Is Solar Worth It in Massachusetts in 2026?
Massachusetts is not a sunshine state — about 197 sunny days a year and a real winter — but it has something most sunnier states don't: some of the highest electricity rates in the country. Homes here paid roughly 30.5¢ per kWh in 2025, more than double what a Florida or Texas homeowner pays. A typical roof still produces a respectable 1,347 kWh per installed kilowatt per year (PVWatts, Boston). Modest production times an expensive rate is why the math holds up better than the cloud cover would suggest.
2026 changed the federal side of that math, though. The 30 percent federal tax credit that used to shave thousands off a purchased system ended for installations completed after December 31, 2025. Massachusetts' own incentives are still standing — a state income tax credit, a sales tax exemption, a 20-year property tax exemption, full-retail-rate net metering, and a production incentive called SMART — and together they keep payback reasonable even without Washington's help: expect roughly 7 to 10 years on a typical system, not the 5-to-7-year pitch installers made in 2025. Longer, but still faster than many sunnier, cheaper-power states can offer post-credit. This page walks through Massachusetts' actual numbers.
Massachusetts Electricity Prices
Every solar system is a bet that grid power keeps getting more expensive. In Massachusetts, that bet has paid off for as long as anyone's been tracking it. Here's the long view, from federal EIA data.
Full Massachusetts electricity price data (1990–2025)
| Year | Massachusetts (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 9.7 | 7.8 |
| 1991 | 10.4 | 8.0 |
| 1992 | 10.6 | 8.2 |
| 1993 | 11.0 | 8.3 |
| 1994 | 11.1 | 8.4 |
| 1995 | 11.3 | 8.4 |
| 1996 | 11.3 | 8.4 |
| 1997 | 11.6 | 8.4 |
| 1998 | 10.6 | 8.3 |
| 1999 | 10.1 | 8.2 |
| 2000 | 10.5 | 8.2 |
| 2001 | 12.5 | 8.6 |
| 2002 | 10.9 | 8.4 |
| 2003 | 11.6 | 8.7 |
| 2004 | 11.8 | 9.0 |
| 2005 | 13.4 | 9.5 |
| 2006 | 16.6 | 10.4 |
| 2007 | 16.2 | 10.7 |
| 2008 | 17.6 | 11.3 |
| 2009 | 16.9 | 11.5 |
| 2010 | 14.6 | 11.5 |
| 2011 | 14.7 | 11.7 |
| 2012 | 14.9 | 11.9 |
| 2013 | 15.8 | 12.1 |
| 2014 | 17.4 | 12.5 |
| 2015 | 19.8 | 12.7 |
| 2016 | 19.0 | 12.6 |
| 2017 | 20.1 | 12.9 |
| 2018 | 21.6 | 12.9 |
| 2019 | 21.9 | 13.0 |
| 2020 | 22.0 | 13.2 |
| 2021 | 22.9 | 13.7 |
| 2022 | 26.0 | 15.0 |
| 2023 | 29.6 | 16.0 |
| 2024 | 29.4 | 16.5 |
| 2025 * | 30.5 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
Massachusetts residential rates have climbed about 127 percent since 2005, and the pace has only picked up — roughly 4.4 percent a year over the last decade, among the fastest increases in the nation. Rates here are driven less by fuel costs than by transmission and distribution buildout, offshore wind and clean-energy procurement passed through to ratepayers, and a grid serving dense, older housing stock through an ongoing heating-electrification push. None of that points toward cheaper power — a homeowner locking in today's production at today's high rate is making a very different bet than someone doing the same math where power is already cheap.
The Massachusetts Sun, Month by Month
At 42.3°N, Massachusetts sits far enough north that the sun's arc changes dramatically across the year — high and long in summer, low and short in December. That's the main reason production swings here, far more than cloud cover alone.
Massachusetts monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 104 |
| Feb | 107 |
| Mar | 133 |
| Apr | 121 |
| May | 127 |
| Jun | 114 |
| Jul | 129 |
| Aug | 124 |
| Sep | 120 |
| Oct | 107 |
| Nov | 86 |
| Dec | 76 |
| Year | 1347 |
Source: NREL PVWatts typical-year estimate (Boston), per installed kW at latitude tilt.
March is the strongest month in the dataset (133 on the index), not June — clearer skies and a sun angle climbing fast, before spring haze thickens the air. December is the slowest (76), matching the short days and low sun angle this far north. The upside: cold weather actually helps panel efficiency, since silicon cells lose efficiency as they heat up, and Massachusetts winters run a lot colder than summer roof temperatures. Panels here typically still produce around 70 percent of peak output through the winter months — a real dip, but nowhere near a shutdown.
