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Get a Free QuoteNational Grid basic service supply jumped 5.53% in August 2025 — from 14.672 cents to 15.484 cents per kWh. When you add distribution, transmission, and other charges, National Grid residential customers are paying $0.42/kWh all-in. That is among the highest in the continental US, and it is the reason solar payback in National Grid territory keeps getting shorter.
Average all-in residential rate (supply + distribution + transmission + charges) for National Grid Massachusetts customers. The Aug 2025 basic service supply increase from 14.672c to 15.484c/kWh was a 5.53% jump on the supply component alone.
| Year | Supply ($/kWh) | All-In ($/kWh) | YoY Change | Monthly Bill (750 kWh) | Notes |
|---|---|---|---|---|---|
| 2021 | $0.107 | $0.248 | -- | $186 | Post-COVID recovery, low gas prices |
| 2022 | $0.147 | $0.295 | +19.0% | $221 | Record increase — European energy crisis, LNG spike |
| 2023 | $0.154 | $0.310 | +5.1% | $233 | Continued high supply, grid hardening costs |
| 2024 | $0.144 | $0.298 | -3.9% | $224 | Slight supply relief, new procurement contracts |
| 2025 | $0.155 | $0.308 | +3.4% | $231 | Aug 2025: supply to 15.484c (+5.53%), distribution increase |
| 2026 | $0.155 | $0.418 | +35.6% | $313 | Current all-in bundled rate (per National Grid MA tariff) — grid modernization + transmission costs |
* Rates are annual averages for National Grid MA residential basic service customers. Supply rate effective Aug 1, 2025: 15.484c/kWh (prior: 14.672c/kWh, +5.53%). Monthly bill based on 750 kWh usage (MA average). Sources: DPU filings, National Grid tariff schedules, EIA.
When National Grid announces a "rate increase," they are typically referring to the basic service supply rate — the cost of generating the electricity itself. But that is now under half of your total bill. Here is the full breakdown of what makes up the $0.418/kWh all-in rate in 2026.
Cost of generating electricity — set every 6 months via competitive bid
Cost of delivering power from substation to your meter — includes wires, poles, transformers
Cost of moving power from generators to substations — ISO-NE charges
Includes renewable energy charges, energy efficiency surcharge, and transition charges
National Grid's "basic service" rate is the default supply rate, re-set every six months through a competitive bidding process. You can switch to a "competitive supplier" through the MA retail electricity market, but for solar owners, staying on basic service is typically the best option. Net metering credits are calculated based on the full retail rate, meaning the value of your solar production reflects supply, distribution, and transmission charges combined. Competitive suppliers rarely beat the all-in value of net metering credits for solar customers.
Massachusetts generates approximately 70% of electricity from natural gas. National Grid procures supply through 6-month contracts, so gas price volatility directly impacts the basic service rate. The August 2025 jump from 14.672c to 15.484c/kWh was partly driven by tighter LNG markets. Limited pipeline capacity into New England keeps regional gas prices above national averages.
National Grid has filed multi-year rate plans with the DPU for grid modernization, including smart meter deployment, underground cable conversion, and storm-hardening upgrades. These capital investments are recovered through distribution charges over 10-20 years. Distribution charges have risen faster than supply charges since 2020.
ISO New England transmission charges have increased as aging high-voltage lines require replacement and new transmission is built for offshore wind interconnection. National Grid is the transmission provider for a significant portion of New England, and these costs are allocated to ratepayers. Transmission charges have roughly doubled since 2016.
Massachusetts Renewable Portfolio Standard (RPS) and Clean Energy Standard (CES) require utilities to procure increasing amounts of clean energy. Renewable Energy Certificates (RECs), offshore wind contracts, and SMART program costs add roughly $0.01-$0.02/kWh to the total bill. These costs increase annually as clean energy targets rise.
Increasing frequency of nor'easters, ice storms, and extreme weather has driven up maintenance and restoration costs. National Grid has invested in vegetation management, underground conversion in flood-prone areas, and reinforced infrastructure — all passed through to ratepayers as part of distribution charges.
