What does a small business actually pay for electricity in Massachusetts? Between 11.5¢/kWh on National Grid’s territory and 13.2¢/kWh on Nantucket Electric — an average of 12.2¢/kWh across the 3 utilities serving the state.
That’s just the energy line. Demand charges, customer charges, and riders sit on top — the part most quotes leave out. This page breaks down the full picture and points you to where to shop.
Massachusetts has the highest commercial electricity rates in the continental U.S. Eversource and National Grid handle delivery and bill basic service supply by default, but small businesses can sign with a DPU-licensed competitive supplier to lock in a fixed rate. The G-1 small commercial tariff (under 10 kW) keeps the rate energy-only; above 10 kW you pick up a demand charge under Rate G-2.
Commercial rate schedules look different from the residential one you might know. Three pieces show up on almost every small-business bill: a flat customer charge ($10-$50/month regardless of usage), an energy charge measured in cents per kWh, and — once you cross a size threshold — a demand charge measured in dollars per kW based on your single highest 15-minute usage spike during the billing month. The demand charge surprises new business owners more than anything else, because one bad afternoon of running every machine at once can spike a whole month’s bill.
Many Massachusetts utilities also enforce time-of-use pricing for commercial customers above a certain demand level. Energy used during summer afternoon peaks (typically 2-7 PM on weekdays) costs more than energy used overnight or on weekends. For businesses with flexible schedules, shifting heavy loads to off-peak windows is one of the cleanest ways to cut a bill without changing suppliers.
Commercial energy rates are usually lower per kWh than residential rates — but the demand charge and customer charge can erase that headline savings if your business has spiky load. Here’s the comparison for each utility, using the most common small-business rate schedule (typically GS-1, G-1, or equivalent) versus the same utility’s residential rate.
| Utility | Small-business (energy) | Service area |
|---|---|---|
| Eversource | 11.8¢ | Greater Boston, eastern, and western Massachusetts |
| National Grid | 11.5¢ | Worcester, central, and northeast Massachusetts |
| Nantucket Electric | 13.2¢ | Nantucket Island |
Energy rates shown reflect the most recent small-business tariff filing for each utility. Demand charges, customer charges, and riders are billed separately — see the per-utility page for the full structure. Residential rate is a Massachusetts-wide average for comparison only.
Each utility files its own commercial tariffs with the Massachusetts Department of Public Utilities (DPU). Click through for the full list of small-business rate schedules, demand-charge thresholds, and a chart of how the rate has moved over time.
11.8¢/kWh small business
Largest MA utility. G-1 (under 10 kW) and G-2 (10-200 kW) tariffs.
View commercial tariffs →11.5¢/kWh small business
Second-largest MA utility. Rate G-1 covers most small businesses.
View commercial tariffs →13.2¢/kWh small business
Island utility under National Grid. Higher delivery costs due to cable supply.
View commercial tariffs →If you’ve only ever shopped a residential plan, four things will feel new on a commercial tariff. Get clear on these before you compare quotes.
Once your business pulls more than 10 kW (in most Massachusetts territories), the utility bills you on your single highest 15-minute usage spike during the month — not your average usage. A bakery that turns every oven on at 6 AM for one hour can pay for that peak all month long. Spreading load across the day cuts this bill more than any rate shopping.
Massachusetts utilities push commercial customers onto time-of-use schedules above a size threshold (around 200 kW). That means summer-afternoon kWh cost 2-3× more than overnight kWh. Restaurants, manufacturing, and refrigeration-heavy businesses watch this number closely; office users mostly absorb it because their load matches the peak window anyway.
Beyond energy + demand + customer charge, commercial bills carry riders for transmission, ancillary services, renewable mandates, and utility recovery clauses. These can add 1.5-3¢/kWh on top of the headline energy rate and they’re often quoted separately in supplier offers. Always ask suppliers to quote all-in, not just the energy component.
Competitive suppliers typically quote 12- to 36-month terms and pin the price against the forward wholesale market at quote time. Longer isn’t cheaper by default. Request quotes from at least three licensed suppliers on the same usage profile, and confirm whether the price includes capacity, transmission, and renewable compliance.
Most Massachusetts business owners also pay a residential bill at home. These tools and pages cover both sides.
Compare residential rates and switch suppliers at home.
Upload your bill, get a letter grade, and see how it compares. (Residential-focused, useful context for owner-operators.)
Line-by-line breakdown of every charge a Massachusetts utility puts on a typical bill.
Rate data source: Tariff information on this page is compiled from the U.S. Utility Rate Database (URDB), maintained by the National Renewable Energy Laboratory. URDB aggregates publicly filed tariffs from state public utility commissions. For the source documents, see openei.org/wiki/Utility_Rate_Database . We sync URDB monthly and verify rate changes against each utility’s regulatory filings. Last updated June 9, 2026.