- Massachusetts residential power runs about 30.21 cents per kWh (EIA, as of March 2026), among the highest in the country, so the bill National Grid solar offsets is large.
- The net-metering cap does not block a typical home system: Class I solar systems of 25 kW or less are cap-exempt and can net meter even when the utility’s cap is full (Mass.gov net-metering guide).
- Net metering credits exports at close to the retail rate, built from your tariff’s components, not a guaranteed one-for-one match, and credits roll forward (National Grid solar).
- The annual true-up is lower: any year-end surplus is settled at an avoided-cost rate below retail.
- SMART is now version 3.0: for a small residential system (25 kW or less) the base SMART incentive is a flat $0.03/kWh ($0.06/kWh for income-eligible homes), paid on top of your net-metering credits rather than netted against them, and a battery can add a storage adder (Mass.gov SMART 3.0).
- National Grid serves roughly 1.3 million electric customers across central and eastern Massachusetts, including the Worcester area.
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
If National Grid is your electric utility in Massachusetts, this is how rooftop solar pays you back in 2026, and the truth about the net-metering cap you may have read about. National Grid credits the power you export under the state’s net-metering rules, and as one of the SMART program administrators, it also handles that incentive. Massachusetts has some of the highest power prices in the country, which is what makes solar worth it. Here is what National Grid pays, whether the cap affects you, and how to tell if your home is a good fit.
National Grid Massachusetts at a glance
National Grid runs the net-metering and interconnection process in its Massachusetts territory and administers SMART for its customers.
| Detail | What to know |
|---|---|
| Service territory | Central and eastern Massachusetts, including the Worcester area, plus Nantucket |
| Electric customers | Roughly 1.3 million in Massachusetts |
| Net-metering cap | Class I systems up to 25 kW are cap-exempt, so a typical home is not blocked |
| Net metering | Credits near the retail rate, built from tariff components; credits roll forward |
| Annual true-up | Any year-end surplus settled at a lower avoided-cost rate, not retail |
| SMART incentive | National Grid is a SMART administrator; SMART 3.0 pays a flat ~$0.03/kWh base for a small residential system, on top of net metering |
| Before you switch on | National Grid must grant Permission to Operate |
| Source | Mass.gov net-metering guide |
Why this matters at National Grid’s rates. Massachusetts has among the highest residential prices in the country, so each kilowatt-hour your roof makes offsets an expensive National Grid kilowatt-hour. That high rate, not a cash rebate, is the main reason solar pays here, with the SMART 3.0 incentive adding a flat per-kWh top-up on top of the bill savings. Estimate your roof’s likely output with NREL’s free PVWatts calculator, since your production sets how much your net-metering credits are worth.
The net-metering cap: does it affect you?
This is the question National Grid customers ask most, and the honest answer is usually no. Massachusetts does set aggregate net-metering caps, limits on how much net-metered capacity each utility must allow, measured as a share of the utility’s peak load, and those caps have filled at times (Mass.gov net-metering guide). But the rule that matters for a homeowner is the exemption: a Class I solar facility of 25 kW or less is cap-exempt, which means it can net meter even when the cap is full (DSIRE). A typical single-family rooftop system is well under that size, so the cap does not block it. The cap and any “cap-full” waitlists mainly affect larger commercial, municipal, and community-scale projects, not standard home solar. If an installer tells you the National Grid cap means you cannot go solar, ask whether your system is over 25 kW, because for almost every home, it is not.
