Solar Massachusetts Renewable Target (SMART) Program

Note: Emergency regulations for SMART 3.0 were filed and became effective in June 2025, accompanied by a public hearing schedule for comments. Additional revisions were made in August 2025, with the revised regulations taking effect on September 12, 2025, while the emergency regulations remain in place. The regulations also establish a sunset for solar projects applying under the existing SMART 2.0 incentive program. For additional updates, click here.

DOER is accepting applications for the first program year. You can find the applicable utility application portal below:

• Eversource portal
• National Grid portal
• Unitil portal

The Solar Massachusetts Renewable Target (SMART) Program provides per-kWh incentives for solar photovoltaic (PV) projects up to 5 MW, with certain exception based on project type. Under SMART 2.0 guidelines (25 CMR 20.00) the program is capped at a total of 3,200 MW, including an original capacity of 1,600 MW and an extended capacity of an additional 1,600 MW. SMART 2.0 incentives are available in the service territories of Eversource, National Grid, and Unitil through December 31, 2026, as a transition into SMART 3.0 (25 CMR 28.00)

SMART 3.0 Program Guidelines

The SMART 3.0 program applies to solar photovoltaic (PV) projects that are interconnected with the electric grid in Massachusetts and have a capacity of 5,000 kW or less. Exceptions apply for certain project types: up to 10,000 kW for floating solar for a given program year, up to 10,000 kW for individual brownfield/landfill projects, and up to 7,500 kW for individual dual-use agricultural projects. For 2025, the total annual program capacity is 900 MW. This capacity will not roll over into future years. Each utility is allocated a minimum of 5% of the program capacity, with the remaining capacity distributed proportionally based on electric load. The Department of Energy Resources (DOER) may also approve uncapped capacity for certain projects, including:

• Projects ≤25 kW
• Behind-the-Meter (BTM) projects >25 kW and ≤250 kW

Each program year also sets aside capacity for specific project categories:

• Projects >250 kW and <500 kW & standalone projects >25 kW and ≤250 kW: 10%
• Low-Income Property Projects: 10%
• Community Shared Solar Projects: 15%

Incentive Payments

Incentive payments vary based on the system type and are calculated using different formulas:

• Standalone Projects >25 kW = (Base Compensation Rate + Adders) × Total kWh Generated − Value of Energy
• The value of energy is determined based on the project’s compensation mechanism:

• Net-metered projects: kWh × net metering credit rate

• Alternative On-Bill Credit (AOBC) projects: kWh × energy compensation rate
• Non-net-metered projects: kWh × state qualifying facility rate

• Behind-the-Meter Projects >25 kW = (Base Compensation Rate + Adders − Value of Energy) × Total kWh Generated
• The value of energy is based on compensation type:

• Net-metered projects: (distribution + transmission + transition kWh charges + 3-year average of basic service kWh charge)
• AOBC and non-net-metered projects: 0.65 × (distribution + transmission + transition charges + 3-year average of basic service charge) + 0.35 × (3-year average of basic service charge)

• Projects ≤25 kW = receive a fixed incentive rate set annually at the time of program qualification.

If multiple projects behind the same retail meter have different compensation rates, DOER may assign a blended rate weighted by each system’s AC capacity. For grouped projects (≤5,000 kW total) on a single parcel that receive an exception to project segmentation rules, DOER may assign a single Base Compensation Rate based on combined capacity.

Compensation Structure

Key compensation features include:

• Base Compensation Rates (set annually, vary by size):
• ≤25 kW: flat incentive not less than $0.01/kWh, with additional low-income adder if eligible
• 25–250 kW
• 250–500 kW
• 500–1,000 kW
• 1,000–5,000 kW
• Adders (set annually, based on project characteristics):
• Locational Adders
• Brownfield
• Building-mounted
• Canopy
• Dual-use agricultural
• Floating solar
• Landfill
• Large building-mounted
• Raised Racking
• Off-taker Based Adders
• Community Shared Solar
• Low-Income Property Solar
• Public Entity Solar
• Other Adders
• Pollinator adder
• Solar tracking adder
• Co-located energy storage adder (based on formulas in 225 CMR 28.00)

Base rates and adders may increase or decrease by up to 20% annually based on the prior program year’s value or $0.01/kWh, whichever is greater. Projects >25 kW may combine one locational adder and one off-taker-based adder. The brownfield adder is excluded from this limitation.

For current rate and adder values for the current program year, click here.

Energy Storage Requirements

Projects over 1,000 kW that do not qualify for a locational adder must:

• Obtain Qualifying Facility (QF) status from FERC
• Be co-located with an energy storage system (unless exempted, e.g., building-mounted or granted a waiver by DOER)
• Include storage that can supply at least two hours of energy and has a rated power capacity of at least 25%
• Meet specified performance, efficiency, and operational standards

Alternative On-Bill Credit (AOBC)

• Projects not under net metering or qualifying facility tariffs but enrolled in a DPU-approved tariff can receive AOBCs.
• AOBC Value = Total kWh Generated × Applicable Energy Compensation Rate

Mitigation Fee

Ground-mounted projects >250 kW not sited on previously developed land and not qualifying for a locational adder must pay a mitigation fee. The fee is calculated using a DOER-published formula, which includes a per-acre cap. 25% of the fee is due at application submission.

Development Limitations

Projects may not be developed on the following:

• Wetland resource areas and buffer zones
• State Register of Historic Places properties
• Protected open space (unless allowed via locational adder exceptions)