By Matt Shortsleeve, SVP of Marketing & Policy, Solect Energy
With over 15 years of experience building solar and storage projects across Massachusetts and the Northeast, Solect has seen the solar landscape evolve through growth, challenges, and transition. SMART 3.0 stands out as a true turning point — a comprehensive effort to revitalize the market, accelerate deployment, and refocus clean energy on economic value and grid reliability.
On June 20, 2025, the Massachusetts Department of Energy Resources (DOER) filed emergency regulations 20 M.G.L. 28.00 launching SMART 3.0. This next phase of the state’s solar incentive program arrives at a critical time: Massachusetts has slipped from a top-five solar state to 26th in new installations, and nearly 400 megawatts (MW) of projects are stalled due to permitting, interconnection, and market uncertainty. Set against the backdrop of the federal government’s intention to eliminate incentives for renewable technologies including solar, DOER chose to issue emergency regulations to stimulate new projects with higher incentives.
SMART 3.0, combined with Governor Healey’s broader Energy Affordability Agenda, is a strategic response. The program is designed to unlock more than $300 million annually in savings and benefits, reduce benefit charges from electric utility bills, and speed the deployment of new, cost-effective solar and storage infrastructure statewide.
It’s a policy shift and an opportunity that businesses and building owners are ready for.
A Reset for Solar and Storage in Massachusetts
SMART 3.0 is built to support economic recovery and clean energy expansion at the same time. The Healey-Driscoll Administration has made it clear: solar is no longer just a climate solution. It’s also one of the most effective tools we have to lower electricity costs, boost grid reliability, and create local jobs.
Solar is one of the fastest and cheapest forms of energy we can bring into Massachusetts right now. I want us moving as fast as states like Florida and Texas on this because it will increase reliability and bring down the cost of electricity.
Governor Maura Healey
According to the Commonwealth, ratepayers could see $15–$20/month removed from their electricity bills by 2027 through the retirement of outdated solar carve-out programs and changes to net metering compensation. That’s nearly $1.5 billion in cumulative savings over five years. Participants who invest in solar, either as owners of systems, offtakers or lessors to third party investors, can benefit from lower electricity costs, state incentives, and savings in electricity or bill credits. The new SMART framework employs an annual cost analysis to administratively set incentive levels, prioritizes rooftop, canopy, and brownfield development, and increases consumer protections.
It’s clear that Massachusetts is aiming to lead again — not just in megawatts installed, but in how clean energy policy supports people, businesses, and communities.
Key Dates for the Program
SMART 3.0 launches in a transitional year with two enrollment windows:
- October 15, 2025: Application window opens for Program Year 2025
- January 2, 2026: Annual two-week window opens for Program Year 2026 and establishes the ongoing SMART 3.0 cycle
Program Year 2025 will offer capacity allocations up to 450 megawatts (MW) statewide, and once capacity is reached, projects are placed on a waitlist, a new feature designed to encourage timely applications and prioritize project readiness.
Key Program Dates
| June 20, 2025 | Emergency regulations filed (effective immediately) |
| June 20, 2025 | Earliest start date for SMART 3.0 construction |
| July 24-25, 2025 | Public hearings and deadline for comments |
| October 15, 2025 | Application window opens for Program Year 2025 |
| January 2, 2026 | Application window opens for Program Year 2026 |
Why This Matters for the Massachusetts Market
In recent years, Massachusetts solar development has slowed due to a combination of permitting delays, interconnection challenges, and outdated incentive structures. SMART 3.0 directly addresses those headwinds.
Solar plays a critical role in the reliability of our energy grid, and we need to double down on solar programs that are working. On the hottest days of the year, it’s solar that helps keep the lights on and costs down. As the federal government stalls more energy projects than it advances, our administration is looking for ways to get more energy into our state and protect our grid from reckless energy policies.
Rebecca Tepper, Secretary of Energy and Environmental Affairs
By modernizing the compensation model, tightening consumer protections, and realigning incentives toward smart siting and low-income access, the program creates a more stable, predictable environment for project development. This added clarity is expected to unlock hundreds of megawatts in stalled projects and help restore solar employment to pre-pandemic levels.
