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Massachusetts offers 1:1 retail-rate net metering for residential solar. Every kWh your panels produce offsets a full retail-rate kWh on your bill. Learn the rules, classes, utility specifics, and how to maximize your savings.
Massachusetts offers full 1:1 retail-rate net metering credits for residential solar systems up to 25 kW (Class I). All three investor-owned utilities — Eversource, National Grid, and Unitil — participate. Excess credits roll over monthly at full retail value. At the annual true-up, remaining excess is paid out at the wholesale avoided-cost rate. Combined with the SMART program incentive (~$396/year for an 11 kW system), total annual value reaches ~$3,119/year.
Net metering turns your rooftop into a personal power plant. The grid acts as a free virtual battery, storing your excess and giving it back when you need it.
Your solar panels convert sunlight into electricity. It first powers your home's loads. Any surplus is automatically sent to the electric grid.
When you export electricity to the grid, your bidirectional meter tracks the reverse flow. Each exported kWh becomes a credit at the full retail rate.
Excess credits roll over from month to month automatically. Spring and summer overproduction is banked to offset higher winter bills when production is lower.
At your annual true-up date (April for Eversource, March for National Grid/Unitil), remaining credits are paid out at the wholesale avoided-cost rate (~$0.03-$0.05/kWh). Size your system to minimize annual excess.
Follow the journey of every kilowatt-hour your solar panels produce, from generation through credit settlement.
Your panels convert sunlight into electricity. This power flows to your home first, covering your real-time energy needs.
Any surplus electricity flows to the grid. Your bidirectional meter tracks every kWh exported, earning you a credit at full retail rate.
When panels are not producing (nighttime, overcast), you pull electricity from the grid. Your banked credits automatically offset this usage.
Each month, your utility nets generation against consumption. Excess credits roll forward at full retail value to the next billing cycle.
At your annual true-up (April/March), any remaining excess credits are paid out at the wholesale avoided-cost rate (~$0.03-$0.05/kWh).
Key Takeaway: Size Your System to Match Annual Usage
Since monthly credits roll over at full retail value but the annual true-up pays only wholesale rates, the goal is to produce roughly what you consume over 12 months. Oversizing wastes value; undersizing leaves savings on the table.
Massachusetts classifies net metering systems into three classes based on size. Your class determines the value of your credit.
Residential
Most homeowners fall here. Full retail value for every kWh exported.
Small commercial
Small business and multi-family. Slightly reduced credit after minimum charge.
Large commercial / community
Large-scale projects. Credit rate negotiated with utility.
You're Almost Certainly Class I
If you are a homeowner with a residential solar system, your system will be under 25 kW and qualify for Class I credits — the highest credit rate. Most MA homes install 6-12 kW systems, well under the 25 kW threshold.
All three Massachusetts investor-owned utilities offer 1:1 net metering credits, but their electric rates — and therefore your credit value — differ.
| Eversource | National Grid | Unitil | |
|---|---|---|---|
| Avg rate/kWh | $0.2836 | $0.32 | $0.2833 |
| Credit rate | 100% retail | 100% retail | 100% retail |
| Minimum bill | $7.00 | $7.00 | $6.28 |
| True-up month | April | March | March |
| Peak rate available | Yes | Yes | No |
| ConnectedSolutions | Yes | Yes | No |
| Annual savings (8kW) | $2,723 | $3,072 | $2,720 |
Eastern MA including Greater Boston, South Shore, Cape Cod
$0.2836/kWh
$7.00
April
$2,723
Central and Western MA, Worcester, Springfield area
$0.32/kWh
$7.00
March
$3,072
Fitchburg and surrounding areas (small territory)
$0.2833/kWh
$6.28
March
$2,720
Eastern MA including Greater Boston, South Shore, Cape Cod
Central and Western MA, Worcester, Springfield area
Fitchburg and surrounding areas (small territory)
While all three investor-owned utilities (IOUs) follow the same state net metering framework, each has specific policies, service territories, and program nuances worth understanding.
Eastern MA including Greater Boston, South Shore, Cape Cod
Credit rate: 1:1 full retail ($0.2836/kWh) for Class I residential systems up to 10 kW. Reduced credit rate for larger Class I systems (10-25 kW).
Annual true-up: April. Remaining excess credits paid at wholesale avoided-cost rate (~$0.03-$0.05/kWh).
Minimum bill: $7.00/month customer charge applies regardless of credits.
Time-of-use available: Yes. TOU rates can increase the value of net metering by exporting during peak hours.
ConnectedSolutions: Yes. $275/kW summer + $50/kW winter for battery dispatch, stacking on top of NM credits.
8 kW system savings: ~$2,723/year from net metering alone.
Central and Western MA, Worcester, Springfield area
Credit rate: 1:1 full retail ($0.32/kWh) for small residential Class I systems. Same structure as Eversource.
Annual true-up: March. Remaining excess credits settled at wholesale avoided-cost rate.
