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The Massachusetts Department of Public Utilities has opened an investigation into the state's net metering program. Docket D.P.U. 25-200 could lead to reduced credit rates for new solar installations. Here's what we know, what could change, and why it matters for homeowners considering solar.
Dec 15, 2025
Docket Filed
Mar 31, 2026
Comments Due
Late 2026–2027
Decision Expected
100% Retail
Current NM Rate
On December 15, 2025, the Massachusetts Department of Public Utilities (DPU) filed an order opening docket D.P.U. 25-200 — a formal investigation into the state's net metering program. The DPU stated it will investigate "reductions to the value of the net metering credit" and compare Massachusetts rates to other jurisdictions that "offer lower compensation."
Specifically, the DPU will examine whether current net metering credit rates "appropriately balance the benefits of incentivizing the deployment of distributed generation with the costs borne by ratepayers."
In plain English: the DPU is considering whether to reduce the amount solar homeowners are credited for sending excess electricity back to the grid. Currently, Massachusetts residential solar owners (Class I, systems up to 25 kW) receive credits at 100% of the retail electricity rate — meaning every kWh you export is worth the same as every kWh you consume. This is among the most generous net metering policies in the country.
Eversource
$0.2836/kWh
$2,723/yr for 8 kW system
Eastern MA, Greater Boston
National Grid
$0.32/kWh
$3,072/yr for 8 kW system
Central & Western MA
Unitil
$0.2833/kWh
$2,720/yr for 8 kW system
Fitchburg area
These are the credit rates currently at stake. Solar energy you consume directly (self-consumption) always offsets your bill at full retail rate regardless of net metering policy.
Investigation into "reductions to the value of the net metering credit" officially begins.
Eversource, National Grid, and Unitil submit net metering data and analysis to the DPU.
Solar industry, consumer advocates, and the public submit written comments.
Parties respond to initial comments. Final opportunity for public input.
The DPU could issue a final order changing net metering credit rates. Any changes would likely include a transition period.
What this means for timing
The comment period closes April 30, 2026. A final decision is unlikely before late 2026 at the earliest, with implementation potentially extending into 2027. Systems interconnected before any new rules take effect are expected to be grandfathered. The typical timeline from signing a solar contract to interconnection in Massachusetts is 8-12 weeks.
The DPU has not proposed a specific change. Based on the docket language and precedent from other states (California, Nevada, Illinois), here are the most likely scenarios:
100% retail
Current 1:1 retail credit preserved.
60–80% retail
Credits reduced but solar still pencils out. Longer payback period.
40–60% retail
Meaningfully lower credit value. Battery storage becomes more important to self-consume.
Varies by hour
Higher credits during peak demand (afternoons), lower off-peak. Rewards battery + solar.
Utility Position
Solar Advocate Position
If the DPU changes net metering credit rates, systems already interconnected would be grandfathered under the current rules. This is the single most important fact for homeowners considering solar right now.
When MA expanded net metering from 10 kW to 25 kW and updated classes, existing systems were fully grandfathered under prior terms.
California (NEM 2.0 → NEM 3.0), Nevada, and every other state that reformed net metering grandfathered existing systems for 20+ years.
Grandfathered systems typically keep their original credit rate for 20-30 years from the date of interconnection.
The Bottom Line on Grandfathering
If you install solar and get interconnected before the DPU finalizes any changes, you lock in today's 1:1 retail-rate net metering credits for the life of your system. The DPU decision is expected no earlier than late 2026, and implementation would follow after that. A typical solar installation takes 8-12 weeks from contract to interconnection, meaning homeowners who act in spring/summer 2026 are well-positioned to be grandfathered.
How much could your annual solar income change under different scenarios? This comparison uses an 8 kW system producing ~9,600 kWh/year — a typical Massachusetts residential installation.
| Scenario | NM Credit Rate | Annual NM Value | + SMART | Total Annual |
|---|---|---|---|---|
| Current (1:1 retail) LOCKED IF GRANDFATHERED | $0.2836/kWh | $2,723 | $288 | $3,011 |
| 40% reduction (60% retail) | $0.1702/kWh | $1,634 | $288 | $1,922 |
| 60% reduction (40% retail) | $0.1134/kWh | $1,089 | $288 | $1,377 |
| Scenario | NM Credit Rate | Annual NM Value | + SMART | Total Annual |
|---|---|---|---|---|
| Current (1:1 retail) LOCKED IF GRANDFATHERED | $0.32/kWh | $3,072 | $288 | $3,360 |
| 40% reduction (60% retail) | $0.192/kWh | $1,843 | $288 | $2,131 |
| 60% reduction (40% retail) | $0.128/kWh | $1,229 | $288 | $1,517 |
Important context on these numbers
These scenarios show the exported energy credit value. Solar energy you consume directly in your home (self-consumption) always offsets your bill at the full retail rate, regardless of net metering policy. With a battery, you can self-consume 80-90% of your solar production, significantly reducing your dependence on export credits. Additionally, the SMART program pays $0.03/kWh for all production (not just exports) and is locked in for 20 years regardless of net metering changes.
DPU 25-200 creates a real but measured urgency. Here is an honest assessment of how to think about it.
The DPU decision is months away. You have time to make a thoughtful decision — but not unlimited time. If you wait until a ruling is finalized, it may be too late to interconnect under the current rules.
Even at 60% of the retail rate, solar in Massachusetts has a strong payback due to high electricity rates ($0.28-$0.32/kWh), the SMART program ($0.03/kWh for 20 years), state tax exemptions, and ConnectedSolutions battery income. The question is not whether solar works — it's how much better the economics are under current net metering.
If net metering credits are reduced, the value of self-consuming your solar energy increases. A battery lets you store daytime solar production for evening use, reducing how much you need to export. ConnectedSolutions battery demand response income ($225-$275/kW from Eversource and National Grid) is separate from net metering and unaffected.
Under a PPA or lease arrangement, the third-party system owner manages the net metering relationship. Many PPA/lease agreements guarantee a fixed rate or discount for the homeowner, potentially reducing your exposure to net metering changes. The system owner can also claim the Section 48 commercial ITC (still available for projects beginning construction before July 4, 2026).
| State | What Changed | Impact on New Installs | Grandfathering |
|---|---|---|---|
| California | NEM 2.0 → NEM 3.0 (April 2023). Export credits dropped ~75%. | New installs get $0.05-$0.08/kWh. Battery attach rate jumped to ~80%. | 20 years |
| Nevada | Retail rate credits eliminated (2015), partially restored (2017). | Credits now ~75% of retail. Market crashed then recovered. | 20 years |
| Arizona | Retail credits replaced with avoided-cost rates (2017). | Credits reduced ~40%. Battery adoption increased significantly. | 20 years |
In every case, existing solar owners were protected with 20-year grandfathering periods. The common lesson: install before the change takes effect.
Systems interconnected before any DPU rule changes take effect are grandfathered at current 1:1 retail-rate net metering credits. With a typical 8-12 week installation timeline, homeowners who start the process in 2026 are well-positioned to secure today's rates.
No federal residential tax credit is available as of 2026. Your solar economics depend on Massachusetts programs like net metering, SMART, and state tax exemptions — making grandfathered net metering credits more valuable than ever.