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NuWatt designs, installs, and manages solar, battery, heat pump, and EV charger systems across 9 states. One company, one warranty, one point of contact.
Get a Free Quote36+ utility and electricity rate terms explained in plain language. From kWh and demand charges to ISO-NE and deregulated markets — the definitive reference for understanding your electric bill and maximizing solar savings.
The total effective cost per kWh when all charges on a utility bill are combined — supply, delivery, transmission, distribution, renewable energy charges, and fixed fees divided across total usage.
The all-in rate is the number that matters for solar payback calculations. In New England, all-in rates range from $0.22/kWh (NH co-ops) to $0.35/kWh (Block Island, RI). National Grid MA customers often exceed $0.32/kWh all-in. Always use the all-in rate, not just the supply rate, when evaluating solar savings.
A system of smart meters, communication networks, and data management systems that enables two-way communication between utilities and customers. AMI replaces manual meter reading with real-time digital data collection.
AMI is the backbone of time-of-use rates, demand response programs, and net metering. Smart meters collect usage data in 15-minute or hourly intervals. Most New England utilities have deployed AMI to 80-100% of customers. AMI data helps homeowners understand their usage patterns before going solar.
The default electricity supply provided by a utility to customers who do not choose a competitive supplier. Basic service rates are set through a regulated procurement process and change every 6 months (residential) in most New England states.
In Massachusetts, basic service rates change January 1 and July 1. Eversource MA basic service hit $0.1487/kWh in winter 2025-26. Basic service is NOT the total bill — it is only the supply component. Customers always pay delivery charges on top of basic service regardless of supplier choice.
An electric meter that measures electricity flowing in both directions — from the grid to the customer and from the customer's solar system to the grid. Required for net metering.
When your solar system produces more than you consume, the excess flows to the grid and the bidirectional meter records it as a credit. Most modern smart meters are already bidirectional. If your meter is not, the utility replaces it (usually at no cost) during solar interconnection.
A charge on commercial and some residential bills that reflects the cost of maintaining enough power plant capacity to meet peak demand. Capacity charges are based on the grid's peak demand — not your individual usage.
ISO-NE capacity charges fund the Forward Capacity Market, which pays power plants to be available during peak periods. These costs are passed through to customers on their delivery charges. Reducing overall grid peak through demand response and battery storage helps lower capacity charges for everyone.
A program where a municipality or group of municipalities negotiates electricity supply on behalf of residents and businesses, typically to secure lower rates or a higher percentage of renewable energy than the utility's default supply.
CCA is available in MA, NH (as Community Power), NY, NJ, IL, OH, and CA. Customers are automatically enrolled but can opt out. CCA does not change the delivery utility — Eversource/National Grid still deliver the power. MA has over 200 CCA programs. NH's Community Power Coalition (CPCNH) serves 40%+ of eligible customers.
New Hampshire's term for Community Choice Aggregation (CCA). Towns adopt community power plans to aggregate buying power and negotiate competitive electricity supply rates for residents.
NH Community Power is governed by RSA 53-E. The Community Power Coalition of NH (CPCNH) provides administrative and procurement services. Over 40% of NH electricity customers now receive supply through community power programs, often at rates below utility basic service.
Electricity purchased from a third-party supplier rather than the utility's default basic service, in states with deregulated electricity markets. Customers choose their supply provider but the local utility still delivers the power.
In deregulated states (MA, CT, RI, NH, ME, TX, PA, NJ, NY), customers can shop for electricity supply. Beware: many competitive suppliers offer teaser rates that increase after an introductory period. Fixed-rate contracts provide price certainty. Solar reduces your exposure to supply price volatility regardless of supplier.
A utility owned by the customers it serves, typically in rural areas. Co-ops are governed by an elected board of member-owners and operate on a not-for-profit basis.
NH Electric Cooperative (NHEC) serves ~85,000 members across central and northern NH at approximately $0.22/kWh. Co-ops tend to have lower rates than IOUs but serve less dense areas with higher infrastructure costs per customer. Co-op net metering policies may differ from state IOU rules.
The portion of your electric bill that covers the cost of delivering electricity from power plants to your home through the local distribution network. Delivery charges include distribution, transmission, and various surcharges.
Delivery charges are paid to your local utility (Eversource, National Grid, etc.) regardless of who supplies your electricity. In New England, delivery charges often exceed supply charges — making up 50-60% of the total bill. Solar net metering credits are typically applied against both supply AND delivery charges.
The rate at which electricity is consumed at any given moment, measured in kilowatts (kW). Demand is about how FAST you use electricity, while consumption (kWh) is about how MUCH you use over time.