How National Grid credits the power you send back
Net metering is close to retail, but not a flat one-for-one. The credit is built from the parts of National Grid’s tariff, the supply, transmission, and certain delivery charges, which National Grid describes as nearly equal to retail rates rather than an exact match of every line item (National Grid solar). Credits are tracked in dollars and roll forward from month to month, and at the annual true-up any leftover surplus is settled at a lower avoided-cost rate rather than the retail value. Because that year-end rate is below retail, the smart move is to size a system close to your annual usage rather than oversizing it. For the mechanics of export credits, see how net metering credits your solar exports.
| What you earn | How it is valued | Who receives it |
|---|---|---|
| Monthly net-metering credits | Near retail, built from tariff components, rolled forward | The National Grid account holder |
| Year-end surplus | A lower avoided-cost rate, below retail | The account holder |
| SMART payments | A flat ~$0.03/kWh for 20 years (small residential), paid on top of net metering | The system owner |
To see how the bill credit lowers your monthly cost, read how solar lowers your electricity bill, and to weigh payback, see the financial case for whether solar panels are worth it.
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SMART on a National Grid account, and what changed
National Grid is one of the three SMART administrators, and the program has moved to SMART 3.0. SMART, the Solar Massachusetts Renewable Target program, is run through National Grid, Eversource, and Unitil, and it pays a per-kWh incentive to the system owner for a 20-year residential term (National Grid solar). Here is what changed. The old SMART set the incentive as a base rate minus the value of the energy you generate, and as Massachusetts electricity prices rose that subtraction pushed the net payment for small solar-only systems toward $0.00/kWh. SMART 3.0 replaces that netting for small residential systems (25 kW or less) with a flat base incentive, set at $0.03/kWh for 2026, or $0.06/kWh for income-eligible homes, paid on top of your net-metering credits rather than subtracted from them, and state rules floor it at $0.01/kWh so it is never zero (Mass.gov SMART 3.0). A battery can add a storage adder on top of that. One 2026 timing note: after the Department of Public Utilities approved the SMART 3.0 model tariff in May 2026, National Grid is finalizing its own company-specific tariff, so confirm the current value and start date for your territory with your installer. The payment goes to the system owner, so on a lease or PPA the company that owns the panels collects it.
How to connect solar to National Grid in Massachusetts
Connecting a home system to National Grid follows a set order, and the key rule is that you cannot turn the system on until National Grid grants Permission to Operate. The general path is:
- Interconnection application. You or your installer submit an application through National Grid’s online Distributed Generation portal for Massachusetts.
- Review and approval. National Grid screens the system; most small residential systems qualify for the simplified review path, and National Grid issues an interconnection agreement.
- Install and inspect. The system is installed and passes your local electrical inspection.
- Meter set. National Grid installs or reconfigures a bidirectional net meter.
- Permission to Operate. National Grid issues Permission to Operate. The system may not run in parallel with the grid before this.
A licensed installer normally manages this whole process for you, along with your SMART enrollment. For the questions to ask, see the right questions to ask a solar installer.
The rest of Massachusetts’ solar benefits on a National Grid account
Beyond net metering and SMART, Massachusetts gives National Grid customers the same statewide benefits as any other utility’s customers:
- A state income-tax credit (Schedule EC) worth 15% of net expenditure, up to $1,000.
- A 100% sales-tax exemption on qualifying solar equipment, off the 6.25% rate.
- A 20-year property-tax exemption on the added home value from a qualifying solar system.
The state credit and the SMART payment go to the system owner, so on a lease or PPA the company that owns the panels keeps them, while the net-metering bill credit still follows your account. These benefits stack on top of net metering and the SMART 3.0 incentive, which is what keeps Massachusetts a strong solar state.
What changed federally, and what it means for National Grid customers
The federal homeowner credit is gone, but Massachusetts’ programs are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a National Grid customer who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ; SEIA). Net metering, the state income-tax credit, and the tax exemptions were not affected, and at Massachusetts’ high rates the bill offset alone is substantial. For the full timeline, see what the federal solar tax credit change means in 2026.
One federal exception exists, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner, and it runs for projects placed in service through 2027, with a begin-construction safe harbor by July 4, 2026 (IRS Clean Electricity Investment Credit; SEIA tax policy). For a leased system on a National Grid account you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025.
