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Massachusetts has quickly become one of the most renewable energy-friendly states in the country, a large part of which is attributed to its growing solar energy industry. However, surprisingly, the cost of solar panels in Massachusetts is actually more than 10% higher than the national average.
Solar energy is good for the climate and helps ensure the reliability of electricity, but installing solar energy is also a major financial decision. How long does it take for solar panels to recoup their costs, and how much upfront capital is needed to get started? What is the cost of solar panels in Massachusetts? In this article, we will explore the answers to these questions and more.
Keep in mind that the financial situation is not always clear at a glance, as many components affect the final cost of solar panels. The only way to determine the cost of solar energy for your home is to compare free quotes from solar companies near you. You can use this tool or fill out the form below to get started.
As mentioned earlier, the cost of installing solar projects in Massachusetts is higher than the US average. According to market research and data from top solar brands, the average cost of solar panels in Massachusetts is approximately $2.94 per watt. Compared with the US average of US$2.66 per watt, Massachusetts residents are expected to pay about 11% more.
Of course, the cost per watt is only a standardized indicator, but the cost of a single item depends on the characteristics of the entire system. For an average-scale solar installation project of approximately 5 kilowatts (kW), someone in Massachusetts is expected to pay a total cost of $10,878 after applying the federal solar tax credit.
Of course, this value will vary according to the size of the project. The following table lists the potential system capacity, highlighting how it fluctuates:
Please note that these values ​​are only averages. If the installation environment is particularly challenging or a more expensive installation company is selected, the cost of some systems may be significantly higher than shown in the table. If other customers’ projects are simple and easy to complete, they will find that their total bill is lower than the amount shown above.
In order to accurately estimate your house, you should consult an expert and/or solar installer, who can fine-tune the quotation according to your specific needs.
One reason contact with experts or consultants is helpful is that there are many factors that can and do affect the ultimate cost of the Massachusetts solar system. Solar system installation is more than just a ready-made purchase with a single price point. On the contrary, it is a personalized and customized project, and the cost can fluctuate according to any of the following factors:
First of all, not all solar installations are built the same. A key driving factor that affects the cost of solar panels is the choice of solar equipment. This can be very simple, such as whether the project uses top-quality, highly elastic, and efficient solar photovoltaic panels (which will be more expensive), or uses the most basic and most affordable solar panels.
However, in addition, the solar system is also equipped with various other types of equipment, and the price range of these equipment varies. These types of equipment include racks and hardware used to secure panels to the roof, digital technology and software tools to maximize panel productivity, and any advanced mechanisms such as solar tracking technology that includes additional costs.
The method you choose to pay for the panel also affects the total cost. For most installations, paying in cash will bring you the fastest (and highest) return on investment. However, because the cost of the system can easily exceed $10,000, not all households or businesses can prepay. In this case, solar financing options come into play, usually increasing costs.
If a solar loan is made, the terms of the loan agreement will affect the exact amount that has been paid for everything. The longer it takes to repay the loan, the greater the accrued interest and the greater the final total cost.
For those who do not want to take a loan, another option is to lease solar panels or sign a power purchase agreement (PPA). With any of these options, homeowners don’t actually own solar panels, so they don’t have to pay for installation. Your solar company will bear the installation costs, and you only pay for the electricity generated by the system.
Homeowners who want to save money by switching to solar energy are not recommended to use solar leases and power purchase agreements. Although your monthly electricity bill may be slightly lower, you will not be able to claim federal tax credits, and there is no “break-even” point, after which you no longer need to pay for the energy you use.
Finally, a solar project is a major project, and like any home construction project, the final cost will inevitably depend on the company that chooses to perform the installation. Anyone who wants to set a price for solar panels should do their homework and get quotes and terms from multiple solar installers, because each company has its own rate (which may or may not be directly based on the quality of work done) And it’s different).
In addition, the solar installation company may be a local or a broader nationwide installation company. Although national companies can compete better based on scale, many local installers in Massachusetts will eventually offer lower prices or special offers to help them compete with larger companies.
Although the upfront cost of solar panels can be daunting, those considering entering the solar field should be encouraged, because Massachusetts has many incentive programs that allow Massachusetts homeowners to save on the cost of installing solar panels.
We have summarized the details you need to know in the table below, but you can read more about each product in our Massachusetts Solar Incentive Guide.
Homeowners in Massachusetts are eligible for a 15% tax credit (up to $1,000) when submitting state income taxes
The plan allows Massachusetts residents to receive compensation for every kilowatt-hour of energy produced by the solar system.
Massachusetts does not impose a sales tax on solar equipment, and omits the added value of solar panels from the property tax assessment.
The homeowner pays per kilowatt-hour for all excess electricity generated by his panel and returned to the central grid.
This solar incentive is applicable to all Americans. It allows solar energy adopters to claim 26% of their total equipment and installation costs as a tax credit in their next federal application.
Any certified solar company in Massachusetts can ensure that your system is eligible for the above-mentioned awards-and can help you apply for these awards. To contact a top solar installer near you, you can use this tool or fill out the quick form below.
One reason solar power is so popular in Massachusetts is that it provides a huge return on investment for homeowners. Although the upfront cost of solar panels in Massachusetts may become a barrier to entry, the payback period for almost all projects (except solar leases or PPA) is less than ten years. If you can afford the cost of installation, then yes, it is worth using solar energy in Massachusetts.
The cost of installing solar panels in Massachusetts will vary greatly depending on many factors, including the size of the project, the solar incentives used, the financing methods used to pay for them, the solar installation company selected, and the specific equipment used.
In other words, the average cost of installing solar panels is US$2.94 per watt, which is about 11% higher than the national average of US$2.66 per watt. For a 5 kW solar system, this means that the installation cost (after applying the federal solar tax credit) is approximately $10,878.
No, solar panels in Massachusetts are not free. In other words, costs continue to fall, and there are many solar tax incentives at the local, state, and federal levels to make them cheaper. Almost all solar projects, when installed by experts, will eventually recover their costs during their life cycle and ultimately create net profits for the owners.