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
Showing data for:
Prices based on a 8.5kW system, after 26% federal tax credit
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
76 solar companies in Massachusetts provide pricing on SolarReviews. Here are the best rated companies near you.
4.87 361 Reviews
Latest review
Dave Albersman, 1 week ago
My wife and I have a lot of experience with home improvements and contractors. I would have to say that this project was one of our best experiences, From start to finish including follow up they were top notch. We particularly appreciated their regular communication during the entire process. Megan Spear, our project manager, did an outstanding job. When we had a glitch, when the system was activated, she quickly diagnosed the problem and got it fixed. Could not be more pleased
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Latest review
Dave Albersman, 1 week ago
My wife and I have a lot of experience with home improvements and contractors. I would have to say that this project was one of our best experiences, From start to finish including follow up they were top notch. We particularly appreciated their regular communication during the entire process. Megan Spear, our project manager, did an outstanding job. When we had a glitch, when the system was activated, she quickly diagnosed the problem and got it fixed. Could not be more pleased
4.85 147 Reviews
Latest review
Randy, over 1 month
We had a great experience working with Mass Renewables. They were very accommodating and easy to work with from the beginning, took care of all of the paperwork and kept us updated each step of the way. We're very happy with how our system turned out!
Read more
Average cost (5kW system)
$20,000 ($4.00 per watt)
Latest review
Randy, over 1 month
We had a great experience working with Mass Renewables. They were very accommodating and easy to work with from the beginning, took care of all of the paperwork and kept us updated each step of the way. We're very happy with how our system turned out!
4.82 205 Reviews
Latest review
Jared A, 2 weeks ago
I was pleased from start to finish with Green power. I would and so recommend them to anyone looking to go solar. Being able to get a roof during the process was a added bonus.
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Latest review
Jared A, 2 weeks ago
I was pleased from start to finish with Green power. I would and so recommend them to anyone looking to go solar. Being able to get a roof during the process was a added bonus.
4.82 271 Reviews
Latest review
Dave, over 1 month
I was referred to Boston Solar by my t-shirt. We had been seriously considering solar and had a few interviews with companies and I just didn’t have a good feeling from them. Then I noticed that Boston Solar was a sponsor for a 5K race I ran in my small home town and figured if they cared enough to sponsor our tiny charity race then I should do some research and give them a call. The reviews were good and we set up a meeting with their solar consultant. We met over Zoom due to the pandemic and it was fantastic. I hope they continue the Zoom option because it was a lot more low pressure than the in person meetings. Rick was our consultant and it didn’t feel like a sales pitch at all. It was all about problem solving. He had a plot of our house ready to go and put together a rough outline of how everything would look, went over the cost, the ROI, the incentives, and so on. Everything that we went over in terms of cost and array size lined up with the research that we had done on Project Sunroof and meeting with other companies so that was reassuring. We knew we wanted solar but we wanted to find the right company to do the work. I think the tipping point for us was the fact that Boston Solar does everything in house, they have no subcontractors and everyone you work with is employed directly by Boston Solar. Many of the other companies use subcontractors and I was concerned I might have the “lowest bidder” putting holes through my roof. Once we signed the contract we were assigned a coordinator Olivia who guided us through the process and who answered our emails and questions often within the hour. The installation took 2 days with supports/conduit being run on day 1 and the panels installed on day 2. I spoke with the foreman and the electrician and they were really knowledgeable and answered my questions about future projects. We may want to add an electric car charger and are panels someday in the future. They also worked with us to make a change to the plan as once they were on site they saw a better way to run the equipment than originally planned. I also appreciated how Boston Solar treated their team. The installation was in the summer and it was a hot day on a hotter roof and I noted that they were cycling people out, giving breaks, and drinking lots of water. It’s the right thing to do for people’s health and beneficial to the homeowner, if you are tired you are more likely to make mistakes. The day after installation we had torrential rains which was a good test as we observed zero leaks to the roof. The project passed inspection without issue, national grid swapped out meter, and we just turned the system on and are producing power. We are really happy with our decision to install a solar array. It will save us a significant amount of money long term while helping our community by taking demand off the grid and generating renewable energy. Definitely check out Boston Solar if you are considering it for your home.