Think of demand as the size of the pipe and consumption as the amount of water that flows through it. A home running an AC, dryer, oven, and EV charger simultaneously might hit 15 kW of demand. That same home might only average 2 kW over 24 hours. Commercial customers pay demand charges based on their peak kW.
A charge on a commercial electric bill based on the highest rate of electricity usage (peak kW demand) during a billing period. Even a brief 15-minute spike in demand sets the charge for the entire month.
Demand charges can represent 30-70% of a commercial electric bill. A factory that briefly runs all equipment simultaneously will pay more in demand charges than one that staggers loads. Battery storage paired with solar is the most effective strategy to "shave" demand peaks and reduce these charges.
An electricity market where generation (supply) is separated from transmission and distribution (delivery). Customers can choose their electricity supplier, but the local utility still owns and operates the delivery infrastructure.
Deregulated states include MA, CT, RI, NH, ME, NY, NJ, PA, OH, IL, TX, and parts of other states. In deregulated markets, the utility is a "poles and wires" company that delivers power but may not generate it. Texas (ERCOT) is fully deregulated with dozens of retail providers. New England has partial deregulation with utility basic service as the default.
The component of the delivery charge that covers the cost of the local electric distribution network — the poles, wires, transformers, and substations that bring power from high-voltage transmission lines to your neighborhood.
Distribution charges are set through rate cases before the state PUC/DPU. They include infrastructure maintenance, vegetation management, storm restoration reserves, and grid modernization investments. Distribution charges are typically the largest single component of delivery costs.
The independent system operator that manages the electric grid for approximately 90% of Texas. ERCOT is unique because it operates as an isolated grid — not interconnected with the rest of the US — which means it is not subject to federal electricity regulation.
ERCOT serves 26+ million customers across a deregulated market with dozens of retail providers. Real-time wholesale prices can swing from $0.01/kWh to $5.00+/kWh during extreme events (as in the February 2021 winter storm). Fixed-rate retail plans protect consumers from this volatility. Solar and battery storage are growing rapidly in ERCOT due to high solar irradiance and peak pricing.
The process of connecting a customer-owned generation system (like rooftop solar) to the utility's electric grid. Interconnection requires an application, engineering review, meter upgrade, and utility approval before a solar system can export power.
Interconnection timelines vary: simple residential systems may take 2-6 weeks; larger commercial projects can take months. The utility reviews the system design to ensure it meets safety and power quality standards. Costs are typically $0-$500 for residential. The interconnection agreement defines your net metering terms.
A for-profit utility owned by shareholders and publicly traded on stock exchanges. IOUs are the most common utility type in the US, serving approximately 72% of all customers.
Major New England IOUs: Eversource (MA, CT, NH), National Grid (MA, RI, NY), Liberty (NH), Unitil (MA, NH), United Illuminating (CT). IOUs earn a regulated return on investment — typically 9-10%. Their rates are set through rate cases before state regulators (DPU/PUC). IOUs are required to offer net metering and interconnection for solar.
The non-profit organization that operates the electric grid and wholesale electricity market for the six New England states (CT, ME, MA, NH, RI, VT). ISO-NE ensures grid reliability, administers capacity markets, and manages transmission planning.
ISO-NE runs the day-ahead and real-time energy markets where generators bid to supply electricity. Wholesale prices set by ISO-NE flow through to retail rates. ISO-NE also operates the Forward Capacity Market that pays generators to be available during peak periods. The ISO-NE grid serves approximately 6.8 million customers.
A unit of electrical power equal to 1,000 watts. kW measures the RATE at which electricity is produced or consumed at any instant — like the speedometer in a car.
A typical rooftop solar panel produces 0.4-0.5 kW at peak output. A 10 kW solar system has 10,000 watts of capacity. A home's peak demand might be 5-15 kW. A single LED bulb uses 0.01 kW. An EV charger uses 7-12 kW. Power (kW) multiplied by time (hours) equals energy (kWh).
A unit of electrical energy equal to using 1,000 watts for one hour. kWh measures the TOTAL AMOUNT of electricity consumed or produced over time — like the odometer in a car. This is what your utility bill charges you for.
The average US home uses approximately 900 kWh/month (10,800 kWh/year). New England homes average 600-700 kWh/month. At $0.30/kWh, 700 kWh costs $210/month. A 10 kW solar system in Massachusetts produces approximately 12,000 kWh/year. One kWh can run a refrigerator for about 8 hours or an EV for 3-4 miles.
A utility owned and operated by a city or town government. Municipal utilities are not-for-profit and are governed by locally elected officials or appointed commissioners.
Municipal utilities often have lower rates than IOUs because they don't pay shareholder dividends and have lower regulatory overhead. Examples: Burlington Electric (VT), Holyoke Gas & Electric (MA), Wallingford Electric (CT). Muni net metering policies vary — some are more generous than state IOU rules, others less so. About 14% of US customers are served by municipal utilities.
