How Much Does Solar Panel Cost in Massachusetts

How Much Does Solar Panel Cost in Massachusetts

R
Renogy
Aug 9th 2024

The cost of solar panels in Massachusetts varies between $2.90 and $4.50 per watt, making it a major investment for homeowners. The state, however, sees a higher solar adoption rate, ranking 11th for solar capacity nationwide. This surge in interest from homeowners isn’t just about going green but saving a chunk on their electric bills. Now, if you’re a starter looking to become self-sufficient and switch to solar, many questions might be in your mind, like how much solar panels cost, how you benefit, and others.

Your savings from installing solar panels depends on their quality and efficiency. Renogy is a reputed manufacturer of durable, reliable, and efficient solar panels that can offset — or reduce — your dependence on utility bills.

How much do solar panels cost in MA?

The cost of a solar panel in MA varies between $2.90 and $4.50 per watt, or an average of $3.61 per watt. That’s a touch higher than the estimated national average of around $3.00 per watt. According to the EIA, an average household in Massachusetts consumed around 577kWh in 2022, so a 6.41kW solar panel should cover their monthly electricity needs. That calculates to around $23,140 without the incentives.

However, the power needs and the resulting investments in solar systems vary from house to house. Here’s an estimated cost of solar panels in Massachusetts:

System Size

System Cost

3kW

$10,800

4kW

$14,400

5kW

$18,100

6kW

$21,700

7kW

$25,300

8kW

$28,900

9kW

$32,500

10kW

$36,100

While this may sound high, it pays off in Massachusetts. Considering you pay around $150 monthly electric bills, your solar panels will pay off in around six years.

If you want to reduce electricity bills, you can consider investing in Renogy solar panels. A Renogy Bifacial 220 Watt 12 Volt Monocrystalline Solar Panel costs around $320, so to build a 3kW system, you must pay around $4,400 and around $7,200 for a 5kW system. Even if you add installation costs, it should stay below the state average.

Factors influencing solar panel costs in Massachusetts

The primary factor determining the cost of installing solar panels in Massachusetts is the installed capacity, measured in kilowatts. A 10kW solar panel system costs double that of a 5kW array as it generates more power. However, other factors influence the costs as well, which are as follows:

Solar System Size: According to EIA, an average household in Massachusetts consumes around 577kWh as of 2022. That’s less than the national average of 899kWh, which means people in the state need a smaller system size than others. You can further reduce the size by lowering your energy usage. These include upgrading older and less efficient appliances, unplugging devices you don’t need, and others.

Solar Panel Type: Your installed solar panel type also determines the overall prices you pay. For example, monocrystalline panels are the most efficient and costliest, followed by polycrystalline and thin-film panels.

factors influencing solar costs in massachusetts

Solar Incentives: Solar incentives in the state can help cut the cost of solar panel systems. Under the Federal Solar Tax Credit, a 30% tax credit is available for panels installed between 2022 and 2032. It decreases to 26% and 22% for systems installed in 2033 and 2034, respectively. The tax credit expires in 2035 unless the government renews it. To top it off, Massachusetts offers a 15% tax rebate up to $1,000.

Labor Costs: In addition to the cost of panels, you must also pay the company the installation charges. These might include the racking system, inverter, inspections, permits, and more.

Net Metering Programs: Utilities in many states have net metering programs that allow homeowners to save even more by using renewable energy sources. If your solar panels generate more power than you consume, you can send the extra electricity to the utility grid in exchange for utility bill credits.

Best solar rebates and incentives in Massachusetts

Aside from the 30% federal solar tax, Massachusetts has a set of local solar incentives worth keeping under your radar:

Residential Renewable Energy Income Tax Credit: Under this program, installing a solar or wind power system in Massachusetts lets you claim a tax credit of 15%, up to a maximum value of $1000.

Home Solar Project Sales Tax Exemption: Under this program, homeowners can receive a 6.25% sales tax exemption on their solar-powered energy systems. But for the waiver to apply, your solar system must meet a set of requirements. It must be machinery used directly and exclusively and delivered to the customers through mains, lines, or pipes.

