar panels for your home in Boston, it’s important to consider how quickly you’ll recoup the costs. The outlook for your solar investment is even better once you factor in the 30% Residential Clean Energy Credit. Here’s how it breaks down: In Massachusetts, the average homeowner spends about $144.06 per month, or $1,728.72 per year, on electricity. It would take about 11.5 years to recover the cost of your solar panels through what you save on your utility bills based on the median system cost.

Once you pass that 11-year mark, those utility savings can go back into your pocket. After 20 years, you would have paid over $34,574 for utilities — and that’s a low estimate because electricity costs rise over time. That means you could save nearly $15,000 over two decades after installing solar in Boston.

Average solar panel cost by system size in Boston

The national median cost per watt for installing solar panels is $3.82. At $3.51, Massachusetts comes in notably lower. Here’s a range of costs you can expect in the state, according to the Tracking the Sun report:

Price Per WattSystem Size (kW)Cost
High$4.2011.6 kW$48,963
Median$3.518.1 kW$28,504
Low$3.005.4 kW$16,338

You can work with a top tier solar installer to determine the right solar array size for your home. To calculate how much energy the system needs to produce to cover your electricity needs, analyze your typical usage. You can do this by looking at your utility bill to see how many kilowatt-hours (kWh) you tend to use each month, then multiply that by 12 to get your typical usage for a year. Once you have that number, you can use a solar energy calculator or talk to a solar installer to estimate the necessary system size system.

According to our data, the average home in Massachusetts uses about 602 kWh per month, which is 7,224 kWh per year. Your solar system would need to produce 7,224 annually if you want it to cover 100% of your consumption.

Installation costs vary based on your home’s size, location, and energy needs. Use our median examples as a guide to help you estimate your own cost of solar panels in Boston. As mentioned earlier, the federal tax credit can help you recover some of the large upfront costs. If you were to purchase a system at Massachusetts’ median system cost of $28,504, you could receive a credit back for $8,551.

Get your free solar savings estimate

You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.

Incentives for solar panels in Boston

Because transitioning to renewable energy is an urgent but expensive proposition, many federal, state, and local agencies provide incentives to bring down the cost for customers. These programs can shave thousands off the price tag of installing solar in Boston and speed up your return on investment significantly.

Here are the most notable solar incentives available to Boston residents:

IncentiveLocal, State, or Federal?Incentive details
Residential Clean Energy CreditFederal30% tax credit active through 2032; can also be retroactively applied to solar systems purchased in early 2022
Residential Renewable Energy Income Tax CreditState15% credit on state income tax for solar installations, up to $1,000 
Sales Tax ExemptionStateAny purchase of solar equipment in Massachusetts is exempt from state sales and use tax.
Property Tax ExemptionStateWhen adding solar to a home in Massachusetts, you won’t have to pay property tax on the added value to your property for 20 years.
Solar Massachusetts Renewable Target (SMART)StateMassachusetts pays customers of Eversource, National Grid, and Unitil utility companies a fixed rate per kWh for using solar power. The rate varies by location and utility provider and is good for up to 10 years.
Net Metering ProgramsStateMassachusetts allows residents to sell back surplus solar energy to utility companies for credits. 

Solar companies in Boston

Residents and business owners who want to explore the costs of solar panels in Boston should take the time to compare different installers in the area. Costs can vary significantly depending on factors like solar panel efficiency and installer pricing, so it helps to weigh your options.

At SaveOnEnergy, our goal is to help you get the best solar system for your situation. We can connect you with a trusted solar installer to help you explore your options. Read our solar panel installation guide, fill out our form, and call the number on your screen to speak with a solar advisor today.

Is going solar in Boston right for you?

Purchasing and installing a solar array on your home may sound overwhelming. The good news is that it’s not your only option. Depending on your situation, you might consider several different ways to get Boston solar power for your home.

Solar for renters

Renters have the most limited options for solar panels in Boston, given that they don’t own their homes. However, that doesn’t mean you’re out of luck if you rent. Renters can access solar power through special arrangements such as solar leasing or solar power purchase agreements (PPAs). These setups allow you to buy solar energy from a leasing company or solar developer that installs and manages the equipment on your home. Connect with your landlord to further discuss the benefits of going solar.

Solar for homeowners

Homeowners can access the same PPAs and leasing arrangements as renters, but purchasing a system presents the most cost-effective option in the long run. With your home solar system, you can purchase a battery to store extra energy or optimize your system to meet your additional electricity. Installing solar panels in your home in Boston can have huge benefits, especially with tax credits and incentives. 

Community solar

If the cost of financing a system still makes you uneasy, or you don’t have a roof suitable for panels, you might consider a community solar program. These programs allow you to subscribe to a centralized solar array with other residents, effectively sharing the costs and earning credits toward your utility bills.

Solar power FAQs

  • The cost of solar panels in Boston varies depending on your home’s location, energy usage, and other factors. Massachusetts residents pay between $16,000 and $50,000 for a solar array, with a median price of $28,504. That doesn’t include any tax credits and incentives, which can shave thousands off the upfront cost.

  • Solar power is a great investment, especially if your home gets a lot of direct sunlight. If your solar array produces enough energy to power your home, you could recoup your costs in about 11.5 years and save hundreds or thousands every year on long-term electricity costs.

  • It’s a good idea to compare your options for solar installers in your area. SaveOnEnergy can help you connect with a local installer. Fill out our form or call the number on your screen to get started.

  • Solar power reduces your carbon footprint because it doesn’t emit carbon dioxide into the atmosphere. It also relies on the sun, a renewable resource that isn’t depletable like fossil fuels are. Switching to solar is one of the best ways to reduce your environmental impact.

Solar energy by state

Is solar right for your home?
Get an estimate of solar cost and savings at your home.