Net metering: turning the grid into your battery

Net metering is simple in principle: when your solar panels make more electricity than your home is using, the extra flows back onto the grid and your utility credits your account. When the sun isn't shining, you draw from the grid and those credits offset the cost. In Massachusetts, those credits are worth the full retail rate — about 31.5¢/kWh as of April 2026 — which is what makes it so valuable.

Why full retail rate matters

Not every state credits solar at retail rate. Some pay a lower "wholesale" or "avoided cost" rate. Massachusetts still offers 1:1 full-retail net metering for residential systems, meaning a kWh you export is worth the same as a kWh you'd buy. On some of the highest electricity rates in the country, that's a powerful benefit — and it's why net metering, not any single rebate, is often the biggest lifetime value for a Massachusetts home.

How the credits work

• Excess generation earns credits at retail rate.
• Credits roll over month to month — you bank summer surplus to spend in winter.
• Net metering runs alongside SMART income, so you collect both.
• You still pay a small monthly customer charge (typically $7–$15) to stay grid-connected.

Net metering by utility

All three regulated Massachusetts electric companies must support net metering for residential solar systems with inverters rated under 25 kW: Eversource, National Grid, and Unitil. A few municipal utilities don't offer net metering, so if you're served by a Municipal Light Plant, it's worth checking your specific town's rules.

The honest bottom line

For most Massachusetts homeowners, net metering is the single most valuable ongoing solar benefit — bigger over time than SMART or the tax credit. The combination of high electricity rates, full retail credit, and monthly rollover is what makes going solar here genuinely pay. Just be aware the state is actively reviewing the policy, which shifts the calculus toward acting sooner if the numbers work for you.

A closer look at how credits accumulate

Net metering works on a monthly cycle, and understanding that cycle helps you see its real value. During long summer days, a well-sized system often produces far more than the home uses, and those surplus kilowatt-hours become credits at the full retail rate. In the short, dark days of a New England winter, the home draws more from the grid than the panels produce, and the banked summer credits offset that draw. Over a full year, a properly sized system can offset the large majority of a home's electricity cost this way. This seasonal banking is exactly why net metering is so valuable in Massachusetts specifically, where the swing between summer and winter production is dramatic.

Why the policy review matters so much

The Department of Public Utilities docket examining net metering credit value is the single most important policy development for Massachusetts solar in 2026. Other states that reduced net metering — California cut it by roughly 75%, Illinois by about 50% — saw the economics of new solar change substantially overnight. Systems that interconnect before a change generally get grandfathered at existing rates for a long term, often 25 years. This is not a scare tactic; it is a genuine, documented reason that the timing of your decision carries real financial weight. If the numbers already work for your home, waiting has a real potential cost.

Net metering versus other compensation models

It helps to understand what Massachusetts homeowners would be giving up if full retail net metering were reduced. Under full retail net metering, an exported kilowatt-hour is worth the same as one you buy — around 31.5 cents. Under the "avoided cost" or wholesale models some states have moved to, that same exported kilowatt-hour might be worth only a fraction of retail. On Massachusetts's high rates, that difference compounds into thousands of dollars over a system's life. That is the stake in the current policy review, and why locking in today's terms has value.