Press Release: 2024-12-02
DPU Expands Net Metering Program
The new orders improve net metering, increasing access and energy independence for residents
FOR IMMEDIATE RELEASE:
11/29/2024
MEDIA CONTACT
Alanna Kelly, Communications Director
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Call Alanna Kelly, Communications Director at 857-283-3794
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Email Alanna Kelly, Communications Director at alanna.kelly@mass.gov
BOSTON — Today the Massachusetts Department of Public Utilities (DPU) issued two orders expanding access to solar power for residents. The first order revises regulations to increase the project size threshold for participating in the state’s Net Metering Program without being subject to the net metering cap. Specifically, the updated regulations increase the threshold for facilities to net meter without a cap allocation from 10 kilowatts (kW) to 25 kW, resulting in these facilities’ eligibility for a higher net metering credit value. The second order implements a range of exceptions to the Single Parcel Rule that previously allowed only one net metering facility for each individual parcel of land. These changes expand access to the Net Metering Program for Massachusetts residents, including low- and moderate-income households. The Net Metering Program is important to help advance renewable energy around the state and achieve our shared climate and energy goals.
For these revisions to be fully implemented, the electric distribution companies (EDCs)--Eversource, National Grid, and Unitil—must submit new tariff filings to the DPU in January 2025. Once the filings have been submitted, the DPU will commence proceedings to update the tariff provisions. Eligible customers are able to contact their electric company to proactively be reclassified once the regulations are published in the Massachusetts Register in December.
For exceptions to the Single Parcel Rule, customers will soon be able to submit a self-certification form with supporting documentation to the Cadmus Group, Inc. (Cadmus), the reviewer contracted by the DPU, to claim applicable exceptions. Cadmus will review the forms to ensure compliance with the expanded program. This process will streamline the process for customers, rather than having each facility submit forms directly to the Department.
“The updates to the Net Metering Program will allow more people, businesses, and municipalities to take advantage of the many benefits solar energy has to offer,” said Chair James Van Nostrand. “Customers can further cut their energy costs, driving more affordability in our clean energy transition.”
“We’re able to advance our progress toward an equitable clean energy transition with these updated regulations,” said Commissioner Cecile Fraser. “The Net Metering Program is now strengthened to meet the needs of both residents and solar generators alike.”
“Net metering is a significant program that advances renewable energy and is key to our clean energy transition,” said Commissioner Staci Rubin. “The updates in these orders bring greater equity to the Program, improving customers’ access to clean, renewable energy.”
New Net Metering Regulations
The revisions to the Net Metering Program apply to certain residential and business solar generators and may increase their savings.
The updated regulations revise the definition of cap-exempt facility and add two new definitions, Nameplate Cap Exempt Facility and Cap Exempt Facility Serving On-site Load, to distinguish between the cap-exempt facility types. Previously, only those facilities 10kW or less could net meter without first securing a cap allocation. Now, eligible facilities between 10 and 25kW, now referred to as Nameplate Cap Exempt Facilities, can net meter without needing to secure a cap allocation. Additionally, eligible facilities between 26 and 60kW can net meter without a cap allocation as long as they serve on-site energy load and have an interconnection service agreement dated January 1, 2021, or later. These types of facilities are referred to as Cap Exempt Facilities Serving On-site Load. Now, customers with facilities such as residential rooftop solar can increase the size of their facilities to support efforts such as heating and transportation electrification while continuing to generate net metering credits.
Single Parcel Rule
The DPU revised the Single Parcel Rule to include specific exceptions outlined by the legislature. Including these exceptions will allow multiple solar net metering facilities on one piece of land, expanding the benefits of solar across the board. A single parcel is one piece of land based on the boundaries recorded at the Registry of Deeds; examples of exceptions include situations where there are solar facilities on more than one building or housing developments on a single parcel or solar facilities connected to more than one meter on a single building. The revisions will have a positive impact, especially for residents living in affordable housing units, condos, or townhouses on a single parcel. Residents will soon be able to easily generate their own renewable energy with these barriers removed.
In the order, the DPU established a self-certification process and form for eligible facilities. This allows them to claim a statutory exception that permits multiple solar net metering facilities to be located on a single parcel of land. The order also provides guidance on the definitions of the exceptions and supporting documentation that customers must provide if seeking an exception.
Under the expanded program, customers can apply for the following exceptions:
- Government-Owned Parcel: net metering facilities on land that is government-owned, as long as all the facilities on the parcel do not collectively generate more than ten megawatts;
- Low-or Moderate-Income Housing: net metering facilities are on land comprised of low- or moderate-income housing, as long as all the facilities on the parcel do not collectively generate more than ten megawatts;
- Separate and Distinct Rooftops: each net metering facility is on a separate and distinct rooftop where no two systems are on the same rooftop, as long as all the facilities on the parcel do not collectively generate more than two megawatts;
- Separate Customers under the Same Rooftop: net metering facilities under the same rooftop but are connected to separate and distinct customers, as long as all the facilities on the parcel do not collectively generate more than ten megawatts; or
- Additional Facility No Less Than One Year: net metering facilities that are installed at least one year from the last net metering facility placed into service on the parcel, as long as all the facilities on the parcel do not collectively generate more than two megawatts.
The DPU discontinued the Rooftop Cap Exempt Blanket Exception because the expanded program will allow for these configurations. The DPU also eliminated the Subdivision Rule, which was originally adopted to prevent subdividing a piece of land exclusively to allow multiple net metering facilities.
In lieu of a formal application process conducted by the DPU, customers can provide a self-certification form and supporting documentation to Cadmus to demonstrate that they are eligible for any of the five exceptions. Additional program guidance and application fees will be finalized in the coming months.
About the Net Metering Program
The Net Metering Program is important to strengthen the generation and use of renewable energy in the state. The program allows customers to offset their energy use and send any excess energy they generate back to their EDCs in exchange for credits, which can be applied to their energy bills.
The state’s Net Metering Program is a renewable rate initiative available to customers of the three EDCs who generate their own electricity using renewable energy sources. Most Net Metering facilities utilize solar power, though some are powered by wind, anerobic digestion, or small hydroelectricity technologies. These facilities are connected to a meter that measures the net amount of electricity used and provides a customer with monetary bill credits if energy generated exceeds load consumed in a billing period. Typical examples of net metering facilities are solar panels installed on a home or commercial building, or a wind turbine at a school.
The DPU implemented these new rules to implement the legislature’s “An Act Driving Clean Energy and Offshore Wind.” The net metering order marks the DPU’s second update to these regulations in 2024 alone. In February, the DPU updated the net metering regulations to comply with 2021’s Climate Roadmap law. The DPU staff worked expeditiously to complete proceedings on both the net metering regulations and the Single Parcel Rule.