Thanks to high electricity rates and strong solar policies, Massachusetts is one of the best states in the country for solar savings. Recent changes to one of those policies is making solar panels a better deal for more homeowners in the Bay State.
Massachusetts electric distribution companies were recently required by a 2022 law to raise the size limit on solar installations that qualify for net metering at nearly the retail rate from National Grid, Eversource, and Unitil. That limit has moved from 10 kilowatts (AC) to 25, allowing homeowners to cover growing electricity demand at home and still save money.
Here’s what you need to know.
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What Changed With Net Metering in Massachusetts?
Net metering is one of the ways solar panel owners get compensated for the electricity they generate and don’t use in their home. Under true net metering, every kilowatt-hour of electricity you send to the grid earns you a credit on your electric bill worth the retail rate of one kilowatt-hour of electricity. In Massachusetts, the electricity you send to the grid earns you one-to-one credits on your bill that month, and any credits you carry forward into the next month have a slightly lower value.
Until recently, solar systems over 10 kilowatts in size would receive a reduced net metering rate (60% of the full value). Thanks to changes required by the Department of Public Utilities, that limit is now set at 25 kilowatts (AC). Systems larger than 25 kilowatts can still apply for the reduced net metering rate.
Exceptions to the Single Parcel Rule
Massachusetts also introduced exceptions to its “single parcel rule,” which limited each parcel of land to one net metered system. Exceptions now exist for solar systems on separate roofs and low- and moderate-income housing. There are also exemptions for systems serving separate customers under the same roof and those added less than a year after the last system on the parcel was added.
These exceptions open more rooftops up to solar panels and the savings they can deliver.
Why Are These Changes Important?
If you’re considering solar panels at home, the changes to Massachusetts net metering policies increase your options for meeting your needs. As heat pumps and electric vehicles become more common, home electricity use is likely to rise. Larger solar panel systems can meet more of that electricity demand. A higher net metering rate can help people more affordably charge their vehicles and cool and heat their homes.
If you’ve installed solar under the previous cap, you’ll be able to expand your system to meet new demand at home without sacrificing the higher net metering rate.
If you’re interested in learning more about the benefits of solar at your home, estimate your savings with Palmetto’s solar savings calculator.
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Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