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Average cost (5kW system)
$19,100 ($3.82 per watt)
Latest review
Dave, over 1 month
I was referred to Boston Solar by my t-shirt. We had been seriously considering solar and had a few interviews with companies and I just didn’t have a good feeling from them. Then I noticed that Boston Solar was a sponsor for a 5K race I ran in my small home town and figured if they cared enough to sponsor our tiny charity race then I should do some research and give them a call. The reviews were good and we set up a meeting with their solar consultant. We met over Zoom due to the pandemic and it was fantastic. I hope they continue the Zoom option because it was a lot more low pressure than the in person meetings. Rick was our consultant and it didn’t feel like a sales pitch at all. It was all about problem solving. He had a plot of our house ready to go and put together a rough outline of how everything would look, went over the cost, the ROI, the incentives, and so on. Everything that we went over in terms of cost and array size lined up with the research that we had done on Project Sunroof and meeting with other companies so that was reassuring. We knew we wanted solar but we wanted to find the right company to do the work. I think the tipping point for us was the fact that Boston Solar does everything in house, they have no subcontractors and everyone you work with is employed directly by Boston Solar. Many of the other companies use subcontractors and I was concerned I might have the “lowest bidder” putting holes through my roof. Once we signed the contract we were assigned a coordinator Olivia who guided us through the process and who answered our emails and questions often within the hour. The installation took 2 days with supports/conduit being run on day 1 and the panels installed on day 2. I spoke with the foreman and the electrician and they were really knowledgeable and answered my questions about future projects. We may want to add an electric car charger and are panels someday in the future. They also worked with us to make a change to the plan as once they were on site they saw a better way to run the equipment than originally planned. I also appreciated how Boston Solar treated their team. The installation was in the summer and it was a hot day on a hotter roof and I noted that they were cycling people out, giving breaks, and drinking lots of water. It’s the right thing to do for people’s health and beneficial to the homeowner, if you are tired you are more likely to make mistakes. The day after installation we had torrential rains which was a good test as we observed zero leaks to the roof. The project passed inspection without issue, national grid swapped out meter, and we just turned the system on and are producing power. We are really happy with our decision to install a solar array. It will save us a significant amount of money long term while helping our community by taking demand off the grid and generating renewable energy. Definitely check out Boston Solar if you are considering it for your home.
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.
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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 33 Reviews
Latest review
Tony and Jennifer Amaio, over 1 month
We choose NEC since they were local and had a great reputation. They did not disappoint. Professional, on time and great communication. From design to installation everyone was so professional and amazing. Highly recommend
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Latest review
Tony and Jennifer Amaio, over 1 month
We choose NEC since they were local and had a great reputation. They did not disappoint. Professional, on time and great communication. From design to installation everyone was so professional and amazing. Highly recommend
4.75 69 Reviews
Latest review
JKF, over 1 month
I made my decision to use RevoluSun in part because of Richie Bonney, the sales rep. He's incredibly knowledgeable and really good at answering questions/explaining things and made the other reps look like chumps in comparison (I say this tongue-in-cheek but it' true, frankly). I received 4 solar quotes. While at face value (gross system cost) RevoluSun looked more expensive, when I drilled down into the numbers it turned out to be the most reasonable when comparing KW size to system cost, so I urge folks to look carefully at those components when making a decision. The Solaria panels I got are supposed to be advantageous in part because the rail system holds up to snow and ice expansion/contraction better than traditional systems since there are fewer penetrations in the roof. That makes sense to me, though I can't speak to being able to witness the difference myself, exactly. RevoluSun was responsive throughout the process when I had questions, going through the process of setting up the system with my utility (no small feat), and walking me through the system once I went through my first bill cycle to be sure I understand how to track it and such. All in all I am quite happy with their product. I bought a hybrid vehicle about a month ago and the system easily pays to run that, as well, and I love to get my negative electric bills and checks every month.
Read more
Average cost (5kW system)
$18,600 ($3.72 per watt)
Latest review
JKF, over 1 month
I made my decision to use RevoluSun in part because of Richie Bonney, the sales rep. He's incredibly knowledgeable and really good at answering questions/explaining things and made the other reps look like chumps in comparison (I say this tongue-in-cheek but it' true, frankly). I received 4 solar quotes. While at face value (gross system cost) RevoluSun looked more expensive, when I drilled down into the numbers it turned out to be the most reasonable when comparing KW size to system cost, so I urge folks to look carefully at those components when making a decision. The Solaria panels I got are supposed to be advantageous in part because the rail system holds up to snow and ice expansion/contraction better than traditional systems since there are fewer penetrations in the roof. That makes sense to me, though I can't speak to being able to witness the difference myself, exactly. RevoluSun was responsive throughout the process when I had questions, going through the process of setting up the system with my utility (no small feat), and walking me through the system once I went through my first bill cycle to be sure I understand how to track it and such. All in all I am quite happy with their product. I bought a hybrid vehicle about a month ago and the system easily pays to run that, as well, and I love to get my negative electric bills and checks every month.
4.74 290 Reviews
Latest review
O. Benyo, 3 weeks ago
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!
Read more
Average cost (5kW system)
$21,450 ($4.29 per watt)
Latest review
O. Benyo, 3 weeks ago
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!
4.67 37 Reviews
Latest review
AndrewKennedyLive, over 1 month
I spent almost 14 months researching solar companies. Having them come into my home and selling me on their systems. But instead of selling me, SavKat did something quite remarkable. They “shared” with me why they were my best choice. They were true to their word in every way. It could not have gone smoother or their crews been more professional. They kept their word every step of the way and the knowledge that they are a local company that will be there for me over the next 20 years, played a big role. Everyone will be going solar. The decision left to be made is with who. Call SavKat Solar today and let them share with you why it should be them.
Read more
Latest review
AndrewKennedyLive, over 1 month
I spent almost 14 months researching solar companies. Having them come into my home and selling me on their systems. But instead of selling me, SavKat did something quite remarkable. They “shared” with me why they were my best choice. They were true to their word in every way. It could not have gone smoother or their crews been more professional. They kept their word every step of the way and the knowledge that they are a local company that will be there for me over the next 20 years, played a big role. Everyone will be going solar. The decision left to be made is with who. Call SavKat Solar today and let them share with you why it should be them.
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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