Valley Green Energy to Lower Electricity Prices for Most Participants Beginning in May

Source: amherstma.gov

The communities of Amherst, Northampton, and Pelham will see a price reduction for the majority of participants in Valley Green Energy, a regional group electricity buying program administered by the three communities. 

Starting in May 2026, participants currently enrolled in two of the program’s three options, VGE Standard Green and VGE Basic, will automatically transition to a new, lower-priced VGE Basic price of 13.206 ¢/kWh. 

Key Program Updates
This change is designed to provide immediate financial relief on electricity bills while navigating a shifting renewable energy market. 

• New lower price: Prices for participants in both options will drop to 13.206 ¢/kWh 

• Automatic price reduction: No action is required. Current participants in the VGE Standard Green and VGE Basic options will see the new price on their June 2026 electric bills. 

• Savings compared with utility prices: The new price is not only lower than current VGE Standard and VGE Basic prices, it is also lower than the current residential and small business electricity supply prices from Eversource and National Grid. (Utility prices are valid through July 31, 2026. Future savings cannot be guaranteed). 

• Duration: The new price will remain in effect through November 2026, when the program’s current electricity supply contract ends. The Valley Green Energy communities intend to have a new electricity supply contract in place with long-term pricing by November and will notify active program participants via mail about the new prices this fall, before the new prices go into effect. 

Why Prices are Changing
Previously, the VGE Standard Green option included a 10% voluntary purchase of regional renewable energy. The cost of that additional renewable energy was embedded in the VGE Standard Green price. Until recently, the impact of purchasing this extra renewable energy from our region was an increase in demand for more renewable energy on our local grid. Renewable energy developers saw that demand and built new renewable energy projects to meet it. 

However, recent shifts in federal policy, including the sunsetting of tax credits and a slowdown in new project permitting, have made it significantly harder to build new renewable energy infrastructure. Because of these barriers, the extra cost associated with buying an additional 10% from renewable sources is, for now, not having the desired impact. Specifically, it does not drive the development of new regional renewable energy.  

To prioritize consumer savings during this period, the program has decided to retire the VGE Standard Green option and will not purchase the additional 10% from renewable sources for calendar years 2025 and 2026. The program will pass the savings associated with this change directly to participants through the lower VGE Basic price. 

Participants currently enrolled in theVGE 100% Green option will see no change and will continue to receive 100% of their electricity from regional renewable sources. Any participant may switch between program options (VGE Basic or VGE 100% Green) or opt out of the program entirely at any time with no fee or penalty. 

Statement from Amherst, Northampton, and Pelham
“Valley Green Energy exists to serve our communities — and that means both advancing renewable energy and keeping costs manageable for residents. Today’s announcement reflects the realities of the current renewable energy market, and our determination to pursue every available path toward a cleaner, more affordable energy future.” — Northampton Mayor Gina Louise Sciarra, Amherst Town Manager Paul Bockelman, and Pelham Select Board Chair Bob Agoglia

For more information
To learn more about the new pricing or to change your enrollment option, please visit ValleyGreenEnergy.org or contact customer support at 844-202-6033.