Minimum bill: $7.00/month customer charge applies regardless of credits.
Time-of-use available: Yes. TOU rates available; solar owners can benefit from higher peak-hour credit value.
ConnectedSolutions: Yes. $225/kW summer + $50/kW winter for battery dispatch.
8 kW system savings: ~$3,072/year from net metering alone.
Fitchburg and surrounding areas (small territory)
Credit rate: 1:1 full retail ($0.2833/kWh) following the same Class I framework as the larger utilities.
Annual true-up: March. Same settlement process as National Grid.
No TOU rate: Unitil does not currently offer a time-of-use option for residential customers.
No ConnectedSolutions: Unitil does not participate, so battery owners miss out on demand response income.
Massachusetts has approximately 40 municipal light plants (MLPs) serving about 14% of the state. MLPs are not required to participate in the state net metering program. Each MLP sets its own solar interconnection and credit policies, which are often less favorable than the investor-owned utilities.
Some MLPs offer reduced credit rates (less than retail)
System size caps may be lower than 25 kW
Some MLPs do not allow net metering at all
Contact your MLP directly to confirm their solar policy
Real breakdown for a typical Eversource home with an 11 kW solar system.
Before Solar
$262
per month (Eversource)
After Solar (11kW)
$35
minimum bill + fees
Monthly Savings
$227
$2,723 annually
With an 11 kW system on Eversource, your monthly bill drops from $262 to approximately $35 (minimum bill of $7 + non-bypassable charges). That represents an 87% reduction in your electric bill.
Supply rates updated
Eversource supply rate: $0.15629/kWh. National Grid supply rate: $0.15372/kWh. Delivery rates have also increased, pushing total rates to historic highs.
No changes to 1:1 credit structure
The 1:1 full retail-rate net metering for Class I remains intact. No legislative or regulatory changes have been enacted for 2026.
DPU proceedings may restructure future net metering
The MA Department of Public Utilities (DPU) has ongoing proceedings that could alter the net metering framework in coming years. Installing now locks in current rules under grandfathering protections.
Systems installed under current rules are grandfathered
Systems installed under the current net metering framework keep their terms even if the policy changes in the future. This provides long-term certainty for your investment.
The Massachusetts SMART incentive is SEPARATE from net metering credits. You receive BOTH simultaneously, creating two income streams from your solar system.
Paid on total generation (kWh produced), regardless of whether energy is used on-site or exported to grid.
1:1 credits for exported energy. Directly offset your electric bill. Excess credits roll over monthly.
SMART
~$396
Net Metering
~$2,723
Annual Total
~$3,119
SMART and net metering are completely separate income streams. You receive both simultaneously.
Important Note: The federal residential solar tax credit (Section 25D) expired December 31, 2025. There are $0 in federal tax credits for homeowner cash or loan solar purchases. However, systems installed through third-party financing (PPA/lease) may still benefit from the commercial ITC (Section 48/48E) claimed by the system owner.
Cannot install rooftop solar? Virtual net metering lets you receive credits from an off-site solar project — no panels on your roof required.
Virtual net metering (VNM) allows you to receive net metering credits from a solar project that is not on your property. You subscribe to a share of a community solar farm, and the credits generated by your share are applied directly to your utility bill — just like rooftop net metering credits.
No roof needed — works for renters, condos, shaded properties
Credits applied to your monthly utility bill automatically
Subscribe to a portion of a larger community solar array
Available for Eversource and National Grid customers
Community solar subscribers typically save 5-15% on the credited amount compared to their standard utility rate. You pay the community solar provider a discounted rate for the credits they deliver to your bill.
Feature
Upfront cost
Bill savings
Contract length
Ownership
Rooftop Solar
$20K-$35K (or lease)
80-95% bill reduction
25+ year system life
You own the system
Community Solar (VNM)
$0 upfront
5-15% discount on credits
1-25 year subscription
You subscribe, do not own
Use our interactive calculator to estimate your annual net metering savings, SMART income, and total solar ROI based on your utility, system size, and financing choice.
Estimate your solar return on investment with SMART income, net metering credits, ConnectedSolutions, and MA tax benefits.
Federal Residential Solar Tax Credit (Section 25D) Expired
Homeowners who purchase solar with cash or a loan receive $0 in federal tax credits. Section 25D expired December 31, 2025.
Eastern MA (Boston, South Shore, Cape Cod, MetroWest, Western MA)
Electric Rate
$0.28/kWh
Net Metering
1:1 retail credit (Class I ≤25 kW)
SMART 3.0 Rate
$0.03/kWh
Interconnection
2-4 weeks typical
20-year exemption — solar adds $0 to your property tax
Payback Period
7
years
25-Year Savings
$114,687
total
Monthly Benefit
$378
per month
Estimates based on average 2026 MA solar pricing, SMART 3.0 $0.03/kWh residential flat rate, 1:1 retail net metering, 6.25% sales tax exemption, 20-year property tax exemption, and 15% state tax credit (max $1,000). Section 25D residential ITC expired Dec 31, 2025 — $0 federal tax credit for cash/loan purchases.