How to choose a solar installer in National Grid territory
Central and eastern Massachusetts is a deep solar market, so you have many licensed installers to compare. Rather than chasing a “best” list, screen any installer against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid Massachusetts Home Improvement Contractor (HIC) registration and electrical licensing.
- A clear workmanship and equipment warranty in writing.
- Real experience with National Grid interconnection and the current SMART values, so the paperwork and Permission to Operate go smoothly.
- A written production estimate and a transparent quote that uses the current SMART rate, not an old one. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Looking at the specifics? See local solar guides for Lowell, Woburn, Lawrence, and Fall River in this service area.
Frequently asked questions
Does the Massachusetts net-metering cap stop me from going solar with National Grid?
Almost certainly not. Massachusetts does cap how much net-metered capacity each utility must allow, and those caps have filled at times, but a Class I solar system of 25 kW or less is cap-exempt and can net meter even when the cap is full (Mass.gov net-metering guide). A typical home system is far under 25 kW, so the cap does not block it. The cap and any waitlists mostly affect larger commercial, municipal, and community-scale projects, not standard residential rooftops, so for nearly every homeowner the cap is not a barrier.
How does National Grid net metering work in Massachusetts?
National Grid credits the power you export at close to the retail rate, built from the supply, transmission, and certain delivery parts of its tariff, which it describes as nearly equal to retail rather than a flat one-for-one match (National Grid solar). Credits are tracked in dollars and roll forward month to month, and at the annual true-up any leftover surplus is settled at a lower avoided-cost rate. Because that year-end rate is below retail, sizing a system close to your yearly usage gives the best result.
What happened to the federal solar tax credit?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act. A National Grid customer who buys solar in 2026 with cash or a loan cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. Massachusetts net metering and the state incentives were not affected. See our guide on what the federal solar tax credit change means in 2026.
Does National Grid still pay the SMART incentive?
National Grid is one of three Massachusetts utilities that administer SMART, with Eversource and Unitil, and it pays a per-kWh incentive to the system owner over a 20-year residential term (Mass.gov SMART 3.0). The important 2026 change is how the amount is set. The older SMART subtracted the value of the energy you generate from the base rate, which drove the net payment for small solar-only systems toward $0.00 per kWh as electricity prices rose. SMART 3.0 replaces that for small residential systems (25 kW or less) with a flat base incentive of $0.03 per kWh for 2026, or $0.06 per kWh for income-eligible homes, paid on top of your net-metering credits, and state rules floor it at $0.01 per kWh so it is never zero. Pairing a battery can add a storage adder. National Grid is finalizing its own SMART 3.0 tariff after the state’s May 2026 model-tariff approval, so ask your installer to confirm the current value for your territory.
How do I connect solar to National Grid?
You or your installer submit an interconnection application through National Grid’s online portal, National Grid screens and approves it, the system is installed and passes a local inspection, National Grid sets a bidirectional meter, and then National Grid issues Permission to Operate (Mass.gov net-metering guide). You cannot turn the system on until you have that authorization. Most small residential systems qualify for a simplified review path, and a licensed installer normally handles the paperwork and your SMART enrollment for you.
Do I qualify for National Grid solar credit if I lease or sign a PPA?
Net-metering credits follow the National Grid account, so the account holder sees them whether you own, lease, or sign a PPA. The SMART payment and Massachusetts’ state credit and tax exemptions go to the system owner, so on a lease or PPA the third-party company keeps them, while your benefit is a lower or fixed power price with no up-front cost. If you want SMART and the state credit in your own name, owning the system through cash or a loan is the path that captures them.
Reviewed by the MySolarFY team. Figures were verified against the linked Massachusetts (Mass.gov / DOER / DPU, National Grid) and EIA and IRS sources as of June 2026; net-metering true-up rates, the net-metering caps, and the SMART value reset over time, so confirm current terms with National Grid and Mass.gov before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the SMART payment and tax benefits go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
