You may not think of solar power when you think of Boston, but you should. Massachusetts is the state with the 11th most solar installed, despite having the 16th largest population and 44th largest area.
Some of solar’s popularity in the state can be attributed to stronger-than-average solar incentives and higher-than-average electricity rates. If you’re wondering if home solar panels are a good fit for you in Boston, here’s what you need to know.
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Does Solar Make Sense in Boston?
Whether installing solar panels in Boston makes sense for you depends on a variety of factors, from the price of electricity to national tax credits.
Price of electricity
One of the ways solar panels can save you money is by reducing the amount of electricity you need to buy from your electric utility. The more expensive electricity is, the more you could save.
Massachusetts’ statewide average electric rate was 29.61 cents per kilowatt hour in 2023, according to the US Energy Information Administration (US EIA), while Eversource, the electric utility that services Boston, had an average rate of 29.66 cents. That’s more than the 2023 national average of 16 cents.
Price of solar
Saving money isn’t the only reason people go solar, but it is a big one. If the cost of installing solar panels is too high, it might not be worth it financially.
The cost of solar panels can be difficult to pin down since it can vary based on the size of the system, the local cost of labor, and the complexity of your roof, among other things. One national estimate puts the average cost of residential solar at $3.33 per watt in the third quarter of 2024, 4% below the same time a year before.
Available sunlight
Solar panels need sunlight to generate electricity, but you don’t need to live in the sunniest locations to make them work. Peak sun hours measure the strength of the sun’s radiation in kilowatt-hours per square meter. Averaged over the year, Boston gets around four peak sun hours daily.
The amount of sunlight your roof gets is also an important consideration. Solar panel systems are much better at dealing with shade than they used to be, but heavily shaded properties may not have a suitable site for solar.
Credit: SEIA
Outages
Another reason people install solar panels at home is to deal with power outages better. While standalone solar panels shut down with the grid, solar panels paired with a home battery can back up at least parts of your home during an outage.
How much of your home you can back up and for how long depends on the size of your battery bank, how many devices or circuits you want to back up, how productive your solar panels are, and how long the outage lasts.
In 2023, Massachusetts utility customers experienced an average of 259 minutes of outages, according to the US EIA.
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Solar Incentives in Boston
Solar panels can provide significant long-term savings. Buying solar panels, though, still comes at a cost. Luckily, there are plenty of solar incentives in Massachusetts that can lower the upfront cost or boost your savings.
Federal tax credit
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
State tax credit
Massachusetts has a state tax credit of 15% the cost of solar up to $1,000. You may roll excess tax credits over to future years, according to the state.
Net metering
If you go solar in Boston, Eversource offers net metering at close to the retail rate. This means one kilowatt-hour of electricity you send to the grid will cover one kilowatt-hour you buy, minus energy efficiency, renewable energy, and distributed solar charges. If you have extra net metering credits in a given month, they are carried forward indefinitely. Credits are never cashed out.
Solar renewable energy credits
New solar panels in Massachusetts can also generate renewable energy credits, which you can sell on REC markets. (Palmetto partners with SRECTrade.) REC values can vary with supply and demand.
Solar panels installed in previous years may generate solar renewable energy credits, or SRECs, which are similar but distinct.
Property tax exemption
Solar panels often increase property values when they’re installed. Massachusetts exempts solar panels from property taxes, which means adding solar panels to your home won’t raise your property taxes.
Sales tax exemption
Massachusetts exempts solar equipment from sales tax, which helps keep hardware costs down.
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Solar Payback Period in Boston
Your solar payback period is the amount of time it takes for your solar panels to save you as much money as they cost you. A solar payback period varies from project to project, but a commonly cited average is from 7-10 years.
Estimating your solar payback period takes following a simple formula.
( Total solar cost - Solar incentives ) / Annual solar savings = Solar payback period in years
For example, if you paid $15,000 after incentives for a system that saved you $115 each month, or $1,380 each year, you’ll have reached your solar payback period in 10.87 years. Since solar panels are typically under warranty for 25 years and can last longer, in this hypothetical situation, you’d have more than a decade of continued savings after you reached your payback period.
Calculating solar payback periods at the start of your project is always an estimate since you can’t predict the future. Your payback period could change if electricity rates change. If rates go up, so will your savings. The opposite is true, too. While Massachusetts average electricity rate in 2023 was 29.61 cents per kilowatt-hour, a decade earlier in 2013 it was 15.83 cents per kilowatt-hour.
