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Get a Free QuoteMassachusetts homeowners pay an average of $0.30/kWh in 2026 — 67% above the national average. Eversource, National Grid, and Unitil rates have all increased dramatically since 2020. Here is exactly what happened, why, and what you can do about it.
The three major Massachusetts utilities all charge well above the national average of $0.18/kWh. National Grid is the most expensive, followed by Eversource, then Unitil.
~1.4 million customers
$0.2836
per kWh (Jan 2026)
ConnectedSolutions
$275/kW summer + $50/kW winter
~1.3 million customers
$0.3200
per kWh (Jan 2026)
ConnectedSolutions
$225/kW summer + $50/kW winter
~28,000 customers
$0.2833
per kWh (Jan 2026)
ConnectedSolutions: Not participating
Why National Grid is $0.04/kWh more expensive
National Grid sets its Basic Service supply rate once per year (January 1). Eversource resets twice (January and July), allowing mid-year corrections when wholesale prices drop. National Grid customers are locked into a higher rate for the full 12 months, which is why they consistently pay more — and why solar savings are even greater for National Grid customers.
Massachusetts electricity rates have increased approximately 45% since 2020. Every utility has seen dramatic increases, with brief dips that quickly reversed.
| Utility | Jan 2020 | Jan 2021 | Jan 2022 | Jan 2023 | Jan 2024 | Jan 2025 | Jan 2026 | 6-Year Change |
|---|---|---|---|---|---|---|---|---|
| Eversource | $0.1968 | $0.2152+9.3% | $0.2334+8.5% | $0.2688+15.2% | $0.2982+10.9% | $0.2464-17.4% | $0.2836+15.1% | +44.1% |
| National Grid | $0.2064 | $0.2266+9.8% | $0.2476+9.3% | $0.2850+15.1% | $0.3155+10.7% | $0.2884-8.6% | $0.3200+11.0% | +55.0% |
| Unitil | $0.1850 | $0.2002+8.2% | $0.2200+9.9% | $0.2441+11.0% | $0.2688+10.1% | $0.2510-6.6% | $0.2833+12.9% | +53.1% |
Pre-pandemic baseline: MA avg ~$0.20/kWh, already among highest in the US
Post-COVID demand recovery + natural gas price spike begins pushing rates up
Russia-Ukraine war drives natural gas to $9/MMBtu, MA rates jump ~15%
Gas prices moderate but ISO-NE capacity market costs increase, rates stabilize at elevated levels
Eversource peaks at $0.2982/kWh (Jan). Offshore wind contracts begin flowing through to ratepayers
Brief dip as gas drops, but delivery charges rise. NGrid annual reset locks in lower supply rate
Rates rebound: Eversource $0.2836, NGrid $0.32. ISO-NE capacity prices locked through 2027
MA's electricity costs are driven by structural factors that are unlikely to change in the near term. Understanding these drivers helps explain why rates will remain elevated — and why solar makes sense now.
New England generates roughly half its electricity from natural gas, but has limited pipeline capacity. During winter cold snaps, gas power plants compete with home heating for the same constrained supply, driving wholesale prices to extreme levels. This structural bottleneck has existed for over a decade with no resolution in sight.
ISO New England runs annual Forward Capacity Auctions that set prices 3 years ahead. The 2026-2027 capacity commitment period reflects higher clearing prices due to retiring generators and new reliability requirements. These costs are passed directly to ratepayers through delivery charges.
MA utilities are investing billions in grid modernization, transmission upgrades, and storm hardening. Eversource alone is spending $5B+ on capital improvements over 5 years. These costs are recovered through delivery charge increases that appear on every bill, regardless of supply rate changes.
Massachusetts has contracted for 3.2 GW of offshore wind capacity. While these projects will eventually provide clean energy, construction cost overruns and renegotiated contracts at higher prices are being passed through to ratepayers. The Vineyard Wind and Revolution Wind contracts both saw price increases of 20-40%.
Cold winters drive both electric heating demand and natural gas prices higher simultaneously. January and February typically see the highest wholesale prices of the year, with ISO-NE real-time prices regularly exceeding $100/MWh during polar vortex events. This is why winter electric bills in MA are often 40-60% higher than summer.
MA's Clean Energy Standard requires utilities to procure increasing percentages of renewable energy. Renewable Energy Certificates (RECs), Alternative Compliance Payments, and the SMART program all add incremental costs to every kWh. While these programs drive clean energy deployment, they contribute ~$0.02-0.03/kWh to total rates.
$0.10/kWh
Rate increase since 2020 (avg). On a 900 kWh/month home, that is $90/month more than 6 years ago.
$1,080/yr
Annual cost increase for a typical MA home vs. 2020 rates, purely from rate inflation.
