Solar in Massachusetts: incentives, costs and payback (2025)

Massachusetts is one of the most solar-friendly states in America, with generous incentives, excellent policies, and strong economics that overcome the state's moderate solar irradiance.

Massachusetts solar incentives

Federal tax credit (30%) The federal solar Investment Tax Credit (ITC) allows you to deduct 30% of your solar installation cost from your federal taxes. This credit is available through 2032.

SMART programme The Solar Massachusetts Renewable Target (SMART) programme provides long-term payments for solar energy production:

• Fixed payments for 20 years based on energy produced
• Rates vary by utility territory and system size
• Base rates: $0.20-0.30/kWh generated
• Adders available for certain locations and configurations

Solar Renewable Energy Certificates (SRECs) Massachusetts' SREC programme provides additional value:

• Earn certificates for every 1,000 kWh produced
• SRECs trade for $250-350 each in recent years
• Provides ongoing income throughout system lifetime
• Strong market demand ensures stable prices

Net metering Massachusetts offers excellent net metering with full retail rate credits for excess power sent to the grid.

Property tax exemption Solar installations are exempt from property tax assessments, protecting homeowners from increased taxes.

Cost and payback in Massachusetts

Average installation cost Solar panels in Massachusetts cost an average of $3.50 per watt before incentives. A typical 6kW system costs:

• Gross cost: $21,000
• After federal tax credit (30%): $14,700
• With SMART payments: $2,400-3,600 annually for 20 years
• With SREC income: Additional $1,000-1,500 annually

Payback time With Massachusetts' very high electricity rates (average $0.24/kWh), SMART payments, and SREC income, most solar systems pay for themselves in just 6-8 years.

Annual savings A typical 6kW system in Massachusetts generates about 7,200 kWh annually, saving homeowners $1,730 per year on electricity bills, plus incentive payments.

Net metering and electricity rates

Massachusetts has excellent net metering policies:

• Full retail rate credit for excess power exported to the grid
• Monthly rollover of unused credits
• Annual cash-out of remaining credits at avoided cost rates

Average electricity rates in Massachusetts are $0.24/kWh, among the highest in the nation, making solar savings substantial.

SMART programme details

The SMART programme offers significant long-term value:

• 20-year contracts with fixed payment rates
• Performance-based payments for actual energy production
• Capacity blocks with declining rates as programme fills
• Additional incentives for energy storage and low-income projects

Best solar companies in Massachusetts

Massachusetts has many qualified solar installers. We recommend getting quotes from:

• SunPower: Premium panels with industry-leading warranties
• Sunrun: Comprehensive financing and service options
• Tesla Solar: Competitive pricing with Powerwall integration
• Local installers: Solar Power World, Solaris Renewables, New England Clean Energy

Get quotes from at least three installers to compare pricing and proposals.

Regional considerations

Massachusetts solar performance varies by region:

• Eastern MA: Better grid access, higher electricity rates
• Western MA: More solar irradiance, lower installation costs
• Cape Cod: Excellent wind/solar combination potential
• Urban areas: Higher electricity rates offset lower irradiance

Next steps

1. Calculate your potential savings with our solar calculator
2. Check current SMART programme capacity (rates decline as blocks fill)
3. Get multiple quotes from certified installers
4. Consider battery storage for additional SMART programme benefits
5. Review municipal programmes for additional local incentives

Massachusetts' combination of high electricity rates, excellent incentives, and strong policies make it one of the best states for solar in 2025.

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