Home Solar in Massachusetts:

Local installers, tax credits, and rebates.

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Massachusetts residents who experienced power outages in a span of ten years¹

54%

Prices have fallen 54% over the last 10 years²

$1,500+

Average yearly savings for homeowner's who switch to solar³

Massachusetts Solar

Massachusetts is the most populous state in New England and boasts over 109,000 solar system installations across the state. Massachusetts is home to the city of Boston, the tenth largest metropolitan area in the US. Massachusetts state government policies favor solar tax incentives. Its high electricity prices, great rebates and strong tax incentives make Massachusetts a favorable place for businesses and residents to install solar panels and battery systems.

Let’s learn about some of those incentives, the utility policies associated with interconnection and setup, and special solar financing plans for solar panels and battery systems in Massachusetts.

Incentive Programs, Tax Credits, and

Solar Rebates in Massachusetts

IncentiveDescription
Federal ITC - 30%Solar PV systems installed in 2022 - 2032 are eligible for a 30% tax credit. The credit can only be claimed by on the original installation of the solar equipment located at a residence of yours. You must also purchase it using cash or financing, but you're not leasing the system or paying a solar company for the electricity produced by the system.
Instant Rebate from EnergyPalEnergyPal secures group discounts by leveraging the depth of our network. We pass these savings onto homeowners every day!
Belmont Light Solar RebateBelmont Light's solar rebate is $1.20/watt, capped at 25 kW DC. Rebates for System Owners are capped at 50% of total installed costs. Requirements: Have an azimuth between 90 and 270 degrees. Submit a shade report demonstrating that the total annual access is at least 80% (or a system loss of no more than 20%).
Braintree Electric Light Department Solar RebateBELD's solar rebate is $0.60/watt, capped at 25 kW DC. Rebates for System Owners are capped at 50% of total installed costs. Requirements: Have an azimuth between 90 and 270 degrees. Submit a shade report demonstrating that the total annual access is at least 80% (or a system loss of no more than 20%).
Middleborough Gas & Electric Department Solar RebateMGED's solar rebate is $0.60/watt, capped at 25 kW DC. Rebates for System Owners are capped at 50% of total installed costs or $15,000. Requirements: Have an azimuth between 90 and 270 degrees. Submit a shade report demonstrating that the total annual access is at least 80% (or a system loss of no more than 20%). Once the system is operating, MGED's meter will measure both the amount of electricity provided to the system owner by MGED and the excess electricity sent back through the MGED meter. The MGED meter will record each amount and both will be reflected on the system owner's MGED bill.
Norwood Municipal Light Department Solar RebateNMLD's solar rebate is $1.20/watt, capped at 25 kW DC. Rebates for System Owners are capped at 50% of total installed costs. Requirements: Have an azimuth between 90 and 270 degrees. Submit a shade report demonstrating that the total annual access is at least 80% (or a system loss of no more than 20%). Incentive Amount: $1,200 per kilowatt Maximum Incentive: Not to exceed 50% of total installed (labor and materials) costs excluding tax up to $24,000. Rebate Limitations: Rebates will be limited to 20 kW in system size per account (meter). System can be installed in phases; each phase will be eligible for a rebate. Rebate will be issued as a check to the customer of record.
SELCO Solar Rebate ProgramThe SELCO Solar Rebate Program allows residential customers to apply for a rebate for the purchase, installation, and usage of PV solar panels on their homes. The program includes a rebate of $0.10 per watt up to 10kW DC of installed capacity and 25% of the installed cost (maximum rebate of $1,000). Eligible solar installations must have less than 20% shading, and face between 90° (East) and 270° (West). An additional meter fee applies. Other restrictions may apply.
Taunton Municipal Lighting Plant Battery RebateIf applying for battery storage rebate of $300 for units‚ 5KW+, please see requirements listed in #10 below. Battery storage rebate is for units approved and installed after June 9, 2021. Paid to Homeowner.
Taunton Municipal Lighting Plant Solar RebatePaid to Homeowner after installation (3-12 months)
Wakefield Municipal Gas and Light Department Solar RebateApproved projects will receive one-time rebates of up to $1.20 per watt off the cost of the installed system and awards will be dispensed on a first-come, first-serve basis while program funds last or on December 30th; whichever comes first. System must be installed between 90° and 270°. System size is capped at 10kW DC for residential systems. Shade reports must show annual access is at least 80%. Upon receipt of all documents required by Massachusetts Municipal Wholesale Electric Company (MMWEC) and the Department of Energy Resources (DOER), a rebate check will be issued to the customer within 90 days by MMWEC on behalf of Wakefield Municipal Gas and Light Department (WMGLD).

