Solar power in Boston, Massachusetts
Users on our site have told us that their average utility bill in Massachusetts is as high as $300 per month. Luckily, there is a silver lining to such high power prices as they greatly increase the potential savings from installing solar panels on your home. Generous federal, state and utility incentives has made solar more affordable than ever for Boston residents.
What Eversource solar incentives am I eligible for?
Eversource provide net metering and a “SMART” incentive to their solar customers in Boston. The combination of these two incentives means solar systems pay for themselves in as little as 3-4 years.
How does the new SMART program work?
SMART stands for Solar Massachusetts Renewable Target and is basically a plan for the state to install 1,600MW of additional solar. The incentive works by forcing utilities to pay a credit to their solar customers for every KiloWatt hour of solar generation.
The exact incentive amount hasn’t been published yet however, it has been confirmed that applicants will be able to apply later this year. The incentive works by valuing the power production at a certain incentive rate subtracted by the retail price. This means that if the top tier incentive were to be $0.35/kWh and the rate you pay for power is $0.12/kWh Eversource would have to pay you $0.23/kWh for each kWh your solar system produces.
You receive these credits alongside your net metering returns.
Does Massachusetts offer a state tax credit?
Massachusetts provides a tax credit for 15% of the net cost of you solar system (cost after all other incentives). The incentive is capped at $1,000.
How much power do solar panels produce in Boston?
Our solar prduction map tells you how much each kW of solar will produce per day anywhere in America. For Boston, a 6kW solar system produces about 7,008kWh per year.
Net Metering Broken Down
What is net metering and does it affect my investment?
At times your solar system will produce more energy than what is needed in your home, this excess generation is exported to the grid and purchased by Eversource, net metering requires Eversource to credit you at the retail power rate for each kWh your solar system sends them.
What if my solar system exports more energy than I consume?
This is likely to happen in sunny months where your energy usage is low. Remaining credit at the end of the month is simply rolled over to the next bill still at retail value indefinitely.
The average cost of installing residential solar panels in Boston,
Massachusetts in 2024 is
$2.78 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in Boston, MA
is $13,900.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in Massachusetts is only 627kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The Boston solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our Massachusetts solar savings calculator can do this because it contains a database of the electric rates charged by National Grid (was Massachusetts Electric Co), Eversource (formerly NSTAR)
How much can solar panels save you in Boston
What does the cost of a real solar system look like?
Facts about installing a 8.2kW solar system in Boston, MA
This system would offset 100% of your energy usage if your typical monthly bill is $236, however your situation may vary so try our Boston solar calculator to get a result tailored to you.
$15,522
Net cost of system
2 Years 8 Months
Average payback time
9,254 kWh
Annual power production
7¢/kWh
Levelized cost of solar energy
55¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 8.2kW system
Life-time savings on this system over the next 25 years
$131,212
(Prices shown after repayments of capital)
41
Solar companies in Boston, MA that provide pricing through the SolarEstimate marketplace.
Average total cost of solar panel installation in Boston
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,460 | $6,977 |
| 4kw | $8,495 | $9,175 |
| 5kw | $10,434 | $11,269 |
| 6kw | $12,343 | $13,331 |
| 7kw | $14,141 | $15,273 |
| 8kw | $15,925 | $17,199 |
| 9kw | $17,582 | $18,989 |
| 10kw | $19,240 | $20,779 |
Find out what system size you need for your home
Going solar in Massachusetts
Check out all of the ways energy providers of Massachusetts can help you be more energy efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Residential Renewable Energy Income Tax Credit | State | Personal Tax Credit |
| Transitional SRECII program (expired) | State | SREC II program transitioning to SMART program |
| Renewable Energy Property Tax Exemption | State | Property Tax Incentive |
| Renewable Energy Equipment Sales Tax Exemption | State | Sales Tax Incentive |
| Solar Massachusetts Renewable Target (SMART) Program | State | Rebate Program |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
