Net Metering in Massachusetts: How It Works and What You Actually Earn Back

Net metering is the single most valuable financial benefit of going solar in Massachusetts. It's the program that ensures every kilowatt-hour your solar system produces has real dollar value — not just the electricity you happen to use in the moment your panels are generating it.

But despite being so important, net metering is one of the most commonly misunderstood parts of the solar equation. Homeowners often don't know what rate they're being credited at, how the seasonal balance works, or what happens to unused credits. This guide covers all of it clearly.

I'm Dave Simmer, a NABCEP-trained solar designer based in Scituate. I've helped over 1,800 homeowners across the South Shore understand and maximize their net metering benefits since 2011.

What is net metering?

Net metering is a utility billing arrangement that credits solar system owners for excess electricity their panels send back to the grid. When your solar panels are producing more power than your home is consuming at that moment, the surplus flows to the grid — and your utility credits your account for it.

The result is that your electric meter effectively runs in two directions: it records electricity you pull from the grid, and it records electricity you send to the grid. Your bill reflects the net difference — hence the name.

What rate do you get credited in Massachusetts?

This is where Massachusetts stands out. In many states, utilities credit solar owners at a reduced or wholesale rate for exported electricity — sometimes as low as 4–6 cents per kWh. In Massachusetts, net metering credits are applied at the full retail rate.

That's a significant number. It means every kilowatt-hour your system sends to the grid is worth the same as a kilowatt-hour you'd otherwise have to buy. This full retail credit structure is one of the primary reasons Massachusetts solar economics are so strong compared to other states. Learn how to calculate your solar savings.

How does the seasonal balance work?

Solar production is seasonal — and in New England, that seasonality is more pronounced than in southern states. Understanding how credits flow throughout the year is important for setting realistic expectations (see what to expect after going solar).

Spring and summer: credit building season

From roughly April through August, your solar system will produce at its peak. Days are long, sun angles are high, and panels run at their best. During these months, most systems produce significantly more electricity than the home consumes — and those surplus kilowatt-hours become net metering credits that accumulate on your account.

Fall and winter: drawing down credits

From roughly October through February, production drops. Days are short, sun angles are low, and New England weather reduces solar output. During these months, your home draws more from the grid than your panels produce — and you spend down the credit balance you built over summer.

The annual balance

The goal of good system design is for your annual production to roughly match your annual consumption — so that by the end of a 12-month cycle, your credit balance is near zero and your net electric cost is at or near zero as well. A well-designed system hits this balance. An undersized one leaves you with a bill. An oversized one leaves you with credits you can't use (find out what size solar system do I need?).

What happens to unused credits?

Under Massachusetts net metering rules, unused credits roll over month to month. You don't lose credits at the end of a billing period — they carry forward and continue to offset future bills.

At the end of the annual reconciliation period, any remaining credits may be handled differently depending on your utility and rate class. In most cases, excess credits are either carried forward at a reduced value or compensated at a lower rate. This is one reason oversizing a system beyond your actual usage doesn't necessarily improve your financial return — the marginal credits from excess production may be worth less than the production that offsets your direct consumption.

Does net metering stay with the home if you sell?

Yes — and this is a meaningful long-term benefit. Net metering agreements in Massachusetts are long-term arrangements, typically structured for 25 years, and they transfer with the property when you sell. The new owner steps into the existing agreement and continues receiving credits under the same terms.

This is one of the reasons solar consistently adds resale value to Massachusetts homes (read do solar panels increase home value in Massachusetts?). A buyer isn't just getting panels — they're getting an established net metering agreement with decades of remaining term.

Is net metering at risk in Massachusetts?

This is a question I hear often, and it's worth addressing directly. Net metering policy is set at the state level and has been periodically reviewed by the Department of Public Utilities. There have been discussions over the years about modifying the program — particularly around the credit rate for larger systems.

For residential systems, the full retail rate net metering credit has remained intact through multiple program reviews. Systems that are currently enrolled in net metering are protected under their existing agreements. New installations are subject to whatever the current rules are at the time of interconnection.

My honest read: Massachusetts has consistently maintained strong net metering policy for residential solar, and there's no current indication of changes for residential customers. But it's a policy program, and policy can change — which is another reason to get a system installed and enrolled sooner rather than later.

The bottom line on net metering

Net metering at full retail rate is the engine that makes solar work financially in Massachusetts. The SMART program (see the SMART program guide), state tax exemptions, and ConnectedSolutions are all meaningful — but net metering is where the bulk of your ongoing savings come from, year after year, for the life of your system.

Getting the design right — sizing the system to your actual usage so you're maximizing your net metering benefit without overshooting — is one of the most important things an experienced designer brings to the table.

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