The independent system operator that manages the electric grid and wholesale electricity market for New York State. NYISO operates the day-ahead and real-time energy markets and ensures grid reliability across six zones.
NYISO serves approximately 19.5 million customers. New York's grid is divided into zones (A through K) with different pricing. Zone J (New York City) and Zone K (Long Island) consistently have the highest wholesale prices due to transmission constraints. NY's VDER (Value of Distributed Energy Resources) tariff replaced traditional net metering.
The hours when electricity demand and prices are lowest, typically overnight and early morning (e.g., 9 PM to 7 AM). Time-of-use rates charge less during off-peak periods to incentivize shifting consumption.
Off-peak rates can be 30-60% lower than peak rates. Savvy homeowners charge EVs, run dishwashers, and pre-heat/cool homes during off-peak hours. Battery systems can charge from solar or the grid during off-peak and discharge during peak — a strategy called "energy arbitrage" that maximizes savings under TOU rates.
The hours when electricity demand and prices are highest, typically weekday afternoons and early evenings (e.g., 1 PM to 9 PM in summer, 5 PM to 9 PM in winter). Peak pricing is the most expensive time to consume electricity.
Peak hours drive the highest wholesale prices and trigger capacity charges. In ERCOT (Texas), peak summer prices can spike to $5+/kWh wholesale. In ISO-NE, summer peaks drive capacity market costs. Solar production often overlaps with afternoon peak hours but misses the evening peak, which is why batteries are increasingly valuable.
The regional transmission organization that coordinates wholesale electricity in 13 states (plus DC), primarily in the Mid-Atlantic and parts of the Midwest: PA, NJ, DE, MD, VA, WV, OH, IN, IL, MI, KY, NC, TN (parts).
PJM is the largest wholesale electricity market in the US, serving 65+ million customers. PJM runs capacity auctions, energy markets, and transmission planning. NJ solar systems participate in PJM's SREC/ADI market. PJM's capacity prices directly affect retail rates in its territory.
The final approval from the utility that authorizes a solar system owner to turn on their system and begin exporting electricity to the grid. PTO is the last step in the interconnection process, after inspection and meter installation.
PTO timelines vary: 1-4 weeks after the utility inspection is typical. DO NOT energize your solar system before receiving PTO — doing so violates the interconnection agreement and can result in penalties or disconnection. Some utilities issue a "conditional PTO" that allows operation while final paperwork is completed.
The state regulatory agency that oversees investor-owned utilities, sets electricity and gas rates, approves infrastructure investments, and enforces consumer protection rules. Different states use different names (PUC, DPU, BPU, PURA).
MA: Department of Public Utilities (DPU). CT: Public Utilities Regulatory Authority (PURA). NH: Public Utilities Commission (PUC). NJ: Board of Public Utilities (BPU). RI: Public Utilities Commission (PUC). TX: Public Utility Commission (PUC). The PUC/DPU sets net metering rules, interconnection standards, and rate structures.
A formal regulatory proceeding where a utility requests permission to change its rates. The PUC/DPU reviews the utility's costs, capital investments, and allowed rate of return before approving, modifying, or denying the request.
Rate cases typically occur every 3-5 years and can take 6-12 months to resolve. The process involves testimony from the utility, consumer advocates, and intervenors. Rate increases of 5-15% per case are common. Eversource filed a major MA rate case in 2025 requesting a 24% delivery increase. Solar locks in protection against future rate increases.
An electricity market where a single vertically-integrated utility generates, transmits, and distributes electricity under government rate regulation. Customers cannot choose their electricity supplier.
Regulated states include most of the Southeast, parts of the Midwest, and mountain West. In regulated markets, the utility owns the power plants and sets rates through PUC-approved rate cases. There is no competitive supply market. Net metering policies in regulated states are set entirely by the PUC. About 28 states have some form of regulated markets.
A line item on electric bills that funds state renewable energy mandates (Renewable Portfolio Standards). This charge covers the cost of RECs, SRECs, and other compliance instruments that utilities must purchase to meet clean energy targets.
The renewable energy charge is typically $0.005-$0.03/kWh depending on the state and its RPS targets. In MA, the charge funds the Renewable Energy Standard (40% by 2030 target). Ironically, as more solar is installed, SREC prices drop and this charge can decrease — but RPS targets keep rising, so the charge tends to increase over time.
An electricity pricing structure with different per-kWh rates for summer and winter months. Summer rates are typically higher due to air conditioning demand.
