Massachusetts’ New Residential Demand Charge: Friend or Foe to DER Adoption?

by Elta Kolo, Ph.D., Fei Wang, Brett Simon, MJ Shiao

On January 5, 2018, the Massachusetts Department of Public Utilities (DPU) approved a minimum monthly reliability contribution for new Eversource utility net-metered residential and commercial and industrial customers. Since the January 5 ruling, Eversource has made a series of additional tariff changes impacting distributed energy resource (DER) owners in 2018 and 2019. GTM Research analyzed the effect of demand charges on residential customers in Massachusetts. The analysis is based on modelled scenarios of the effect of charges on customer bills.

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