Federal ITC 26% (tax credit)
State tax credit: Yes ($1,000)
Net metering (by utility)
There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
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.
Learn what solar incentives are available to Massachusetts homeowners
See what Massachusetts solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Massachusetts solar tax credits will reduce your cost to go solar and add batteries
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.
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 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.
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 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 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.
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.
Showing data for:
Prices based on a 8.5kW system, after 26% federal tax credit
80 solar companies in Massachusetts provide pricing on SolarReviews. Here are the best rated companies near you.
4.86 399 Reviews
Adam Rudolph, 1 week ago
From the first call with Rolf, a consultant, through the installation, All Energy Solar was one of the best customer experiences I have ever had for home investments. The project was managed extremely well. I was in communication with Brandon, the project manager, for every milestone. All Energy Solar created a great design which blends in well with our roof. We get compliments from everyone who sees it. If you are considering solar, you need to talk with All Energy Solar.
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Adam Rudolph, 1 week ago
From the first call with Rolf, a consultant, through the installation, All Energy Solar was one of the best customer experiences I have ever had for home investments. The project was managed extremely well. I was in communication with Brandon, the project manager, for every milestone. All Energy Solar created a great design which blends in well with our roof. We get compliments from everyone who sees it. If you are considering solar, you need to talk with All Energy Solar.
4.86 154 Reviews
Jorge, over 1 month
We got our system up an running within the schedule Mass Renewables proposed. The system is performed just as they presented it in the proposal. The workmanship of the job was vary clean taking care of the finishing details as if their own home. They took care of all the paper work with other parties involved. Overall it was a pain-free experience.
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Average cost (5kW system)
$20,000 ($4.00 per watt)
Jorge, over 1 month
We got our system up an running within the schedule Mass Renewables proposed. The system is performed just as they presented it in the proposal. The workmanship of the job was vary clean taking care of the finishing details as if their own home. They took care of all the paper work with other parties involved. Overall it was a pain-free experience.
4.80 214 Reviews
Rick H, over 1 month
We are thrilled with our panels and the ReVision Energy Team. The options were clearly laid out and they presented models of energy capture given our roof configuration. And the Installation team was terrific. They worked hard, thought through some challenges, and in the end came up with a spectacular result. The connecting wires are largely hidden and those that were necessary are only visible if you look for them. We did not expect it to look so good. During the process there were some COVID delays and the team stepped up to mitigate them. As family and friends see our panels, I am steering them to ReVision Energy.
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Average cost (5kW system)
$20,050 ($4.01 per watt)
Rick H, over 1 month
We are thrilled with our panels and the ReVision Energy Team. The options were clearly laid out and they presented models of energy capture given our roof configuration. And the Installation team was terrific. They worked hard, thought through some challenges, and in the end came up with a spectacular result. The connecting wires are largely hidden and those that were necessary are only visible if you look for them. We did not expect it to look so good. During the process there were some COVID delays and the team stepped up to mitigate them. As family and friends see our panels, I am steering them to ReVision Energy.
4.79 41 Reviews
Tonys1965, over 1 month
I had solar panels installed at my house last year by NEC Solar and everything went perfectly. Dana did a great job explaining everything to me and my wife to make us feel at ease and I feel confident that the products they used will preform for the life of the system. The installers did excellent work, were very attentive to our needs and the system looks and works great. We were concerned with the aesthetics and didn't want pipes running on the roof so they ran all the wires through the attic and walls. The system was sized properly and I generate plenty of electricity to cover my whole electric bill, it's nice not to have to pay an electric bill or have to worry about price increases. Great job NEC Solar!
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Tonys1965, over 1 month
I had solar panels installed at my house last year by NEC Solar and everything went perfectly. Dana did a great job explaining everything to me and my wife to make us feel at ease and I feel confident that the products they used will preform for the life of the system. The installers did excellent work, were very attentive to our needs and the system looks and works great. We were concerned with the aesthetics and didn't want pipes running on the roof so they ran all the wires through the attic and walls. The system was sized properly and I generate plenty of electricity to cover my whole electric bill, it's nice not to have to pay an electric bill or have to worry about price increases. Great job NEC Solar!
