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Massachusetts issues final SMART 3.0 regulations, sets solar incentive capacity for 2025

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September 2, 2025
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The Massachusetts Department of Energy Resources (DOER) issued final regulations for its Solar Massachusetts Renewable Target (SMART) 3.0 program, including plans to reassess incentives and capacity annually.

The Solar Energy Industries Association (SEIA), the Alliance for the Climate Transition (ACT) and the Coalition for Community Solar Access (CCSA) applauded Governor Healey for taking decisive action through SMART 3.0 to ensure cost-effective solar generation can come online at a time when federal policies and red tape are raising energy prices.

Some of the major changes include:

  • Implementing an Annual Assessment that will be used to set annual program capacity and incentive rates. The Annual Assessment will incorporate a survey to program participants and consider:
      • 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
  • Incentive levels will be set annually and based on project size
  • Under 25 kW projects will have a fixed incentive level of $0.03 per kWh
  • Under 25 kW projects serving low-income customers will receive an increased incentive of $0.06/kWh
  • The available capacity for a given Program Year will also be set annually
    • Program Year 2025 will have 450 MW available
    • Projects under 25 kW and behind-the-meter projects under 250 kW will not be subject to capacity caps

“The Healey-Driscoll Administration’s release of SMART 3.0 charts a strong path for community and commercial scale solar and storage in Massachusetts and will be critical for driving down energy costs for families,” said Valessa Souter-Kline, SEIA’s Northeast regional director. “We look forward to working with state leaders on implementation to ensure the solar and storage industry continues to create good jobs and can deliver clean, reliable, affordable energy that people across Massachusetts are demanding.”

SEIA says the updated program builds on a proven track record while making needed improvements to respond to market conditions on an annual basis, rather than keeping the former rigid pricing structure intact. It addresses implementation challenges raised in the review process to make sure program requirements for site selection and energy storage achieve their intended policy goals. The SMART 3.0 rules aim to better serve low-income customers and improve consumer confidence in solar.

News item from SEIA

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