Solar Massachusetts Renewable Target (SMART): What is It?

Massachusetts is a beacon of solar innovation, generating about a quarter of its electricity from solar power and top 10 nationally for total solar capacity. The state has built this solar leadership through strategic programs that make solar accessible and economically viable for property owners. At the heart of this solar revolution lies the Solar Massachusetts Renewable Target (SMART) Program, a groundbreaking initiative that transforms how communities and homeowners harness the power of the sun. The program goes beyond financial incentives to embody Massachusetts’ vision for a sustainable future where clean energy drives both environmental preservation and economic growth.

An Overview of the Solar Massachusetts Renewable Target (SMART) Program

Launched in 2018, the Solar Massachusetts Renewable Target (SMART) Program is the state’s primary tool for supporting solar development and helping Massachusetts reach its renewable portfolio standard (RPS) goals. Initially designed as a 3200MW declining block incentive program, SMART allows eligible projects connected through one of the state’s three major utilities, Eversource, National Grid, or Unitil, to receive fixed payments for every kilowatt-hour of solar energy they produce over 10 years. These ambitious targets, supported by final regs issued Sept 2025 (with the first compliance year running Oct–Dec 2025), create substantial demand for new solar installations throughout the state.

How the SMART Program Works

SMART program capacity is allocated to utilities based on their customer base—larger utilities like National Grid get bigger portions. Each utility’s allocation gets divided by project type (residential, community solar, etc.), with different rates for each. These are further split into “capacity blocks” that fill as applications come in. When one block fills up, the next opens with a lower incentive rate, creating the program’s signature declining rate structure.

However, rising electricity rates and shrinking incentives started creating real challenges for the program, prompting Massachusetts to reimagine it for long-term sustainability. The result is SMART 3.0. The obsolete declining rate structure gave way to an annual adjustable model that can keep pace with market changes. With the federal Investment Tax Credit (ITC) phasing down under the 2025 federal budget law, now is an opportune time for landowners to explore solar leasing opportunities. The program is expected to generate over $300 million in annual benefits and savings, a key piece of Governor Healey’s Energy Affordability Agenda.

The annual adjustment model means applications are now accepted during a focused two-week window each January rather than year-round. The amount you earn per kilowatt-hour (kWh) depends on your system size:

Small Systems (under 25 kW AC): Fixed rate of $0.03/kWh
Low-income projects receive double at $0.06/kWh.
25 kW to 250 kW AC: $0.2821/kWh
250 kW to 500 kW AC: $0.2482/kWh
500 kW to 1,000 kW AC: $0.2113/kWh
1,000 kW to 5,000 kW AC: $0.1729/kWh

The state has allocated 450 MW total capacity for Program Year 2025. This cap applies to most projects, except those under 25 kW and behind-the-meter installations under 250 kW, which can participate without capacity restrictions.

For businesses, homeowners, and renters who aren’t able to install solar on their properties, community solar makes participating in clean, renewable energy easier than ever. Massachusetts’ SMART 3.0 program stipulates that all Community Shared Solar (CSS) projects must enroll a minimum of 40% low-income customers. Market-rate residents can enjoy a guaranteed minimum10% discount, while eligible low-income residents receive a minimum guaranteed 20% discount.

The Commonwealth estimates that SMART 3.0 will cut electricity bills by $15 to $20 per month by 2027, adding up to $1.5 billion in savings over five years as older solar programs are phased out and net metering gets restructured.

Construction Eligibility Requirements for the SMART Program

For SMART 3.0, eligibility depends on when your project’s on-site construction begins, with additional flexibility available for low-income properties.
SMART 2.0 remains an option for projects already in progress. The program continues to accept applications, but construction must begin within the program’s designated eligibility window. In some cases, projects that have already made significant investments but have not yet broken ground may still qualify for SMART 2.0 if they cannot meet SMART 3.0 requirements.

Benefits of the SMART Program

Increased Incentives for Solar Development

SMART 3.0 delivers higher compensation rates across the board, with special focus on smaller systems and underserved communities. Projects under 25 kW receive enhanced fixed rates, while low-income projects earn double the standard incentive. These increased rates make solar financially viable for a broader range of property owners and developers.

Responsive Annual Adjustments

The program’s new annual assessment structure ensures SMART stays aligned with real market conditions. Each year, the state evaluates and adjusts both capacity allocations and incentive rates, creating a flexible framework that responds to industry changes rather than locking participants into outdated rate structures.

Strategic Capacity Management

With 450 MW allocated for Program Year 2025, SMART balances growth with stability. Small systems under 25 kW and behind-the-meter projects under 250 kW operate without capacity restrictions, ensuring residential and small commercial projects always have access. Meanwhile, the annual capacity setting process provides predictability for larger developers while preventing market oversaturation.

Energy Storage Integration

SMART 3.0 recognizes that solar plus storage is the future of clean energy. Projects over 1 MW can now pair with battery systems to earn additional compensation through energy storage adders. These values, set during the annual assessment, reward developers who build resilient systems that provide power when the grid needs it most.

Enhanced Consumer Protection

The program prioritizes responsible development through stronger consumer protections and clear preferences for rooftop, canopy, and brownfield installations. These guidelines protect consumers from predatory practices while steering development toward spaces that maximize community benefit without sacrificing valuable greenfields.

Direct Savings for Ratepayers

Massachusetts residents will benefit from expanded access to renewable energy and increased grid stability as solar adoption grows across the Commonwealth. These improvements support long-term affordability and reliability while helping the state meet its clean energy goals..

Economic Recovery Through Clean Energy

SMART 3.0 positions Massachusetts as a national leader not just in megawatts installed, but in demonstrating how clean energy policy can drive economic recovery. The program creates jobs, attracts investment, and builds resilient communities while advancing the state’s climate goals. By supporting local businesses and prioritizing community benefits, SMART shows that the transition to renewable energy can strengthen the economy while protecting the environment.

How the SMART Program Compares to Other State Solar Incentives

Massachusetts offers other solar incentive programs beyond SMART, creating a comprehensive support ecosystem. The Residential Clean Energy Tax Credit provides a 30% cost reduction for systems installed between 2022 and 2032. The credit drops to 26% in 2033 and 22% in 2034. The MA Residential Energy Credit adds another layer of savings, reducing costs by 15% up to $1,000.

Start Your Solar Journey with US Light Energy

The SMART Program isn’t just for individual homeowners. It’s a catalyst for community-wide solar development. U.S. Light Energy (USLE) specializes in helping communities identify and execute solar opportunities that qualify for SMART incentives. Our Property Development Services evaluate land use, utility access, energy production potential, and financial viability to ensure your project is ready to succeed.

With SMART 3.0 incentives and community solar options, there’s never been a better time to explore solar development in Massachusetts. Contact us today to start your SMART solar project and bring clean energy to your community. U.S. Light Energy is leading the charge for a new generation.

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What is the Solar Massachusetts Renewable Target (SMART) Program?