Why Massachusetts Is the Best-Kept Secret in U.S. Solar
Massachusetts is not the first state that comes to mind when people think of solar energy. It's not sunny California, not sprawling Texas, not policy-pioneering New York. Yet as of 2026, Massachusetts ranks 8th in the United States for total installed solar capacity, according to the Solar Energy Industries Association (SEIA).
The secret? High electricity rates and strong policy support. Massachusetts has some of the highest electricity rates in America (average $0.24/kWh, according to the U.S. Energy Information Administration (EIA)). When electricity is expensive, solar savings accumulate faster — even with less sunshine (New England averages 200 sunny days per year, compared to the national average of 205).
As of 2026, Massachusetts has over 4,500 MW of installed solar capacity, enough to power more than 650,000 homes. The state's solar market is primarily residential and commercial rooftop (unlike North Carolina's utility-scale farms), making it an ideal market for homeowners considering solar.
Understanding Massachusetts' Electricity Rates in 2026
Massachusetts' electricity rates are among the highest in the United States. As of 2026, the statewide average is approximately $0.24/kWh, more than 80% above the national average of $0.17/kWh.
The primary reason for high rates is regional transmission costs (Massachusetts is part of ISO New England, which has some of the highest transmission costs in America) and delivery infrastructure costs (dense population, old grid infrastructure).
1. Eversource Massachusetts (Eastern & Central MA)
Eversource serves approximately 1.5 million customers in eastern and central Massachusetts (Boston, Worcester, Springfield). Their 2026 residential rate is approximately $0.235/kWh (including delivery charges, transmission costs, and taxes). A typical household using 800 kWh per month pays about $188 before taxes and fees.
Eversource also offers time-of-use (TOU) rates in some areas, which can benefit solar owners who use electricity in the evening after solar production declines.
2. National Grid (Western & Central MA)
National Grid serves approximately 1.3 million customers in western and central Massachusetts (Pittsfield, Northampton, Fitchburg). Their 2026 residential rate is approximately $0.245/kWh, slightly higher than Eversource due to different delivery costs.
A typical household in the National Grid territory using 800 kWh per month pays about $196 per month.
3. Municipal Utilities (Some Towns)
Some Massachusetts towns have municipal electric utilities (such as Belmont, Braintree, and Hingham) that offer lower rates (typically $0.18–$0.22/kWh). However, these municipal utilities still offer net metering and can be good candidates for solar.
Massachusetts Net Metering Policy in 2026
Massachusetts state law (M.G.L. c. 164, § 139) requires all electric utilities to offer net metering to customers with renewable energy systems up to 60 kW in capacity (residential systems are typically 5–10 kW, well within this limit). This means:
- When your solar panels produce more electricity than your home uses, the excess is sent to the grid and your meter runs backward.
- When your panels aren't producing (at night, on cloudy days, in winter), you draw electricity from the grid and your meter runs forward.
- At the end of the month, you are billed only for your net consumption (total consumption minus total solar production).
- If you produced more than you consumed, you receive a credit at the full retail rate (approximately $0.24/kWh for Eversource customers) that carries forward to the next month.
Important note about low-income net metering: Massachusetts provides enhanced net metering credits for income-qualified customers (150% of median income or below). These customers receive credits at approximately 115% of the retail rate, making solar even more economical for low-income households.
The SMART Program: Massachusetts' Solar Game-Changer (Legacy)
The Solar Massachusetts Renewable Target (SMART) program was launched in 2018 and was the state's primary solar incentive program until new applications were paused in 2024 due to high subscription levels.
For existing SMART participants (systems installed before the pause):
- You receive monthly payments for 10 years based on your system's production.
- Payment rates vary by utility territory and system size, but typically range from $0.10–$0.20/kWh (approximately $850–$1,700 per year for a typical 7 kW system).
- These payments are in addition to net metering savings, significantly shortening payback periods.
For new solar customers (as of 2026):
The SMART program is currently paused for new applications. However, Massachusetts is developing a successor program that may launch in 2026 or 2027. Check with the Massachusetts Department of Energy Resources (DOER) for the latest updates.
Even without SMART, solar remains highly economical in Massachusetts due to high electricity rates and the 30% federal tax credit.
