Info about Distributed Solar Charges from National Grid

Post date: Mar 13, 2019 3:39:13 PM

**This notification is being sent to Mayors, Town Administrators, & City Managers in Central & Western MA.**

**Please share with anyone else within your municipality who should be aware of this information.**

As of November 26, 2018, most Massachusetts electric customers were given the opportunity to apply for a new statewide solar incentive program called “SMART.”

SMART is an acronym for Solar Massachusetts Renewable Target. It is a long-term, sustainable solar incentive program designed to promote cost-effective solar development in the Commonwealth of Massachusetts. This program is sponsored by the Massachusetts Department of Energy Resources (DOER).

Following are answers to the FAQ’s that your residents and businesses may have. Please reach out to our team with any further questions.

1. What is the new “Distributed Solar Charge” shown on my electric bill?

This charge was added to customer bills starting in January 2019. All investor-owned electric utility customers in MA (e.g., Eversource, National Grid, and Unitil customers) are now paying for a new statewide solar incentive program called “SMART.” This program is designed to enable 1,600MW of new distributed solar systems to be installed in the Commonwealth over the next several years. Specifically, the fees collected through this line item on customers’ electric bills will be used to pay incentives to those customers who install solar and battery storage systems.

2. How is the money paid through this new charge used?

The majority of the money collected through this new line item on customers’ electric bills will be paid to those customers who install new solar and/or battery storage systems in the form of monthly incentive checks. The incentive amounts were determined by the state and are designed to help offset the up-front costs of these new systems and to compensate participating customers for the energy and environmental benefits produced by the systems. A small portion of these fees go to participating utilities to cover the costs associated with the administration of the SMART program.

3. ls this a one-time charge or will it be on every monthly bill?

This is a recurring (monthly) charge.

4. Are all customers impacted? Commercial? Residential? Municipal?

This affects all customers that have service through the three investor-owned electric utilities in Massachusetts (National Grid, Eversource, and Unitil), including commercial, residential and municipal customers. Customers whose electric service is provided by a municipal utility are not eligible to participate in the SMART program, and so those customers do not contribute to the funding of it.

5. By how much will this increase my bill?

The effects on billing depend on rate class, listed below. Municipal bills are subject to the same rates (generally “Commercial”) and the rate class can be found on a bill as shown: