Summary of Massachusetts solar incentives 2021
Massachusetts legislators have made the state one of the best places in the country to install home solar panels. Because of all the great solar incentives here, you can expect a solar payback in as little as 6 years. That rate of return significantly outpaces other investments relative to the low level of risk associated with the sun rising every morning.
On this page, you can:
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Learn what solar incentives are available to Massachusetts homeowners
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See what Massachusetts solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or Massachusetts solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Massachusetts
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
Net energy metering in Massachusetts
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for the surplus. Massachusetts has recently reaffirmed its commitment to net metering for residential solar systems, so you can rest easier knowing the state has your back.
For Massachusetts residents under Class I residential net metering rules for solar, any extra energy your panels produce is credited to your bill and carried over indefinitely.
Net metering in Massachusetts is a huge boon for you as a solar owner, and a strong policy we’d like to see enacted across the rest of the country.
Massachusetts solar rebates
Massachusetts used to have a nice, simple statewide rebate program called "The Commonwealth Solar II Rebate Program". Sadly, the program has now closed, because it was so effective that funding ran out. Luckily, some local municipal utilities have stepped in to take the place. Unfortunately, these small companies serve only a fraction of the state's population.
SMART solar program
Massachusetts has devised an ingenious progressive solar incentive system which favors low-income, small scale, and community solar energy projects. It’s called the SMART program. At the program’s core is a formula which includes a base compensation rate which decreases as your system gets larger.
For every kilowatt-hour (kWh) of solar energy you produce with your solar panel system as long as it’s 25 kW or less (that’s about an 80 panel installation, way more than enough electricity for a very large household’s needs), you get paid a 230% multiple of the base compensation rate. Special compensation rate adders are available for community shared solar projects, low-income properties, and/or both!
The SMART Program requires the 3 main Electric Distribution Companies (EDCs)—Eversource, National Grid, and Unitil—to make incentive payments directly to homeowners who install solar systems within their territory. The incentive is calculated based on a "block" system, where each block represents about 200 MW of solar energy generation capacity.
Each time a block is filled (i.e. 200 MW of solar are installed), the incentive amount decreases slightly. So people who install systems in the earlier blocks get higher incentive payments than those who wait to install later.
At the current level (2021), people who install solar on their homes are eligible for a net incentive payment of about $.08/kWh for 10 years. Considering the average Massachusetts home solar system generates around 7,900 kWh per year, that's over $630 in incentive payments per year.
Low-income additions to the SMART incentive
Low income households enrolled in the program can expect an additional incentive of between 3 to 5 cents per kWh. That increases average SMART incentive payments to near $950 every year.
The definition of low income for the program is decided by each individual utility, but in general those with a maximum income 80% below the state’s median income will likely meet such requirements, though this is not guaranteed.
Learn more: Read our post about the SMART Solar Program here.
Massachusetts state solar tax credit
Massachusetts offers a 15% tax credit off the net costs of your solar system, but only up to a maximum of $1,000 (net costs, meaning cost minus the federal 30% tax credit).
Basically, for most systems, count on $1,000 off next year's state income tax bill, on top of the big savings from the Feds.
Sales and property tax exemptions
When the Massachusetts property tax man or woman cometh to assess your new solar home, they can’t assess you another dime for 20 years -- despite the fact that you’ll be adding roughly 20 times your annual electricity bill savings to your property value. In an example 5kW solar system, that adds up to about $19,890 (20 times your annual electricity savings of $995).
In addition to the property tax exemption, you don’t pay sales tax on your system either, so the installed price is the installed price.
Cost of solar panels in your part of Massachusetts after all applicable solar incentives
Solar prices near you
Payback period
3.9-4.8 years
Net profit (savings less system cost)
$81,345-$99,421
Average size system installed in MA in 2021
8.5kW
Solar panel cost calculator
Best 10 solar companies in Massachusetts
74 solar companies in Massachusetts provide pricing on SolarReviews. Here are the best rated companies near you.
4.86 305 Reviews
Latest review
Jeff Rakers, 5 days ago
My wife and I chose All Energy Solar for our solar installation and am happy to recommend them to anyone considering solar for their home. They did a great job of helping lead us through the process, providing all the technical, financial and utility company related information my wife and I needed in an understandable and professional manner. We never felt pressured or unsafe, even doing this in the midst of the COVID-19 pandemic. The installation was easy and efficient and I was kept in the loop all the way. David D'Onofrio did a great job explaining the details of the system and the proposal, and after we went with All Energy Solar, Carlo Maloni did a great job as the Project Manager keeping us up to speed on what was happening and what we needed to do. We are very satisfied and glad we chose All Energy Solar! We started exploring our solar options last summer. After getting quotes from 5 different solar installers, reviewing and comparing their offerings and the financing options, All Energy gave us what we found is the right sized system with brand named components at the best value. They pointed us to and helped us with financing options. All of the people we engaged with were great people to deal with, including the designers and installers. So overall a great experience that we are happy with and feel we will be happy with for years to come!