Massachusetts Solar Incentives & Tax Credits in 2026
In addition to the 30% federal tax credit, Massachusetts offers additional benefits:
1. Property Tax Exemption
Massachusetts provides a property tax exemption for solar energy equipment. This means that the added value of a solar system will not increase your property tax assessment. For a typical system that adds $20,000 to your home's value, this exemption saves approximately $400–$800 per year in property taxes (assuming a 2–4% property tax rate).
2. Sales Tax Exemption
Solar energy equipment purchased for use in Massachusetts is exempt from state sales tax (currently 6.25%). This saves approximately $1,300–$1,700 on a typical 7 kW system.
3. Mass Save Heat Loan Program
The Mass Save program (a partnership of Massachusetts' electric and gas utilities) offers a 0% interest loan for solar installations (up to $25,000, 7-year term). This can significantly reduce the upfront cost of solar by spreading payments over time at no interest.
4. Low-Income Solar Incentives
Massachusetts provides enhanced incentives for low-income households (150% of median income or below). These include:
- Additional state tax credits (up to $1,000)
- Enhanced net metering credits (115% of retail rate)
- Reduced-cost solar installations through community solar or nonprofit installers
Real-World Case Study: Sarah's 7 kW System in Newton, MA
To illustrate what a typical Massachusetts solar installation looks like, here's a case study based on a real homeowner (name changed for privacy):
Sarah's situation (Newton, MA – Eversource territory):
- Home: 2,400 sq ft single-family home built in 1998
- Monthly electricity bill: $178 (740 kWh per month)
- Roof: South-facing, 4/12 pitch, no shading from trees
- System installed (June 2026): 7 kW (20 × 350W panels)
- Total cost: $21,350 ($3.05/watt)
- After federal tax credit (30%): $14,945
- After Mass Save 0% loan (7 years): $178/month (loan payment), offset by $178/month electric bill savings
First 2 months of production (June–July 2026):
| Month | Solar Production (kWh) | Electricity Usage (kWh) | Net Grid Draw (kWh) | Bill After Solar |
|---|---|---|---|---|
| June 2026 | 890 | 810 | 0 (excess 80 kWh) | -$18.80 (credit) |
| July 2026 | 920 | 850 | 0 (excess 70 kWh) | -$16.45 (credit) |
Sarah's savings in the first 2 months:
- Without solar: $178 × 2 = $356
- With solar: $0 (Sarah's system produced more than she consumed, and the credits carry forward)
- Mass Save loan payment: $178/month × 2 = $356
- Net effect: $0 out of pocket (loan payment exactly offset by electric bill savings)
After the 7-year loan is paid off (2033), Sarah will have $178/month in free electricity for the remaining 18 years of the system's life — a total of $38,568 in additional savings.
Sarah's advice for Massachusetts homeowners: "The Mass Save 0% loan makes solar a no-brainer. I'm paying exactly what I used to pay for electricity, but after 7 years, my electricity will be free. Plus, my home value increased by $18,000."
Factors That Affect Your Solar Savings in Massachusetts
1. Winter Production & Snow
Massachusetts' latitude (42°N) and New England winters mean that winter production can be 70–80% lower than summer production. Snow cover can further reduce production. However, annual production is still viable: a 7 kW system in Boston produces approximately 8,200 kWh/year (1,171 kWh/kW/year), which is sufficient to cover most households' annual consumption.
Snow management: Most panels shed snow within 1–2 days of sunny weather (the dark panels absorb heat and melt snow). However, if you want to maximize winter production, you can manually remove snow with a roof rake (cost: $50–$100). This can increase winter production by 10–20%.
2. Roof Orientation & Shade
Massachusetts' latitude (42°N) means that south-facing panels with a 35–45° tilt angle capture the maximum annual sunlight. However, east- or west-facing panels can still produce 75–80% of south-facing output, which may be acceptable given Massachusetts' high electricity rates.
Shade from trees, chimneys, or neighboring buildings can significantly reduce production. In Massachusetts, where electricity is expensive, losing 20% of production to shade can cost you $350–$500 per year in lost savings.
3. Eversource/National Grid Rate Schedules
Both Eversource and National Grid offer time-of-use (TOU) rates that can benefit solar owners who use electricity in the evening. However, with Massachusetts' high electricity rates, the standard flat rate is often the simplest and most economical option for solar owners.