For solar developers, property owners, municipalities, and institutions alike, the message is clear: the state is making it easier and more worthwhile to build solar in Massachusetts again.
What’s New in SMART 3.0
SMART 3.0 reflects a shift toward a more transparent, market-responsive approach. Here are some of the most notable changes:
SMART 2.0 vs. SMART 3.0 Comparison
| Feature | SMART 2.0 | SMART 3.0 |
| Incentive Structure | Declining Block | Annual Adjustment |
| Application Timing | Rolling | 2-week annual window |
| Waitlist | None | Yes |
| Storage Requirement | Encouraged | Required ≥1 MW |
| Greenfield Policy | Limited Guidance | $50K/acre mitigation fee |
Other program innovations include:
- A greenfield mitigation fund that invests fees from ground-mounted projects into land conservation and biodiversity efforts
- A new 1 MW rooftop adder to boost incentive value for large building-mounted systems
- Expanded eligibility for municipal aggregation low-income community solar
How to Capture SMART 3.0 Incentives
SMART 3.0 sets clear expectations for project readiness.
For private sector applicants, eligibility requires:
- Site preparation
- An executed contract submitted with a Statement of Qualification Application
- An Interconnection Service Agreement (ISA)
- All non-ministerial permits
Public sector applicants, such as schools and municipalities, are not required to submit an ISA or Letter of Intent at the time of application.
These are not unnecessary barriers. It’s to ensure limited capacity goes to projects that are truly ready to build. Projects that don’t make it into the initial capacity allocation will be placed on a waitlist by size category.
SMART 3.0 + Federal ITC: Timing Is Key
The federal Investment Tax Credit (ITC) remains one of the most valuable incentives available, but it is being phased down. By aligning your project with both SMART 3.0 and the ITC, you can secure a powerful stack of incentives that reduce upfront costs and improve long-term return on investment.
To do that, now is the time to:
Evaluate your site
Begin permitting and interconnection
Engage a development partner
Reaching a construction-ready stage soon ensures you don’t miss out on the window to benefit from both programs before capacity limits or deadlines take effect.
Who Benefits from SMART 3.0?
SMART 3.0 is structured to support the types of projects that deliver long-term value to the grid, to the economy, and to Massachusetts communities. This includes:
- Owners of Commercial Buildings & Parking Areas
- Schools & Municipalities
- Energy Storage Seekers
- Brownfield Developers
- Owners of Older Solar Arrays (Repowering)
For system owners with solar installed 15+ years ago, SMART 3.0 introduces new repowering incentives that make it possible to upgrade legacy systems with more efficient technology and requalify for program support.
Storage Now Plays a Central Role
Under SMART 3.0, projects 1 MW and larger must include battery storage, with limited exemptions. This shift reflects a growing emphasis on grid flexibility and resiliency.
Battery systems remain eligible for storage incentive adders and provide added value for behind-the-meter customers through:
- Peak demand reduction
- Load shifting
- Backup during outages
Storage is no longer an optional upgrade — it’s becoming a key piece of Massachusetts’ energy infrastructure strategy.
A Tailwind for Clean Energy in Massachusetts
Massachusetts has a long history of clean energy leadership. SMART 3.0 and the broader Energy Affordability Agenda represent a commitment to keeping that leadership strong. For building owners, businesses, and municipalities, this is a moment to act. The state has created a path to build faster, lower costs, and improve reliability — while protecting land and ensuring equitable access.
For 15 years, Solect has helped organizations across Massachusetts turn clean energy into long-term value. Now, with SMART 3.0 in place, we’re ready to help lead the next era — delivering smarter systems, stronger incentives, and greater energy resilience.
About the Author
Matt Shortsleeve, SVP of Marketing & Policy, Solect Energy
Matt has over a decade of experience in the solar industry and leads Solect’s marketing, legislative, and regulatory strategy. He has helped develop more than 100 solar and storage projects across Massachusetts and advocates for policies that advance a clean energy future and modernized electric grid.
June 27, 2025