Accelerating Smart Solar Progress in the Commonwealth
SMART 3.0 - Solar Progress at the State Level
At a time of diminishing federal policy support for solar, states around the country are stepping up and demonstrating leadership in maintaining progress toward climate goals, and Massachusetts is no exception. On June 20th, the Commonwealth released the regulations for its new solar incentive program, SMART 3.0, through an emergency rulemaking process. This program will position the Commonwealth and its clean energy industry for success and growth in the years to come.
Our 197 kW low to moderate income community shared solar project was completed at the Sportsmen’s Tennis Center in Dorchester, MA in the summer of 2025.
What are Emergency Regulations?
Emergency regulations are issued when an agency deems them necessary for the preservation of public health and safety. This process allows regulations to be adopted quickly and without administratively burdensome processes. Emergency regulations have the same impact as permanent ones; they remain in place for three months until they are officially effectuated through the standard rulemaking process. In service to its greenhouse gas reduction goals and considering the federal political climate, the Commonwealth employed emergency regulations to release the new SMART program to ensure solar continues to expand its impact in creating a better, cleaner energy future for all in Massachusetts.
How Does the SMART Program Work?
The Massachusetts SMART program incentivizes solar energy deployment through a tariff-based system, where system owners receive monthly payments from their utility company for a set period based on the energy their solar systems produce. This program aims to cost-effectively accelerate solar energy adoption and contribute to the state's renewable energy goals.
What’s new in SMART 3.0?
SMART 3.0 provides added value and stability for the solar industry and the state. Base compensation for solar production is increasing, and compensation rate adders are being tailored to promote equitable, resilient, and accessible program outcomes.
Increase in Value and Equity of Program:
The canopy compensation rate adder definition may enable participation for elevated roof racking technology, incentivizing solar to be installed over rooftops crowded with equipment.
The community solar compensation rate adder now requires at least 40% of bill credits to be allocated to low-income subscribers, promoting greater access to the benefits of the energy transition.
Low-income municipal aggregation has been formally added under SMART 3.0. This means municipal aggregation programs serving low-income customers are now eligible for incentives, which increases their financial viability and therefore scalability.
Alignment of Incentives with Market and Environmental Goals:
Under SMART 3.0, an annual report will be prepared by an economic consultant to determine the subsequent year’s block capacity and incentive rate. This annual assessment will analyze market conditions, program participation, progress towards greenhouse gas reduction goals, impacts on ratepayers, solar costs, material and development costs, and land use and environmental goals to ensure meaningful savings. The 2025 program has a capacity of 450 MW and compensation rates will be released in the annual report, which is slated to be published in September.
Incentives for the Built Environment and Beyond:
Under this new program, set percentages of the annual capacity will be set aside for certain project types to promote solar development in the built environment and those that benefit low-income communities. These capacity set-asides include program capacity allocations for:
Smaller solar projects
Low-income property projects
Community shared solar projects
While larger projects are capped under the relevant program year’s capacity, smaller projects are uncapped under that year’s capacity and can participate even if the program capacity has been met.
Where are we in the SMART 3.0 Timeline?
Emergency regulations for SMART 3.0 were published on June 20, 2025 and the permanent regulations are still being finalized. Compensation rates for the 2025 projects are slated to be published on September 2nd and this year’s program will open for applications on October 15th. The new 2026 program will open on the first of January.
How Does SMART 3.0 fit into the Sunwealth Strategy?
The SMART 3.0 program is a powerful opportunity for the growth of high-impact solar projects in the Commonwealth, aligning closely with both the Sunwealth mission and its project pipeline. With dedicated carveouts for low-income community shared solar, projects on low-income properties, and small-scale solar projects, SMART 3.0 will directly support Sunwealth’s mission to advance equitable access to clean energy with a focus on the built environment.
How Does SMART 3.0 fit into the Massachusetts Climate Plan?
Massachusetts continues to progress toward its robust climate targets, with the goal of reducing greenhouse gas emissions to 50% below 1990 levels by 2030 and net zero greenhouse gas emissions statewide by 2050. So far, Massachusetts is on track to meet these goals, much in part to their immense progress in clean energy incentives and procurement.
Solar has seen massive growth in Massachusetts:
In 2006 the state had less than 600 solar systems and 3.6 MW in capacity
In 2025, the Commonwealth now has 5,477 MW of solar installed and over 200,000 installations, receiving 26.61% of its electricity from solar
Looking Forward:
With the passage of SMART 3.0, solar deployment is well positioned to take off, and Massachusetts will continue to close the gap towards its net zero target. SMART 3.0 will enable meaningful growth of the industry as it incentivizes smart solar deployment and prioritizes communities that need clean energy the most.
Despite federal deprioritization of clean energy, Massachusetts is ensuring that solar will remain a priority and its residents will continue to be able to access clean, affordable energy and receive significant electricity savings under SMART 3.0. To learn more about how Sunwealth is capitalizing on SMART 3.0 to finance impactful solar+ projects in the Commonwealth, reach out to policy@sunwealth.com.
This article was written by Emma Oliver, our 2025 MassCEC intern. Emma worked with our project development team to support solar and capital deployment efforts through business development, market analysis, and policy research. She was drawn to Sunwealth for their commitment to sustainability and equity in solar development.