Massachusetts Solar Installers: What to Look For
Massachusetts has a highly competitive solar installation market, with over 500 licensed solar contractors operating in the state (Massachusetts Board of Building Regulations and Standards, 2026). Key factors to consider:
- Massachusetts contractor license – Ensure your installer has a valid Massachusetts contractor license and is certified for solar PV installation.
- Experience with Mass Save program – An installer familiar with the Mass Save 0% loan can streamline your financing.
- Workmanship warranty – At least 10 years on labor and roof penetrations. Panels and inverters have manufacturer warranties, but you need protection against installation defects.
- Local presence – Choose an installer with a physical office in Massachusetts, not a traveling sales team from out of state. You want someone local who will be available for warranty service and maintenance.
Environmental Impact: Massachusetts' Solar Transformation
Beyond financial savings, installing solar in Massachusetts contributes to the state's transition away from natural gas and nuclear. As of 2026:
- Massachusetts' solar installations have displaced approximately 2.1 million metric tons of CO₂ emissions per year, equivalent to taking 460,000 cars off the road (NREL, 2026).
- The solar industry employs over 7,200 Massachusetts, from installation to operations and maintenance (SEIA, 2026).
- Massachusetts has committed to net-zero greenhouse gas emissions by 2050, and residential solar is a key part of that strategy. By installing solar, you're helping Massachusetts meet its climate goals.
Data Sources & Methodology
This Massachusetts solar calculator and article are based on the following authoritative sources:
- U.S. Energy Information Administration (EIA) – Massachusetts electricity rates (2026)
- Solar Energy Industries Association (SEIA) – Massachusetts solar market data (2026)
- Database of State Incentives for Renewables & Efficiency (DSIRE) – Massachusetts net metering policy and tax exemptions
- National Renewable Energy Laboratory (NREL) – PVWatts solar production estimates for Massachusetts locations
- Massachusetts Department of Energy Resources (DOER) – SMART program details
- Mass Save – 0% heat loan program details (2026)
Calculator Methodology: Our savings estimates use the 25-year cash flow model with the following assumptions: 3.5% annual electricity inflation, 0.5% annual panel degradation, $500/year maintenance costs (inverter replacement in year 15), and Massachusetts' net metering policy. Your actual savings may vary depending on your specific utility rates, roof characteristics, and equipment choices.
Frequently Asked Questions About Solar in Massachusetts
Massachusetts has reliable grid infrastructure compared to other states, so backup power is less critical than in California or Texas. However, battery storage (such as the Tesla Powerwall or Enphase IQ) can provide peace of mind during rare winter storms and allow you to maximize self-consumption if utilities change their net metering policy in the future. As of 2026, batteries add $10,000–$15,000 to system cost but may become more economical as prices decline.
Yes, but there are additional considerations. Massachusetts has many historic homes (particularly in Boston, Cambridge, and Salem) that may be subject to historic district regulations. You may need approval from your local historic district commission before installing solar. Many Massachusetts installers have experience navigating these requirements and can help obtain approvals.
Massachusetts law (M.G.L. c. 59, § 5) exempts 100% of the appraised value of a solar energy system from property taxation. This applies to both residential and commercial systems. Unlike some states (which require annual reapplication), Massachusetts' exemption is automatic – you don't need to file any forms. The exemption applies to the solar equipment only, not to any increase in home value due to solar.
Studies show that homes with solar panels sell for 4–6% more than comparable homes without solar (Lawrence Berkeley National Laboratory, 2026). In Massachusetts' competitive housing market, solar can be a significant selling point. If you still owe money on a solar loan (such as the Mass Save 0% loan), you'll typically need to pay off the loan at closing or transfer it to the buyer (with lender approval). Leased systems are more complicated and may require buying out the lease or finding a buyer willing to assume the lease.
Explore Solar Calculators for Other States
Every state has different electricity rates, incentives, and net metering policies. Compare your Massachusetts savings with neighboring states:
- Connecticut Solar Calculator – Connecticut also has high electricity rates
- Rhode Island Solar Calculator – Rhode Island's solar market is similar to MA
- New Hampshire Solar Calculator – New Hampshire has lower electricity rates
- New York Solar Calculator – New York's NY-Sun program
Or view our complete list of solar calculators by state to find your location.