Answers to the most common questions about net metering in Massachusetts.
Net metering in Massachusetts allows solar system owners to receive credits for excess electricity sent to the grid. For residential systems up to 25 kW (Class I), credits are earned at the full retail rate, which includes both the supply and delivery charges. Excess credits roll over month to month at full retail value. At the annual true-up (April for Eversource, March for National Grid and Unitil), any remaining excess is paid out at the wholesale avoided-cost rate.
For Class I systems (residential, up to 25 kW), the credit rate is 100% of the retail electricity rate. In 2026, that means approximately $0.2836/kWh for Eversource customers, $0.32/kWh for National Grid, and $0.2833/kWh for Unitil. These rates include both the supply charge and delivery charge, making MA net metering credits among the most valuable in the country.
Yes. Net metering is a state policy completely separate from the federal tax credit. The Section 25D residential solar tax credit expired on December 31, 2025, meaning there are $0 in federal tax credits for homeowner cash or loan solar purchases. However, MA net metering credits, the SMART program incentive, and state sales tax exemption remain fully active. Systems installed through third-party financing (PPA/lease) may still benefit from the Section 48 commercial ITC claimed by the system owner.
Not directly. Net metering credits can only be applied to your own utility account or transferred to other accounts in your name with the same utility. You cannot sell credits to other customers. However, at the annual true-up, any remaining excess credits are paid out to you at the wholesale avoided-cost rate (approximately $0.03-$0.05/kWh). For this reason, it is best to size your system to match your annual consumption rather than significantly oversize it.
At your annual true-up date (April for Eversource, March for National Grid and Unitil), the utility settles any remaining excess credits. If you have banked more credits than you used over the 12-month cycle, the excess is paid out at the wholesale avoided-cost rate, which is approximately $0.03-$0.05/kWh. This is far less than the retail rate, so proper system sizing to match annual usage is important to maximize value.
Eversource territory offers the highest net metering credit value at ~$0.2836/kWh, producing approximately $2,723/year in savings for an 8 kW system. National Grid follows at ~$0.32/kWh (~$2,603/year), and Unitil at ~$0.2833/kWh (~$2,200/year). However, all three utilities offer strong solar economics when combined with the SMART program. Eversource and National Grid also participate in ConnectedSolutions, which provides additional income for battery storage owners.
Yes. In Massachusetts, net metering credits roll over from month to month at full retail value automatically. This is critical because solar systems overproduce in spring and summer but underproduce in winter. Your summer surplus credits are banked and applied to your higher winter bills. Credits continue rolling over until your annual true-up date, when any remaining excess is settled at the wholesale avoided-cost rate.
Net metering credits are tied to your utility account, not the property. If you sell your home, the new owner would need to establish their own net metering agreement with the utility. Any accumulated credits on your account at the time of closing would not transfer — they would be settled at the wholesale avoided-cost rate on your final bill. If you move within the same utility territory, you cannot transfer credits to your new address. It is a good idea to time your move close to your annual true-up date to minimize lost credits.
Battery storage does not change your net metering credits — you still receive 1:1 retail-rate credits for any energy exported to the grid. However, a battery lets you strategically choose when to export. Instead of sending excess solar to the grid during the day, you can store it and use it yourself at night, reducing your grid consumption further. Additionally, Eversource and National Grid customers with batteries can earn $225-$275/kW per year through the ConnectedSolutions demand response program, stacking on top of net metering and SMART income.
Eversource performs the annual true-up in April, while National Grid and Unitil perform theirs in March. At the true-up, any net excess credits remaining after the 12-month billing cycle are paid out at the wholesale avoided-cost rate (approximately $0.03-$0.05/kWh). After the true-up, your credit balance resets to zero and a new 12-month cycle begins. The true-up date is based on when your net metering interconnection was approved, not a fixed calendar date.
Explore our comprehensive Massachusetts energy guides to maximize your savings.
SMART 3.0: $0.03/kWh for 20 years + battery adders. Stacks on top of net metering.
Detailed rate comparison and solar ROI by utility territory.
Updated pricing, post-ITC financing options, and payback timelines.
The real cost of solar in MA after the federal ITC expired. No sugar-coating.
Virtual net metering, subscriber programs, and how to save without rooftop panels.
Earn $225-$275/kW per year with battery storage demand response.
With net metering, the SMART program, and tax exemptions, Massachusetts solar remains one of the strongest investments in the country. Get your personalized estimate today.
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MA DPU Net Metering Rules
220 CMR 18.00 — Official tariff regulations
SMART Program
DOER — Solar incentive program details
DSIRE Database
Database of State Incentives for Renewables
EIA Electric Power Monthly
Utility rate data source
Rate data and program details verified February 2026. Programs and rates change; confirm current details with your utility.