Is Solar Still Worth It Without the 30% Federal Tax Incentive? (Massachusetts Edition)

Dec 4

Why Solar Ownership Still Makes Financial Sense — Even After the ITC Phases Out

For years, the 30% federal tax incentive has been one of the most important drivers of residential solar adoption. But as the incentive is scheduled to end on December 31, 2025, many Massachusetts homeowners are asking the same question:

“Is solar still worth it without the federal tax credit?”

The short answer: Yes — for most homes in Massachusetts, solar ownership still delivers long-term financial value, even without the 30% incentive. The payback period may extend by a few years, but the core economics remain strong because of one simple fact:

When you go solar, you become your own electric company — and you’re no longer at the mercy of utility rate increases.

Let’s break down why that matters, and why solar will continue to make sense in MA well beyond 2026.

Massachusetts Electric Rates Are So High That Solar Still Wins

Massachusetts has some of the highest and fastest-rising electric rates in the country, currently averaging around $0.35/kWh.

For context:

Historically, electric rates grew 2–3% per year, according to national data.
In Massachusetts, rate increases have often far exceeded that pace. In fact, from 2020 through 2025, the rate has increased a staggering 40%.
If this trend continues — and all indicators suggest it will — utility costs could double over the life of a solar system.

When you buy solar, you’re essentially locking in your energy costs, because the sun doesn’t charge you more next year.

Even without the 30% federal tax credit, that long-term price stability is what drives the value of solar in MA.

Does Removing the Federal Tax Credit Hurt Solar Economics? Yes — But Not As Much As People Think

Let’s be transparent:
Losing the 30% incentive does raise the upfront cost of solar.

But for most homes, the return on investment only shifts about 2–3 years. Why?

Because the largest driver of savings isn’t the tax credit — it’s replacing $0.35/kWh utility electricity with solar electricity that costs closer to $0.08–$0.10/kWh over the life of the system.

Solar is an asset with a 25–30 year lifespan, zero fuel cost, and predictable maintenance. Even without incentives, the math still leans in your favor.

Key Factors That Determine Whether Solar Still Makes Sense

Solar is not one-size-fits-all. With or without incentives, these factors determine whether solar pencils out:

1. Roof Orientation & Pitch

South-facing roofs perform best, but east/west roofs often still provide a strong ROI in MA due to high utility rates.

2. Shading

Trees matter. Good design tools (like those we use at Spectrum Energy) can model shading precisely to show real production estimates.

3. Quality of Equipment

High-quality solar panels, microinverters, and racking systems with robust warranties produce more energy and last longer — which dramatically improves lifetime ROI.

At Spectrum Energy, we exclusively install Maxeon and REC panels with Enphase microinverters and IronRidge Aire racking for this reason.

4. You Plan to Own the System

Ownership = long-term savings, fixed energy costs, and control.
TPO (third-party ownership) = escalating costs, no asset ownership, buyout issues, and complications when selling the home.

Even without incentives, ownership beats TPO almost every time.

5. Your Long-Term Plans for the Home

If you’re staying put for 5–10+ years, solar almost always pays itself off and then becomes free electricity.

Solar Offers Long-Term Protection — No Matter What Happens to Incentives

The future of electricity in Massachusetts is clear:

Higher demand
More electrification (heat pumps, EVs, battery storage, etc.)
Continued pressure on grid infrastructure
Rising costs

Solar helps you sidestep all of that.

Even without the 30% tax credit:

Solar ownership frees you from unpredictable utility bills and locks in your energy cost for decades.

If that’s not worth it… what is?

So, Is Solar Still Worth It Without the 30% Federal Tax Credit?

For most Massachusetts households, the answer is yes — absolutely.

Here’s the bottom line:

You’re replacing $0.35/kWh electricity with solar power that ultimately costs a fraction of that.
You gain energy independence and avoid future rate hikes.
The ROI is still strong — just shifted out by about 2–3 years.
Solar ownership continues to be one of the best long-term financial hedges available to homeowners.

The tax credit has always been a bonus — not the reason solar works.

Thinking About Solar? Let Spectrum Energy Build a True Ownership-Based Plan for You

Spectrum Energy is committed to solar ownership, not leases or PPAs — because ownership delivers the greatest long-term value, independence, and control.

If you’re wondering whether solar makes sense without incentives, the best next step is a personalized analysis based on your home, your energy use, your roof, and your long-term plans.

Contact Spectrum Energy today to get a no-pressure, ownership-focused solar evaluation.
We’ll show you exactly how the numbers work — with or without the federal tax credit.