Massachusetts SMART Program Explained: Eligibility, Compensation, and Application

The Solar Massachusetts Renewable Target (SMART) program is the state's primary incentive mechanism for compensating solar electricity generation, administered by the Massachusetts Department of Public Utilities (DPU) and the Massachusetts Clean Energy Center (MassCEC). This page covers eligibility requirements, compensation structures, capacity block mechanics, and the application process in detail. Understanding SMART is essential for any property owner, developer, or municipality evaluating whether a solar installation in Massachusetts qualifies for long-term incentive payments beyond net metering credits.

• Definition and Scope
• Core Mechanics or Structure
• Causal Relationships or Drivers
• Classification Boundaries
• Tradeoffs and Tensions
• Common Misconceptions
• Checklist or Steps (Non-Advisory)
• Reference Table or Matrix

Definition and Scope

The SMART program was established under Massachusetts Department of Public Utilities Order D.P.U. 17-140 and replaced the earlier Renewable Energy Portfolio Standard (RPS) Solar Carve-Out II (SREC II) program. SMART provides a fixed, per-kilowatt-hour (kWh) compensation rate — called a "Compensation Rate" — paid directly by the electric distribution company (EDC) serving the host customer. Unlike SREC-based programs where certificate prices fluctuate with market conditions, SMART rates are locked at the time of interconnection approval, creating revenue predictability over a 10-year contract term.

Geographic and jurisdictional scope: SMART applies exclusively to installations served by one of three Massachusetts electric distribution companies — Eversource Energy, National Grid, or Unitil. Projects served by municipal light plants (MLPs) do not fall under SMART and are not covered by DPU Order 17-140. Federal installations, off-grid systems, and projects located outside Massachusetts are outside SMART's coverage entirely. For broader Massachusetts solar regulatory context, see Regulatory Context for Massachusetts Solar Energy Systems.

The program targets systems up to 5 megawatts-AC (MW-AC) in nameplate capacity, though different size tiers carry different compensation rate structures. Systems above 5 MW-AC are ineligible. The program's total statewide capacity target was set at 3,200 MW across all blocks and all EDCs, as structured in the program's founding order (DPU 17-140).

Core Mechanics or Structure

SMART operates through a declining block structure. Each electric distribution company is allocated a fixed number of capacity blocks, and each block contains a fixed amount of MW. As each block fills with approved projects, the compensation rate for the next block decreases by a set percentage — generally 4% per block under the original program design. This creates a time-based incentive for earlier application.

Compensation Rate components: A project's total compensation rate has two parts:

1. Base Compensation Rate — determined by system size, technology type, EDC service territory, and which capacity block is open at the time of interconnection approval.
2. Adders — supplemental per-kWh payments for qualifying attributes, including:
3. Low-income housing locations
4. Canopy or carport installations (see Solar Carports and Canopies Massachusetts)
5. Battery storage co-location (see Massachusetts Solar Battery Storage Systems)
6. Agricultural land installations (see Agricultural Solar Massachusetts)
7. Community Shared Solar (see Community Shared Solar Massachusetts)

Payments are made monthly by the EDC based on metered generation data. Importantly, SMART compensates all generation — not just excess generation exported to the grid — though the specific payment structure differs for "Net Metering" vs. "Standalone" SMART configurations.

An EDC-issued Statement of Qualification (SQ) locks in the applicable block's compensation rate. The SQ is issued after interconnection approval and before the project reaches commercial operation. Projects that miss the 18-month construction deadline after SQ issuance may lose their place in the queue.

Causal Relationships or Drivers

The declining block design creates a specific causal dynamic: projects that complete interconnection application, receive a grid study, and obtain SQ earlier in a block capture higher rates than latecomers. This means interconnection queue position — governed by the utility's interconnection tariff and reviewed by Eversource, National Grid, or Unitil — is the most operationally determinative variable in compensation rate outcomes.

Three primary regulatory drivers shaped SMART's architecture:

1. An Act to Promote Energy Diversity (2016) — Massachusetts General Laws Chapter 75 of the Acts of 2016 directed the DPU to create a successor program to SREC II, with a capacity-focused rather than production-certificate-focused structure.
2. DPU 17-140 — The foundational order establishing block sizes, declining percentage, adder values, and the administrative framework.
3. DPU 20-75 — A subsequent order that authorized SMART program expansion and modifications, including adjustments to block capacities.

For a conceptual foundation of how solar energy systems function before engaging the SMART application process, see How Massachusetts Solar Energy Systems Works: Conceptual Overview.

The low-income adder is a policy driver intended to counteract the tendency of performance-based incentive programs to concentrate investment in higher-income areas where site control and capital access are easier. For programs specifically targeting this population, Low-Income Solar Programs Massachusetts provides relevant detail.

Classification Boundaries

SMART categorizes projects along three primary axes:

By system size:
- Tariff A: Systems 25 kW-AC or smaller (residential and small commercial)
- Tariff B: Systems larger than 25 kW-AC up to 500 kW-AC
- Tariff C: Systems larger than 500 kW-AC up to 5 MW-AC

Each tariff tier carries different base compensation rates, with smaller systems generally receiving higher per-kWh rates to reflect higher per-unit installation costs.

By offtake structure:
- "Behind-the-meter" systems: Generation offsets on-site load; compensation applies to total generation.
- "Standalone" or export-only systems: All generation is exported; compensation applies to exported kWh.

By solar technology:
- Standard photovoltaic (most common)
- Canopy/carport configurations (eligible for adder)
- Floating solar (pond-mounted; treated case-by-case)
- Building-integrated photovoltaics (BIPV)

Community Shared Solar (CSS) is a distinct product category within SMART, allowing multiple subscribers to receive proportional SMART compensation credits based on generation from a shared facility up to 2 MW-AC. This is not a separate program — it is a SMART subscription structure. For eligibility differences affecting residential vs. commercial participants, see Residential Solar vs. Commercial Solar Massachusetts.

