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Get a Free QuoteEverything you need to know about commercial net metering in Massachusetts: classes, credit rates, virtual net metering, AOBC comparison, and how DPU rulings affect your solar economics.
Class I
≤60 kW
Full retail rate credit
Class II
60kW-1MW
Retail minus reliability charge
Class III
1-2 MW
Wholesale + capacity value
Virtual NM
All Classes
Multi-account allocation
Massachusetts commercial net metering uses three classes: Class I (up to 60kW) receives full retail rate credits of $0.22-$0.30/kWh, Class II (60kW-1MW) receives retail minus a minimum reliability charge of $0.005-$0.01/kWh, and Class III (1-2MW) receives negotiated wholesale-based rates of $0.08-$0.16/kWh. Credits roll over monthly with an annual true-up. Virtual net metering is available for all classes, allowing credits to offset bills at multiple accounts. Net metering credits stack with SMART 3.0 incentive payments, ITC, and MACRS. Larger systems may be subject to Alternative On-Bill Credits (AOBCs) rather than traditional net metering depending on tariff classification.
Massachusetts organizes commercial net metering into three classes based on system size. Each class has its own credit rate structure, billing treatment, and applicable charges. Understanding which class your system falls into is fundamental to projecting your solar economics, because the credit rate directly determines the value of every kilowatt-hour you export to the grid.
The three-class system was designed to provide higher per-kWh compensation to smaller systems (which have higher per-watt installation costs) while transitioning larger systems toward rates that more closely reflect the wholesale value of their generation. This structure has been refined over time through DPU proceedings and legislative updates, most recently with the integration of AOBC provisions for larger installations.
≤60 kW
Credit Rate
Full retail rate
Credit Detail
$0.22-$0.30/kWh (varies by utility)
Minimum Charge
Standard customer charge only
Virtual Net Metering
Available (limited allocation)
Typical Use
Small commercial: retail, restaurants, offices, small warehouses
Best for: Small businesses that consume most generation on-site
60 kW - 1 MW
Credit Rate
Retail rate minus minimum reliability charge
Credit Detail
$0.21-$0.29/kWh (net of $0.005-$0.01/kWh charge)
Minimum Charge
$0.005-$0.01/kWh minimum reliability contribution
Virtual Net Metering
Available (commonly used)
Typical Use
Mid-size commercial: manufacturing, larger retail, schools, hospitals
Best for: Businesses with significant roof/land area and moderate self-consumption
1 MW - 2 MW
Credit Rate
Negotiated rate (wholesale + capacity value)
Credit Detail
$0.08-$0.16/kWh (varies significantly)
Minimum Charge
Negotiated in interconnection agreement
Virtual Net Metering
Available (commonly used for community solar)
Typical Use
Large commercial, community solar, municipal projects
Best for: Large projects that rely on SMART 3.0 revenue + wholesale credits
Credit rates vary by utility because each utility has different retail rates, rate structures, and DPU-approved tariffs. National Grid generally offers the highest per-kWh credit values due to its higher retail rates, while Unitil has slightly lower rates. The table below shows current approximate net metering credit ranges for each class across all three Massachusetts investor-owned utilities.
| Utility | Class I (≤60kW) | Class II (60kW-1MW) | Class III (1-2MW) | Min Reliability |
|---|---|---|---|---|
National Grid Central & Western MA | $0.28-$0.32/kWh | $0.27-$0.31/kWh | $0.10-$0.15/kWh | $0.007/kWh |
Eversource Eastern MA & Greater Boston | $0.26-$0.30/kWh | $0.25-$0.29/kWh | $0.09-$0.14/kWh | $0.005/kWh |
Unitil North-Central MA (Fitchburg area) | $0.24-$0.28/kWh | $0.23-$0.27/kWh | $0.08-$0.13/kWh | $0.008/kWh |
Rates are approximate and vary by specific rate class, season, and time-of-use period. Class III rates are particularly variable as they are based on wholesale market conditions. Contact your utility or solar developer for current rate schedules specific to your account.
Understanding how net metering credits flow through your commercial electric bill is essential for cash flow planning and verifying that your utility is applying credits correctly. Here is a breakdown of each component you will see on a net-metered commercial electric bill in Massachusetts.
Solar kWh consumed directly by your facility
Excess kWh exported to the grid
Monthly charge for grid connection
Unused credits from previous months
Separate production incentive (not on electric bill)
Without solar, this facility would pay approximately $7,500/month. The 200kW system reduces the bill by 79% — saving $5,938/month or $71,256/year just from net metering and on-site consumption.
Virtual net metering (VNM) is one of the most powerful tools available to Massachusetts commercial solar customers. It allows credits generated by a solar system at one location to offset electric bills at other accounts within the same utility territory — even if those accounts are at completely different physical addresses. This eliminates the common barrier of "my best roof is not on my highest-consuming building."
VNM is available across all three net metering classes and works with both traditional net metering credits and AOBC credits. The system works by having the host account (where the solar is installed) generate credits, which are then allocated to designated beneficiary accounts according to a pre-registered allocation schedule filed with the utility. The allocation can be updated periodically — typically quarterly or annually depending on the utility.
