OwlNew England Electricity Rates by State (2024–2025)
| State | Avg. Residential Rate (cents/kWh) | Key Utility |
|---|---|---|
| Massachusetts | 28–31¢ | Eversource, National Grid |
| Connecticut | 27–30¢ | Eversource, UI (United Illuminating) |
| Rhode Island | 24–27¢ | National Grid RI |
| New Hampshire | 22–26¢ | Eversource NH, Unitil |
| Vermont | 21–24¢ | Green Mountain Power, Burlington Electric |
| Maine | 18–22¢ | Central Maine Power, Versant Power |
Source: U.S. Energy Information Administration (EIA) Form 861, 2024 annual data. Rates vary by utility, season, and tariff schedule. Winter rates in New England are higher due to heating demand and ISO-NE wholesale pricing seasonality.
Why High Rates Make Solar Economics Uniquely Strong in New England
The solar industry often focuses on sunlight hours when comparing states. Arizona gets roughly 5.5–6.5 peak sun hours per day; Massachusetts gets 4.0–4.5. On sun hours alone, Arizona looks 35–45% better for solar.
But the economic calculation is not just about sun hours — it's about sun hours multiplied by the value of each kWh. At 30 cents per kWh in Massachusetts versus 12–13 cents in Arizona, each kilowatt-hour produced in Massachusetts is worth more than twice as much.
A 10 kW system producing 12,000 kWh in Massachusetts saves roughly $3,600/year at 30 cents. The same production in Arizona saves roughly $1,500/year at 12.5 cents. The Massachusetts system pays back its cost considerably faster despite generating less electricity.
Solar Cost in New England: What to Expect
System Cost (Before Incentives)
Residential solar in New England was priced at $3.00–$4.50 per watt installed as of 2025 per installer quote data. This is somewhat higher than the national average due to labor costs, permitting requirements, and rooftop complexity in older New England housing stock. For a 10 kW system:
- Before incentives: $30,000–$45,000
- After 30% federal ITC: $21,000–$31,500
- After Massachusetts state incentives (SMART program, tax credit): varies significantly
The Federal 30% Investment Tax Credit
The federal Investment Tax Credit (ITC) covers 30% of the total system cost for residential solar installed in 2022–2032. This applies as a credit against your federal income tax liability — not a refund. If your tax liability is lower than the credit in year one, the unused portion carries forward to future tax years.
State Incentives by New England State
Massachusetts: The SMART (Solar Massachusetts Renewable Target) program pays a per-kWh incentive on your system's generation for 10 years. Rates vary by utility and are determined by program capacity blocks — earlier applicants receive higher base rates. Additionally, Massachusetts offers a state solar tax credit of 15% of system cost (up to $1,000). Solar production from systems under the SMART program is also exempt from state income tax.
Connecticut: The Residential Solar Investment Program (RSIP) has been the primary CT incentive. Check the current status with the Connecticut Green Bank — CT incentive programs have evolved significantly and capacity limits apply.
Rhode Island: National Grid RI administers a net metering program that credits excess generation at the retail rate. Rhode Island also has the Renewable Energy Standard requiring utilities to buy renewable energy certificates.
New Hampshire: NH net metering credits excess production at the retail avoided cost rate (not the full retail rate), which is a meaningful distinction — the credit rate is lower than what you pay for electricity per the NH PUC avoided cost schedule. Verify the current rate with your utility before signing a contract.
Vermont: Green Mountain Power (GMP) offers net metering at the retail rate for systems up to 150% of annual load. Vermont also has the Standard Offer program for larger systems. GMP has been particularly active in solar-plus-storage integration.
Maine: Maine has a 15-year net energy billing program crediting excess production at the full retail rate. Maine also has a small state income tax credit for residential solar.
What Your New England Solar System Should Produce
Production estimates for New England systems (using NREL PVWatts data for a south-facing, 20-degree tilt residential system, per-kW of DC capacity):
- Connecticut / Rhode Island / southern Massachusetts: 1,100–1,250 kWh per kW per year
- Central and northern Massachusetts: 1,050–1,200 kWh per kW per year
- New Hampshire / Vermont: 1,050–1,175 kWh per kW per year
- Maine (coastal): 1,050–1,175 kWh per kW per year
- Maine (inland, higher latitude): 1,000–1,100 kWh per kW per year
These are design estimates for well-oriented, unshaded systems. Actual production varies based on roof pitch, orientation, shading, and annual weather variation. A 10 kW system in Massachusetts should produce approximately 11,000–12,500 kWh per year under typical conditions.
Why Getting the Numbers Right Matters More in New England
Because electricity is more expensive in New England, every kWh your system fails to produce costs you more than it would anywhere else. A 10% underperformance in Massachusetts at 30 cents/kWh means $300–$375 per year in lost savings — compared to $120–$150 in a 12-cent state.
This is also why production guarantees and their enforcement matter more in New England. If your installer guaranteed 12,000 kWh and you're consistently getting 10,500, the shortfall is worth real money — and the guarantee should compensate you for it.
Common Questions
Is solar worth it in Massachusetts despite the cloudy weather?
Yes. Massachusetts has the highest electricity rates in the continental US and a robust state incentive program (SMART). The high rate per kWh compensates for the lower irradiance compared to sunny states. The SMART program also adds a production payment on top of net metering, improving payback times further. That said, the economics only hold if your system is actually producing at its design output — which requires monitoring to verify.
What is the net metering cap situation in Massachusetts?
Massachusetts net metering is available for residential systems under 10 kW, which are generally exempted from aggregate utility-level caps. Larger systems and community solar projects have been more affected by cap constraints. For standard residential installations, net metering at the full retail rate is generally available across the major utilities (Eversource, National Grid). Verify current availability with your utility before signing a contract.
How much does a 10 kW solar system produce in New England per year?
A 10 kW DC system in southern New England (MA, CT, RI) produces approximately 11,000–12,500 kWh per year in typical weather conditions, based on NREL PVWatts modeling for south-facing, unshaded installations. In northern New England (ME, NH, VT), expect 10,000–11,750 kWh per year. Your installer's production estimate should be based on the actual roof orientation and shading at your specific address.
What happens to my solar savings if electricity rates go up?
Your solar savings increase when rates go up — each kWh your system produces becomes worth more. This is one reason New England solar has been particularly attractive: historically rising electricity rates in the ISO-New England grid mean the value of your solar production compounds over time. Rate increases benefit solar owners who are net producing against a higher grid rate.
Make Sure Your New England System Is Actually Hitting the Numbers
At 30 cents per kWh, every percentage point of underperformance costs real money in New England. OwlWatt monitors your Enphase system and compares production to a weather-adjusted baseline — so you know immediately if you're falling short of what your system should produce.
Start monitoring with OwlWatt · Solar in New England: full guide · Massachusetts solar specifically