Solar Panels in Massachusetts: The Complete Guide
Massachusetts has some of the highest electricity rates in the country. Here's everything you need to know about going solar in the Bay State.
Why Are Massachusetts Homeowners Going Solar?
Massachusetts consistently ranks among the top states for solar adoption, and for good reason. Electricity rates here are among the highest in the nation, meaning every kilowatt-hour your panels produce translates directly into real savings on your bill.
The state also offers one of the most generous solar incentive packages in the country, with multiple programs that work together to lower your upfront cost and generate ongoing income from your system.
With Massachusetts committed to ambitious clean energy goals, going solar here means contributing to a cleaner grid for the entire region, while protecting yourself from utility rate increases.
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What Are the Electricity Rates in Massachusetts?
Sources: U.S. Energy Information Administration (EIA) — Electric Power Annual & Electric Power Monthly · EnergySage Massachusetts Electricity Cost Report (March 2026) · ElectricChoice.com State Rate History · 2026–2031 projected at EIA-documented 3.8%/yr historical MA rate of increase · Data reflects average annual residential retail rates (¢/kWh)
Massachusetts is one of the most expensive states in the country for electricity, and the gap with the national average keeps growing. The average residential rate in Massachusetts is roughly 78.6% higher than the national average. Massachusetts ranks as the third most expensive state in the nation for residential electricity.
As the chart shows, this is not a new problem. Over the past 25 plus years, the average residential electric rates in Massachusetts continue to rise.
For homeowners, this is the core argument for solar. Every kilowatt-hour your panels produce is a kilowatt-hour you do not buy from the grid. And every time rates go up, your solar system becomes more valuable. Installing solar does not just lower your bill today. It locks in your cost of electricity, regardless of what the utilities decide to charge.
How Much Does It Cost to Go Solar in Massachusetts?
The honest answer is that solar isn’t one-size-fits-all. The cost depends on a number of factors.
Most systems are designed to offset a significant portion of your electricity usage, and the total cost is reduced by incentives like the federal tax credit and Massachusetts state programs.
Many homeowners choose financing options that allow them to install solar with little to no upfront cost and replace their electric bill with a more predictable monthly payment.
Because electricity rates in Massachusetts are high, solar is often structured to provide long-term savings and more control over your energy costs.The best way to understand your exact cost is with a custom quote based on your home.
Key factors that affect your cost
The best way to understand your exact cost is with a custom quote based on your home and energy usage. There's no commitment required.
What Are the Solar Incentives in Massachusetts?
Massachusetts offers one of the strongest state-level incentive packages in the country. These programs stack on top of each other, so you benefit from all of them at once.
State Income Tax Credit
A dollar-for-dollar credit worth 15% of your installation cost, applied directly against your Massachusetts state tax bill.
SMART 3.0 Program
The state pays you for every unit of electricity your system produces for 20 years — on top of whatever you're already saving on your bill. Learn more.
Net Metering
Excess power your panels send to the grid earns you full retail-rate credits that roll over month to month — indefinitely. Details.
Sales Tax Exemption
Solar equipment is fully exempt from Massachusetts' 6.25% sales tax. No application required — the savings happen automatically at purchase.
Property Tax Exemption
Your system is exempt from local property taxes for 20 years — even as solar increases the value of your home.
What is Net Metering in Massachusetts?
How solar works with your utility depends on who your electricity provider is. In Massachusetts, the three major investor-owned utilities (Eversource, National Grid, and Unitil) are all required to offer net metering to residential solar customers.
Net metering means any excess electricity your panels produce gets credited to your account at near-retail rates. When your panels produce more than you use (typically on sunny summer days), those credits bank and offset your bills during lower-production months.
If you're served by a municipal light plant, net metering policies may vary. Contact your provider directly or ask us during your consultation and we'll help you navigate it.