A retail chain with 5 stores installs 300kW on their distribution center and allocates credits to all store locations.
One installation, five buildings offset. No solar needed on each roof.
Town installs 500kW on the high school and sends credits to town hall, library, fire station, and DPW garage.
Maximizes the best available roof/land for solar across all municipal facilities.
A 1MW community solar project allocates credits to 100+ residential and commercial subscribers.
Enables solar access for tenants, renters, and businesses without suitable roofs.
Virtual net metering credits can only be allocated to accounts served by the same utility as the host account. A system on National Grid territory cannot send credits to an Eversource account. Businesses with locations in different utility territories may need separate solar installations or should explore community solar subscriptions in each territory. Municipal light plant (MLP) customers are not eligible for standard VNM — different rules apply.
As Massachusetts evolves its distributed generation compensation framework, some commercial systems are transitioning from traditional net metering to Alternative On-Bill Credits (AOBCs). Understanding which mechanism applies to your system is critical for accurate financial modeling.
For a detailed analysis of AOBC rates, calculation methodology, and strategies to optimize project economics under AOBCs, see our comprehensive AOBC guide. For an overview of all commercial solar economics including both billing mechanisms, see our MA Commercial Solar 2026 hub page.
DPU 25-200 is a landmark regulatory proceeding that reshaped net metering policy in Massachusetts. The ruling addressed longstanding debates about the appropriate compensation rate for distributed solar generation and the transition between traditional net metering and newer billing mechanisms. For commercial solar projects, several key outcomes of DPU 25-200 directly affect project economics.
DPU 25-200 refined how credit rates are calculated for each net metering class, establishing clearer formulas for the components of credit value and the minimum reliability contribution charges that reduce Class II and III credits.
The ruling established grandfathering provisions for systems already interconnected or with approved interconnection applications. Existing systems generally retain their original net metering terms for a specified period, providing investment certainty.
DPU 25-200 laid the groundwork for transitioning larger distributed generation systems from traditional net metering to the AOBC framework, defining which system sizes and tariff classes would be subject to AOBCs going forward.
The proceeding updated rules for credit allocation under virtual net metering, including timing of allocation changes, treatment of over-allocated credits, and reporting requirements for host and beneficiary accounts.
DPU 25-200 established updated procedures for managing net metering capacity caps by utility territory and class, including waitlist management and priority rules when cap space becomes available.
For a detailed analysis of the DPU 25-200 ruling and its specific impacts, see our DPU 25-200 Net Metering analysis. Understanding these regulatory developments is essential for any commercial solar project that depends on net metering credit revenue.
One of the greatest strengths of Massachusetts commercial solar economics is the ability to stack multiple incentive streams. Net metering credits are just one layer of a multi-layered value proposition that includes state production incentives and federal tax benefits. Here is how the full incentive stack works for a typical mid-size commercial system.
On-Site Consumption Savings
$45,000
150,000 kWh x $0.30/kWh retail rate offset
Net Metering Credits (Class II)
$28,500
100,000 kWh x $0.297/kWh (retail - $0.007 MRC)
SMART 3.0 Incentive Payments
$15,000
250,000 kWh x $0.06/kWh (base + adders)
Federal ITC (30% base)
One-time $135,000
$450,000 system x 30% ITC
MACRS Depreciation (5-yr)
Years 1-6 deductions
$382,500 depreciable basis x 29% combined tax rate
Sales Tax Exemption
One-time $28,125
$450,000 x 6.25% MA sales tax avoided
Property Tax Exemption
$6,075/year
$450,000 x 1.35% average MA commercial rate (20 years)
Combined annual recurring value: ~$94,575/year + one-time ITC/MACRS/sales tax benefits. Typical payback: 3-5 years for a 250kW commercial system in MA.
For SMART 3.0 rates and enrollment details, see our SMART Program 2026 guide. For net metering and billing-specific questions, our team can provide a customized analysis based on your utility territory and rate class.
Full commercial solar guide: ITC stacking, SMART 3.0, pricing, financing, and ROI.
Alternative On-Bill Credits: how they work, rates by utility, and impact on economics.
Complete Massachusetts net metering guide for residential and commercial systems.
Analysis of the DPU 25-200 ruling and its impact on net metering in MA.
SMART 3.0 production incentives that stack with net metering for commercial solar.
Massachusetts has three net metering classes for commercial solar: Class I covers systems up to 60kW and receives full retail rate credits ($0.22-$0.30/kWh). Class II covers systems from 60kW to 1MW and receives retail rate minus a minimum reliability contribution ($0.005-$0.01/kWh). Class III covers systems from 1MW to 2MW and receives a negotiated rate that typically reflects wholesale energy plus capacity value ($0.08-$0.16/kWh). The class determines both the credit rate and the billing treatment of excess generation. Most mid-size commercial systems (100-500kW) fall under Class II.
Our team will model your exact net metering class, credit rates, and virtual net metering opportunities based on your utility territory.