How does National Grid’s net metering work?

National Grid's net metering program allows customers who generate power on-site through solar panel systems to financially balance out the total amount of energy generated by the customer with the amount of energy bought from National Grid. As renewable energy sources are intermittent, this allows customers to still meet their electricity needs at all times.

Where does National Grid offer net metering?

National Grid operates in Massachusetts and New York (Upstate). Net metering is available throughout National Grid’s service territory.

What are National Grid’s rates and prices for net metering?

Massachusetts

When a customer exports or feeds more power back to the grid than they use, they qualify for net metering credits. The value of the credit depends on the size of the customer’s solar panel system, and can be viewed on National Grid's website.

For customers with solar panel systems under 1,000 kW, the net metering credit is determined by multiplying the number of kilowatt hours (kWh) exported back to the grid by the sum of Supply Costs, Distribution, Basic Service, Transmission, and Transition. Most residential systems are under 20 kW, so they fall under this category.

New York

Residential net metering on solar panel systems up to 25 kW is available through National Grid in New York. When a customer exports more energy than they use in a given month, they receive credits on their bill that are calculated by multiplying Supply Costs, Delivery, Market Settlement, State Assessment, and System Benefit charges by the number of excess kWh. The residential rate varies by month and can be viewed on National Grid's website.

What is National Grid’s net metering cap?

Massachusetts

The net metering cap of a utility represents how many solar (or other renewable energy) installations can participate in the net metering program. As of April 2016, the net metering cap for Massachusetts limits net metering to 7% of a utility’s historical peak load for private customers and 8% for public entities.

National Grid’s cap is 359.19 MW for private customers and 410.54 MW for public entities. However, systems that have a nameplate rating less than 10 kW on a single-phase circuit or 25 kW on a three-phase circuit are exempt from the net metering cap. Most residential homes have a single-phase circuit – so, if your system is over 10 kW, there’s a good chance the net metering cap will apply.

New York

In March 2017, New York State transitioned away from a “peak load” based cap. Now, the net metering cap is determined by calculating net metering’s impact on the utility’s net revenue. It is set at 2% of incremental net revenue, which is equivalent to 100 MW. The Public Service Commission requires each utility in New York to report when they reach 85% of their recommended net metering capacity so subsequent action can be determined. The cap is set at 100 MW, so the 85% capacity marker is set at 85 MW.

Is National Grid’s net metering the best in Massachusetts and New York?

Massachusetts

In Massachusetts, other energy companies that offer solar panel net metering include Eversource and Con Edison. These companies, like National Grid, comply with Massachusetts law in regards to net metering. As net metering practices are regulated, the only difference is in price and that is dependent on your location and energy needs.

New York

National Grid is the largest utility in New York based on total megawatts of electricity generation. The next largest is ConEdison, whose electricity service area does not overlap with National Grid. ConEdison, along with Central Hudson, NYSEG, and Orange & Rockland offer net metering programs with similar requirements to National Grid. Based on the total program size for residents within National Grid’s service territory, National Grid’s net metering program is a good choice because of solar net metering availability and scale.

What will happen to my National Grid net metering bill credits?

Massachusetts

In months when customers generate excess energy that is sold back to National Grid, net metering credits are determined by multiplying the excess kWh generated by a customer’s solar panel system by the applicable rate. These credits are calculated and credited to the customer’s account where they accrue as a dollar-value credit on the bill. If these net metering credits are not allocated to National Grid accounts, unused credits will accrue on the account indefinitely. This means that customers should not expect to receive a check or payment as compensation for accrued net metering credits as these credits do not expire.

New York

When customers generate more energy than used, net metering credits are determined by multiplying the excess kWh generated by the current rate. These net metering credits roll over monthly and at the end of the 12 month billing period any excess credits will be converted to a cash value and paid to the customer at SC6 (billing rate) avoided cost rate. Avoided cost rate is the cost National Grid would have incurred had it supplied the power itself.

Does National Grid offer other solar incentives?

Massachusetts

National Grid does not offer any other solar incentives in Massachusetts.

New York

National Grid in New York does not offer any other solar incentives.

National Grid solar interconnection policies and costs

The process of connecting a solar panel system to the grid is known as interconnection. Regardless of your utility, interconnection involves an application process. Your solar installer will usually help you complete your interconnection paperwork.

Massachusetts

Most residential systems generate less than 15kW, making customers eligible for the Simplified Application Process. This involves filling out a simple application form, which is then evaluated by National Grid and receives approval. Depending on review, in some instances there may be modification costs associated with the interconnection process. Owners of systems generating more than 60kW are required to install a dedicated phone line at the meter.

New York

To interconnect a solar panel system sized at 50 kW or less (including most residential systems), the customer’s proposed project plan, equipment, and specifications must be communicated to National Grid to determine the nature of the project. At that point, National Grid will provide requirements and an application package to the customer.

The customer must submit the application and receive initial interconnection acceptance to then install the system. Once the solar panel system is installed, the customer must schedule, conduct, and submit verification/witness testing to receive final National Grid interconnection approval. For systems less that 50kW there is no interconnection fee. If a net meter needs to be installed, there may be a cost associated with it.