The Massachusetts Department of Energy Resources (DOER) has published updated regulations for its Solar Massachusetts Renewable Target (SMART) program, which offers incentives for residential and commercial solar projects across the state.

The expanded SMART 3.0 regulations set up a Year 1 capacity of 450 MW for 2025.

Kate Daniel, northeast regional director for the Coalition for Community Solar Access (CCSA), said the level of increased capacity available in SMART 3.0 is “necessary simply to meet projects that have been pent up in CIPs (capital investment projects) and other interconnection studies.”

“We are hoping that the 2026 levels to be released in the fall are also robust, so that we can have steady growth in the Massachusetts solar industry, rather than continuing the boom-bust cycle of recent years,” Daniel said.

Projects ranging from 1,000 kWac to 5,000 kWac will be eligible for a base compensation rate of USD 0.1729/kWh. Additionally, projects ranging from 500 kWac to 1,000 kWac will be eligible for a base compensation rate of USD 0.2113/kWh, and projects ranging from 250 kWac to 500 kWac will be eligible for USD 0.2482/kWh.

DOER will set annual program capacity and incentive rates for the program through an annual assessment considering progress toward greenhouse gas emissions limits, program participation rates, ratepayer impacts, regional/national solar costs, solar material, development costs, land use, and environmental protection goals.

Adder values will be set annually following the annual assessment and can be found online. New adders include incentives for canopy projects and solar developments installed on landfills and brownfields sites.

Ground-mounted projects larger than 250 kWac are ineligible for SMART incentives if their footprint overlaps with a biomap core habitat or top 20% across the state’s potential carbon emissions plus foregone sequestration through 2070. Other applicable state and nationally protected lands are also included, such as protected open space, wetland resource areas, and some properties included in the state register.

Eligible ground-mounted projects not sited on previously developed land may be subject to additional rules and restrictions.

Community Shared Solar (CSS) projects participating must enroll a minimum of 40% low-income customers. Projects may still have one or two anchor offtakers consuming up to 50% of energy output. Alternative CSS projects must enroll 100% low-income customers.

The low-income adder has been expanded to additional types of housing/facilities, as well as systems that provide 100% output to qualified affordable housing properties.

Daniel said CCSA was glad to see some of the improvements which will better serve low-income customers through community solar, including the expanded definitions and ways of verifying low-income status.

Additionally, implementing net crediting and consolidated billing will be extra important to make the other pieces of the SMART program come together, Daniel said.

DOER had been working on the new SMART regulations for about a year after issuing its 2024 straw proposal and taking in feedback.

The new regulations were filed as an emergency and have been in effect since June 20, but DOER is continuing to accept public comments on SMART 3.0 until July 25.