The Next Solar Incentive: SMART Replaces SREC
For the last several years the state of Massachusetts has been the #1 Energy Efficient state in the US according to the American Council for an Energy-Efficient Economy Scorecard. This energy efficient record has been the culmination of numerous programs and incentives throughout Mass one of which, the SREC 2 program, is soon ending. After this program comes to an end, it will be replaced by the Solar Massachusetts Renewable Target (SMART) program in the fall of 2018.
Similar to the SREC program, the new SMART program will pay system owners for their production of solar energy by kilowatt-hour (kWh) based on fixed production increments. The system owner is provided the exact price they will receive for each kWh of solar energy they produce. Fixed payment for the system production is determined by the time of system interconnection and the availability of each “block.”
These blocks have a set number of commercial and residential kWh that can be produced before it’s closed. Early blocks offer the highest production payout for customers that are interconnected toward the beginning of the program and diminish with the subsequent blocks. Once you’re in a block, your price per kWh remains fixed for the duration of the program.
After your system is setup and interconnected, you’ll be assigned to a block which will verify your price per kWh. Once your price is set, production levels and earned credit from the production of solar power will be managed through your electric company. In the SREC 2 program, prices fluctuated and were managed through Solar Credits, which needed to be sold through a third party, often SREC Trade. The new SMART program will simplify how you get paid for producing solar electricity and will provide a consistent payment per kWh.
One unique aspect of the SMART program is the ability to include system “add-ons” that can increase your price per kWh. Systems that produce solar energy via solar canopies or utilize battery backup are just two of the many options to take advantage of. These add-on incentives allow you to increase your return on the solar energy you’re already generating while maximizing your return on investment. This process of incentivising certain setups or system features allows the solar market to continue expanding with the introduction of this program.
It’s never too soon to go solar, and the SMART program is designed to incentivize early adoption. This program will continue to incentivize the purchase of Solar PV systems throughout the state and hopefully keep Massachusetts as the #1 Energy Efficient state. For a free quote you can fill out the form below or call us at 888.SOLAR.20