4.77 76 Reviews
Revolusun High Quality, over 1 month
I started this process by interviewing 7 top-rated solar companies in MA. I created a spreadsheet with multiple comparison metrics (I purchased my panels). I educated myself by reading and asking questions. My goals included being more environmentally friendly, energy efficient, and getting the best material and service for my money. How quickly and thoroughly questions were answered, the responsiveness of the team, the level of respect given, and overall friendliness all mattered too. In all metrics, Revolusun came out on top. I have worked with Paul (in sales and communication), Nic (as project engineer), Lou (through permit and interconnection), Joe (as operations manager), and Dave (master electrician)and his crew of electricians (Jerry Nick, Othman), Matt, Lenny, Jared and Steven as roofers, and spoken with Deta (about my SRECs). I also worked with Richie (who did an excellent job), and is now at Sungage Financial (where I contracted my solar loan). Every step of the way, I have asked many questions and always received timely answers. I have observed strong work ethics. The process has been seamless. The quality has been high. The clean up has been excellent. I purchased 38 Panasonic 370 panels (they use other brands too); have a 10kW AC, 14.06kW DC, with Solar Edge inverter. The team also worked with me because I had two electric meters on my house (one just for my hot water heater). Now I will have just one for everything so it doesn't complicate getting credit for my solar production. So...I'm pleased with the foot work I did in the beginning and the decision I made to work with Revolusun. I subsequently shared my findings with a neighbor who also signed up based on my work and reference. Hope this helps, M
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Average cost (5kW system)
$18,600 ($3.72 per watt)
Revolusun High Quality, over 1 month
I started this process by interviewing 7 top-rated solar companies in MA. I created a spreadsheet with multiple comparison metrics (I purchased my panels). I educated myself by reading and asking questions. My goals included being more environmentally friendly, energy efficient, and getting the best material and service for my money. How quickly and thoroughly questions were answered, the responsiveness of the team, the level of respect given, and overall friendliness all mattered too. In all metrics, Revolusun came out on top. I have worked with Paul (in sales and communication), Nic (as project engineer), Lou (through permit and interconnection), Joe (as operations manager), and Dave (master electrician)and his crew of electricians (Jerry Nick, Othman), Matt, Lenny, Jared and Steven as roofers, and spoken with Deta (about my SRECs). I also worked with Richie (who did an excellent job), and is now at Sungage Financial (where I contracted my solar loan). Every step of the way, I have asked many questions and always received timely answers. I have observed strong work ethics. The process has been seamless. The quality has been high. The clean up has been excellent. I purchased 38 Panasonic 370 panels (they use other brands too); have a 10kW AC, 14.06kW DC, with Solar Edge inverter. The team also worked with me because I had two electric meters on my house (one just for my hot water heater). Now I will have just one for everything so it doesn't complicate getting credit for my solar production. So...I'm pleased with the foot work I did in the beginning and the decision I made to work with Revolusun. I subsequently shared my findings with a neighbor who also signed up based on my work and reference. Hope this helps, M
4.75 27 Reviews
Tony Moretinni, over 1 month
We looked at a dozen+ Solar companies Mike was then straightest with us and delivered as promised. Definitely go w Sunergy Sunergy.
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Tony Moretinni, over 1 month
We looked at a dozen+ Solar companies Mike was then straightest with us and delivered as promised. Definitely go w Sunergy Sunergy.
4.75 277 Reviews
Megan, 3 weeks ago
Boston Solar is excellent at sales. Unfortunately, for us that's where the excellence stopped. We're your average EV family, so solar seemed like a reasonable next step. We met with several companies, but we were impressed by Boston Solar's commitment to customer service, so we decided to spend a little more so we wouldn't have any headaches. Needless to say, it was alllll headaches. We had issues with the meter placement (they were going to leave it on the back of the house, but I asked to move it to the side), extra visits to review it, and then the install crew showed up and had no idea any of the previous 2 months of communication (and permitting?!) had happened. Oh, and they thought the meter (the 2 months of planning meter) needed to be moved to the front of the house due to building code. Which never came up previously?! Well, at least the panic attack woke me right up! Finally, it was settled that we were allowed by the grace of the Building Inspector and the Install Manager to put the meter where we'd been expecting? And talking about all along? And the front of the house was never even previously discussed? Yay! So, we (after confirming placement AGAIN) leave them to it. Don't do that, it's a rookie mistake. They installed the meter (and the other 4 or 5 big ugly boxes) muuuuch higher than we'd discussed. My husband noted it during the walkthrough, or whatever it's called, and the installer said it was required by code? Well, what's done is done, let's just move on and all that. Which I absolutely would have and wanted to, but that was just the beginning! Following the completed installation (according to their billing, at least!