Tradeoffs and Tensions

Rate certainty vs. rate level: SMART's fixed 10-year rate provides predictability but freezes compensation even if electricity market prices rise significantly. A project locked into an early high-block rate in a period of low electricity prices may benefit substantially; a project in a later, lower-rate block during a high-electricity-price environment may see its relative advantage diminish.

Block exhaustion timing: The DPU sets block sizes, but project developers and utilities — not MassCEC — control queue pace. Developers sometimes file large numbers of applications simultaneously ("block rushing"), which can rapidly exhaust blocks and reduce rates for subsequent applicants before they can respond.

SMART vs. net metering interaction: Residential customers who participate in SMART under a "net metering" SMART structure still receive net metering credits in addition to SMART compensation. This dual-incentive access improves economics but complicates billing. Customers who opt for a pure SMART "standalone" configuration forego net metering. The Massachusetts solar incentives and rebates ecosystem — which includes the Solar Property Tax Exemption Massachusetts and the Federal Investment Tax Credit Massachusetts — layers on top of SMART but operates under entirely separate administrative frameworks.

Permitting and inspection requirements: SMART qualification does not substitute for municipal permitting or electrical inspection. The Massachusetts Board of Building Regulations and Standards (BBRS) governs structural permit requirements; local wiring inspectors enforce electrical code compliance under the 527 CMR 12.00 electrical code framework. Failure at inspection can void a project's construction timeline and jeopardize SQ compliance dates. See Permitting and Inspection Concepts for Massachusetts Solar Energy Systems for more.

Common Misconceptions

Misconception 1: SMART is a rebate.
SMART is a production-based incentive paid per kWh generated over 10 years — not a lump-sum rebate at installation. Total compensation depends on actual system output, not just installed capacity.

Misconception 2: SMART replaces net metering.
SMART and net metering are separate programs. Depending on the chosen SMART configuration, a customer may participate in both simultaneously. Net metering is governed under Massachusetts General Laws Chapter 164, Section 138, not under SMART's DPU orders.

Misconception 3: Any Massachusetts solar installation qualifies.
Only systems served by Eversource, National Grid, or Unitil qualify. Municipal light plant customers and off-grid systems are excluded. Systems exceeding 5 MW-AC are ineligible regardless of location.

Misconception 4: The SMART rate is negotiable.
Compensation rates are not individually negotiated. They are set by the DPU's block structure and determined at interconnection approval based on published tariff schedules.

Misconception 5: MassCEC administers SMART payments.
MassCEC administers program oversight, the SMART online portal, and Statement of Qualification processing, but the monthly payments themselves are made by the electric distribution company. MassCEC does not issue payments.

For a full overview of the Massachusetts solar market, including context beyond SMART, the Massachusetts Solar Authority index provides navigational reference to the complete topic structure.

Checklist or Steps (Non-Advisory)

The following is a procedural sequence reflecting SMART program requirements as published by MassCEC and the relevant EDCs. This is a reference framework, not professional guidance.

1. Confirm EDC service territory — Verify the project address is served by Eversource, National Grid, or Unitil; municipal light plant customers are ineligible.
2. Determine system size and tariff tier — Calculate proposed AC nameplate capacity; confirm alignment with Tariff A (≤25 kW-AC), Tariff B (25–500 kW-AC), or Tariff C (500 kW-AC–5 MW-AC).
3. File interconnection application with EDC — Submit the EDC's standard interconnection application along with required engineering documentation; pay the applicable application fee.
4. Receive interconnection approval and queue position — The EDC assigns a queue position that determines which capacity block applies at time of SQ issuance.
5. Complete SMART application via MassCEC portal — Submit system details, site information, adder eligibility documentation (e.g., low-income affidavit, storage specifications), and interconnection approval documentation.
6. Receive Statement of Qualification (SQ) — MassCEC issues SQ confirming the locked compensation rate. The 18-month construction deadline begins at SQ issuance.
7. Obtain municipal building and electrical permits — File permit applications with the local building department; receive wiring inspection approval from the local electrical inspector.
8. Install and commission system — Complete installation per approved engineering plans and applicable codes (National Electrical Code NFPA 70 2023 edition, 527 CMR 12.00).
9. Receive utility Permission to Operate (PTO) — EDC inspects interconnection equipment and issues PTO; system may not export to grid before PTO issuance.
10. Notify MassCEC of commercial operation date — Submit commercial operation documentation to MassCEC within the required timeframe to activate SMART payments.
11. Receive monthly SMART compensation payments — EDC processes monthly generation data from utility meter and issues compensation payments on billing cycle.

Reference Table or Matrix

SMART Program Comparison by System Category

Key SMART Adder Categories (Reference, Not Current Rate Schedule)

Note: Actual adder values and base compensation rates are block-specific and published in each EDC's SMART tariff filing. Current rates must be verified directly from EDC tariff schedules filed with the DPU.

References

• Massachusetts Department of Public Utilities — DPU 17-140 SMART Program Order
• Massachusetts Clean Energy Center (MassCEC) — SMART Program
• Massachusetts General Laws Chapter 75 of the Acts of 2016 — An Act to Promote Energy Diversity
• Massachusetts General Laws Chapter 164, Section 138 — Net Metering
• Eversource Energy — Interconnection and SMART Program Information
• National Grid — SMART Program
• Unitil — Renewable Energy and SMART
• Massachusetts Board of Building Regulations and Standards (BBRS)
• NFPA 70 — National Electrical Code (NEC), 2023 edition