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Massachusetts provides multiple solar energy rebates and incentives that help to reduce the overall cost of solar systems. Our EnergyPal Advisors can help you navigate all of the solar incentives available in Massachusetts and also apply them to the available solar panel offerings.

In summary:

  • Massachusetts offers a 15% credit, up to $1,000, on a solar, solar-battery or battery system. It’s applied to your owed income taxes.
  • The SMART program pays you back $0.07 to $0.82 per kWh of solar energy produced for 10 years and provides additional compensation for low-income customers or customers with battery systems.
  • Customers in a Massachusetts Municipal Light Plant (MLP) service area can earn a $1.20 per watt rebate, up to 50% of system costs.
  • ConnectedSolutions provides a $225 per kW summer incentive and a $50 per kW winter incentive for Eversource and NationalGrid customers who allow their utility company to pull stored energy from their battery during peak-use times.
  • No Sales Tax on solar panels, systems and related equipment
  • No property tax on any increase in property value from installing solar

Massachusetts Rebates and Tax Breaks

Here are more details about the incentives available in Massachusetts:

  • The Massachusetts Residential Energy Credit is the principal solar incentive in the state of Massachusetts. Residential property owners can be reimbursed 15% of the cost of solar panels, solar systems, solar hot-water heaters, etc. The maximum rebate amount is $1,000, and the credit comes off of your income taxes for the year in which you install the equipment.
  • The Solar Massachusetts Renewable Target (SMART) program pays you back $0.07 to $0.82 per kWh of solar energy produced for 10 years and provides additional compensation for low-income customers or customers with battery systems. See the chart below to determine your incentive rate.
  • Customers in a Massachusetts Municipal Light Plant (MLP) service area can earn a $1.20 per watt rebate, up to 50% of system costs. The maximum system size is 25 kW, and there are some stipulations regarding minimum production requirements.
  • ConnectedSolutions provides a $200 per kW summer incentive and a $50 per kW winter incentive for Eversource and NationalGrid customers who allow their utility company to pull stored energy from their battery during peak-use times of 2 p.m. and 7 p.m. The energy pull can last up to 3 hours, and notification is provided.
  • The sales and use tax exemption is a tax break where you don’t pay any sales tax on solar panels, systems or related equipment in Massachusetts. 
  • The Property Tax Exemption is a tax break where you won’t pay additional property taxes if your property value increases when you add a solar system (and with solar, your property value does go up!).

Other Solar Energy Incentives

The US federal government helps residents and businesses pay for their solar systems. The federal investment tax credit (ITC) allows for a tax deduction of 30% of the cost of a solar system currently. Tax credits can be rolled over if you can’t use the whole credit this year. The ITC cannot be claimed for solar leases or power purchase agreements (PPAs) where the third party financier takes the credits themselves, but that is typically baked into a reduced lease/PPA monthly for you.

If you purchased a $20,000 system, your savings from the federal tax credit would look like this:

$20,000 X 0.30 = $6,000 savings

You also would save an additional $1,000 by taking advantage of the Massachusetts tax credit. So if you spent $20,000 on that system, your cost would go down to $13,800. You can save even more by enrolling in the SMART program.

Utility Policies

Utility policy factors determine what your utility provider pays you for the excess power you produce and what you save on your power bill by reducing electricity usage. Massachusetts gets a medium score for utility policies.

Net Metering and Interconnection Policy

One important policy for solar customers is called Net Metering. Net Metering is a billing mechanism that allows solar customers to push electricity to the grid for credit that can be used later, like at night when your solar panels aren’t generating power. This incentivizes people to go solar, provides clean energy for others to use and prevents waste. Some states have poorer net metering policies than others, meaning that credits may not be able to be rolled over to the next month or year, or that you don’t earn full watt-for-watt credit for your excess energy.

Massachusetts’s Net Metering program is adequate. You are compensated between 60% and 100% of full retail rate for your excess energy, depending on your electricity provider. Credits can be carried over into the next month indefinitely. You can connect a system up to 60 kW in size. The exact details depend on your electricity provider’s policies.

Solar Setup Fees

You must have a bi-directional meter (necessary for Net Metering), which is installed at no cost. There may be a fee for NationalGrid customers who require interconnection modifications.

Electricity Prices

Electricity prices in Massachusetts are on the high end. Usually you don’t want high prices, but with solar, the higher the prices, the more you save, and the more economical a solar system becomes.

According to the US Energy Information Administration, the average total cost of electricity in Massachusetts is $0.221 per kWh for residents. The national average for all states is $0.134 per kWh, ranging from $0.967 to $0.288 per kWh.

