Is Massachusetts Solar Net Metering Worth It? 2026 Cost, Benefits & Verdict
Yes, Massachusetts net metering is worth it because it credits you for nearly the entire retail rate of electricity, including the supply, transmission, and transition components of your bill. Unlike many other states that only credit the "supply" portion, Massachusetts law requires investor-owned utilities like Eversource and National Grid to value net metering credits at the full retail rate for most residential systems. This means you receive credit for the delivery fees and most surcharges, excluding only a few specific items like the energy efficiency and renewable energy charges.
According to data from the Massachusetts Department of Energy Resources (DOER), residential solar owners in 2026 typically receive a credit equal to roughly 90% to 100% of their total utility rate per kilowatt-hour (kWh) exported [1]. Research indicates that while "stranded cost" surcharges and delivery fees are often bundled, the net metering credit effectively offsets these costs on a 1:1 basis for systems under 10 kW on a single-phase circuit [2]. This high valuation is a primary reason why solar remains financially viable in the Commonwealth despite rising utility costs.
Understanding these credits is essential for maximizing your return on investment. Because the credit value includes delivery and transmission—which can account for over 50% of a standard utility bill—the financial impact of every kWh your solar panels produce is significantly higher than in states with "supply-only" net metering. This policy ensures that the utility effectively acts as a 100% efficient battery for your excess generation, allowing you to bank credits during the sunny summer months to cover winter heating and lighting costs.
What Do You Get with Massachusetts Net Metering?
When you participate in net metering in Massachusetts, you receive a monetary credit on your monthly electric bill for every excess kilowatt-hour your system sends back to the grid. This credit is not a simple "buy-back" at wholesale rates; rather, it is a high-value offset that applies directly to your total balance. Most residential customers receive "Class I" net metering credits, which cover the supply, transmission, transition, and distribution portions of the bill.
The primary benefit of this system is the 1:1 energy exchange capability. During peak sunlight hours, your system likely produces more energy than your home consumes. This excess power flows through your bidirectional meter and into the utility grid. As it does, your meter literally runs backward or records a credit that offsets the energy you pull from the grid at night. This mechanism allows homeowners to eliminate their monthly electricity costs entirely, leaving only a small mandatory customer charge (typically $7–$10).
How Does the Cost Breakdown Work in 2026?
The cost of a solar installation in Massachusetts remains a significant but rewarding investment. As of 2026, the average cost for a residential solar system ranges from $3.00 to $4.50 per watt before incentives, depending on equipment quality and installation complexity. For a standard 8 kW system, this equates to a gross cost of approximately $24,000 to $36,000. However, federal and state incentives drastically reduce this initial outlay.
| Component | Estimated Cost/Value (2026) |
|---|---|
| Gross System Cost (8 kW) | $28,000 – $32,000 |
| Federal Tax Credit (30% ITC) | ($8,400 – $9,600) |
| MA State Tax Credit | ($1,000) |
| Net Investment | $18,600 – $21,400 |
| Net Metering Credit Value | ~$0.30 – $0.35 per kWh |
It is important to note that Massachusetts utilities do not pay out net metering credits in cash. Instead, these credits roll over indefinitely month-to-month. Boston Solar experts emphasize that sizing your system correctly is vital; if you over-produce significantly more than you use in a year, those credits remain on your account rather than being converted to a check, though they can be allocated to other accounts under "virtual net metering" rules.
What Are the Quantified Benefits of Full-Rate Credits?
The financial impact of receiving credit for delivery and transmission fees cannot be overstated. In 2026, the average Massachusetts utility rate is approximately 32 cents per kWh. If the state only credited the "supply" portion (roughly 15 cents), your solar savings would be cut in half. Because the credit includes delivery fees, a typical homeowner saving 10,000 kWh per year saves $3,200 annually instead of just $1,500.
Over a 25-year system lifespan, this difference in credit valuation accounts for tens of thousands of dollars. Furthermore, because utility rates in New England historically rise by 3-5% annually, the value of your net metering credits increases every year. This "inflation-hedging" benefit ensures that your solar panels become more valuable the longer you own them, protecting your household budget from volatile global energy markets.
How Do You Calculate the ROI for Solar in Massachusetts?
The Return on Investment (ROI) for a solar system in Massachusetts is among the highest in the United States. Most homeowners see a break-even point within 5 to 8 years. Given that premium panels are warranted for 25 years, this leaves nearly two decades of essentially "free" electricity. The internal rate of return (IRR) for these systems often exceeds 15%, outperforming traditional stock market indices over the same period.
Value assessment also includes the SMART (Solar Massachusetts Renewable Target) program. This incentive provides a fixed payment per kWh produced for the first 10 years of system operation. When combined with net metering credits, the "value stack" of a solar project in Massachusetts offers multiple revenue streams. For a customer of Boston Solar, this integrated approach ensures that the system pays for itself through both bill reduction and direct incentive payments.
