Massachusetts Is Reviewing Solar Net Metering — Here’s What That Means
Massachusetts has one of the strongest solar net metering policies in the country.
For years, that policy has allowed homeowners to receive nearly full retail value for excess solar electricity sent back to the grid.
Now, that structure is officially under review.
In December 2025, the Massachusetts Department of Public Utilities (DPU) opened D.P.U. 25-200, a formal investigation into electric rate design — including how solar net metering credits are valued.
No changes have been adopted, yet. But the formal review process that often precedes policy adjustments has begun.
Understanding what is being evaluated — and how similar reviews unfolded in other states — helps clarify what this moment may mean for homeowners considering solar.
What Is Net Metering?
Net metering allows a solar system to send excess electricity back to the grid and receive bill credits that offset future usage.
Under current Massachusetts regulations (220 CMR 18.00):
- Residential systems qualify for Standard Net Metering Credits for 25 years from the placed-in-service date.
- Credits are valued close to retail electricity rates on a one-to-one basis.
- Credits offset supply, distribution, transmission, and transition charges at retail values.
This near-retail structure is a primary reason Massachusetts solar economics have historically been among the strongest in the country.
While many states have some form of net metering, Massachusetts in recent years has maintained the best net metering incentives in the country, even while other states were reducing their incentives. In fact, Valley Solar has been writing about this for years. (See our Massachusetts Net Metering & Utility Rules guide).
What the DPU Is Reviewing
D.P.U. 25-200 is a formal regulatory proceeding examining electric rate design and cost allocation.
As part of that review, regulators are evaluating whether:
- The current value of net metering credits exceeds system benefits
- Future credit structures should be modified
- Massachusetts’ framework aligns with trends in other states
This proceeding concerns the design of future compensation structures — not the performance of systems already installed under existing rules.
A telling quote from the Docket (pp. 15–16):
“We will consider reductions to the value of the net metering credit…“
The full 27-page Order is publicly available here:
[View D.P.U. 25-200]
What Similar Reviews Led to in Other States
Several strong solar markets have conducted similar reviews in recent years:
| State | Policy Change Year | Approx. Credit Reduction to New Systems | Existing Systems Grandfathered? |
| CA | 2023 (NEM 3.0) | ~ 60 – 75% | Yes |
| NC | 2024 | ~ 30 – 60% | Yes |
| IL | 2025 | ~ 30 – 60% | Yes |
| AZ | 2017 | ~ 30 – 60% | Yes |
| HI | 2015 | Program closed | Yes |
In each case:
- Changes applied only to new systems installed after a defined transition date.
- Systems installed before that date retained their original credit structure.
California provides a recent example.
After its review began, revisions were approved in December 2022 and implemented in April 2023. When the transition deadline was announced, installer pipelines filled rapidly. Many homeowners who waited were unable to interconnect before the cutoff and were subject to the new compensation structure, or no solar at all.
What a Change Could Mean for a Massachusetts Home
To illustrate potential impact, consider a representative Valley Solar homeowner:
Assumptions
- ~9,500 kWh annual electric usage
- ~8 kW solar system
- ~9,500 kWh annual production
- ~33¢/kWh all-in electric rate
- 25-year system life
Under Today’s Net Metering Rules
- Exported energy credited near retail value
- Annual electric bill offset: approximately $3,200 – $4,000
- 25-year projected savings: ~ $80,000 – $100,000
If Export Credits Were Reduced
If excess electricity were credited at substantially lower levels (as seen in other states):
- A portion of production would receive lower compensation
- Annual bill offset would decline
- 25-year projected savings could fall into the $40,000–$50,000 range
- Payback periods would extend
While no such reductions have been adopted in Massachusetts, this illustrates how a reduction in net metering credit value could impact long-terms solar savings.
Why Timing Is Worth Understanding
Regulatory proceedings take time.
Any revisions would require formal approval and implementation.
In other states, once changes were finalized, transition deadlines were firm — and installer capacity tightened quickly.
For homeowners already considering solar, understanding eligibility under today’s framework simply provides clarity before potential changes are finalized.
A Practical Next Step
Policy reviews introduce uncertainty for future installations.
For homeowners considering solar, the most practical step is simply to evaluate eligibility under the current net metering framework.
Valley Solar provides a no-obligation assessment reviewing:
- Your home’s solar potential
- Projected savings under today’s rules
- Timeline for design, permitting, and interconnection
- What would be required to qualify before any future changes
Massachusetts’ current regulations remain in place.
Projects completed and approved under today’s framework qualify accordingly.
If you would like to understand where your home stands, we’re happy to walk you through it.