Massachusetts Solar Power: 2026 Costs, Incentives & Savings
Solar in Massachusetts
Massachusetts homeowners pay some of the highest electricity rates in the country — 29.35 cents per kWh, up 34% since 2020. For many, solar installation isn’t just an environmental choice. It’s a practical financial one.
At Palmetto, we’ve helped thousands of homeowners make the switch to solar. This guide covers how solar installation works in Massachusetts, what it typically costs, and which home solar panel incentives are available to you.
MASSACHUSETTS by the Numbers
- 6th Most residential solar in the United States
- 159k Households have installed solar panels
- 4.7 Average daily peak sun hours
- ~$127k Massachusetts average savings over 25 years
Massachusetts Solar Panel Cost
Wondering what solar actually costs in Massachusetts? This calculator uses real installation data from Palmetto customers across the state — from Boston and Worcester to Springfield and beyond. See your estimated monthly lease payment through our LightReach program (no upfront cost) or explore a cash purchase option — side by side, so you can choose what works best for you.
Lease/Cash Purchase
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home in Massachusetts.
Recommended System: 9.03 kW
Your Monthly Payment:
- Estimated monthly cost with LightReach: $141/mo
Why Lease Solar?
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Cost Breakdown
Your estimated investment:
- System Cost: $25,981
- Cost Per Watt: $2.88/W
- State Incentives: $-1,000
- Final Cost: $24,981
Savings
- Monthly Savings: $289
- Payback Period: 6.6 years
- 25-Year Savings: $126,679
Key Takeaways
- Massachusetts has some of the highest electricity rates in the country — making solar one of the smartest financial moves a homeowner can make.
- You can go solar with no upfront cost through Palmetto’s LightReach lease — fixed monthly payments, zero maintenance, and a 90% Production Guarantee.
- Massachusetts offers strong solar incentives including a state tax credit, a sales tax exemption, a 20-year property tax exemption, and the SMART 3.0 production program.
Massachusetts Electricity Prices
Massachusetts residents pay some of the highest electricity rates in the country — and those rates have been climbing for years.
In 2021, Massachusetts homeowners paid 22.9 cents per kWh. By 2024, that number had risen to 29.3 cents — nearly double the national average of 16.5 cents. That gap keeps growing.
Solar panels can help offset that cost. By generating your own electricity, you rely less on the grid — and less on rates you can’t control. Many Massachusetts homeowners see meaningful reductions in their monthly energy bills.
With Palmetto’s LightReach program, you can go solar with no upfront cost. You pay a fixed monthly rate, and Palmetto owns, monitors, and maintains the system — so you’re protected no matter what utility rates do next.
Price of Energy: Massachusetts vs National Average
| Year | Massachusetts | US Average |
|---|---|---|
| 2021 | 22.9¢ | 16.5¢ |
| 2022 | 26.0¢ | 16.0¢ |
| 2023 | 29.6¢ | 16.0¢ |
| 2024 | 29.3¢ | 16.0¢ |
Massachusetts Area Utility Providers
Massachusetts homeowners are served primarily by two utilities: National Grid and Eversource. Both charge significantly more than the national average of 16.0¢ per kWh.
- National Grid customers paid 36.7¢ per kWh in 2023 — more than double the national average.
- Eversource came in at 29.7¢, matching the 2023 state average.
Massachusetts Solar Incentives
Massachusetts homeowners have access to a strong set of solar incentives in Massachusetts — from state tax credits to utility rebates — that can help offset the cost of going solar.
| Incentive | Type | Description |
|---|---|---|
| MA Residential Renewable Energy Income Tax Credit | Tax Credit | Massachusetts offers a state income tax credit equal to 15% of your solar installation cost, capped at $1,000, for systems installed at your primary residence. |
| Massachusetts Solar Sales Tax Exemption | Sales Tax Exemption | All solar energy equipment purchased in Massachusetts is fully exempt from the state’s 6.25% sales tax, automatically reducing your upfront system cost. |
| Massachusetts Solar Property Tax Exemption | Property Tax Exemption | The added home value from a solar installation is fully exempt from property tax assessments for 20 years. |
| Solar Massachusetts Renewable Target 3.0 (SMART 3.0) | Production Incentive | SMART 3.0 pays residential solar owners a guaranteed fixed rate per kilowatt-hour of electricity produced for 10 years. |
| Massachusetts Net Metering | Net Metering | Massachusetts requires utilities to credit residential solar customers at the full retail rate for excess electricity exported to the grid. |
Massachusetts Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Massachusetts gets cold, snowy winters, but longer summer days and strong sun angles mean solar panels here can perform surprisingly well year-round.
Solar Energy Estimates
| Month | Production (kWh/day) |
|---|---|
| July | 46.5 |
| December | 19.0 |
Frequently Asked Questions
Does Massachusetts have net metering? Yes, Massachusetts has net metering, which allows household owners to be credited for excess electricity produced.
Do solar panels increase your home value in Massachusetts? Yes — homes with solar panels sell for approximately 4.1% more than comparable homes without them.
How much does it cost to go solar in Massachusetts? A typical 9 kW system costs around $24,981 after state incentives.