After much anticipation, the Massachusetts Department of Energy Resources (DOER) announced that the official start date of the Solar Massachusetts Renewable Target (SMART) Program will be November 26th, 2018. On that date, the existing SREC II Program will transition to the new SMART Program for both residential and commercial solar power generators.
Under the SREC II Program, energy generators would sell their renewable energy credits through an online marketplace to suppliers and other users of power to meet their renewable energy requirements, whether company or state mandated. Conversely, the new SMART Program provides predictable payment rates to owners of solar generation by using a series of “declining blocks” dictated by the amount of total capacity in each block. The first block will provide the highest rate of payment with the most capacity, and as more solar power generators become allocated and reach the limit of the block, the second block, with slightly less capacity and payment, goes online for the next wave of applicants.
It will be interesting to monitor the program this Fall as the early adopters of the SMART Program will reap the most benefit, but at the same time, be experimenting with a brand new renewable energy incentive program. The use, payment, market structure, and law governing renewable energy credits will change drastically, but the goal of increasing Massachusetts’ use of renewable energy remains a top priority.
Please call Nathan Howe at (978) 460-4244 or NHowe@ClocktowerTC.com to learn more about the SMART Program and how we can help solar developers monetize their eligible 30% Investment Tax Credits on their solar system.