Solar Incentives in Massachusetts

Later this year, Massachusetts will close out it’s SREC program replacing it with the new Solar Massachusetts Renewable Target (SMART) incentives. While there are still a few details left to be finalized, Genability is able to model the proposed SMART incentives for our customers and has made the new incentives available via the Incentives API.

What are the Smart Incentives

The new SMART Incentives guarantee solar customers a fixed compensation rate for every kWh produced by their solar system over the first ten years, called the Base Compensation Rate.  The Base Compensation Rate varies by utility territory and will decrease over time as each tranche is completed.  Here are the initial Base Compensation Rates:

How SMART Incentives are Applied

While the customer is guaranteed the full Base Compensation Rate for all kWh produced by their solar system, they will actually get two credits on their utility bill under the SMART incentive program.  The first credit is the traditional Net Metering credit that solar customer receive in Massachusetts.  This doesn’t change from the current regime.

The second credit, called the Solar Incentive Payment, will be the difference between the Base Compensation Rate and the Value of Energy.  This Solar Incentive Payment will be applied to the customer’s bill as a credit, effectively topping up the Value of Energy to the level of the Base Compensation Rate.

Genability has modeled the Solar Incentive Payment in its SMART Incentives.  Since the Solar Incentive Payment represents a top-up on the Value of Energy, its value changes not just by utility but also by tariff.   In the table below are all the permutations of SMART incentives along with the customer attributes that indicate eligibility.

Including SMART Incentives in your Proposals

Now that the SMART Incentives are available via the Incentives API, you can begin including them in your solar savings proposals.  For each month or year in your lifetime savings calculation, you will multiply your solar production by the Solar Incentive Payment for the first ten years to reflect the SMART incentive compensation.

While the SMART Incentive program is not expected to open officially until August or September of 2018, Genability is making these incentives available in our API so that you can get your interconnection paper work started before the program goes into effect.  So don’t delay, calculate your customer’s savings in Massachusetts using the SMART incentives today!