Understanding Your Electric Bill — A Guide for New England Solar Homeowners
Whether you just had your solar panels installed last week or you've been generating clean energy for years, understanding your electric bill can feel like reading a foreign language. Don't worry — we've got you covered. This guide breaks down exactly how your bill works, how New England utilities credit your solar production, and how to make sure you're getting every dollar of savings you deserve.
What's Actually on Your Electric Bill?
Most New England homeowners receive a monthly electric bill. Let's walk through the key pieces you'll see:
Billing Period
Your bill covers a specific date range — usually about 30 days — but it often doesn't line up neatly with the start and end of a calendar month. That's totally normal.
Fixed Monthly Charge
You'll often see this called a Customer Charge, Base Charge, or Distribution Charge. It's the flat fee you pay just to stay connected to the grid — typically somewhere between $10 and $25 per month. Think of it like a connection fee.
⚠️ Heads up: This charge is non-bypassable, meaning your solar credits can't offset it. No matter how much solar you produce, you'll still pay this each month.
Energy Charge ($/kWh)
This is the main charge based on how much electricity you actually pull from the grid. It's measured in kilowatt-hours (kWh) and varies quite a bit depending on where you are in New England. Rates here tend to run higher than the national average — typically $0.18 to $0.35/kWh — which is exactly why solar makes so much financial sense in this region.
Taxes & Fees
Your state, city, or county may tack on additional taxes — usually 0–10% of certain charges. The good news? As your solar panels reduce the energy you pull from the grid, these charges shrink too.
How Are Your Energy Rates Structured?
New England utilities use a few different pricing structures. Here's what each one means for you as a solar homeowner:
Flat Rate
Simple and straightforward — you pay the same rate per kWh no matter how much you use. If your rate is $0.22/kWh and you use 500 kWh from the grid, your energy charge is $110. Solar reduces the kWh you pull, so every kWh your panels produce saves you at that flat rate.
Tiered Rate
With a tiered plan, the more you use, the more you pay per kWh. The first "tier" of usage is cheaper, and additional tiers cost more. Solar is especially powerful under tiered pricing because it knocks your usage down — potentially dropping you into a lower, cheaper tier.
💡 Example: Eversource and National Grid in Massachusetts often use tiered rate structures. If solar keeps your usage under the first tier threshold, you'll always pay the lowest rate for any grid electricity you do use.
Seasonal Rate
Some utilities charge more in summer (when demand is highest) and less in other seasons. Since solar panels produce the most power in the summer months when days are long, this structure can work very well for solar homeowners.
Time-of-Use (TOU) Rate
TOU rates change based on when you use electricity — higher during "peak" hours (typically late afternoon through evening) and lower during "off-peak" hours. If you can shift some of your big energy users (dishwasher, laundry, EV charging) to off-peak hours, you can compound your solar savings even further.
💡 Pro tip: Pairing solar with a battery storage system can be a game-changer on TOU plans. You can store excess solar energy during the day and use it during expensive peak hours instead of pulling from the grid.
How Does Solar Change Your Bill?
Here's the short version: any electricity your panels generate that gets used directly in your home doesn't come from the grid — so you're not charged for it. That's immediate savings.
Any excess solar energy you don't use gets sent to the grid. Your utility tracks this, and depending on your net metering policy, you'll earn credits for it.
Net Metering in New England — What You Need to Know
New England has some of the most solar-friendly net metering policies in the country, though the details vary by state and utility. Here's a breakdown of the main types:
1-to-1 Net Metering (Most Common in New England)
This is the gold standard for solar homeowners. Every kWh of excess solar you send to the grid earns you a credit equal to the full retail rate — the same rate you'd pay to pull that kWh from the grid.
Credits typically roll over month to month for 12 months. At the end of the year (your "true-up" date), any remaining credits are handled one of a few ways:
• Cashed out at a lower "avoided cost" rate • Carried forward to the next year • Expired (rare, but it happens)
Massachusetts, Connecticut, Rhode Island, and Maine all have strong 1-to-1 net metering policies for residential solar customers.
Monthly Net Metering
Similar to 1-to-1, but the netting happens every billing cycle instead of annually. Any leftover credits at the end of the month are settled at a rate set by your utility. This is less common in New England but exists with some smaller utilities.
Net Billing / Export Credits
Under net billing, your excess solar is credited at a specific "export rate" set by your utility — which may be lower than the retail rate. This model is less favorable than full 1-to-1 net metering, but some utilities have shifted to it for newer solar customers.
📞 Not sure which policy applies to you? Reach out to the Venture Home team and we'll look it up for your specific utility and interconnection date.
Who Sets Your Rates and Net Metering Policy?
In New England, most electric customers are served by Investor Owned Utilities (IOUs) like Eversource, National Grid, Avangrid (United Illuminating and CMP), and Unitil. These companies are regulated by your state's Public Utilities Commission (PUC), which sets the rules for rates and net metering.
If you're served by a municipal utility or electric cooperative — which are more common in Vermont and parts of Maine and New Hampshire — your rates and net metering policy may be different, since those utilities are governed by local boards rather than the state PUC.
What About TOU Rates and Net Metering Together?
If you're on a time-of-use plan with net metering, here's how the credits typically work:
• Solar energy you export during on-peak hours earns you the higher on-peak credit rate. • Solar energy exported during off-peak hours earns the lower off-peak credit rate. • Some utilities keep credits in kWh and require on-peak credits to only offset on-peak usage (and same for off-peak).
This is an area where the details really matter. If you're not sure how your utility handles TOU + solar credits, we're happy to walk through your specific bill with you.
We're Here to Help
Reading a solar electric bill for the first time (or the fiftieth time) can still be confusing. If something doesn't look right — or you just want someone to explain what you're looking at — the Venture Home team is always a call or email away.
📧 Reach us at support@venturehome.com or give us a call. We're a New England company and we know these utility bills inside and out.
Venture Home — Powering New England, one home at a time