Are solar panels worth it in Massachusetts?

7 factors to consider before getting solar panels in Massachusetts

ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process, including dozens from Massachusetts. Here’s what to consider before making the switch.

1. Solar panel installation costs
2. Your energy consumption
3. Massachusetts solar incentives
4. Net metering buyback rates
5. How long you stay in your house
6. How you pay
7. The solar company you hire

1. Solar panel installation costs: $10,000 to $30,000

Average solar panel costs in Massachusetts are comparable to the national average. Before the federal solar investment tax credit (ITC), a typical residential system ranges from $16,400 to $32,800. That price drops to $11,480 to $22,960 after the full 30% tax credit.

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Massachusetts, the average cost per watt is $3.28.

Average solar installation cost by system size in Massachusetts

2. Your current energy consumption

A typical Massachusetts household needs a system with the capacity of 8.28 kW to offset its electricity needs with solar energy. Depending on your current energy consumption, you might need a larger or smaller system.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

It’s smart to get your electrical loads as low as possible before going solar. That way, you can get a smaller system, which will be cheaper overall. If you have older electrical appliances, upgrade those before investing in solar panels.

Once you know your current energy consumption, you can calculate your potential savings. Anecdotally, Rosineia in Hyannis, who told us they use a lot of electricity, saves about $1,000 per year with solar panels.

3. Massachusetts solar incentives: federal and state

The federal solar investment tax credit (ITC) is still a huge incentive for most homeowners going solar. The ITC provides a 30% tax credit on your total system costs, including equipment, labor and permits. Residents can take advantage of additional solar incentives in Massachusetts, including state tax breaks and local rebates.

Massachusetts also has Solar Renewable Energy Certificate (SREC) programs. Ronald in Groton got solar panels in 2012. “They were paid off in four years and since then I have received an average of $2,400 per year in SREC payments,” he told us.

4. Net metering in Massachusetts: retail buyback rate

Sometimes, your solar panels might generate more electricity than your household can use. Net metering lets you sell that extra to the local power grid. In Massachusetts, utility companies compensate at the full retail rate of electricity.

It’s a great deal for residents, but there are occasional hiccups, as Peter in Weymouth found out. “My system is doing great,” Peter told us. “But I was still getting full electric bills from my electric provider.” His solar company arranged for an electrician to change his electric meter over to a net metering unit. “But the meter that they put in was another standard meter. So, I lost over two months’ worth of solar energy.”

He had to work with the service provider to get it back. “The electric company came out and changed my meter again and put on the correct meter. So going forward, it should work,” he said.

» GREENEST STATES: Massachusetts ranked 7th in 2024

5. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost — about 5 years on average in Massachusetts. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

Solar panels last 25 to 30 years.

A Zillow study found that, on average, houses with solar panels sell for 4.1% more. Let’s say you spend $25,000 putting solar panels on a house that costs $400,000. It might sell for $16,400 more in a few years, according to Zillow. But you miss out on some of that $87,689 in total avoided utility costs over 25 years.

In other words, don't get solar panels just because you want to sell your house soon. Instead, consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen.

6. How you pay

It’s great if you can pay for the whole thing upfront. You own the system from day one and receive the benefits of available tax credits; plus, you don’t have to pay interest on a loan.

Of course, cash isn’t always an option. That’s when loans, leases and other agreements come into play.

• Loans: Solar loans work like any other type of loan. They have relatively low fixed interest rates. Once you pay it off, you own your system outright.
• Leases: Leasing panels is one way to get the benefits of solar energy without the high upfront cost. A solar lease works like a car lease — you get to use the panels but don’t own them. Leasing can be good if you have limited savings. Solar lease agreements typically last 20 to 25 years.
• Power purchase agreements: Similar to leasing, a power purchase agreement (PPA) lets homeowners install solar panels without the upfront costs. You sign a long-term contract with a solar services provider to purchase the electricity generated by the panels at a predetermined rate. The provider owns and maintains the panels throughout the agreement, usually lasting 10 to 25 years.
• Home equity loans or lines of credit (HELOC): Eligible homeowners can borrow against equity in their house to finance a solar panel system. These often have variable interest rates, meaning monthly payments can increase over time.

David in Brockton is happy leasing his system. “It's not like you're gonna go out and buy a bunch of solar panels for your house then six months or a year later, go, ‘I wish I hadn't bought them. I wish I had bought something else.’ If you're leasing them, they're not yours and you don't have to worry about it. If they don't work, you don't have to fix them,” he told us.

7. The solar company you hire

We’ve heard from over 100,000 verified solar customers since 2018, including hundreds in Massachusetts. A couple of things we know for sure: People like powering their homes with a reliable source of cheap, clean energy. They don’t like getting into solar contracts that don’t meet their expectations.

One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision. Use the National Renewable Energy Laboratory’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

Monthly costs: solar payments vs. savings

Think of going solar in terms of your monthly costs. Given rising energy costs in Massachusetts and elsewhere, financing solar panels makes sense as long as your monthly loan payment is less than what you would be paying the utility company anyway.

Is my house a good candidate for solar panels?

Going solar doesn’t work out for everyone the same way. “The return on investment wasn't anywhere near what we thought it would be,” Marc in Holliston told us. “But I know that our roofline has some weirdness. It's not a straight roofline. So it may not be ideal.”

If you live in an area that receives severe winter storms, it may also be worth purchasing batteries to receive power during outages. Here’s what else to think about before you commit:

• How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Massachusetts averages 2.5 to 3.5 peak sun hours per day. Lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.
• What is the size and angle of my roof? Massachusetts (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.

Pros and cons of solar panels in Massachusetts

It’s a common misconception that solar panels will completely eliminate your monthly power bill. This is not always the case. Still, you’ll likely be paying much less than you would for traditional utility bills.

Benefits of solar panels in Massachusetts

• Cheaper energy bills: The average homeowner in Massachusetts uses a lot of power, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). Solar panels also protect you from future energy cost increases.
• Protection from power outages: A solar battery can keep your lights on even if the local power grid is out, as Kevin in Lenox pointed out. “We've had power outages and the battery backups have been great, especially in the winter time,” he said. “We had one very long power outage and the batteries kept us going.” 
• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Solar panels generate electricity from sunlight, a clean and renewable energy source. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
• Higher home resale value: Installing solar panels can significantly increase a home's value. According to the study mentioned above, houses with solar panels sell for 4.1% more on average. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.

Drawbacks of solar panels in Massachusetts

• Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
• Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.
• Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Getting a solar battery might be strategic if net billing rates continue to decline in Massachusetts. That way, you can store energy at home instead of tapping into the local grid when you need to.

» MORE: Solar energy pros and cons

Find solar companies in Massachusetts

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Massachusetts’s top solar companies to learn more.

Bottom line: Is going solar in Massachusetts worth it for you?

Massachusetts ranked among the best states for solar in 2024. The main obstacle to going solar is the high upfront cost of purchasing and installing solar panels, inverters and other equipment. For a lot of homeowners, it ends up being worth it as long as their cost savings over time outweigh the initial investment. Others are happy to go solar for the environmental benefits alone.

Solar costs vs. savings: Massachusetts and nearby states