Are Solar Panels Worth It in Massachusetts?
Last updated July 1, 2026 · based on Massachusetts energy prices
In Massachusetts, where residential electricity averages about 30¢/kWh and rooftop solar yields roughly 1,300 kWh per kW per year, solar is a reasonable long-term investment, paying back in about 11.8 years.
Massachusetts solar cost & savings (typical 7 kW system)
| Metric | Estimate |
|---|---|
| Annual production | 9,100 kWh |
| Installed cost (before incentives) | $21,000 |
| Estimated annual savings | $1,775 |
| Payback period | 11.8 years |
| 25-year net savings | +$20,800 |
Figures use Massachusetts average prices, a 7 kW system at $3.00/watt, 50% self-consumption at retail plus a conservative 9¢/kWh net-metering credit, and ~0.5%/yr panel degradation. Sources: EIA electricity prices and NREL PVWatts production modeling.
What this means for Massachusetts homeowners in 2026
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025, so a 2026 installation in Massachusetts carries the full upfront cost unless a state or utility incentive applies. Because Massachusetts electricity costs well above the national average, the payback case is favorable for most well-suited roofs.
Frequently asked questions
Are solar panels worth it in Massachusetts in 2026?
At Massachusetts's electricity price of 30¢/kWh, a typical 7 kW system saves about $1,775 per year and pays for itself in roughly 11.8 years. There is no federal solar tax credit in 2026 (Section 25D expired December 31, 2025), so these figures reflect bill savings and net metering only.
How much do solar panels cost in Massachusetts?
A 7 kW system costs roughly $21,000 installed at about $3.00/watt before any state or utility incentive. Costs vary by installer, equipment, and roof complexity.
How much electricity will solar produce in Massachusetts?
About 1,300 kWh per year per kW installed in Massachusetts, so a 7 kW system produces roughly 9,100 kWh/year. Your exact output depends on roof orientation, tilt, and shading.
Estimates based on Massachusetts average energy prices and a simplified model; your results will vary. Energy prices and incentives change frequently. Not financial advice.