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With the highest electricity rates in the continental US and the SMART production incentive program, Massachusetts remains one of the best states for solar even without the federal tax credit.
Avg Utility Rate
$0.28/kWh
State Incentives
$10,000
Payback Period
6 years
25-Year Savings
$98,003
By NuWatt Energy Team • Updated February 2026 • 8 min read
Yes, solar is worth it in Massachusetts in 2026 even without the federal tax credit. With average utility rates of $0.28/kWh and $10,000 in state incentives, a typical 8kW system pays for itself in approximately 6 years and delivers $98,003 in total savings over 25 years. Solar locks in your electricity cost at a fraction of what you pay the utility, and the gap widens every year as rates climb 3-5% annually.
A typical residential solar installation in Massachusetts uses 20 panels to build a 8kW system. Here is the full cost breakdown before and after state incentives, with no federal tax credit applied (Section 25D expired December 31, 2025).
Cost Per Watt
$3.25/W
Gross System Cost
$26,160
Net Cost After Incentives
$16,160
2025 vs 2026 Cost Comparison
2025 (with 30% ITC): A homeowner in Massachusetts would have received a $7,848 federal tax credit, bringing the net cost down to $8,312.
2026 (no ITC): The same system now costs $16,160 after state incentives only — $7,848 more than it would have cost last year.
The payback period tells you how many years of electricity savings it takes to fully offset the cost of your solar installation. In Massachusetts, the math works out as follows:
Payback = Net Cost ÷ Annual Savings = $16,160 ÷ $2,688 = 6 years
| Year | Annual Savings | Cumulative (Net) | Status |
|---|---|---|---|
| Year 1 | $2,688 | -$13,472 | Recovering |
| Year 5 | $3,145 | -$1,601 | Recovering |
| Year 10 | $3,826 | +$16,112 | Profit |
| Year 15 | $4,655 | +$37,663 | Profit |
| Year 25 | $6,890 | +$95,784 | Profit |
Payback comparison: In 2025, this same system would have paid back in 3 years. In 2026, it takes 6 years — 3 years longer. The difference is entirely due to losing the $7,848 federal tax credit.
While Massachusetts homeowners can no longer claim the federal residential solar tax credit (Section 25D), the state offers several incentive programs that help offset the cost of going solar.
Variable rate per kWh
10-year production-based payments from your utility for every kWh your system generates, regardless of whether you use the power or export it.
$0.04/W
Direct rebate through the Mass Save program for residential solar installations paired with energy efficiency improvements.
6.25% savings
Solar equipment and installation costs are exempt from Massachusetts state sales tax, saving over $1,600 on a typical system.
20-year exemption
The added home value from your solar installation is exempt from property tax assessment for 20 years.
Net metering is the policy that determines how your utility credits you for excess solar electricity you send to the grid. In Massachusetts, the specifics vary by utility company. Here is a summary of the top utilities and their current net metering policies.
| Utility | Credit Type | System Size Cap | Excess Policy |
|---|---|---|---|
| Eversource MA | 1:1 retail rate credit | 25 kW AC | Monthly credits roll over; annual true-up at avoided cost |
| National Grid MA | 1:1 retail rate credit | 25 kW AC | Monthly credits roll over; annual true-up at avoided cost |
| Unitil MA | 1:1 retail rate credit | 25 kW | Monthly credits roll over; annual true-up at avoided cost |
Net metering is critical to your solar payback. When your panels produce more than you use during the day, the excess flows to the grid and your meter effectively runs backward. You receive credits that offset your nighttime and cloudy-day electricity usage. The stronger the net metering policy, the more value you extract from every kilowatt-hour your panels produce.
Losing the 30% federal tax credit makes solar more expensive upfront, but it does not erase the long-term financial case. Here is why Massachusetts homeowners should still seriously consider going solar in 2026:
SMART program adds $100-200/month in production credits on top of net metering
Highest electricity rates in the continental US make payback faster
20-year property tax exemption protects your home value
Mass Save financing available at 0% interest
Rising utility rates protect your investment. Electricity prices in Massachusetts have historically risen 3-5% per year. Your solar panels produce power at a fixed cost, meaning your savings grow every single year as the gap between solar and utility pricing widens.
Solar increases your home value by approximately 4%. National studies consistently find that owned solar systems add roughly 4% to a home's sale price. On a median-priced home in Massachusetts, that translates to thousands of dollars in added equity — often recovering a significant portion of your net system cost before you factor in electricity savings.
The 30% federal Investment Tax Credit (ITC) is gone for homeowner purchases (Section 25D), but it is still available to solar companies through Section 48/48E. When you sign a solar lease or Power Purchase Agreement (PPA), the installer owns the system, claims the 30% credit, and passes some of those savings to you through lower monthly payments.
For a full comparison of owning vs. leasing solar in 2026, including monthly cost examples and long-term savings projections, see our Solar Lease vs. Buy 2026 guide.
The SMART (Solar Massachusetts Renewable Target) program provides fixed production-based payments for every kWh your system generates over a 10-year term. These payments are in addition to your net metering savings. Even without the federal tax credit, SMART payments significantly improve your ROI and can contribute $100-200/month depending on system size and your utility territory.
Yes. Massachusetts has some of the highest electricity rates in the nation at $0.28/kWh, and the combination of SMART production payments, Mass Save rebates, sales tax exemption, and 20-year property tax exemption means the state incentive package alone is worth approximately $10,000. Most homeowners see payback in about 6 years, with 25-year savings exceeding $98,000.
Both Eversource and National Grid offer 1:1 retail rate net metering for residential systems up to 25 kW. This means every kWh you send to the grid earns a credit equal to your full retail electricity rate. Credits roll over monthly, with an annual true-up. Combined with SMART payments, you effectively get paid twice for exported power.
Every roof is different. Get a personalized savings estimate based on your actual electricity usage, roof orientation, and local utility rates in Massachusetts.
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