$27,000+
Cumulative extra cost over 25 years if rates stay at current levels vs. 2020 rates. Solar locks in your rate at $0.
Based on filed rate cases, fuel price trends, and ISO-NE capacity market results, here is what Massachusetts ratepayers should expect.
Supply rate reset — likely $0.12-0.16/kWh supply depending on summer gas prices. Total rate may dip to ~$0.26-0.28.
Annual reset. Gas futures suggest $0.30-0.33/kWh total rate. Delivery charges will increase from grid modernization filings.
Offshore wind delivery costs increase as Vineyard Wind and Mayflower Wind come online. Net impact: +$0.01-0.02/kWh added to all ratepayer bills.
ISO-NE FCA 18 cleared at $3.58/kW-month — higher than FCA 17. This flows through as ~$0.015/kWh in capacity charges for all customers.
DPU has approved multi-year rate increases for both Eversource and NGrid. Delivery charges are expected to rise 3-5% annually regardless of supply costs.
No new gas pipeline capacity planned. No nuclear restarts. Offshore wind + battery storage are the only supply additions. Rates unlikely to return to pre-2022 levels.
Bottom Line on MA Rate Forecasts
There is no credible scenario where Massachusetts electricity rates return to $0.20/kWh. The structural factors — gas dependence, capacity market, grid investment, and clean energy mandates — all push rates higher. Solar is the only way for homeowners to lock in a $0/kWh electricity cost for 25+ years.
Every kWh your solar panels generate avoids the full retail rate. At $0.30/kWh, the savings are substantial — and they grow every time rates increase.
| System Size | Annual kWh | Bill Offset | Monthly Savings | Annual Savings | 25-Year Savings | Payback (No ITC) |
|---|---|---|---|---|---|---|
| 7 kW | 8,400 | 85% | $178 | $2,136 | $53,400 | 13.2 years |
| 9 kW | 10,800 | 90% | $243 | $2,916 | $72,900 | 11.8 years |
| 11 kW | 13,200 | 92% | $304 | $3,648 | $91,200 | 10.9 years |
| 14 kW | 16,800 | 95% | $399 | $4,788 | $119,700 | 10.2 years |
Based on $3.20/W system cost (MA average), $0.30/kWh rate, 1,200 kWh/kW annual production, no federal ITC (expired 2025), SMART incentive included.
Every 1 cent/kWh increase in electricity rates adds approximately $120-150/year in savings for an 11 kW solar system. Since MA rates have increased by ~10 cents since 2020, solar installed today saves roughly $1,200-1,500/year more than the same system would have saved 6 years ago. And if rates keep rising 3-5% annually, your solar savings compound automatically.
Adding a battery lets you store excess solar and use it during peak TOU hours ($0.33/kWh) instead of exporting at the lower net metering credit. Plus, ConnectedSolutions pays Eversource customers $275/kW and National Grid customers $225/kW for summer peak demand reduction. A 5 kW battery earns $1,125-$1,375 per summer — essentially a second income stream from your solar investment.
Both Eversource and National Grid offer optional TOU pricing. Understanding peak periods helps solar + battery owners maximize their savings.
$0.3284/kWh
Mon-Fri 12pm-8pm
$0.2201/kWh
Nights, weekends, holidays
Solar advantage: Solar produces most during the afternoon peak window (12pm-5pm), offsetting the most expensive hours. TOU solar customers save ~15% more than flat-rate customers.
$0.3155/kWh
Mon-Fri 12pm-8pm
$0.2104/kWh
Nights, weekends, holidays
Battery strategy: Store solar excess during midday, discharge during the 5pm-8pm tail of peak pricing when solar production fades. This captures the highest-value kWh of the day.
TOU makes sense if you have solar (especially solar + battery). Without solar, TOU can actually cost more if you run high-consumption appliances during peak hours. With solar generating during peak and a battery to shift excess, TOU customers typically save $300-500/year more than flat-rate customers with the same solar system.
$0.30/kWh
Current MA Rate
Every kWh your solar generates is worth $0.30 in avoided electricity costs. Six years ago, it was worth only $0.20.
10-11 yrs
Payback Period
Even without the federal ITC (expired 2025), MA's high rates and SMART incentive bring payback under 11 years for most homes.
$90K+
25-Year Savings
An 11 kW system at current rates saves $90,000+ over its lifetime. If rates rise 3%/year, that climbs to $120,000+.
For an 11 kW system producing 13,200 kWh/year:
Rate increase scenarios (25-year impact):
MA's highest-rate moments are exactly when ConnectedSolutions pays you. When the grid is stressed and prices spike, your battery earns money instead of you paying premium rates.
Every month you wait, you pay another $250-400 in electricity costs that solar could eliminate. Get a personalized solar estimate for your MA home in under 2 minutes.
No sales calls. Instant online estimate. See your exact savings at current MA rates.