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Historic North Shore seaport with 44,480 residents, home to the Peabody Essex Museum and the McIntire Historic District. National Grid territory at $0.32/kWh. SMART 3.0 + ConnectedSolutions make Salem a strong solar market.
National Grid territory • SMART 3.0 • ConnectedSolutions eligible • Historic seaport
2026 Reality: The 30% federal tax credit (Section 25D) expired for homeowners December 31, 2025. All costs in this guide reflect $0 federal credit. Full details
A 10 kW solar system in Salem costs $30,500-$34,000 in 2026. In National Grid territory at $0.32/kWh, with SMART income of ~$360/yr and full retail net metering, the investment pays for itself in 7.5-9 years and generates ~$105,000 in savings over 25 years.
Cost Range
$3.05-$3.4/W
Fully installed
Avg System
10 kW
Salem average
Payback
7.5-9 yrs
Cash purchase
25-Year Savings
~$105K
Estimated total value
Salem is a historic maritime city on the North Shore, known for its rich colonial history, the Peabody Essex Museum, and a thriving arts community. The city has a diverse housing stock from Federal-era mansions to modern condos, with strong community interest in sustainability and renewable energy.
Population
~44,480
Median Home Value
~$450,000
Primary Utility
National Grid
Electric Rate
$0.32/kWh
Typical System Size
8-13 kW
Solar Irradiance
4.2 kWh/m²/day
Important: Salem is in National Grid territory (not Eversource). National Grid charges $0.32/kWh, has a March true-up for net metering credits, and ConnectedSolutions pays $225/kW summer (vs. $275/kW for Eversource). All other MA incentives are identical.
Costs for different system sizes in Salem at $3.05-3.40/W. Salem has slightly smaller average systems than suburban towns due to its denser housing, but the city still offers excellent solar conditions.
| System Size | Low Cost | High Cost | SMART 3.0 | Best For |
|---|---|---|---|---|
| 6 kW | $18,300 | $20,400 | ~$216/yr | Condo / small row home |
| 8 kW | $24,400 | $27,200 | ~$288/yr | Mid-size Cape or colonial |
| 10 kW | $30,500 | $34,000 | ~$360/yr | Typical Salem single-family |
| 13 kW | $39,650 | $44,200 | ~$468/yr | Large home / EV + battery |
| 15 kW | $45,750 | $51,000 | ~$540/yr | High usage / multi-family |
Prices include equipment, labor, permits, and grid interconnection. No federal tax credit included (expired). $1,000 MA state tax credit not deducted.
Salem's neighborhoods range from the nationally significant McIntire Historic District to suburban South Salem. Each area has distinct solar considerations, particularly around historic preservation.
Home Types
Federal-era mansions, Victorian homes
Avg System
8-12 kW
National Register Historic District with some of the finest Federal architecture in America. Solar installations require sensitivity to historic character. Black-on-black panels on rear-facing or less visible roof planes are typically the approach. Salem Historical Commission may review applications.
Home Types
Capes, colonials, bungalows, multi-family
Avg System
8-11 kW
Residential neighborhood near Salem Willows Park and the harbor. Mix of older and mid-century homes with decent roof access. Waterfront properties get excellent sun exposure. More relaxed historic restrictions than the McIntire District.
Home Types
Colonials, ranches, newer construction
Avg System
10-13 kW
Residential area near Salem State University with fewer historic restrictions. Larger lots and more modern homes make installation straightforward. Good mix of housing stock with favorable roof orientations. Strong solar adoption rates in this neighborhood.
Home Types
Row homes, multi-family, mixed-use
Avg System
7-10 kW
Dense waterfront neighborhood near the Peabody Essex Museum and Derby Wharf. Smaller lots and attached housing may limit roof space. Multi-family buildings can share system costs. Some historic overlay near the maritime district.
Historic district note: Salem has significant historic architecture. Properties in locally designated historic districts should plan for Historical Commission review. Black-on-black panels, rear-facing installations, and low-profile racking systems are the standard approach. Many Salem historic homes have successfully installed solar.
Salem's Building Department handles solar permits. The process typically takes 2-4 weeks. Properties in local historic districts may require Salem Historical Commission review, adding 2-4 weeks.
Installer evaluates roof condition, shade, orientation. Historic district properties get aesthetic review plan. National Grid interconnection requirements checked.
Application to Salem Building Department. Properties in local historic districts require Historical Commission review and approval.
Typical installation 1-3 days. Electrical and building inspection by the City of Salem.
National Grid approves grid connection. 2-4 weeks. Net metering activated once approved. True-up in March.
Massachusetts offers one of the strongest solar incentive packages in the country. Here is what Salem homeowners in National Grid territory can stack.
$0.03/kWh for all electricity produced for 20 years. A 10 kW system generates ~$360/yr in SMART income.
~$360/yr
~$6,840 over 20 years
1:1 credit at full retail rate of $0.32/kWh. Credits roll over monthly and true up in March.
~$3,262/yr
Annual electricity savings (10 kW)
National Grid demand response. Earn $225/kW summer + $50/kW winter for discharging your battery during peak events.
$2,750/yr
Typical 10 kW battery
15% of system cost, capped at $1,000. Claimed on your MA state tax return (Form 1, Schedule EC).
$1,000
One-time credit
Solar systems are exempt from the 6.25% MA sales tax. Immediate savings at purchase.