Seasonal rates are common in southern states and some New England utilities. In Texas (ERCOT), summer plans can cost 50-100% more per kWh than winter plans. Solar is especially valuable under summer seasonal rates because peak solar production coincides with the expensive summer season.
The hours between peak and off-peak periods when electricity demand and pricing are moderate. Also called "mid-peak" or "partial-peak" in some utility rate schedules.
A typical TOU schedule might define: peak (1-9 PM), shoulder (7 AM-1 PM and 9-11 PM), off-peak (11 PM-7 AM). Shoulder rates fall between peak and off-peak prices. Solar systems produce most of their output during shoulder hours (late morning to early afternoon), which is favorable under TOU rates.
A digital electric meter that records electricity usage in regular intervals (typically every 15 minutes or hourly) and communicates data wirelessly to the utility. Smart meters enable time-of-use rates, remote reading, outage detection, and net metering.
Most New England utilities have deployed smart meters to 80-100% of customers as part of AMI rollouts. Smart meters can measure bidirectional flow (essential for solar net metering), detect outages in real time, and provide customers with detailed usage data through online portals. They replace the old analog spinning-disc meters.
The most expensive hours in a time-of-use rate schedule — a narrow window within peak hours when grid stress and electricity prices are highest. Typically 4-7 PM on summer weekdays.
Super-peak rates can be 2-4x the off-peak rate. This is when battery storage provides the most value: discharge stored solar energy during super-peak hours to avoid buying the most expensive electricity. ConnectedSolutions demand response events are called during super-peak grid conditions.
The portion of your electric bill that covers the actual cost of generating the electricity you consume. Supply is either from the utility's basic service or from a competitive supplier you have chosen.
In deregulated New England markets, supply is 40-50% of the total bill. Supply rates change every 6 months for residential basic service (January and July in MA). Competitive suppliers offer fixed-rate contracts for price stability. Solar eliminates or reduces supply charges by producing your own electricity on-site.
The component of the delivery charge that covers the cost of the high-voltage transmission system — the large towers and lines that carry bulk electricity from power plants and across regions to local distribution networks.
Transmission charges are regulated by FERC (Federal Energy Regulatory Commission) at the regional level. ISO-NE transmission costs are shared across all New England customers. Major transmission projects (like the New England Clean Energy Connect bringing Quebec hydro to MA) add to these costs. Transmission charges typically represent 10-20% of the total bill.
| Component | What It Covers | % of Bill | Solar Impact |
|---|---|---|---|
| Supply | Electricity generation | 40-50% | Offset by net metering |
| Distribution | Local poles & wires | 25-35% | Offset by net metering (most states) |
| Transmission | High-voltage grid | 10-15% | Offset by net metering (most states) |
| Renewable Energy | RPS compliance | 3-5% | Offset by net metering |
| Customer Charge | Fixed monthly fee | 2-5% | NOT offset (always paid) |
Supply is the cost of generating the electricity you use — it is either from the utility's basic service or a competitive supplier you choose. Delivery is the cost of transporting that electricity to your home through the utility's poles, wires, and transformers. In New England, delivery often costs MORE than supply, making up 50-60% of the total bill. When you go solar, net metering credits typically offset BOTH supply and delivery charges.
kW (kilowatts) measures power — the RATE at which electricity is used or produced at a given instant, like a speedometer. kWh (kilowatt-hours) measures energy — the TOTAL AMOUNT of electricity used or produced over time, like an odometer. Your utility charges you per kWh consumed. A 10 kW solar system running at full output for 1 hour produces 10 kWh. A 100-watt light bulb running for 10 hours consumes 1 kWh.
In a deregulated market, electricity generation (supply) is separated from delivery. You can choose who generates your electricity (competitive supplier or utility basic service), but the local utility always delivers it. Deregulated states include MA, CT, RI, NH, ME, NY, NJ, PA, and TX. In regulated states (most of the Southeast and Midwest), one utility does everything and you cannot choose your supplier.
Demand charges are based on your PEAK usage (in kW) during a billing period — not total consumption. Even a brief 15-minute spike sets the charge for the entire month. Solar alone often cannot eliminate demand charges because peak demand may occur when solar is not producing (cloudy day, evening). Pairing solar with battery storage allows businesses to "shave" demand peaks by discharging stored energy during high-demand periods, reducing demand charges by 30-50%.
ISO-NE (Independent System Operator New England) runs the wholesale electricity market and manages the electric grid for all six New England states. ISO-NE's wholesale prices directly affect your retail electricity rate. When ISO-NE wholesale prices spike during heat waves or cold snaps, those costs flow through to your basic service rate at the next reset. ISO-NE also operates the capacity market that funds power plant availability — another cost on your bill. Solar reduces your exposure to ISO-NE price volatility.
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