
Solar Panel Cost in Massachusetts
Updated 2026 guide to solar panel prices, savings, and payback period in Massachusetts.
Estimated Solar Savings
Solar Panel System Costs in Massachusetts
Below are estimated costs for different solar panel system sizes in Massachusetts, including the 30% federal solar tax credit.
| System Size | Cost Before Incentives | Federal Tax Credit (30%) | Net Cost | Est. Annual Production |
|---|---|---|---|---|
| 4 kW | $12,600 | -$3,780 | $8,820 | 5,548 kWh |
| 6 kWMost Popular | $18,900 | -$5,670 | $13,230 | 8,322 kWh |
| 8 kW | $25,200 | -$7,560 | $17,640 | 11,096 kWh |
| 10 kW | $31,500 | -$9,450 | $22,050 | 13,870 kWh |
| 12 kW | $37,800 | -$11,340 | $26,460 | 16,644 kWh |
What Affects Solar Panel Cost in Massachusetts?
The average cost of solar panels in Massachusetts is $315/watt before incentives. For a typical 6kW residential system, that means a total cost of about $18,900 before the federal tax credit.
After applying the 30% federal Investment Tax Credit (ITC), your net cost drops to approximately $13,230.Massachusetts homeowners typically see a payback period of 6 years and save an estimated $42,000 over 25 years.
Massachusetts solar costs have dropped approximately 43% over the past decade. The SMART program and SRECs make Massachusetts one of the nation's top solar markets.
Factors that affect your cost:
- System size: Larger systems cost more but have a lower cost per watt
- Equipment quality: Premium panels and inverters cost more but offer better efficiency
- Roof complexity: Steep roofs, multiple levels, or shading can increase installation costs
- Local labor rates: Installation costs vary by region within Massachusetts
- Incentives: State and local programs can significantly reduce your out-of-pocket cost

Solar Incentives in Massachusetts
Federal Solar Investment Tax Credit
30% Federal Tax Credit (ITC)
Massachusetts homeowners can claim the 30% federal ITC and stack it with the state's SMART program and SREC-II credits for maximum savings.
State & Local Incentives
SMART Program (Solar Massachusetts Renewable Target)
RebateThe SMART program provides fixed incentive payments per kWh of solar production for 10 years, replacing the previous SREC-II program.
Massachusetts State Tax Credit
Tax CreditMassachusetts offers a state income tax credit for solar installations.
Sales Tax Exemption
Sales TaxSolar energy equipment is exempt from the state's 6.25% sales tax.
Property Tax Exemption
Property TaxSolar installations are exempt from local property tax increases for 20 years.
Mass Save Rebates
RebateAdditional rebates available through Mass Save for battery storage and energy efficiency paired with solar.
Net Metering
Massachusetts has strong net metering policies. Residential solar customers receive full retail rate credits for excess generation up to a system capacity of 10 kW.
AvailableSRECs
The SREC-II program has been replaced by the SMART program, which provides production-based incentives. Existing SREC-II systems continue to earn SRECs under the previous program.
Est. Value: $250-$350 per SREC (legacy SREC-II)
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Solar Panel Cost FAQ - Massachusetts
The cost of solar panels in Massachusetts typically ranges from $2.50 to $3.50 per watt before incentives. For a standard 6 kW residential system, homeowners in Massachusetts can expect to pay between $15,000 and $21,000 before the federal tax credit. After applying the 30% federal Investment Tax Credit, the net cost drops to approximately $10,500-$14,700. Actual costs vary based on your specific roof, chosen equipment, and installer. We recommend getting at least three quotes from local Massachusetts solar installers to find the best price.
The average solar payback period in Massachusetts depends on local electricity rates, available incentives, and sun exposure. Most Massachusetts homeowners see a payback period between 6 and 10 years. After the payback period, you essentially enjoy free electricity for the remaining 15-20+ years of your system's life. Higher local electricity rates and additional state incentives can shorten the payback period significantly. A qualified Massachusetts solar installer can calculate your specific payback period based on your energy usage and roof characteristics.
Massachusetts homeowners who install solar panels typically save between $20,000 and $50,000 over 25 years, depending on system size, electricity rates, and available incentives. These savings come from reduced or eliminated electricity bills, net metering credits, and any applicable SREC income. As electricity rates in Massachusetts continue to rise (historically averaging 2-3% annually), your savings grow each year. The combination of the 30% federal tax credit and any Massachusetts-specific incentives helps maximize your return on investment.
The right solar system size for your Massachusetts home depends on your electricity consumption, roof space, and budget. The average Massachusetts home uses approximately 10,000-11,000 kWh per year, which typically requires a 6-8 kW solar system. To determine your ideal size, review your annual electricity usage on recent utility bills. Factors like Massachusetts's average peak sun hours, your roof orientation, and any shading will affect how many panels you need. A professional Massachusetts solar installer will use satellite imagery and your usage data to recommend the optimal system size.
Yes, solar is generally worth the investment for Massachusetts homeowners in 2025. With solar panel costs at historic lows, the 30% federal tax credit still available, and electricity rates continuing to rise, the financial case for solar in Massachusetts is strong. Most Massachusetts homeowners who go solar see positive returns within 6-10 years, followed by 15-20+ years of significant savings. Additionally, solar panels increase your home value, provide energy independence, and protect against future electricity rate increases. The best way to determine if solar is right for your Massachusetts home is to get a free, customized quote from a qualified local installer.
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