Is Solar Worth It in Massachusetts in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Massachusetts homeowners — without the federal ITC.
Cost Per Watt
$3.70
installed
Electricity Rate
$0.170
per kWh
Payback (No ITC)
18 yr
current reality
Payback (With 30% ITC)
12.6 yr
hypothetical
25-Year ROI
39%
return on investment
Incentive Breakdown — Massachusetts
Available incentives for a typical 7kW residential solar system in Massachusetts
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
$1,000Massachusetts offers a state personal income tax credit of 15% of net system cost, up to $1,000.
SREC Market
~$1,995/yrMassachusetts has the SMART program (Solar Massachusetts Renewable Target) providing incentive payments, equivalent to approximately $285/SREC.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
Solar equipment exempt from state sales tax
Low-Income Program
AvailableMassachusetts offers programs to help low-income households access solar energy.
Key Incentives: State tax credit worth $1,000; Property tax exemption for solar; Sales tax exemption on solar equipment; SREC market value ~$1,995/year; Low-income solar program available.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Massachusetts
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.70/W
- Gross Cost
- $25,900
- Federal ITC
- $0
- Net Cost
- $25,900
- Annual Savings
- $1,438/yr
- Payback Period
- 18 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.70/W
- Gross Cost
- $25,900
- Federal ITC (30%)
- -$7,770
- Net Cost
- $18,130
- Annual Savings
- $1,438/yr
- Payback Period
- 12.6 years
Impact: Without the federal ITC, Massachusetts homeowners face a 5.4-year longer payback period — paying $7,770 more out of pocket.
Net Metering Policy — Massachusetts
How Massachusetts compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
Massachusetts mandates net metering at close to full retail rate for systems up to 10 kW under DPU rules.
Cost Per Watt Benchmark — Massachusetts
Massachusetts Average
$3.70/W
National Average
$3.05/W
Typical 7kW System
$25,900
Massachusetts's average installed cost is above the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Massachusetts breaks even in 18.0 years. With the former 30% ITC, payback would drop to 12.6 years.
Without Federal ITC
18
years to break even
With Former 30% ITC
12.6
years to break even
Production Details
Ready to Go Solar in Massachusetts?
Get free, no-obligation quotes from certified solar installers in Massachusetts and see real pricing for your home.
Get Free Solar Quotes