Massachusetts will soon be embarking on its next and newest solar incentive program, with the aim of continuing the cost-effective development of solar energy in the Commonwealth. Massachusetts has long been New England’s leader in solar installations per year and total installed capacity. The new program, known as the Solar Massachusetts Renewable Target, or SMART, is currently being finalized through processes at the Massachusetts Department of Energy Resources (DOER) and the Massachusetts Department of Public Utilities (DPU).
The purpose of the SMART Program, filed as DOER regulation 225 CMR 20.00, is to encourage the continued development of residential, commercial, governmental and industrial solar units. The growth of these units would not only reduce peak energy demand, and system losses, but it also has the potential to increase grid reliability, along with producing a rise in investment towards new renewable infrastructure. Furthermore, generating more energy from renewables helps contribute to the Commonwealth’s goals to protect the environment by reducing emissions.
As opposed to Solar Renewable Energy Certificates (SRECs), which fluctuate based on market conditions, the SMART program is designed to provide more long-term revenue certainty. Over time, new projects that enter the program would enter with lower incentives to reflect the declining cost of solar. The program is intended to provide solar facilities with a single compensation rate that reflects both the energy value and the incentive value. This is different than that of the SREC program, where SRECs are an independent stream of revenue, separate from the actual value of the energy. Therefore, total costs of the SMART Program can be tracked with greater precision and accuracy.
The SMART Program is designed as a 1600 MW declining block program, spanning eight blocks, each containing 200 MW, with base compensation rates decreasing 4% for projects that begin in each successive block.
For current owners of residential and commercial solar, already in the SREC I or SREC II program, nothing will change for them once the shift from the SREC program to the SMART program is initiated, as they will continue to earn SRECs for the remainder of their term. However, new solar owners, not captured by the SREC II extension will be able to participate in the SMART program instead.
Overall, DOER expects the program as designed to support approximately double the solar capacity currently installed in the Commonwealth. By the end of the SMART program, this would result in almost 10% of Massachusetts electricity consumption being supplied by in-state distributed solar generation.
Suntility is your trusted partner in success. Suntility provides renewable energy maintenance services, net metering credit services, owner’s agent services and consulting solutions to optimize facility reliability, performance and value.
To learn more contact us at 508-538-4Sun