Based on the 5-year trend, DPU filings, infrastructure investment plans, and projected natural gas prices, we model three scenarios for National Grid residential all-in rates.
| Year | Conservative (+3%/yr) | Mid-Range (+5%/yr) | High (+6.5%/yr) |
|---|---|---|---|
| 2026 (Current) | $0.418/kWh | ||
| 2027 | $0.430 | $0.439 | $0.445 |
| 2028 | $0.443 | $0.461 | $0.474 |
| 2029 | $0.457 | $0.484 | $0.505 |
| 2030 | $0.470 | $0.508 | $0.537 |
National Grid customers already pay among the highest rates in MA. At 5% annual increases, your $313/month bill (750 kWh at $0.418) becomes:
Over 25 years at 5% annual increases, a National Grid household using 750 kWh/month will pay an estimated $179,000+ in total electricity costs. With solar, you lock in your rate at installation and avoid all future increases.
Solar panels produce electricity at a fixed cost per kWh over their 25+ year lifetime. Every time National Grid raises rates, the gap between what you would have paid and what your solar costs you widens. The math is simple: every 1 cent/kWh increase shaves approximately 6 months off your payback period because both your direct savings and net metering credits increase.
Your Solar Cost
$0.085/kWh
Fixed for 25+ years.
Nat. Grid Today
$0.418/kWh
Current all-in rate. Already 4.9x your solar cost.
Nat. Grid 2030
~$0.51/kWh
Projected rate (mid scenario). 6.0x your solar cost.
The payback acceleration effect: When National Grid raised supply rates 5.53% in August 2025, it did not just save solar owners 5.53% more on their bills that month — it increased the value of their net metering credits going forward. A system that had a projected 8.5-year payback in early 2025 saw that compress to roughly 8 years after the rate hike. Stack multiple years of 3-5% increases, and solar that used to pay back in 10 years now pays back in 6-8 years at current National Grid rates.
Customers: ~1.3M
Territory: SE & central MA
5-yr avg increase: 11.8%/yr
Supply rate: 15.484c/kWh
Customers: ~1.4M
Territory: Eastern & western MA
10-yr avg increase: 3.9%/yr
Supply rate: ~14.5c/kWh
Customers: ~25,000
Territory: Fitchburg area
Rate trend: Most volatile
Supply rate: 16.2-20.4c/kWh
All three MA utilities rank among the most expensive in the continental US. The national average residential rate is approximately $0.16/kWh. Massachusetts ratepayers pay 134-201% more than the national average depending on their utility. This premium is exactly why Massachusetts is one of the best states for solar economics — higher rates mean more savings per kWh of solar production, and more valuable net metering credits.
Net metering is the mechanism that makes solar financially viable in Massachusetts. When your solar system produces more electricity than you consume, the excess is exported to the grid and you receive credits on your bill. For National Grid residential customers (Class I net metering, systems under 10 kW), credits are valued at approximately the full retail rate.
| Year | NM Credit Value | Annual NM Revenue (10 kW) | Increase vs 2026 |
|---|---|---|---|
| 2026 | $0.418/kWh | $2,507 | -- |
| 2028 | $0.461/kWh | $2,764 | +$257/yr |
| 2030 | $0.508/kWh | $3,047 | +$540/yr |
| 2035 | $0.648/kWh | $3,889 | +$1,382/yr |
* Assumes 10 kW system exporting 6,000 kWh/year (typical for a system that offsets ~80% of usage). Mid-range rate projection used. Actual NM credit structure subject to MA net metering policy.
This is the key insight most people miss: your solar system does not just save you money at today's rates — it saves you increasingly more money every year as rates rise. A 10 kW system that generates $2,507 in net metering credits in 2026 could generate $3,889in credits by 2035, even though the system's production stays roughly the same. The rate increase does all the work for you.
Commercial and industrial National Grid customers face an additional cost layer that residential customers do not: demand charges. These are billed based on your peak electricity draw (in kW) during a billing period, separate from your total energy consumption (kWh).
Charged monthly based on your highest 15-minute peak demand. A 200 kW peak demand costs $1,600-$4,000/month in demand charges alone — on top of energy charges.
Solar alone reduces energy charges. Adding battery storage enables peak shaving — the battery discharges during high-demand periods to reduce peak kW readings, cutting demand charges 30-50%.
For a medium-sized commercial facility paying $3,000/month in demand charges and $8,000/month in energy charges on National Grid, a solar + battery system can reduce total electric costs by 40-60%. With National Grid commercial rates continuing to rise, the ROI on commercial solar has never been stronger. Commercial systems also benefit from MACRS depreciation, which is an additional financial incentive beyond energy savings.