Read more
Latest review
Jeff Rakers, 5 days ago
My wife and I chose All Energy Solar for our solar installation and am happy to recommend them to anyone considering solar for their home. They did a great job of helping lead us through the process, providing all the technical, financial and utility company related information my wife and I needed in an understandable and professional manner. We never felt pressured or unsafe, even doing this in the midst of the COVID-19 pandemic. The installation was easy and efficient and I was kept in the loop all the way. David D'Onofrio did a great job explaining the details of the system and the proposal, and after we went with All Energy Solar, Carlo Maloni did a great job as the Project Manager keeping us up to speed on what was happening and what we needed to do. We are very satisfied and glad we chose All Energy Solar! We started exploring our solar options last summer. After getting quotes from 5 different solar installers, reviewing and comparing their offerings and the financing options, All Energy gave us what we found is the right sized system with brand named components at the best value. They pointed us to and helped us with financing options. All of the people we engaged with were great people to deal with, including the designers and installers. So overall a great experience that we are happy with and feel we will be happy with for years to come!
4.85 142 Reviews
Latest review
Gordon, 2 weeks ago
We interviewed several companies most local to us. Their presentation was low key and informative. All our questions were answered clearly. Their prices beat everyone. Their work was efficient and professional. Would highly recommend them to anyone
Read more
Average cost (5kW system)
$20,000 ($4.00 per watt)
Latest review
Gordon, 2 weeks ago
We interviewed several companies most local to us. Their presentation was low key and informative. All our questions were answered clearly. Their prices beat everyone. Their work was efficient and professional. Would highly recommend them to anyone
4.83 41 Reviews
Latest review
Solar energy is green energy , 3 days ago
Tremendous company. Knowledgeable team. Very professional. It all started with my consultant Sheena Telan. She went over everything with me from A-Z and was always available to answer any questions I had. Same experience followed with the installation. Very professional, very knowledgeable, very thorough. From the electrician to rhe panel installers. Could not have been more pleased. I highly recommend Rooftop Power.
Read more
Latest review
Solar energy is green energy , 3 days ago
Tremendous company. Knowledgeable team. Very professional. It all started with my consultant Sheena Telan. She went over everything with me from A-Z and was always available to answer any questions I had. Same experience followed with the installation. Very professional, very knowledgeable, very thorough. From the electrician to rhe panel installers. Could not have been more pleased. I highly recommend Rooftop Power.
4.83 267 Reviews
Latest review
Happy Customer, over 1 month
We used Boston Solar as part of the Solarize Needham program. They were very professional throughout the process and thoroughly explained everything along the way. We are delighted with our new solar panels.
Read more
Average cost (5kW system)
$19,100 ($3.82 per watt)
Latest review
Happy Customer, over 1 month
We used Boston Solar as part of the Solarize Needham program. They were very professional throughout the process and thoroughly explained everything along the way. We are delighted with our new solar panels.
4.81 213 Reviews
Latest review
Art, over 1 month
Installation was conducted back in April 2020 just as the COVID panic was rearing its ugly head. Crew worked efficiently and job was completed in one day. Schedule was mutually agreed on so that failing asphalt roof could replaced with standing seam prior to installation. A real plus was that all permitting and interface with the power company was taken care as was tax related paperwork. They did it all. Now it’s January and I’m enjoying electric heat in my workshop that was actually captured and banked last summer. Professional installation in every respect. Right down to being ready for code enforcement inspection. Highly recommended.
Read more
Average cost (5kW system)
$20,050 ($4.01 per watt)
Latest review
Art, over 1 month
Installation was conducted back in April 2020 just as the COVID panic was rearing its ugly head. Crew worked efficiently and job was completed in one day. Schedule was mutually agreed on so that failing asphalt roof could replaced with standing seam prior to installation. A real plus was that all permitting and interface with the power company was taken care as was tax related paperwork. They did it all. Now it’s January and I’m enjoying electric heat in my workshop that was actually captured and banked last summer. Professional installation in every respect. Right down to being ready for code enforcement inspection. Highly recommended.
4.76 287 Reviews
Latest review
RJS, over 1 month
NE Solar made the install very easy. The installers were very courteous and very communicative about the whole process.