~$2,016
Savings on typical system
Solar-added value is exempt from property tax for 20 years. Salem's 1.3% rate makes this exemption valuable for protecting your home's assessed value.
~$419/yr
20-year exemption (~$8,380 total)
Section 25D (the 30% residential solar tax credit) expired December 31, 2025 under the OBBBA. Salem homeowners buying cash or loan receive $0 in federal credit. However, third-party system owners (PPA/lease) can still claim the commercial Section 48/48E ITC -- which translates to lower PPA rates for you.
Read: What happened to the solar tax creditThree ways to pay for solar in Salem. PPAs offer $0 down because the third-party system owner claims the commercial Section 48 ITC. Solar loans at 5.5-8% APR through local lenders.
Upfront
~$30,500-$34,000
Monthly
$0
25-yr Savings
~$105K
Ownership
You own it
Best long-term ROI. 7.5-9 year payback. Full SMART income + net metering yours.
Upfront
$0 down
Monthly
~$210-280/mo (5.5-8% APR)
25-yr Savings
~$60-85K
Ownership
You own it
10-25 year terms through local lenders. SMART income + net metering offset monthly payments.
Upfront
$0
Monthly
Fixed ~$0.14-0.18/kWh
25-yr Savings
~$25-40K
Ownership
Third party owns
Third-party owner claims Section 48 ITC. You buy power at a discount. Immediate savings.
How Salem solar costs compare to neighboring North Shore communities. Note the utility differences -- some neighbors are Eversource, others National Grid.
| City/Town | Cost/W | Avg System | Utility | Notes |
|---|---|---|---|---|
| Salem | $3.05-3.40 | 10 kW | National Grid | Historic seaport, McIntire District |
| Marblehead | $3.10-3.50 | 11 kW | MMLP (Municipal) | Municipal utility, very low rates, no SMART/CS |
| Beverly | $3.00-3.35 | 11 kW | National Grid | North Shore neighbor, similar market |
| Peabody | $3.00-3.35 | 11 kW | National Grid | Inland, fewer historic restrictions |
| Danvers | $3.00-3.35 | 11.5 kW | National Grid | Suburban, straightforward installations |
Solar panels in Salem cost $3.05-3.40 per watt installed in 2026. A typical 10 kW system costs $30,500-$34,000 before MA state incentives. The federal Section 25D residential tax credit expired December 31, 2025 -- homeowners receive $0 in federal credit. Salem is in National Grid territory at $0.32/kWh with SMART 3.0, ConnectedSolutions, and 1:1 net metering making solar profitable.
Yes, but with considerations. Salem has several historic districts, most notably the McIntire Historic District (a National Register district). The Salem Historical Commission reviews exterior modifications to properties in local historic districts. Solar installations using black-on-black panels on rear-facing or minimally visible roof planes are generally approved. Your installer should be experienced with historic district applications. Properties outside local historic districts (even if in National Register districts) typically have fewer restrictions.
Salem is in National Grid territory, not Eversource. Key differences: National Grid charges $0.32/kWh (slightly lower than Eversource at $0.2836), net metering credits true up in March (not April), and ConnectedSolutions pays $225/kW in summer (vs. $275/kW for Eversource). You still get full access to SMART 3.0, 1:1 net metering, and all MA state incentives. The slightly lower electric rate means marginally longer payback compared to Eversource towns, but Salem remains a strong solar market.
ConnectedSolutions is National Grid's demand response program for battery owners in Salem. During peak grid events (primarily summer), you discharge your battery to the grid and earn $225/kW in summer and $50/kW in winter. A typical 10 kW home battery can earn $2,250 in summer plus $500 in winter, totaling $2,750/year. While slightly lower than Eversource territory rates, this is still substantial battery revenue.
Yes. Salem offers a 7.5-9 year payback period with approximately $105,000 in 25-year savings, even without the federal 25D credit. National Grid rates at $0.32/kWh, SMART 3.0 income, and MA state incentives (tax credit, sales tax exemption, 20-year property tax exemption) combine to make solar a solid investment. Salem's relatively moderate home prices also mean solar adds proportionally more value to your property.
We will assess your specific roof, historic district status, and National Grid rate to show you exactly what solar costs and saves for your Salem home -- including SMART 3.0 and ConnectedSolutions.
Complete hub for MA solar, heat pumps, and utility resources.
Read moreStatewide solar costs and city-by-city breakdown.
Read more$0.03/kWh for 20 years. How to enroll and earn.
Read moreEarn $225-$1,500/yr per battery. Demand response revenue.
Read moreRate comparison and solar impact by utility.
Read more5.5-8% APR through local lenders and credit unions.
Read more25D expired. What options remain for homeowners.
Read moreTrack rate changes across MA utilities since 2020.
Read moreLive installation data, capacity trends, and market stats.
Read moreCurrent wait times, bottlenecks, and how to get connected faster.
Read morePricing: EnergySage Solar Marketplace (January 2026), NuWatt Energy North Shore installations.
Utility rates: National Grid residential rate schedule R-2, effective February 2026.
SMART 3.0: MassDOER / MassCEC, SMART program guidelines PY2026.
ConnectedSolutions: National Grid demand response program rates, 2026 season.
Tax exemptions: MA Department of Revenue, Salem Assessor data.
Historic districts: Salem Historical Commission, McIntire Historic District guidelines.