Credit: US EIA
Eversource and Rooftop Solar Panels
When you go solar, you don’t disconnect from your utility (unless you go entirely off grid). You’ll still get a bill, though it should be lower. Your utility, in conjunction with state regulators, often has a hand in shaping regulations that govern rooftop solar panels, like net metering and size limits.
Here are some of Eversource’s relevant policies for rooftop solar.
| 2023 electricity rate | Fixed fees | Net metering type | Max system size | Max offset |
|---|---|---|---|---|
| 29.66 | 10.00 | (nearly) 1-to-1 net metering | 10 kW (AC) | None |
Gas utilities and home electrification
If you have gas service at home — to run your furnace, water heater, or stove — you’re paying for two utility services when you could pay for one. Switching to energy-efficient electric appliances and going solar can take a bigger bite out of your energy bills. Solar panels won’t help you cover the cost of running your gas furnace, but they will help you cover the cost of running your electric heat pump.
Going solar won’t let you completely ditch your electric utility, but home electrification will let you stop paying Eversource or National Grid for gas.
Leasing Solar Panels in Boston
Even with the strong slate of incentives available to Bostonians who go solar, the cost of buying solar can still be significant. Solar leases and power purchase agreements offer a way to go solar without the cost of ownership.
With either of these options (collectively known as third-party ownership), you get solar panels on your roof and potential electric bill savings while someone else owns the panels. Instead of buying the panels, you make monthly payments for the equipment (lease) or the electricity it generates (power purchase agreement) for the length of the agreement.
The LightReach Energy Plan, Palmetto’s offering, gives you predictable monthly payments with options to buy your panels starting after year five. It also comes with a 90% production guarantee and proactive monitoring and maintenance while the contract is in place.
Solar Panel Maintenance in Boston
Solar panels can be low-maintenance equipment, but problems can arise. You should get clear answers from solar companies about who is responsible for repairs and maintenance when something goes wrong.
Some solar companies offer monitoring and maintenance plans for your solar system. Palmetto Protect comes with proactive monitoring, insights into your system's performance, and a production guarantee, depending on your plan.
Snow
Despite all its snow, Boston can still be a great place to go solar. Because solar panels are dark and usually installed at an angle, snow often melts and slides off of them quicker than other surfaces. Sliding snow has the added benefit of cleaning your panels. It’s usually best to let snow melt off naturally and not clear it yourself to avoid damaging or scratching your panels.
Reputable solar companies will take typical snowfall into account when designing your system.
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Finding the Best Boston Solar Company
Finding the right installer is perhaps the most important step in getting solar panels that work for you and save you money. Here are some tips for finding the best Boston solar company.
- Make sure you get your questions answered and aren’t rushed
- Read reviews to get a broad view of the company
- Talk to friends and neighbors who have gone solar in your area
- Carefully review contracts, warranties, and protection plans
Palmetto Reviews
“I had an excellent experience with Palmetto. The salesperson was very knowledgeable and answered all of the questions I had, designing a system that was a great fit for my house and energy usage.
I got text messages throughout the process keeping me informed and I could track the status of the project in the app. Palmetto took care of all of the permitting and paperwork, which was really nice.
I could not have been happier with the installers who put the system on my roof.” Jason D., Google Review
“I went through several quotes for solar panels before landing on Palmetto. Their quote was below other vendors, but it wasn't a decision based on price. I chose them because they explained the product and the process very well. I was then set up with an app for tracking the installation process. I'm so happy I chose a company that cares about customer service!” Jeremy L., Google Review
“The process was explained every step of the way[. T]hey educated me on what to expect. They kept me informed throughout the process. Customer service is great!” Maria H. Google Review
Frequently Asked Questions
Does solar make sense in Boston?
Solar can definitely make sense in Boston. Higher-than-average electricity rates and strong incentives can help you save with solar.
Does Boston have net metering?
Eversource, Boston’s electric utility, offers near 1-to-1 net metering. Some small charges aren’t included in the net metering rate.
Do solar panels increase your home value in Boston?
Adding solar panels to your home typically increases the value of it. In Massachusetts, you won’t pay additional taxes on the value added by solar panels.
How much does it cost to go solar in Boston?
The cost of solar in Boston will vary by project. The Solar Energy Industries Association estimates the cost of getting solar panels was $3.33 per watt before incentives in the third quarter of 2024.
What is the best Boston solar company?
The best solar company is the one that best fits your needs. Consider your budget, your goals for going solar, and the solar company’s support after installation.
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Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
