SMART is designed to support another 1.6 gigawatts of solar in the state.
BOSTON -- Amid pent-up demand from the industry, Massachusetts on Monday opened the floodgates to a new solar incentive program known as SMART, designed to support another 1,600 megawatts of photovoltaic capacity across the state.
The allocations, rolled out in 200-megawatt "capacity blocks," are expected to go fast, and early applicants will benefit from higher incentive payments. A web portal run by the Department of Energy Resources opened at noon, and for five business days will accept applications for the first round of fully-permitted, connection-ready projects, each with a top size of 5 megawatts.
The Solar Massachusetts Renewable Target, or SMART, will pay a flat-fee tariff to owners of home or commercial solar facilities. It offers "adders" for community solar, for integrated battery storage, and for building on brownfields, landfills, and previously developed sites.
"We're very concerned about land use, and want to make sure that as solar grows, we are doing it in the right way," said DOER Commissioner Judith Judson in a telephone interview.
The program creates a stable investment climate, said Judson, who noted that SMART will replace solar renewable energy credits, or SRECs, production credits which are akin to commodities.
"It was a volatile, market-traded program," said Judson. "National companies, or even an individual homeowner, didn't know what they would be getting from the SREC market. We've changed it to a predictable revenue stream."
She said SMART will be good for ratepayers, and incentivize 1.6 gigawatts of solar at a cost that's $4.7 billion less, over the program's lifetime, than the previous 1.6 gigawatts built in Massachusetts. The state already has around 2.2 gigawatts of solar, ranking it 7th in the nation for installed capacity.
The SMART program was slow in coming, and over the summer, advocates expressed frustration with various solar roadblocks, saying jobs within the clean tech economy were at stake. The DOER issued regulations to guide the SMART program 15 months ago, and in the meantime, proponents complained about the stalled launch.
Judson said the program was sourced in bipartisan 2016 energy legislation, and developed over time with input from diverse stakeholder groups.
"We were tasked to create a sustainable program going forward, and we're proud of that collaborative effort," said Judson. "So projects can be developed in the most cost-effective way."
The program could even supplant net metering in some utility territories where solar projects remain stalled and on long waiting lists. Net metering lets solar owners sell electricity back to the grid, but its availability has been capped by the Massachusetts State Legislature.
Michael Judge, the DOER's renewable energy division director, said that SMART will still let property owners enter agreements with third-party leasing companies to gain rooftop solar with zero upfront cost, if that's what they want to do. In the past, such third parties would own the SCRECs, and moving forward, they could claim the tariff payments.
"But we've seen a trend, nationwide, to more ownership," said Judge. He said the state offers solar loans to low-income homeowners who wish to own their systems, and that private banks are now offering such capital loans as well.
Judge said that solar owners who now have SRECs will get to keep them throughout the their ten-year life, and that the last SCRECS will expire in 2027.
Judson said she is excited about an aspect of SMART that provides incentives for battery storage integrated with solar. Homeowners could store energy during the day when the sun is shining, and use it at night when they return from work. She said the batteries could light up a home during power outages, providing resilience as well as load-balancing on the power grid.
Incentives for community solar -- where people who can't build their own rooftop solar may subscribe to a larger, centralized project -- are part of the program. There are added financial benefits for community solar projects that benefit low-income ratepayers.
"We really want to make sure that all our energy programs are broadly available to all, regardless of income," said Judson.
Asked if the incentives will be adequate to prevent solar developers from cutting down acres of trees to build their plants, Judson said the program will be evaluated soon after launch to make sure it is working as planned.
"We're trying to take the lessons learned from SRECs and other programs, and apply them to the SMART program," said Judge.
The two said Massachusetts remains a national leader when it comes to solar energy policy programs, and deployment.