Massachusetts

Massachusetts

Overview

Massachusetts is among the country’s oldest and largest community solar markets; deployment slowed in recent years but key program updates were adopted in 2025

Latest Massachusetts Policy Updates

June 2025

On June 20, 2025, the Department of Energy Resources released updates to the SMART program in the form of emergency regulations, which take immediate effect but can still be revised after public comments. The new regulations include two parts: minor updates to the existing SMART rules and a separate section of regulations for this new iteration of SMART. Capacity will become available in the new program’s first year on October 15, with all future years kicking off at the beginning of January. Community solar projects in the new program will all deliver at least 40% of capacity with a minimum 20% discount to low-income customers, who can now be qualified via participation in assistance programs or self-attestation.

November 2024

The legislature has now passed the climate and energy package that it couldn’t get done in this year’s regular session – it includes two highlights for community solar: long-awaited reforms to siting and permitting and a concrete step toward the implementation of consolidated billing. The legislation kicks off a process for the DPU to investigate a net crediting option for NEM projects and, for AOBC projects, requires that the utilities implement a consolidated billing mechanism for low-income community shared solar projects. On updates to SMART, we’re still waiting for draft regulations.

September 2024

The next step toward SMART updates will be the release of draft regulations this fall. Our last update noted that the MA legislature failed to pass a climate package in 2024, which included key siting and permitting reforms. Since then, Governor Healey introduced a supplemental budget that includes the siting and permitting language, which should at least keep up the momentum going into 2025. Lastly, the DPU opened a new docket to review an Eversource proposal to create capacity for community solar projects built by developers but managed by Eversource.

August 2024

The Massachusetts legislature wrapped up its 2024 session without passing the climate package we were hoping for, which included key siting and permitting reforms, a mandate to implement net crediting, and the 10 GW distributed solar goal. It’s possible that the legislature gets back to work in an informal session, during which we’d expect to see the siting and permitting efforts get renewed attention, but otherwise they will pick back up for the 2025 session. On the straw proposal for updating SMART, the first stakeholder sessions have taken place and conversations with the Department of Energy Resources will continue until we see draft regulations in the fall.

July 2024

On July 10, the Massachusetts Department of Energy Resources (DOER) presented its straw proposal for updating SMART. Highlights include transitioning the program to an adjustable block structure, requiring that all community solar projects serve at least 40% of capacity to low-income customers, and adding both self-attestation and third-party program documentation as approved methods of income verification. Stakeholder sessions are being held during the last week of July and draft regulations will be released in the fall.

June 2024

The DPU finally announced – on June 4 – its long-awaited order for Phase II of the Solar Massachusetts Renewable Target (SMART) Program, which is home to the state’s community solar incentives. The order includes updates to crediting procedures, the low-income community solar programs, introduces an integration of community solar and municipal aggregation, and approves credit transfers across load zones in Eversource.

Program History

2008
The Massachusetts legislature passed the Green Communities Act, which enabled virtual net metering and gave the Department of Energy Resources (DOER) authority to create a distributed generation incentive program
2008
2010
The first Solar Renewable Energy Credit program (SREC I) launched, enabling solar projects to collect value from both NEM and SRECs
2010
2014
The SREC II program launched after the SREC I program reached its cap
2014
2016
The Massachusetts legislature passed the Solar Act, which directed DOER to create a new solar incentive program and reduced the NEM credit for community solar to 60% of the original full NEM value DOER released its initial straw proposal for the Solar Massachusetts Renewable Target (SMART) program
2016
2017
Initial regulations for SMART were filed and finalized, including a transformation of the community solar incentives
2017
2018
SMART opened for project applications and revitalized developer interest in community solar deployment
2018
2021
The Department of Public Utilities (DPU) approved a doubling of SMART capacity – from 1,600 to 3,200 MW – across the program
2021
2024
DPU released its SMART Phase II order which included updates to crediting procedures and low-income community solar, plus a proposal to integrate community solar with municipal aggregation
2024
2024
DOER followed with a straw proposal for the next iteration of SMART, which included recommendations for the transition to an adjustable block structure, removal of the low-income community solar adder in favor of requiring all projects to serve income-qualified subscribers, and modernizing income verification methods
2024
2025
DOER initially released SMART updates via emergency regulations before responding to stakeholder feedback and finalizing the rules for SMART 3.0, which required all projects to serve low-income customers and moved the incentive structure from a declining rate to an annually adjusted rate
2025

Administrators

CLEAResult-Color-RGB
CLEAResult
Reviews SMART applications and requests approvals from DOER
massa
Department of Public Utilities
Regulates the utilities
DOER
Department of Energy Resources
Regulates the SMART program

CS Incentives

Solar Massachusetts Renewable Target

SMART is the state’s solar incentive program. It historically offered funding via a MW block model with a declining dollar-per-kilowatt hour incentive, but transitioned into an adjustable block program where incentive levels are assessed each year, per DOER’s SMART 3.0 regulations published in 2025

SMART 3.0 community solar incentives

  • Community Shared Solar Tariff Generation Unit: capacity blocks and incentives are set annually by DOER; at least 15% of annual capacity is reserved for community solar and the incentive is dependent on project size

Previous community solar incentives

  • Community Shared Solar: available in tranches of 60 MW with declining incentive rates
  • Low-Income Community Shared Solar (LICSS): available in tranches of 80 MW with declining incentive rates

Community solar credit rate

  • Net metering (NEM): a volumetric crediting approach that was the original compensation mechanism for community solar – there was also a second iteration of NEM crediting for community solar, which was 60% of the full NEM value
  • Alternative On-Bill Credit (AOBC): the current compensation mechanism that is based on the basic service rate (for each utility) of the host account

Utilities

images (1)
Unitil
images
Eversource
NatGrid
National Grid

Subscribers

Anchor subscribers

  • Maximum 2 subscriptions larger than 25 kW which cannot combine for more than 50% of the project

Small subscribers

  • 50% of the project capacity must be made up of subscriptions 25 kW or smaller

SMART 3.0 low-income subscriber carveout

  • Minimum 40% of project capacity to eligible subscribers at a 40% discount or minimum 15% of project capacity to eligible subscribers at a 100% discount

LICSS subscriber carveout

  • Minimum 50% of project capacity to eligible subscribers but the LICSS adder payments are made for all capacity that is subscribed by LICSS-qualified customers

Low-income subscriber eligibility options

  • Self-attestation
  • Geo-eligibility
  • Categorical eligibility (proof of participation in an approved program)
  • Receive a reduced utility rate

Billing

Billing type

  • Dual billing is currently offered but DPU is slowly moving toward consolidated billing

Credit banking

  • Credits from unsubscribed energy are banked at the project level until the date at which each utility processes its annual cashout for banked credits that remain on the host account. The payment is based on a ratio of the locational marginal price to the project’s average basic service rate
  • Subscribers can bank excess credits indefinitely

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