Net Metering Programs in Massachusetts
Energy costs are on the rise across the country, and Massachusetts residents have felt this over the past few years. And while solar energy systems have a 6- to 10-year payback period—the time it takes for you to break even and start saving money after you pay for your solar system.
In Massachusetts, where solar renewable energy certificates (SRECs) programs are now closed to new solar panel systems, the net metering program offers great saving opportunities. Massachusetts net metering results in a 1:1 exchange, or “true net metering,” which means that every credit customers receive for pushing excess energy (measured by kilowatt-hour) back onto the grid comes at an exact exchange rate of what it would be to pull the energy from the electric grid.
How Does Net Metering Work? As mentioned above, net metering is the process of receiving credit toward your electric bill for any excess energy generated from your solar energy system. It’s a win for users, especially during the summer when electricity costs can increase dramatically due to air conditioning use. Net metering is also a win for the environment since users are working together to take advantage of the energy that is produced without letting any go to waste.
To help optimize your solar use with the times your panels may produce the most energy, you can take advantage of peak hours. This means you would operate and complete any activities that require the most amount of energy during the day.
You can also position your solar panels to roof panels that face southwest. Some localized rebate programs require specific positioning of solar panels, so make sure to pay attention to the program specifics. For example, the Shrewsbury Electric & Cable Operations Solar Rebate Program requires panels to face between 90° (east) and 270° (west). Qualified solar installers can position your panels for optimal sunlight.
Massachusetts has classified its net metering into different sections depending on how much power each type of facility generates. To qualify for net metering, the facility must fall into one of the three categories. According to the Database of State Incentives for Renewables and Efficiency, most Massachusetts residents can take advantage of some type of net metering program since “the state’s investor-owned utilities are required to offer net metering.”
Net Metering Rules
There is a participation cap in Massachusetts’ general net metering program, and there are separate caps for public and private net metering facilities in the general net metering program. Private and public cap allocation is set according to the percentage of each electric company’s highest historical peak load or the most electricity used by electricity customers at any given time.
Some entities are not eligible for net metering credit. A customer of a municipal electric company would need to contact the electric company to see if they are eligible to become net metering facilities or net metering host customers. Massachusetts Solar Buyback Plans
When it comes to electricity, Massachusetts is a deregulated energy state, which means that customers have a choice of which electric company they want to purchase energy from. Retail electricity providers (REPs) buy electricity and offer it to customers at a reasonable basic service rate. Users have the option to add renewable energy sources, like wind or solar.
Enrolling through Just Energy can also provide fixed-rate electricity plans that do not change despite market fluctuations or a variable-rate electricity plan depending on your preferences and needs.
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Solar Massachusetts Renewable Target (SMART) Program
The Solar Massachusetts Renewable Target (SMART) Program allows customers to receive payments from their electric company for every kilowatt-hour of solar power they generate for a decade. Credits are paid directly by the utility to the solar owners once a solar program administrator and the Department of Energy Resources approve their application. To benefit, you must be a customer of one of three associated investor-owned utility companies in Massachusetts—Eversource, National Grid, and Unitil. A solar system owner can also apply for low-income or agricultural-specific programs.
The potential savings depends on the size of the solar panel system and your electricity company. Additional resources and information about Massachusetts solar incentives can be found on the Massachusetts Department of Energy’s website.
For residents looking for local, town-specific options, there are rebate programs available to further help offset your solar panels cost. For example, Shrewsbury Electric & Cable Operations Solar Program or the Town of Ipswich Electric Light Department Solar PV Rebate Program both offer regionally specific rebates with incentives up to $3,000. These programs include stipulations as to what solar systems are eligible for the full incentive.
Not a Homeowner? Here Are Some Solar Buyback Plan Options
Many Massachusetts residents think that only those who own their own homes can benefit from solar buyback programs. This is not true—renters have options. For example, if you are a National Grid customer, you can enroll in a community solar program. The user agrees to purchase clean energy from a local energy plant at a discounted rate and then receives a credit on their utility bill.
If you are a commercial property owner or own an apartment building that you are renting out, Property Assessed Clean Energy (PACE) Massachusetts can help. Apartment buildings with 20 rental units or more can apply for a competitive solar loan with lower interest rates to update their solar panels. You can explore options as to whether community solar, direct ownership, or leasing is right for you based on the location of the solar energy system.
Benefits of Solar Buyback Plans
The benefits of a solar buyback plan go beyond cost savings. automatically more independent, especially during peak usage times when the local or national grid may be stressed and blackouts are more likely to occur. This can be especially true during storm systems (rain or snow). Energy independence simply means that residents are relying on themselves to create and share their own energy and less on a utility provider alone. Plus, when other utility costs increase, solar owners are rarely affected, especially if they have completed their payback period.
The value of the home may increase, too, especially with the state’s property tax exemption, which ensures that for two decades, renewable energy is not subject to local property taxes. Add to that the fact that Massachusetts homeowners’ solar system purchases benefit from a sales tax exemption, and it’s clear that upfront solar costs are well worth the investment.
Consumers in the market for a solar panel system may want to invest in backup power when outages occur. Purchasing a battery system to pair with their solar panels system will enable them to store energy whenever it is needed.
Of course, in addition to savings on energy costs, going solar helps benefit the environment. Efforts are being made to ensure that solar panel water runoff and solar sites that host panels on the ground (non-residential roof systems) are not harming the environment.
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Conclusion
Massachusetts has a number of solar buyback programs that offer different opportunities to save, and some are not just for homeowners. Beyond the extra money in your pocket, solar buyback programs are better for the environment and help in reducing our overall carbon footprint, not only within the state of Massachusetts, but throughout the country. Investing in solar energy is a decision that requires research and cost-comparison analysis, but the payoff of an initial investigation can result in long-term savings. With net metering, you can become a host customer, save more energy, and send surplus energy back to the electric grid through your utility company so it can provide primary or auxiliary power to others who need it.