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Average cost (5kW system)
$21,450 ($4.29 per watt)
Latest review
RJS, over 1 month
NE Solar made the install very easy. The installers were very courteous and very communicative about the whole process.
4.76 62 Reviews
Latest review
Dan, 3 weeks ago
I chose RevoluSun after speaking with some of their existing clients, seeing jobs they had performed, and hearing their no pressure pitch as to why they were the best option out there. They consulted with me to understand what I wanted and provided me with multiple options. They were transparent in terms of price, timeline, benefits, etc. They truly wanted to partner with me to make sure I was happy not just with the installation but also with the ongoing support they are able to provide should any issues arise. RevoluSun employees are friendly, respectful, polite and patient. The end product was of extremely high quality (it looks amazing!) and they took the time to answer all my questions, perform a virtual walk-through (due to COVID restrictions), etc. The only negative part of the experience was due to the delays by Eversource in getting the solar meter installed (they took about 2 months to do a job that literally took 5 minutes). To be clear, though, RevoluSun has no control over Eversource's scheduling of meter swaps. My experience was and has continued to be extremely positive with RevoluSun. I confidently and whole-heartedly recommend RevoluSun if you are looking for the best solar installer out there.
Read more
Average cost (5kW system)
$18,600 ($3.72 per watt)
Latest review
Dan, 3 weeks ago
I chose RevoluSun after speaking with some of their existing clients, seeing jobs they had performed, and hearing their no pressure pitch as to why they were the best option out there. They consulted with me to understand what I wanted and provided me with multiple options. They were transparent in terms of price, timeline, benefits, etc. They truly wanted to partner with me to make sure I was happy not just with the installation but also with the ongoing support they are able to provide should any issues arise. RevoluSun employees are friendly, respectful, polite and patient. The end product was of extremely high quality (it looks amazing!) and they took the time to answer all my questions, perform a virtual walk-through (due to COVID restrictions), etc. The only negative part of the experience was due to the delays by Eversource in getting the solar meter installed (they took about 2 months to do a job that literally took 5 minutes). To be clear, though, RevoluSun has no control over Eversource's scheduling of meter swaps. My experience was and has continued to be extremely positive with RevoluSun. I confidently and whole-heartedly recommend RevoluSun if you are looking for the best solar installer out there.
4.71 35 Reviews
Latest review
Thomas, over 1 month
I was looking for a local company that had a well established customer base for reliable support of the 25 year, SunPower warranty. That company was SavKat Solar, following an internet conference with their representative, Ben.
Read more
Latest review
Thomas, over 1 month
I was looking for a local company that had a well established customer base for reliable support of the 25 year, SunPower warranty. That company was SavKat Solar, following an internet conference with their representative, Ben.
4.69 24 Reviews
Latest review
Mat Tuttelman, 1 week ago
I looked at ALOT (11) of solar developers and was overwhelmed with the differences in price and forecasted energy generation. This went away after I met the TEAM from NEC Solar. They worked with me to get me exactly what I wanted (maximum production, panel selection and a Battery Energy Storage System) at a competitive price. Throughout the entire process my project manager kept me updated as to the progress of installation as well as interconnection, MA SMART incentive application and registration and finally getting the system energized.
Read more
Latest review
Mat Tuttelman, 1 week ago
I looked at ALOT (11) of solar developers and was overwhelmed with the differences in price and forecasted energy generation. This went away after I met the TEAM from NEC Solar. They worked with me to get me exactly what I wanted (maximum production, panel selection and a Battery Energy Storage System) at a competitive price. Throughout the entire process my project manager kept me updated as to the progress of installation as well as interconnection, MA SMART incentive application and registration and finally getting the system energized.
4.67 22 Reviews
Latest review
Anonymous, over 1 month
Great overall experience! Mike and Sarah walked us through every step of the way. Mike made sure that we stayed informed and made us feel like we were a friend of the family. Also, Install team was awesome. During each stage of our experience, it was clear that Bay State Solar Solutions places a high emphasis of customer satisfaction and they certainly exceeded our expectations.
Read more
Average cost (5kW system)
$20,800 ($4.16 per watt)
Latest review
Anonymous, over 1 month
Great overall experience! Mike and Sarah walked us through every step of the way. Mike made sure that we stayed informed and made us feel like we were a friend of the family. Also, Install team was awesome. During each stage of our experience, it was clear that Bay State Solar Solutions places a high emphasis of customer satisfaction and they certainly exceeded our expectations.
Solar guides for your Massachusetts city
For more information about going solar near where you live, check out the following resources:
Useful links
Massachusetts Solar Loan Program - Low interest public funds at fixed rates for solar loans
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