Massachusetts Solar Property Tax Exemption: People are eligible for a property tax exemption for their renewable (solar or wind-powered) energy systems. Depending on the type of system, the exemption can be up to 100%.

Net Metering: If you’re a regulated electric company customer in Massachusetts (i.e., obtain electricity from National Grid, Eversource, or Uniti), you can use net metering. As mentioned earlier, net metering allows customers to earn credits for the additional solar energy they generate. Solar, wind, or anaerobic digestion technology can net meter if they are:

  • 2MW or less for a private facility
  • 10MW or less for a public facility

Solar Massachusetts Renewable Target (SMART) Program: In 2018, the Massachusetts Department of Energy Resources and three of the largest utility companies (National Grid, Eversource, and Unitil) launched the program to encourage rooftop solar installations in the state.

Homeowners who use electricity from one of the three companies are eligible to receive base compensation for the electricity produced by their solar system. The compensation ranges from 21.04 to 25.70 cents per kWh produced. The incentive values are higher if yours are farmland systems for crops or livestock, have battery storage, or have a mid to low-income level.

Is installing solar panels in Massachusetts worth it?

If you’re looking to cut down your utility costs, accessing solar energy in Massachusetts is worth it. According to the EIA, the average price of electricity in the state is 28.70 cents per kWh, which is much higher than the national average of 16.43 cents per kWh. If the average consumption is 577kWh, your average monthly bill is $165.

Now, consider that you’ve installed a 6kW solar system that costs around $15,190 after applying for the federal tax credit. And your savings with the installation should amount to $165 every month or $1,980 every year. So, the payback period for the solar panels is around eight years, after which everything goes into your pocket. The investment pays off even faster if you’re enrolled in the net metering program, where you get credits for the extra electricity you send to the grid.

Is installing solar panels in Massachusetts worth it

Or, you can opt for Renogy 550 Watt Monocrystalline Solar Panel, which costs around $5,012 (for building a 3kW system), excluding the installation costs and federal tax rebates. That’s cheaper than the national average, so the payback period is even less.

  • Engineered with high-efficiency PERC cells
  • This half-cut panel performs excellently in low light situation
  • Corrosion-resistant aluminum frame provides extended outdoor use
  • Claim up to 30% of your home's new solar system costs

Besides, these are 22.8% efficient (more than many traditional panels) and maximize power output when there’s partial shade or snow. So, provided you get the calculations right, you can save a lot in the longer term. Another perk is that if you add a battery to your solar system, you can protect yourself and your appliances against power blackouts.

Conclusion

Installing solar panels in Massachusetts is both an eco-friendly and a financially savvy move. With plenty of incentives such as federal tax credits, the SMART program, and others significantly lower the overall costs. And let’s not forget the long-term savings on your electricity bills and a potential increase in the property value.

In the end, however, it all comes down to the efficiency of the solar panels. Renogy is a leading manufacturer of top-tier solar panels, LED lighting solutions, and battery charging products. Its monocrystalline solar panels are up to 30% more efficient and can handle any weather. So, with these installed, the payback period would be even less.

FAQs about solar panels in Massachusetts

1. Is net metering available in Massachusetts?

Yes, net metering is available for homeowners in Massachusetts who get their electricity from regulated companies, such as National Grid, Eversource, or Unitil. With this, you earn credits for the additional electricity your solar panels produce and send it back to the utility grid. It helps determine how long it takes for the solar system to pay for itself.

2. Does Massachusetts offer a solar tax credit?

Yes, aside from the federal tax credit of 30% for every US homeowner for installing solar systems, Massachusetts has a separate solar tax credit. The Residential Renewable Energy Income Tax Credit lets customers claim 15% of the total installation cost, up to $1000. Other than that, many incentives and rebates are available for homeowners in the states switching to solar.

3. What is the payback period for solar panels in Massachusetts?

The payback period for solar panels in Massachusetts depends on several aspects, including price, size, and efficiency. The more efficient your solar panels are, the shorter the payback period. For example, if a 3kW solar system offsets your $165 electric bills, the payback period is around eight years. The term is even lower if you take advantage of the available incentives and rebates.

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