Residents in Boston, MA who request quotes on the EnergySage Marketplace spend an average of $300 monthly on electricity. That adds up to $3,600 per year. A different way to look at it is that a typical Boston, MA resident uses 978 kWh of electricity per month and 11,736 kWh over the year.
(For what it’s worth: Boston, MA residents shopping for solar on EnergySage may use more electricity than a typical household.)
The easiest way to compare electricity costs across regions is to look at the electricity rate. In the U.S., residential rates generally range from 11 ¢/kWh all the way up to 34 ¢/kWh.
As of February 2026, the cost of electricity in Boston, MA is 31 ¢/kilowatt-hour (kWh)—roughly 55% higher than the national average cost. That number is based on real-world electric bills shared with EnergySage over the past 12 months. You can compare that number to the most recent average state electric price reported by the U.S. Energy Information Administration (EIA).
There's one electricity company in Boston that provides transmission and distribution: Eversource, which is an Investor Owned Utility (IOU).
Massachusetts has a deregulated electricity market, which means that while you can't choose your utility company, you might be able to choose the company that supplies your electricity. This can sometimes help you save on your electric bills.
Boston has a municipal electric aggregation program called Boston Community Choice Electricity (BCCE). It doesn’t change your utility company, but it does allow you to participate in something like a group-buying program on the deregulated electricity market. Two of BCCE's three rate options are lower than Eversource's standard electricity prices.
If you find a better plan, our partner WattBuy will contact your utility provider to switch you for free.
When you pay your electric bill, you’re not only covering the costs to produce that electricity, but also the costs of running and maintaining the electrical grid, as well as public benefit funds that promote things like renewable energy and energy efficiency.
Electric bill costs are rolled into fixed (monthly customer charges) and variable charges (¢/kWh that you use).
Fixed charges, like the flat fee for having a meter, generally remain the same monthly unless your utility makes a policy update.
Your variable charges will change every month and depend on your electricity rate and how much electricity you use.
Your electric bill's variable charges will include a supply (or generation) charge and a transmission and distribution (or delivery) charge. The supply charge covers the cost of electricity generation, while the transmission and distribution charges cover the cost of delivering it to your home.
Most utility customers in Boston pay a flat rate for every kWh of electricity. That rate can change every few months, but it does not change depending on the time of day or during times of peak electricity demand.
Eversource also offers a Variable Peak Pricing (VPP) plan, which is a type of time-of-use (TOU) rate plan. But it's not yet the norm for residential customers in Boston.
How clean is the electricity in Massachusetts?
While it’s hard to pin down a precise estimate, according to the U.S. Energy Information Administration, about 82% of the electricity on the utility grid still comes from fossil fuels as of July 2025—primarily natural gas. (Coal is no longer part of the grid mix.) Only about 17% comes from renewable sources, so if you go solar in Massachusetts, it will almost always shrink your carbon footprint.
Some electricity suppliers give you the option to pay a bit more so that more (or even all) of your electricity use is generated by renewable sources. If you're unwilling or unable to install solar but want to reduce your carbon footprint, this is a great alternative. It just won't save you any money in most cases. (Though occasionally it could if it’s through a municipal group-buy program.)
As long as you have a suitable roof, one of the surest ways to save on energy is to go solar—ideally with a vetted contractor offering a competitive price.
Solar panels will reduce or even eliminate your electric bills in the short term and protect you against rising electricity costs in the long run, too. The amount you save depends on how much you spend on electricity now and how much of your electric bill you can offset with solar energy.
Solar panels are a big investment, but Boston, MA homeowners who install them—and pay upfront—break even after an average of just 7.6 years. Then, the solar panels will continue to produce free electricity for years to come.
Does Boston offer net metering?
When the sun is shining, your solar panels typically produce more electricity than your home needs at any given moment.
But it doesn’t go to waste, because Boston offers net metering, a solar buyback program that provides energy credits for all the solar power you send to the grid. When you need to draw electricity from the grid, such as at night, the utility company draws from your banked credits.
Under net metering, what matters is the total amount of solar power you produce throughout the year. When you produce that power doesn’t really matter under the current rules. At the end of the month, you'll only be billed for your net electricity usage from the grid. And because credits roll over month to month, there's a good chance you won't owe anything on your electric bill.
How much can you save with solar?
The Bay State has some of the highest electricity rates in the country and some of the best incentives. That adds up to big savings if you go solar in Boston, MA.
Just take a look at how much you'll spend on electricity over time based on your current bill. It’s easy to see how going solar can pay off quickly.
Electricity cost over time in Massachusetts
Current monthly electric bill | 10-year electricity cost | 20-year electricity cost | 30-year electricity cost |
|---|---|---|---|
$50 | $7,800 | $21,000 | $44,000 |
$100 | $16,000 | $42,000 | $88,000 |
$150 | $23,000 | $63,000 | $130,000 |
$200 | $31,000 | $85,000 | $180,000 |
$250 | $39,000 | $110,000 | $220,000 |
Assuming a 6% annual increase based on inflation and average annual electric rate increases in Massachusetts.
Let's assume you pay $300 for electricity monthly (the Boston, MA average) and that electricity prices increase by 6% annually. Let's also assume you buy your solar panel system upfront and that it costs you $28,000 before any available incentives.
In the first year with solar, you'll avoid spending $3,600 on electric bills. Over five years, you'll avoid $20,100; by 10 years, you'll have avoided $46,500. Solar panels are usually covered under warranty for 25 years—by then, you'll have avoided spending $186,600 on electric bills in Boston, MA.
The average payback period in Boston, MA is 7.6 years, so by this point, you've already broken even on your investment. When you subtract your upfront installation cost, you'll pocket $159,100 over 25 years with solar.
Your solar savings depend on you
How much your utility company charges for electricity is a big indicator of how much you'll save with solar. But your exact solar savings depend on your unique situation—including your energy usage, roof layout, system size, and how you pay for your system.
Here are some reasons your savings could be below average:
You don’t use much electricity, or your roof is small or has a less-than-ideal layout. You might have a relatively long payback period, so you'll save a little less over time.
You don't install enough solar panels to 100% offset your energy use. You’ll pay less up front but save less in the long run.
You finance your solar panel system with a loan or sign a lease or power purchase agreement (PPA) instead of paying up front. These types of arrangements can make a lot of sense for keeping your capital flexible and will allow you to start saving sooner. But they will cut into your long-term savings.
Choosing a high-quality solar installer is the key to getting a top-notch solar panel system that will help you save on electric bills.
We pre-screen all solar companies on EnergySage to ensure they get the job done right. Here are the highest-rated EnergySage installers in Boston, MA:
Elite+ InstallerScreened & Verified4.8 /5.0363 Reviews
Elite+ InstallerScreened & Verified4.7 /5.055 Reviews
Elite+ InstallerScreened & Verified4.3 /5.0123 Reviews
Elite InstallerScreened & Verified5.0 /5.031 Reviews
Elite InstallerScreened & Verified5.0 /5.014 Reviews
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