A solar (photovoltaic or PV) system creates carbon-free electricity. Solar arrays can be installed on rooftops or in ground-mount infrastructure. Depending on the size of the array, the out-of-pocket cost after all tax credits (including Federal credits remaining until January 1, 2026) and incentives can be as much as $17,238–23,235, according to EnergySage (a service to help homeowners compare their solar options). The average residential PV installation is estimated to reduce carbon emissions by approximately 2.5 tons/year.
Solar panels generate renewable electricity. Panel prices have dramatically decreased over the past few years and financial incentives remain available — a combination that makes solar an excellent investment for many homes and other buildings. This Old House recently did an evaluation of solar incentives for Massachusetts you can look at here. This article does not reflect changes to the Federal incentives enacted in July of 2025.
Here are a few options to buy or finance your solar array:
• Purchase outright: this provides you 100% of the savings from the sun’s rays, plus a 30% federal tax credit (expires January 1, 2026), and a Massachusetts tax credit of up to $1,000. Calculate your tax credits with this Rewiring America calculator.
• Finance with a loan: this provides all the benefits of outright purchase, but also means you have a loan payment. Some banks offer low-interest-rate solar loan programs for terms of 5–7 years.
• Pay nothing up front: this option means entering into a Power Purchase Agreement (PPA) with an approved third-party company. With a PPA, that third-party entity owns and maintains your on-site system for the length of the agreement, and you contract to pay that entity for your electricity during the term of the agreement. During the term, that party gets all the tax and SMART (Solar Massachusetts Renewable Target) program benefits of the purchase options described above. Depending on the terms of the PPA, you may save 10–20% off your electric bill during the term of the PPA (which can be as long as 20 years). At the end of the agreement, you own the system, get all the economic savings from electric energy from the sun, and power your home entirely with free, clean, renewable electricity.
Solar PV panels, depending on the size of the array, may be able to power all or much of your home’s entire electricity needs with clean energy that can be used for all your lights and appliances, for “cold climate” electric heat pumps for home heating and cooling (thus reducing the operating cost of heat pumps), and for charging your electric vehicles.





