Have you recently stumbled across a news article, email, or blog post about Net Metering Caps in Massachusetts? Don’t be discouraged. Chances are the net metering caps do not actually apply to your residential solar installation. Even so, net metering caps are a pressing issue in the solar industry, and here in Massachusetts, right now.

With so many different messages going around about this topic, we wanted to take some time to discuss what this is and what it means for any solar projects you are considering installing at your home or small business.

(Scroll to the bottom to see the RI update.)

Net Metering

Net metering allows customers to offset their electricity usage with power they generate from solar, wind, and other renewable energy sources. While net-metering has been available since the 1980s, in 2008 Massachusetts net metering policy was significantly revised via the Green Communities Act to stimulate the development of renewable energy resources. Under current policy, when a customer installs solar, a special retail or “net” meter is also installed. This meter spins forward when the customer consumes electricity from the grid and it spins backward when the customer generates excess electricity or “exports” electricity to the grid. At the end of a billing period the customer is billed or credited for the net difference between what they have consumed and what they have generated.

For customers interested in solar, net Metering is an important factor to consider when calculating the economic benefits of a solar installation.

Net Metering Cap

Under Massachusetts state law [1], investor owned utilities (e.g., Eversource, National Grid, and Unitil) are required to maintain separate net metering caps – one for public and one for private facilities. The caps limit the amount of net-metering IOUs the utility can accept into their program as a percentage of their historical peak load, or the most electricity consumed by a utility’s customers at any one time.

What’s happening now?    

In March National Grid, whose service territory hosts more suitable sites for large projects, reached both its public and private caps and is currently placing new applications on a waitlist. Other investor owned utilities are further away from reaching their caps.

It is uncertain whether this cap will be raised again. Legislators, the utility companies and solar industry stakeholders have long been at odds over the best long-term framework for solar energy in Massachusetts. Although Mass Energy supports increasing the cap or suspending it, electric utilities and the Baker Administration are opposed to doing so until major changes are made to our state’s net metering program and its Solar REC program. There have been several bills proposed to raise/eliminate caps, but a sustainable and comprehensive solution has yet to be agreed upon.  

What does this mean for my home or small business?

While this information might seem unsettling to those considering installing solar we have good news: you probably won’t be impacted by Net Metering Caps at all, even if you live in National Grid territory. That’s because, under Massachusetts General Law, net metering caps do not apply to most systems sized for residences and small businesses. The law states that systems “equal to or less than 10 kilowatts on a single-phase circuit or 25 kilowatts on a 3-phase circuit” are exempt from caps[2]. 

The majority of residential projects are smaller than 10 kW and operate on single phase circuits. Single-phase is the type of distribution found in most residences where loads are primarily lighting and appliances. Although in some instances (large condominium complexes, older homes, homes with woodshops, etc.) homes might be served by a 3-phase circuit, a type of distribution that can handle heavier loads.

What can you do?

Don’t be deterred. If you are interested in installing solar on your home or small business you shouldn’t let talk of net metering caps stop you. 

See if solar is a good option for your home or small business.

Mass Energy, in partnership with the Massachusetts Clean Energy Center and Direct Energy Solar is currently offering our members and affiliates a special low rate for installing panels through Mass Solar Connect, a group-buying campaign.

If you are interested in participating in this program you can take the first and step and sign-up for a no-cost, no-obligation solar assessment to review your property’s solar potential and determine if solar is a good option for you!

Participate in the legislative process.

The role of solar in Massachusetts’ clean energy future, and particularly the issue of net metering caps will be a top priority for decision makers this legislative session. On Tuesday, June 2, 2015 the Joint Committee on Telecommunications, Utilities and Energy (TUE) will hold a hearing on solar policy. The Committee is looking for input and ideas regarding the future of solar in Massachusetts, including what to do about the problematic cap on net metering.

Joint TUE Committee Hearing on Solar Policy in Massachusetts

• Tuesday, June 2, 2015 @ 1PM
• MA State House - Gardner Auditorium

And as always, tune in regularly to the Mass Energy blog where we will keep you updated as policy discussions progress.

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[1] Municipal electric companies are not obligated to adopt the net metering rules issued by the Department of Public Utilities and the policies around net metering vary in those communities.

[2] M.G.L. Ch. 164, section 139, subsection (i): “A Class I net metering facility shall be exempt from the aggregate net metering capacity of facilities that are not net metering facilities of a municipality or other governmental entity under subsection (f), and may net meter if it is generating renewable energy and the nameplate capacity of the facility is (1) equal to or less than 10 kilowatts on a single-phase circuit or (2) 25 kilowatts on a 3-phase circuit.”

Net Metering in Rhode Island

In RI, net metering is not currently a contentious issue for residential systems. The net metering cap has not been reached and the state’s new Renewable Energy Growth program is beginning to stimulate residential solar installations. For questions about ways People’s Power & Light is working to advance solar in RI contact Kat Burnham. For more details about solar resources in RI visit the following sites:

Commerce RI (handles the Renewable Energy Fund (REF) that provides grants and loans for renewable energy projects.

Solarize Rhode Island is modeled after the successful Solarize Mass program, encourages PV systems with a tiered pricing structure to increase savings and make solar more accessible.

Office of Energy Resources of RI provides a great overview of resources to find incentives and assistance to install solar

You can also contact your legislators and urge them to support the RI Infrastructure Bank proposed by Treasurer Magaziner. If passed the RIIB will be a great resource for the renewable energy funding and can coordinate participation in the Property Assessed Clean Energy (PACE) Program.