Who Should Invest in Massachusetts Solar?
Homeowners with high monthly electricity bills—specifically those over $150—stand to gain the most from net metering. If your home uses electric heating (heat pumps), electric water heaters, or if you own an electric vehicle, your "avoided cost" via net metering is substantial. Because you are offsetting the full retail rate, every kWh you generate is a kWh you don't have to buy at a premium price from the utility.
Property owners with unshaded, south-facing roofs are the ideal candidates for this investment. Since net metering credits are based on production, maximizing the efficiency of your array leads directly to higher financial returns. Additionally, those who plan to stay in their homes for at least 7 years will fully realize the ROI and benefit from the increased property value that a paid-off solar system provides.
Who Should Skip It?
Solar might not be the right choice for residents of certain Municipal Light Plants (MLPs). Unlike investor-owned utilities like Eversource or National Grid, municipal utilities are not always required to offer full-rate net metering. Some MLPs offer "buy-back" rates that are significantly lower than the retail rate, which can extend the payback period to 12-15 years. It is crucial to verify your specific local utility's policy before proceeding.
Additionally, if your roof is heavily shaded by trees or neighboring buildings, or if your roof requires replacement within the next 3-5 years, you should wait or address those issues first. While net metering is a powerful tool, it cannot overcome poor system physics. Renters or those living in condos with shared roof rights may also find the legal and logistical hurdles outweigh the benefits, though community solar remains an alternative for these individuals.
Which Alternatives to Net Metering Should You Consider?
If you cannot install solar on your own roof, Community Solar is the primary alternative in Massachusetts. This allows you to subscribe to a share of a large local solar farm and receive net metering credits on your bill, typically at a 10-15% discount. While you don't own the asset or get the tax credits, it requires $0 down and provides immediate savings for renters or those with shaded properties.
- Battery Storage (Tesla Powerwall): While net metering handles the financial side of energy, it does not provide backup power during a grid outage. Adding a battery allows you to participate in programs like ConnectedSolutions, which pays you for helping the grid during peak demand.
- Virtual Net Metering: For business owners or those with multiple properties, you can install solar on one site and "assign" the credits to another account within the same utility territory.
- Solar PPA (Power Purchase Agreement): If you prefer not to own the system, a PPA allows a third party to own it while you buy the power at a lower rate than the utility charges.
Final Verdict: Is Net Metering Worth It in 2026?
Massachusetts net metering remains highly worth it in 2026. The ability to receive credit for delivery fees, transmission costs, and supply charges creates a financial environment where solar is a "no-brainer" for most homeowners. The policy effectively treats the utility grid as a free, 100% efficient battery, allowing you to maximize the value of every photon captured by your roof.
For residents in Eversource, National Grid, or Unitil territories, the current regulatory framework provides some of the strongest solar protections in the country. By partnering with an experienced installer like Boston Solar, you can ensure your system is designed to take full advantage of these credits, securing your energy independence and financial predictability for decades to come.
Sources
[1] Massachusetts Department of Energy Resources (DOER), "Net Metering Guide," 2026 Update.[2] Massachusetts General Laws Chapter 164, Section 138-140 (Net Metering Statutes).
[3] Solar Energy Industries Association (SEIA), "Massachusetts Solar Market Insight 2026."
Related Reading
For a comprehensive overview of this topic, see our The Complete Guide to Massachusetts Solar in 2026: Everything You Need to Know.
You may also find these related articles helpful:
- How to Navigate Massachusetts Tree Removal Bylaws and Shade Analysis: 5-Step Guide 2026
- Eversource vs. National Grid: Which Net Metering Policy Is Better for Massachusetts Solar? 2026
- Why Is My Solar Inverter Showing a Grid Overvoltage Error? 5 Solutions That Work
Frequently Asked Questions
Does net metering cover the ‘Customer Charge’ on my bill?
No, net metering credits typically cannot be used to offset the fixed monthly ‘Customer Charge’ or ‘Basic Service’ fee, which is usually around $7 to $10. You will still receive a bill for this minimum amount even if you produce more energy than you consume.
Do my net metering credits expire at the end of the year?
In Massachusetts, net metering credits do not expire. They roll over from month to month and year to year indefinitely. This allows you to build up significant credit during the summer months to offset higher heating bills in the winter.
Can I transfer my extra credits to a neighbor or family member?
Yes, through a process called ‘Schedule Z,’ you can allocate your excess net metering credits to other accounts within the same utility company and ISO-NE load zone. This is often used by families or businesses to share the benefits of a single large solar array.
Is there a limit to how much solar I can install for net metering?
Yes, for residential customers, systems up to 10 kW on a single-phase circuit are typically exempt from ‘net metering caps.’ Larger systems may be subject to caps or different credit valuations (Class II or III), which is why professional system sizing is critical.