National Grid serves approximately 1.3 million electric customers across southeastern and central Massachusetts. Understanding your territory helps you evaluate solar economics, as National Grid rates, interconnection processes, and net metering policies apply to all customers within this footprint.
Electric customers: ~1.3 million
Gas customers: ~900,000
Service area: ~1,100 square miles
Parent company: National Grid plc (UK-based)
Also serves: Upstate NY, Long Island, Rhode Island
Regulatory body: MA DPU
If you are in the Worcester, Fall River, New Bedford, Brockton, or South Shore area, you are likely a National Grid customer. Check your electric bill for the utility name, or use our Massachusetts Solar Utility Finder to confirm. Some towns in southeastern MA are served by municipal light departments rather than National Grid — if your bill says "Municipal" or "Light Department," you are on a municipal utility with different rates and net metering rules.
As of 2026, the National Grid residential all-in rate in Massachusetts is approximately $0.42/kWh, depending on your specific rate class, usage tier, and whether you use basic service or a competitive supplier. The basic service supply rate was set at 15.484 cents/kWh effective August 1, 2025, representing a 5.53% increase from the prior period. Distribution, transmission, transition, and renewable energy charges add roughly $0.263/kWh on top of supply.
National Grid basic service supply rates increased from 14.672 cents/kWh to 15.484 cents/kWh on August 1, 2025 — a 5.53% increase. This was on top of distribution rate increases approved by the DPU. As delivery-side charges (distribution and transmission) flowed through to bills, the total all-in residential rate climbed to roughly $0.42/kWh in 2026 — about a 36% jump from the prior year's ~$0.308/kWh all-in. The Aug 2025 supply rate alone adds roughly $6/month for a household using 750 kWh.
National Grid and Eversource procure electricity through separate competitive bidding processes, and their supply costs vary based on contract timing and market conditions. National Grid has historically had slightly higher distribution charges and different transmission cost allocations. Both utilities also serve different territories with different infrastructure needs. As of 2026, National Grid all-in rates average $0.42/kWh versus Eversource at approximately $0.37/kWh.
Every 1 cent/kWh increase in your National Grid rate shaves approximately 6 months off your solar payback period. At the current all-in rate of $0.42/kWh, a typical 8-10 kW residential system pays for itself in 6-8 years. If rates continue increasing 3-5% annually (as projected), the payback period shortens further because your net metering credits become more valuable with each rate hike.
Basic service is the default electricity supply from National Grid, procured through a competitive bidding process and updated every 6 months (January and July). Competitive supply means you have chosen a third-party electricity supplier through the Massachusetts retail market. For solar owners, the distinction matters because net metering credits are calculated based on your retail rate — not just supply. Most solar owners stay on basic service because competitive suppliers cannot consistently beat the all-in value of net metering credits.
National Grid serves approximately 1.3 million electric customers in Massachusetts, making it the second-largest utility in the state after Eversource (1.4 million). National Grid territory covers southeastern and central Massachusetts, including major cities like Worcester, Fall River, New Bedford, Brockton, and parts of the South Shore. The service territory spans approximately 1,100 square miles.
Demand charges are fees commercial and industrial National Grid customers pay based on their peak electricity usage (measured in kW) during a billing period, not just total consumption (kWh). National Grid demand charges can range from $8-$20+/kW depending on rate class. Solar alone reduces energy charges but may not significantly reduce demand charges. Adding battery storage allows commercial customers to shave peak demand, reducing both energy and demand charges for maximum savings.
National Grid net metering credits are valued at approximately the full retail rate for residential customers (Class I net metering, under 10 kW). This means as rates increase, the value of each kWh your solar system exports to the grid also increases. At $0.42/kWh, every kWh exported earns a credit at that rate. If rates rise to $0.51/kWh by 2030, that same exported kWh earns more — making your solar system more valuable every year without any additional investment.
National Grid rates have increased 68% in 5 years. Your all-in rate is $0.42/kWh today and projected to hit $0.51/kWh by 2030. Solar locks in your electricity cost at installation. Every future rate increase makes your solar investment more valuable. Get a free quote and see your personalized savings projection.