MASSACHUSETTS COMMERCIAL SOLAR THAT PENCILS OUT

SMART 1.0 and 2.0 used a declining block structure—incentive rates dropped each time a capacity block filled up. By 2023, some blocks had bottomed out to $0.00 incentives.

SMART 3.0 replaces that with an annual assessment model. DOER now evaluates and adjusts rates and capacity each year based on actual market conditions—material costs, development costs, energy prices. This creates more predictability for developers and avoids the “race to the bottom” problem.

Other key changes:
∙ Higher base compensation rates than late-stage SMART 2.0
∙ Projects 1 MW and larger now require co-located battery storage
∙ New adders for large rooftop systems (>900 kW)
∙ Greenfield mitigation fees ($50,000/acre) to steer projects toward rooftops, brownfields, and dual-use agricultural land
∙ Rates can adjust up to 20% year-over-year (vs. only declining in previous versions)

SMART 3.0 rates vary by system size, project type, and utility territory (Eversource, National Grid, Unitil). Rather than publish a static number here, rates are calculated using DOER’s official Value of Energy and Incentive Calculator, which factors in:
∙ System size
∙ Behind-the-meter vs. front-of-meter
∙ Utility service territory
∙ Customer rate class
∙ Applicable adders (storage, building-mounted, low-income, etc.)

For commercial behind-the-meter systems, Program Year 2026 base compensation rates are approximately $0.24–$0.28/kWh before adders, though final rates depend on your specific project configuration.

We’ll calculate your exact rates as part of our free SMART 3.0 analysis.

Yes. Behind-the-meter projects can receive both SMART incentive payments AND net metering credits—they run in parallel.

Here’s how it works: SMART pays you for every kWh your system produces. Net metering credits you for excess electricity you send back to the grid. The SMART formula accounts for this by subtracting the “Value of Energy” (what you’d save through net metering) from the Base Compensation Rate—so you’re not double-compensated for the same kWh.

The result: You get bill savings from offsetting your electricity usage, plus a separate monthly SMART incentive payment. For commercial systems, this combination typically generates the best overall returns.

Program Year 2026 has 600 MW of available capacity for projects subject to the cap. If that fills before December 31, 2026, new applications go on a waitlist.

Waitlisted projects get priority consideration when Program Year 2027 opens—they’re processed before any new 2027 applications.

But here’s the catch: you’d lock in at 2027 rates, not 2026 rates. And there’s no guarantee 2027 rates will be as favorable (they can adjust up to 20% in either direction).

Good news for smaller projects: Behind-the-meter systems under 250 kW and all systems under 25 kW are NOT subject to capacity caps—they have uncapped access to the program.

For larger commercial projects, the takeaway is clear: apply early in the program year to secure your spot and lock in current rates.