Summary of Massachusetts solar incentives 2022
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 2022
8.5kW
Solar panel cost calculator
Best 10 solar companies in Massachusetts
78 solar companies in Massachusetts provide pricing on SolarReviews. Here are the best rated companies near you.
4.88 377 Reviews
Latest review
Bran Bishop, 4 weeks ago
All Energy Solar won Me over after I did months of research on all the nitty-gritty of how solar operated and what components preformed what functions by listening to what I wanted and understanding that they needed to provide me with exactly what wanted my system to comprise of. Molly (Sales) spent hours, multiple phone calls and 3-4 redesigns of my particular project. My solar battery backup (images) had to meet a minimum standard of backup and generation, while fitting into a specific wall space. Once we determined my project was able to be accomplished, we transitioned to Carlo (Project Manager) who took the rains of making my project a reality. Once the Electricians who performed the installation arrived (don't know if they want to be named) they adapted to my specific requirements (wiring / backup) and overcame limitations of available space. (Images) And finally, Murphy's Law would happen when (1 of 70ish) components malfunctiond. Carlo remained in contact with me constantly throughout my project from inception to paperwork to Installation to correction or equipment to closeout. Molly was still in contact at all times after her portion of my project was complete and available to assist with ensuing quality of service was upheld. I'm a Veteran who has been a Project Manager overseas and has delt with Contractors and frankly, slimy individuals who just care about the money. This company never gave me a reason to question them and I never felt as if I couldn't walk away at anytime. (Especially the legal contract paperwork part. Other companies I dealt with previously for solar installation options wanted signatures and legal binding contracts prior to discussion of what I actually wanted and ensuring I would get it the way I wanted it.) I endorse business with this company, because I got precisely what I wanted and how / where I wanted it and for my intended purpose.
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Latest review
Bran Bishop, 4 weeks ago
All Energy Solar won Me over after I did months of research on all the nitty-gritty of how solar operated and what components preformed what functions by listening to what I wanted and understanding that they needed to provide me with exactly what wanted my system to comprise of. Molly (Sales) spent hours, multiple phone calls and 3-4 redesigns of my particular project. My solar battery backup (images) had to meet a minimum standard of backup and generation, while fitting into a specific wall space. Once we determined my project was able to be accomplished, we transitioned to Carlo (Project Manager) who took the rains of making my project a reality. Once the Electricians who performed the installation arrived (don't know if they want to be named) they adapted to my specific requirements (wiring / backup) and overcame limitations of available space. (Images) And finally, Murphy's Law would happen when (1 of 70ish) components malfunctiond. Carlo remained in contact with me constantly throughout my project from inception to paperwork to Installation to correction or equipment to closeout. Molly was still in contact at all times after her portion of my project was complete and available to assist with ensuing quality of service was upheld. I'm a Veteran who has been a Project Manager overseas and has delt with Contractors and frankly, slimy individuals who just care about the money. This company never gave me a reason to question them and I never felt as if I couldn't walk away at anytime. (Especially the legal contract paperwork part. Other companies I dealt with previously for solar installation options wanted signatures and legal binding contracts prior to discussion of what I actually wanted and ensuring I would get it the way I wanted it.) I endorse business with this company, because I got precisely what I wanted and how / where I wanted it and for my intended purpose.
4.86 151 Reviews
Latest review
Massachusetts Family, over 1 month
We opted to go with Mass Renewables for residential solar installation after receiving a 5-star recommendation from a friend. From beginning to end, it was a great experience. The sales staff was highly knowledgeable and efficient, and did not pressure us at all. The installation team was professional, respectful, efficient and were great at communication. Finally, the Mass Renewables team kept us informed of all the administrative steps before and after installation. So glad we listened to our friend!
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Average cost (5kW system)
$20,000 ($4.00 per watt)
Latest review
Massachusetts Family, over 1 month
We opted to go with Mass Renewables for residential solar installation after receiving a 5-star recommendation from a friend. From beginning to end, it was a great experience. The sales staff was highly knowledgeable and efficient, and did not pressure us at all. The installation team was professional, respectful, efficient and were great at communication. Finally, the Mass Renewables team kept us informed of all the administrative steps before and after installation. So glad we listened to our friend!
