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 25kW 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 (2020), people who install solar on their homes are eligible for a net incentive payment of about $.102/kWh for 10 years. Considering the average Massachusetts home solar system generates around 7,900 kWh per year, that's over $800 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 $1100 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
44 solar companies in Massachusetts provide pricing on SolarReviews. Here are the best rated companies near you.
4.85 295 Reviews
Latest review
Kristofer S, 10 hours ago
The team at All Energy Solar are phenomenal! They have been so kind, helpful, and patient throughout the process. Rarely have I had a customer service experience with such great follow-up. I would 100% recommend the All Energy for you solar install.
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Latest review
Kristofer S, 10 hours ago
The team at All Energy Solar are phenomenal! They have been so kind, helpful, and patient throughout the process. Rarely have I had a customer service experience with such great follow-up. I would 100% recommend the All Energy for you solar install.
4.85 139 Reviews
Latest review
SolarLibrarians, over 1 month
We first spoke with Mass Renewables in 2013, based on a friend's recommendation. We didn't have a system installed until 2019, in large part because it took us both that long to be comfortable with the idea of installing solar panels on our roof. I contacted them about three times in the course of those six years to get an updated estimate for what they could do, and every time they were very helpful and patient and got back to us quickly. After six years and many more conversations, they did meticulous work. They installed conduit in the attic (an unusually tight space in our house) instead of over the roof. While I told the electrician it would be OK to drill through our recently-renovated deck, he was able to avoid doing so and I'm grateful for his effort every time I walk by that space. They also communicated clearly with us while working to meet a very tight schedule of approaching winter, which enabled us to have another contractor replace two aging skylights before the panels were installed--what could have been a nightmare instead worked like a dream (I don't suggest trying to make the schedule more difficult and we did our best to avoid this, but the experience illustrates how well they did). They included extending the warranty of the system's components. When the utility completed the installation of the second power meter, Mass Renewables was able to turn the system on remotely within a few minutes of my sending them an email. If I had to do this over again, I'd use them again in a heartbeat, and would recommend them to anyone.
Read more
Average cost (5kW system)
$20,000 ($4.00 per watt)
Latest review
SolarLibrarians, over 1 month
We first spoke with Mass Renewables in 2013, based on a friend's recommendation. We didn't have a system installed until 2019, in large part because it took us both that long to be comfortable with the idea of installing solar panels on our roof. I contacted them about three times in the course of those six years to get an updated estimate for what they could do, and every time they were very helpful and patient and got back to us quickly. After six years and many more conversations, they did meticulous work. They installed conduit in the attic (an unusually tight space in our house) instead of over the roof. While I told the electrician it would be OK to drill through our recently-renovated deck, he was able to avoid doing so and I'm grateful for his effort every time I walk by that space. They also communicated clearly with us while working to meet a very tight schedule of approaching winter, which enabled us to have another contractor replace two aging skylights before the panels were installed--what could have been a nightmare instead worked like a dream (I don't suggest trying to make the schedule more difficult and we did our best to avoid this, but the experience illustrates how well they did). They included extending the warranty of the system's components. When the utility completed the installation of the second power meter, Mass Renewables was able to turn the system on remotely within a few minutes of my sending them an email. If I had to do this over again, I'd use them again in a heartbeat, and would recommend them to anyone.
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.
4.82 212 Reviews
Latest review
Coleman installation, over 1 month
We had a solar hot water system installed in 2009 and heat pumps in 2014. The installations went well and we really like the systems we have. The problem is to get anyone to come for regular maintenance or repair. You call, leave a message and you don't hear back from anyone for over a week. Call back, talk to someone who says they will look into it - same thing, you don't hear back. They have one person to service heat pumps. This has nothing to do with Covid, as this is the same one person they've had for many years. Because they did not plug up the holes on the outside piping covers of the heat pumps, we had mice that chewed the insulation off the piping. We wanted to know if it was something we could fix ourselves. After talking with several different people who could not give us a clear answer, we were given three names of other companies to do the work. Since most other solar installers only want to work on systems they install, getting service done is a problem. After much frustration, we called Fujitsu and talked with a wonderful tech who answered all our questions in less than 15 minutes. We fixed it ourselves and it is now mice proof. Now we have another simple issue - heat pump inside cover needs to be replaced - and it's been weeks trying to get a service call scheduled. ReVision loves to install, but are terrible about servicing what they install. Would not recommend them for this reason. Their service department is beyond terrible.
