Good news for solar energy users in Massachusetts! The state recently updated its Net Metering program, allowing for more flexibility and greater opportunities for homeowners and businesses to generate and store their own clean energy. The new regulations make it easier for facilities of varying sizes to participate in net metering, providing more options for customers to save on their electric bills and contribute to a greener future. 

What’s Changed in the Net Metering Program? 

Mark, our founder and president at New England Clean Energy, explains that the updated regulations revise the definition of a “cap-exempt facility” and introduce two new classifications to clarify which types of solar systems can participate in net metering. 

Previously, only facilities generating 10kW (AC) or less could net meter without securing a cap allocation—a required approval for systems to participate in net metering when they exceed the size or conditions for exemption. A cap allocation is essentially a spot reserved under the state’s net metering cap, which limits the total amount of solar capacity that can receive net metering credits in each utility’s territory. Systems that don’t qualify as cap-exempt must apply for and be granted this allocation before receiving full net metering benefits. 

With the changes: 

• Nameplate Cap-Exempt Facilities: New systems sized between 10kW and 25kW (which were previously excluded) can now net meter without needing a cap allocation.

• Cap-Exempt Facilities Serving On-Site Load: Systems between 26kW and 60kW can now qualify as cap-exempt if they serve on-site energy load and have an interconnection service agreement dated January 1, 2021, or later. 

This is a significant improvement—especially for homeowners and small businesses looking to expand their solar systems to meet growing energy needs driven by electric heating (like heat pumps) and electric vehicles. 

The Value of a Net Metering Credit

If your solar system is under 25 kilowatts (AC)(which typically includes most residential systems), or is between 26kW and 60kW and meets the criteria as noted above, you’ll receive net metering credits based on the following components of your electric bill: 

• Energy Charge 

• Distribution Charge 

• Transmission Charge 

• Transition Charge 

These credits are slightly less than the full retail rate, since certain smaller charges are excluded. Still, they offer significant long-term savings by offsetting various parts of your electric bill. 

Note on System Size: There used to be some differences between systems under 10kW and those between 10kW–25kW, but under the current rules, systems under 25kW (AC) are treated the same for net metering credit purposes. 

Real-World Residential Example 

To better illustrate the difference, let’s look at a recent National Grid bill for a residential customer. In Marlborough, MA. While the specific numbers vary by utility, the difference between the two values will be roughly consistent across all utilities and utility load zones.  

As illustrated in the table below, when the customer produces and uses their generation in a billing cycle, the credit they receive is equal to the retail rate of electricity. However, if they produce more electricity in the billing cycle than they use, the credit for only the excess production is reduced. In this example the difference is about $0.056 per kilowatt-hour. (in the past, any system larger than 10kW AC, received credits on the order of $0.04 per kilowatt-hour!) 

And of course, those credits carry forward on your account until you use them. The utility does not issue payment. You can, however, through a form called the “Schedule-Z” allocate credits (on a month-to-month basis) to other utility accounts provided that that account is in the same utility and same utility load zone. 

Important Note on Municipal Utilities & Other States

It’s also important to note that these net metering rules apply only to investor-owned utilities Eversource, National Grid, and Unitil in Massachusetts. If you’re served by a municipally owned utility, the rules and credit values will be different. Massachusetts has a patchwork of municipal utilities with their own regulations. As Mark points out, “Every Muni is different.” Be sure to check with your local utility or visit their website to understand how net metering works in your area. And further, investor-owned utilities in other states are also different as net metering laws are set at the state level.  If you’re unsure of your own situation, give us a call—we’re always happy to explain the details. 

Why Is This Net Metering Expansion Important? 

The expansion of the Net Metering program gives customers more flexibility in generating their own solar energy. In fact, it improves the economics of larger solar electric systems. This is especially important as electricity usage continues to rise with the transition to electric-based heating and transportation. Homeowners and businesses can now consider going solar with systems that support energy needs such as heating and charging electric vehicles (EVs). With these changes, solar becomes more practical for a wider range of energy demands—without sacrificing as much of the value of net metering credits. 

What’s Next? 

For those thinking about going solar, the updated Net Metering regulations are a great incentive to increase your system’s capacity. At New England Clean Energy, we’re here to help you navigate these changes and maximize your savings. Whether you’re looking to add solar to your home, upgrade your system, or expand to meet new energy needs, we’ve got you covered. 

To learn more about how net metering works in Massachusetts (or any of the other states we service) or to get started with a solar installation, contact us today. Our team is ready to help you take advantage of the latest regulations and make the most of your clean energy system. 

Call us today at 877-886-8867 or visit our website to learn more about how you can benefit from the expanded Net Metering program! 

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