What Solar Costs in Massachusetts in 2026
Massachusetts installs run about $2.95 to $3.35 per watt as of mid-2026 — a bit above the national average, reflecting higher labor costs and a smaller, though busy, installer market. A typical 11 kW system, sized for an average Massachusetts home, runs roughly $32,450 to $36,850 before any credits. Without the 30 percent federal credit, that gross number is much closer to what you actually pay than it was a year ago.
| System Size | Typical 2026 Cost | Roughly Offsets | Fits |
|---|---|---|---|
| 5 kW | $14,750 to $16,750 | ~6,735 kWh/yr (~$171/mo at 30.5¢) | Smaller home, lower usage |
| 8 kW | $23,600 to $26,800 | ~10,776 kWh/yr (~$274/mo) | Average Massachusetts home |
| 12 kW | $35,400 to $40,200 | ~16,164 kWh/yr (~$411/mo) | Larger home, electric heat or EV charging |
Massachusetts' 6.25 percent sales tax exemption applies to the equipment, and the 15 percent state income tax credit (capped at $1,000) chips a bit more off the net cost. Always compare quotes on price per watt across at least three installers — regional demand and roof complexity move the number more than any single incentive does.
Estimate Your Massachusetts Payback
The calculator below starts from Massachusetts' average electricity rate and typical local production. Enter your own monthly bill to see an estimated system size, payback period, and 25-year savings. Massachusetts rates have risen about 4.4 percent a year over the last decade — a reasonable starting point for the inflation field, though you can drag it lower or higher to see how sensitive your payback is to future rate hikes.
Massachusetts Solar Incentives in 2026
Here's what changed federally, and what Massachusetts still offers on its own.
- Gone — the 30 percent federal credit: The federal Residential Clean Energy Credit (25D) was repealed for installations completed after December 31, 2025. No phase-out for purchased systems. If a quote still assumes it, that installer hasn't updated their numbers.
- Still here — the state income tax credit: 15 percent of system cost back, capped at $1,000, against state income tax. Non-refundable, carries forward up to 3 years. Claimed on Schedule EC with your Form 1.
- Still here — sales and property tax exemptions: Equipment is exempt from the state's 6.25 percent sales tax, and added home value is excluded from your property tax assessment for 20 years from interconnection. See our home insurance guide for how added home value can separately affect your coverage.
- Still here — SMART production payments: A flat per-kWh incentive on top of net metering — $0.03/kWh for most residential systems, $0.06/kWh if income-qualified, for 20 years, plus $0.04/kWh with a paired battery. Redesigned as "SMART 3.0" in May 2026.
- Partial — leases and PPAs: Third-party-owned systems can still capture a separate federal business credit (48E) through 2027 — but it belongs to the leasing company, not you. Ask directly how it's reflected in your quoted rate.
The General Net Metering Program
Massachusetts residential systems up to 25 kW qualify for the state's General Net Metering Program, and — unlike a lot of states — it credits exported power at the full retail rate, both the supply charge and the delivery charge. That's a meaningfully better deal than states that only credit the wholesale or supply-only portion. Credits roll over month to month, so a strong solar month covers a weak one later in the year.
Once a year, at a true-up date set by your utility (April for Eversource, March for National Grid and Unitil), any unused credit balance gets paid out — but at the wholesale avoided-cost rate, not the retail rate you were credited at all year. In practice this rewards sizing your system to your own annual usage rather than overbuilding to sell excess power back, since export-only surplus is worth much less than power you use yourself. Once approved for interconnection, terms are locked in for 25 years.
Winter, Snow, and Panel Performance
The seasonal dip above is real, and so is snow — but it's rarely the problem homeowners expect. Panels sit at a tilt, are dark in color, and warm slightly in direct sun even on cold days, so a snow layer typically slides off within a day or two on its own, lubricated by a thin layer of meltwater underneath. On a clear, cold day after a snowfall, the bright snow around your array can even bounce extra light onto the panels and briefly boost output above a summer day's numbers. If snow ever needs help clearing, use a soft foam roof rake made for solar — never a metal one, which can scratch the glass or crack a cell. That's why the annual production figure on this page, not any single month, is what your payback should be based on.
How to Go Solar in Massachusetts
Work through these steps before signing anything.
- Pull your last 12 electricity bills and calculate your true average monthly cost — Massachusetts bills swing hard between summer and winter.
- Confirm your roof faces south, east, or west with minimal shading; a north-facing or heavily shaded roof rarely pays off even at Massachusetts rates.
- Check your roof's age. Under 10 to 15 years of life left, replace it first — removing and reinstalling an array later costs thousands. See our roofing guide.
- Get at least three quotes and compare price per watt, equipment, and workmanship warranties — and confirm none are still pricing in the expired federal credit.
- Ask each installer about SMART 3.0 enrollment status and the payment-mechanism timeline, a live moving part in 2026.
- Confirm net metering interconnection terms with your utility (Eversource, National Grid, or Unitil) and check your electrical panel's capacity before installation day.
For the fundamentals — how panels work, sizing, buying versus leasing — read our main solar panels guide. This page covers what's specific to Massachusetts.
Sources
Figures on this page are 2026-current. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 values preliminary). Federal credit repeal: IRS — Residential Clean Energy Credit and Congressional Research Service IN12611. Net metering: Mass.gov Net Metering Guide, DPU Expands Net Metering Program, and Net Metering Eligibility. SMART program: SMART 3.0 Program Details and Mass.gov SMART overview. State tax credit: 830 CMR 62.6.1. Property and sales tax exemptions: DSIRE Program #146 and DSIRE Program #145. Cost data: EnergySage Massachusetts. Sun data: Current Results, Massachusetts Sunshine by Month. Production estimates: NREL PVWatts. We review these figures every six months.