What Solar Actually Costs in Boston

Boston Solar Costs: High Rates Meet High Savings

Boston homeowners pay Eversource around 30 cents per kWh for electricity — nearly double the national average. That pain at the meter is exactly what makes solar such a strong financial play in the city. A typical Boston home uses about 600–700 kWh per month, racking up $180–$210 in Eversource charges. A properly sized solar system can cut that bill by 80–100%, and with $0-down financing options, you start saving from the first month.

Solar panel costs in Boston average around $3.25 per watt before incentives, slightly above the state average due to higher labor and permitting costs in the metro area. But the faster payback from Eversource’s premium rates more than compensates. Neighborhoods across Boston — from Dorchester to West Roxbury, Jamaica Plain to South Boston — are seeing rapid solar adoption as homeowners realize the math just works.

Solar System Costs by Size

Boston Incentives That Lower Your Cost

Boston homeowners benefit from a stacked set of incentives that dramatically reduce the effective cost of solar. The federal tax credit covers 30% of the system cost upfront. On top of that, the MREC program pays you roughly $0.03 per kWh for every kilowatt-hour your panels generate — about $300 annually for the average Boston home, paid out for 25 years. That is $7,500 in cumulative income from your roof.

The Massachusetts sales tax exemption saves you 6.25% on the entire system cost — about $1,400 on a typical 7 kW installation. And the property tax exemption means your home’s value increases (studies show $15,000–$20,000 for a typical system) without adding a penny to your Boston property tax bill. In a city where the average property tax rate is already $10.88 per $1,000 of assessed value, that exemption alone saves you hundreds annually.

How Eversource Rate Hikes Make Solar Even Smarter

Eversource supply rates in the Boston area have been on a rollercoaster — spiking to over 25 cents per kWh for supply alone in recent winters, then settling back, then climbing again. The total delivered rate (supply plus delivery) sits around 30 cents per kWh for most Boston residential customers. Over the past 5 years, Eversource rates have increased by more than 50%, and there is no sign of that trend slowing down.

When you go solar, you lock in a fixed energy cost. Whether Eversource raises rates 3% next year or 15%, your solar payment stays the same. Over a 25-year system lifespan, even a modest 3% annual rate increase means you would be paying over 60 cents per kWh by the end — while your solar cost stays flat. That growing gap between what you pay and what you would have paid is where the real savings pile up.

25-Year ROI for a Typical Boston Home

Take a typical three-bedroom in Dorchester or Roslindale using 8,000 kWh per year. At Eversource’s current rate of about 30 cents per kWh, that is $2,400 per year in electricity. A 7 kW solar system with a $0-down lease costs roughly $140 per month — $1,680 per year — saving you $720 in year one. As Eversource rates climb, the gap widens every year.

Over 25 years with a conservative 3% annual rate escalation, the cumulative savings on a leased system top $35,000. If you purchase the system outright for a net cost of about $13,800 after incentives, the numbers are even better: after the 7-year payback period, you generate free electricity for another 18+ years, resulting in lifetime savings of $50,000 to $65,000. Add in the $300 per year MREC income and increased home value, and a Boston solar investment outperforms most anything else you could do with that money.