Massachusetts is set to introduce significant changes to its Solar Massachusetts Renewable Target (SMART) program, aiming to revive a struggling solar market and broaden access to renewable energy for disadvantaged communities. These proposed modifications, announced by the state’s energy department, represent the first substantial adjustments since the program’s inception in 2018. Industry stakeholders have lauded the effort as a necessary step to align with current market conditions and to meet the state’s ambitious climate goals.
Massachusetts has consistently grappled with the balance between fostering solar development and maintaining environmental standards. Previous attempts to boost solar energy have often faced hurdles, including higher installation costs and market fluctuations. The state had seen a sharp decline in new solar installations over recent years, falling short of its annual targets. The revised proposal seeks to address these issues with updated incentive rates and expanded accessibility for low- and moderate-income residents.
Adaptable Rates
The revised SMART program aims to address the mismatch between incentive rates and current market conditions, a factor contributing to the slowdown in solar development. The new plan includes an annual rate-setting mechanism based on market analysis, which will allow adjustments according to prevailing conditions. This move is intended to provide both stability and flexibility for developers. Industry representatives expressed concerns about capacity limits for larger projects, questioning whether the proposed 300 megawatts per year would suffice to meet the state’s solar targets.
“We know, based on historical deployment rates, that we’re falling behind those goals,” said Samantha Meserve, director of the state’s renewable and alternative energy division. “We need to spur more development.”
To encourage solar development on previously developed land, the proposal includes new subsidies and additional incentives for installations on buildings and parking lots. This strategy aims to make it financially viable for projects in urban and suburban settings, reducing the need to compromise greenfield sites and wildlife habitats. The increased incentives could potentially lead to more creative and diverse solar applications.
Getting Siting Right
Another key aspect of the proposed changes aims to encourage solar installations on already-developed land, such as buildings and parking lots. This approach aligns with environmental groups’ concerns about the impact of large ground-mounted arrays on wildlife habitats and forests. By increasing subsidies for projects in the built environment, the state hopes to make these projects more attractive and economically viable. The proposal also includes stricter criteria for developing greenfield sites to ensure only the most suitable locations are used.
“We’re making it more attractive to site projects in the built environment,” Meserve said.
The revised program also plans to impose higher penalties for developing on greenfields, aimed at discouraging such projects unless they meet stringent criteria. Developers could mitigate these penalties through community engagement and by selecting optimal sites. However, there are concerns that these measures could slow down solar development at a time when the state is pressing to accelerate its renewable energy initiatives.
The updated definitions and expanded list of qualifying facilities under the SMART program are expected to make solar energy more accessible to low-income households. By broadening the eligibility criteria and making it easier for consumers to qualify as low-income, the state aims to ensure that the benefits of solar energy are more widely distributed. The proposal also mandates that community solar projects include a minimum percentage of low-income customers to receive additional incentives.
These proposed adjustments to the SMART program reflect Massachusetts’ ongoing commitment to renewable energy and its goal of achieving carbon neutrality by 2050. By making the program more responsive to current market conditions and expanding access to disadvantaged communities, the state hopes to reinvigorate its solar market. These changes could serve as a model for other states looking to balance economic viability with environmental responsibility in their renewable energy initiatives.