4.83 220 Reviews
Latest review
Tom Giordano, 12 hours ago
I was just starting to look into solar energy. A neighbor, who I trust for his technical expertise, told me about his positive experience with Green Power and gave me Peter Dunne's phone number. I left a message for Peter and he called me back promptly. He first asked questions and then let me know what the steps were to determine if my home was viable for solar. He then sent me the position of my home in regards to sunlight. I sent him a copy of my electric bill showing the usage for the past year. Based on that, he sent me a proposal of the suggested layout of the panels, a quote and a detailed explanation which was easy to follow. After careful review, I decided to move forward with Green Power. They were there for me every step of the way and delivered what they promised.
Read more
Latest review
Tom Giordano, 12 hours ago
I was just starting to look into solar energy. A neighbor, who I trust for his technical expertise, told me about his positive experience with Green Power and gave me Peter Dunne's phone number. I left a message for Peter and he called me back promptly. He first asked questions and then let me know what the steps were to determine if my home was viable for solar. He then sent me the position of my home in regards to sunlight. I sent him a copy of my electric bill showing the usage for the past year. Based on that, he sent me a proposal of the suggested layout of the panels, a quote and a detailed explanation which was easy to follow. After careful review, I decided to move forward with Green Power. They were there for me every step of the way and delivered what they promised.
4.82 272 Reviews
Latest review
Happy solar Guy, over 1 month
PLEASE I waited for 2-3 years before posting....very happy love the solar ! no issues very nice job Boston Solar did on my house. live in sharon - walpole area so far - everything is Great! I WILL KEEP YOU POSTED IN THE FUTURE... Very happy i went with Boston Solar.. nothing to complain about. - 3 years
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Average cost (5kW system)
$19,100 ($3.82 per watt)
Latest review
Happy solar Guy, over 1 month
PLEASE I waited for 2-3 years before posting....very happy love the solar ! no issues very nice job Boston Solar did on my house. live in sharon - walpole area so far - everything is Great! I WILL KEEP YOU POSTED IN THE FUTURE... Very happy i went with Boston Solar.. nothing to complain about. - 3 years
4.80 214 Reviews
Latest review
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.
Read more
Average cost (5kW system)
$20,050 ($4.01 per watt)
Latest review
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 40 Reviews
Latest review
Anonymous, 1 week ago
I had a great experience with NEC Solar. They worked efficiently and communicated with me every step of the way.
Read more
Latest review
Anonymous, 1 week ago
I had a great experience with NEC Solar. They worked efficiently and communicated with me every step of the way.
4.77 72 Reviews
Latest review
Neil in MA, over 1 month
When I was shopping for a solar energy company I really SHOPPED! Read everything I could find, got multiple quotes, chatted with reps and customers, basically did the full "due diligence". In every measure RevoluSun was hands-down the best choice. Now that our new system is installed and running, I have absolutely no buyers-remorse. Quite the opposite. Every aspect, and I do mean EVERY aspect was professional, friendly, timely, and, well, you get the point, including after-sale support. They even clued me in to a Renewable Energy Credit program that earns LOTS more than the "Smart" program. Best of all they guarantee not only the workmanship but also the result -- how much power I can expect. Can't say enough positive about this group. Run don't walk -- to RevoluSun!
Read more
Average cost (5kW system)
$18,600 ($3.72 per watt)
Latest review
Neil in MA, over 1 month
When I was shopping for a solar energy company I really SHOPPED! Read everything I could find, got multiple quotes, chatted with reps and customers, basically did the full "due diligence". In every measure RevoluSun was hands-down the best choice. Now that our new system is installed and running, I have absolutely no buyers-remorse. Quite the opposite. Every aspect, and I do mean EVERY aspect was professional, friendly, timely, and, well, you get the point, including after-sale support. They even clued me in to a Renewable Energy Credit program that earns LOTS more than the "Smart" program. Best of all they guarantee not only the workmanship but also the result -- how much power I can expect. Can't say enough positive about this group. Run don't walk -- to RevoluSun!
4.74 290 Reviews
Latest review
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!
Read more
Average cost (5kW system)
$21,450 ($4.29 per watt)
Latest review
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
Latest review
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.
Read more
Latest review
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.
4.69 21 Reviews
Latest review
Ty Tremblay , 1 week ago
Straight and to the point with facts and not hype.
Read more
Latest review
Ty Tremblay , 1 week ago
Straight and to the point with facts and not hype.
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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