Rate Design

Rate designs are comprised of monthly fees and either a flat or tiered rate you pay for electricity. Good rate designs, which save you money when you conserve energy, are tiered and have low fixed monthly fees. Poor rate designs have flat rates and high fixed monthly fees. 

Massachusetts is about average when it comes to the quality of its electricity bill rate design. It has flat rate programs but low fixed fees (around $7 per month).

You still pay fixed monthly fees when you go solar because you are still tied to the grid. Being tied to the grid is a good thing, because otherwise you might not have power at night or if your system stopped working suddenly. Even if you go off of the grid and rely on a battery source, the high cost of the battery would not outweigh the low monthly fee and the savings obtained from a net metering program.

PACE Programs

PACE stands for Property Assessed Clean Energy and is a financing program for solar projects that is tied to the home instead of the homeowner. The residential PACE program is not available in Massachusetts.

Other Energy Financing

Solar systems can be financed by bank loans, solar installer financing, new home mortgages, energy loans and home equity loans or lines of credit. Cash works too. 

Talk to your EnergyPal Advisor about financing solar options in Massachusetts. We regularly source the best deals and terms for our customers.

Home Solar Financing in Massachusetts

There are three pathways to powering your home with solar energy in Massachusetts: purchasing the solar system outright, obtaining a loan for its financing, or opting for a leasing program. Solar systems can be financed by bank loans, solar installer financing, new home mortgages, energy loans and home equity loans or lines of credit. Cash works too. Regardless of your choice, solar panels can reduce your home energy expenses, contributing to financial savings and a cleaner power supply. Our Energy Advisors can guide you to the best solar deals in Massachusetts. Here's a comparison:

Solar Purchase

  • Optimal Return-On-Investment
  • Potential Reduction of Bills to near $0
  • Enhances Property Value

Outright Solar Purchase: Homeowners with a stronger financial position often cover the full cost of solar upfront, yielding the highest return-on-investment over the system's lifespan. By paying in cash, homeowners in Massachusetts can claim tax credits and rebates, avoid interest charges, and directly enjoy the savings on their electricity bills. Some of our customers experience virtually no electricity expenses from the moment they install solar. We offer top-tier products at attractive cash prices.

Solar Loan

  • No Initial Expenses
  • Ownership of the System
  • Appreciates Property Value

Solar Loan Financing: Utilizing a solar loan enables you to save and own your solar system, as our financiers cover the upfront expenses (similar to an auto loan). Homes equipped with solar systems command higher value due to their lower operational costs. Depending on the chosen solar loan, you can achieve greater monthly savings or complete your financing earlier. Our team will help you secure the most favorable rates and terms to match your requirements. To learn about our latest offerings, connect with us

Solar Lease

  • No Initial Investment Required
  • Complete Maintenance Coverage
  • Lower Monthly Payments
  • Guaranteed Rates

Solar Leasing: Leasing solar panels provides an accessible and cost-effective path to solar adoption. With zero upfront costs—often referred to as “$0 down solar financing“—installation and maintenance are entirely managed, and your home benefits from the energy generated by the solar panels. You pay a consistent monthly fee and save compared to your existing electricity bill. The reduced electricity rate are what many homeowners like about this option.

Talk to your EnergyPal Advisor about financing solar options in Massachusetts. We regularly source the best deals and terms for our customers. Let us guide you through the finance and application process from A-Z.

Find The Best Deals On Home Solar In Massachusetts

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Do you own or rent your property?

Frequently Asked Questions

Is it worth going solar in Massachusetts?

In most cases, yes, solar will save you a significant amount of money. Solar panels produce electricity and reduce how much power you have to purchase from your electric company. The typical homeowner in Massachusetts pays around 29.01¢ cents per Kilowatthour.

What is the payback period for solar panels in Massachusetts?

Homeowners who install a solar array sized to meet 100 percent of their energy needs can still pay off the upfront cost in as little as 5-6 years. The typical payback period in Massachusetts averages 6.9 years.

How much are solar panels in Massachusetts?

As of August 2023, the average solar panel cost in Massachusetts is $3.54/W. Given a solar panel system size of 6 kilowatts (kW), an average solar installation in Massachusetts is $14,868 with 30% tax credit applied.

What incentives are available for solar in Massachusetts?

Solar installations in Massachusetts are eligible for the 30% solar tax credit. Connect with us to learn more about all the local Massachusetts incentives, tax credits & rebates you qualify for.

¹https://www.eaton.com/content/dam/eaton/products/backup-power-ups-surge-it-power-distribution/backup-power-ups/blackout-tracker-/blackout-tracker-annual-report-2018-mz153043en.pdf

²https://www.seia.org/solar-industry-research-data

³https://www.energy.gov/articles/4-reasons-go-solar-summer

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