Read more
Average cost (5kW system)
$20,050 ($4.01 per watt)
Latest review
Coleman installation, over 1 month
We had a solar hot water system installed in 2009 and heat pumps in 2014. The installations went well and we really like the systems we have. The problem is to get anyone to come for regular maintenance or repair. You call, leave a message and you don't hear back from anyone for over a week. Call back, talk to someone who says they will look into it - same thing, you don't hear back. They have one person to service heat pumps. This has nothing to do with Covid, as this is the same one person they've had for many years. Because they did not plug up the holes on the outside piping covers of the heat pumps, we had mice that chewed the insulation off the piping. We wanted to know if it was something we could fix ourselves. After talking with several different people who could not give us a clear answer, we were given three names of other companies to do the work. Since most other solar installers only want to work on systems they install, getting service done is a problem. After much frustration, we called Fujitsu and talked with a wonderful tech who answered all our questions in less than 15 minutes. We fixed it ourselves and it is now mice proof. Now we have another simple issue - heat pump inside cover needs to be replaced - and it's been weeks trying to get a service call scheduled. ReVision loves to install, but are terrible about servicing what they install. Would not recommend them for this reason. Their service department is beyond terrible.
4.80 33 Reviews
Latest review
Melissa Demelo, over 1 month
Rooftop Power is an excellent company to go through for solar they were very informative and helped our family answering all questions and concerns at any time. The installation team were wonderful Mark and Tanner went above and beyond to make sure our roof and panels were done to perfection I highly recommend them!
Read more
Latest review
Melissa Demelo, over 1 month
Rooftop Power is an excellent company to go through for solar they were very informative and helped our family answering all questions and concerns at any time. The installation team were wonderful Mark and Tanner went above and beyond to make sure our roof and panels were done to perfection I highly recommend them!
4.76 287 Reviews
Latest review
RJS, 1 day ago
NE Solar made the install very easy. The installers were very courteous and very communicative about the whole process.
Read more
Average cost (5kW system)
$21,450 ($4.29 per watt)
Latest review
RJS, 1 day ago
NE Solar made the install very easy. The installers were very courteous and very communicative about the whole process.
4.76 61 Reviews
Latest review
André, 2 weeks ago
Greg was knowledgable and helpful during the planning and decision-making process. Joe, Richie and the crew were professional and thorough throughout the installation and permitting process (which took a LONG time due to our location) - they handled our concerns and questions with empathy and urgency, and worked quickly and safely once everything was lined-up!
Read more
Average cost (5kW system)
$18,600 ($3.72 per watt)
Latest review
André, 2 weeks ago
Greg was knowledgable and helpful during the planning and decision-making process. Joe, Richie and the crew were professional and thorough throughout the installation and permitting process (which took a LONG time due to our location) - they handled our concerns and questions with empathy and urgency, and worked quickly and safely once everything was lined-up!
4.71 35 Reviews
Latest review
Thomas, 3 weeks ago
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, 3 weeks ago
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.
4.67 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.
4.64 27 Reviews
Latest review
Anonymous, over 1 month
Solar Rising has the solar panel installation process streamlined to make it very easy on their customers. As a local company, they are also very responsive, professional, and helpful people who are a pleasure to interact with. From the inspection to permits and paperwork, to installation, I was impressed by how smooth everything went. I highly recommend working with Solar Rising for your solar solar panel installations!
Read more
Average cost (5kW system)
$18,500 ($3.70 per watt)
Latest review
Anonymous, over 1 month
Solar Rising has the solar panel installation process streamlined to make it very easy on their customers. As a local company, they are also very responsive, professional, and helpful people who are a pleasure to interact with. From the inspection to permits and paperwork, to installation, I was impressed by how smooth everything went. I highly recommend working with Solar Rising for your solar solar panel installations!
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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