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Average cost (5kW system)
$19,100 ($3.82 per watt)
Megan, 3 weeks ago
Boston Solar is excellent at sales. Unfortunately, for us that's where the excellence stopped. We're your average EV family, so solar seemed like a reasonable next step. We met with several companies, but we were impressed by Boston Solar's commitment to customer service, so we decided to spend a little more so we wouldn't have any headaches. Needless to say, it was alllll headaches. We had issues with the meter placement (they were going to leave it on the back of the house, but I asked to move it to the side), extra visits to review it, and then the install crew showed up and had no idea any of the previous 2 months of communication (and permitting?!) had happened. Oh, and they thought the meter (the 2 months of planning meter) needed to be moved to the front of the house due to building code. Which never came up previously?! Well, at least the panic attack woke me right up! Finally, it was settled that we were allowed by the grace of the Building Inspector and the Install Manager to put the meter where we'd been expecting? And talking about all along? And the front of the house was never even previously discussed? Yay! So, we (after confirming placement AGAIN) leave them to it. Don't do that, it's a rookie mistake. They installed the meter (and the other 4 or 5 big ugly boxes) muuuuch higher than we'd discussed. My husband noted it during the walkthrough, or whatever it's called, and the installer said it was required by code? Well, what's done is done, let's just move on and all that. Which I absolutely would have and wanted to, but that was just the beginning! Following the completed installation (according to their billing, at least!
4.74 290 Reviews
O. Benyo, over 1 month
NECE Installed our system on time and with no hassle. Managed the whole process (including rebates). The team was extremely helpful and kind. We enjoyed working with them and would recommend them to anyone looking to do solar panels!
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Average cost (5kW system)
$21,450 ($4.29 per watt)
O. Benyo, over 1 month
NECE Installed our system on time and with no hassle. Managed the whole process (including rebates). The team was extremely helpful and kind. We enjoyed working with them and would recommend them to anyone looking to do solar panels!
4.69 19 Reviews
Jason S., over 1 month
We were always intrigued by the idea of solar, but were wary of the price and the headaches with installation and getting permits. Insight Solar made it all super easy and convenient. Adam, Christina, Leah and the Insight team handled everything from the initial consultation to the permits to the financing to scheduling our installation. Our biggest concern was that we needed a new roof before getting the install done. Insight even handled scheduling that part of the process for us. It was also more affordable than we expected (even with the new roof rolled in). Best of all, we're expecting to save around $1200/year (even with our loan) and be able to 100% offset our electric output with our new solar system. Our only regret about solar — we wish we had this done 10 years ago.
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Jason S., over 1 month
We were always intrigued by the idea of solar, but were wary of the price and the headaches with installation and getting permits. Insight Solar made it all super easy and convenient. Adam, Christina, Leah and the Insight team handled everything from the initial consultation to the permits to the financing to scheduling our installation. Our biggest concern was that we needed a new roof before getting the install done. Insight even handled scheduling that part of the process for us. It was also more affordable than we expected (even with the new roof rolled in). Best of all, we're expecting to save around $1200/year (even with our loan) and be able to 100% offset our electric output with our new solar system. Our only regret about solar — we wish we had this done 10 years ago.
4.67 22 Reviews
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.
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Average cost (5kW system)
$20,800 ($4.16 per watt)
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.
For more information about going solar near where you live, check out the following resources:
Massachusetts Solar Loan Program - Low interest public funds at fixed rates for solar loans