Massachusetts has officially super charged its solar potential. On August 25th, the Department of Energy Resources (DOER) filed the final version of SMART, the new solar power incentive program. SMART is a fixed-rate incentive, paid for each kilowatt-hour (kWh) produced by a solar system. The base rate, locked in for 20 years, has special “adders” (i.e., additional incentives) for carports, systems for low-income or public entities, battery storage and other onsite projects.
The program, designed to help Massachusetts meet state renewable energy targets, kicks off with a one-time competitive auction this fall, which will set the base incentive rate for all future SMART projects. The base incentive and the adders decline over time as more solar is installed and SMART “blocks” fill up. The program is expected to open in June 2018. Projects that begin development this month and next are the most likely to qualify for the earliest and most lucrative blocks.
The Massachusetts Department of Energy Resources finalized the regulations in August, balancing input from many stakeholders including the solar industry, ratepayers and utilities. The final SMART program did not materially change from the earlier version announced this spring—which means SMART is still valuable, predictable, and on track to replace SRECs in mid-2018.
The few significant changes were largely solar-friendly:
- The one-time competitive auction's ceiling price was raised from $0.15/kWh to $0.17/kWh. That higher threshold means more projects can participate in the auction, and allows for a higher base incentive rate.
- Solar-unfriendly caps on carport, storage and other adder-eligible projects were replaced with a more measured approach.
- New adder created for floating commercial solar power projects
On 9/13, the process moved forward again when Massachusetts utilities filed their draft plans for implementing SMART. Now, the Department of Public Utilities will begin their review of those plans. DOER expects that process to end June 1, 2018, at which point SMART will officially begin. Because SMART applications must include an approved interconnection agreement, and these agreements can take 8 to 10 months to approve, many of the first SMART projects are already under way.
Bottom line: The SMART solar power incentive is officially coming to MA, and it's better than ever for the future of solar power in the Commonwealth. Projects that start today have the best chance of receiving the best rates.