Massachusetts SMART Program Block Pricing Reference

Why this matters

Massachusetts Solar Massachusetts Renewable Target (SMART) program is the state's primary solar incentive vehicle, replacing SREC II for systems interconnecting after the program's launch. SMART pays per kWh produced on a 10-year (under 25 kW) or 20-year (over 25 kW) declining-block rate set by the Department of Energy Resources (DOER) and administered through the three investor-owned utilities (Eversource, National Grid, Unitil). Block rates decline as each utility's capacity block fills, so timing the interconnection application against the open block matters for the customer's lifetime payment. Sales reps who quote yesterday's block rate after the block has stepped down generate customer disputes that the contractor eats. This reference covers the block mechanics, adders, and what the field tech needs to know about interconnection sequencing.

Block structure basics

DOER established eight capacity blocks (Block 1 through Block 8) within each utility's service territory. Block 1 was the highest base rate; each subsequent block dropped roughly 4 percent. Block capacity is measured in MW AC. Once a block fills, applications in queue roll into the next block at the lower rate.

For each utility:

• Each block has a separate base compensation rate by system size category (under 25 kW, 25 to 250 kW, 250 to 500 kW, 500 kW to 1 MW, 1 to 2 MW, 2 to 5 MW)
• Smaller systems get higher per-kWh rates within the same block - residential under 25 kW is the highest tier
• Standalone PV is the baseline rate; behind-the-meter and community shared solar receive different treatment

Check current block status at the Massachusetts DOER SMART program page or the MassCEC Production Tracking System (PTS) dashboard before quoting any customer. The block displayed at the time of interconnection application submission is the block the customer locks into, NOT the block at PTO.

Adders that compound the base rate

DOER built adders into SMART to drive specific deployment patterns. Adders stack additively onto the base rate per kWh:

• Building-mounted (rooftop) adder
• Brownfield / landfill adder for ground-mount on remediated sites
• Floating solar adder
• Canopy adder (over parking lots)
• Pollinator-friendly ground-mount adder (requires meeting specific seed mix and pollinator habitat standards verified by Mass Audubon)
• Community Shared Solar adder (system serving community share customers)
• Low Income adder (system serving low-income customers)
• Energy Storage adder (PV system paired with storage meeting program thresholds)
• Public entity adder (system owned by municipality or other public entity)

Adders vary by SMART Statement of Qualification (SQA) program version - the SMART 2.0 emergency regulation in 2020 reshuffled several adder values and added the storage adder. Confirm the current SQA before committing rates in a customer proposal.

Interconnection application sequencing

The path to SMART revenue runs through the utility's interconnection process under Massachusetts DPU 220 CMR 18.00:

1. Submit interconnection application via the utility portal (Eversource - Eversource Solar Connect, National Grid - DG GATEWAY, Unitil - paper submission)
2. Utility performs Initial Review (10 business days target)
3. If Initial Review passes, project enters Simplified or Standard Process. Residential PV typically goes Simplified.
4. Receive Authorization to Interconnect (ATI)
5. Install, electrical inspection, utility witness
6. Receive Permission to Operate (PTO)
7. Within 30 days of PTO, register the project with the MA DOER SMART administrator
8. SMART payments begin from the actual PTO date once the SQA is approved

The block rate is locked at the date the utility issues a complete-application determination, NOT at the date of PTO. This means a customer who applies just before a block step-down still gets the higher rate even if PTO is months later. Track block fill velocity in the PTS dashboard so customers do not lose the higher-block rate to administrative delay.

Net metering vs SMART - separate compensation streams

SMART payments are separate from net metering credits. Residential customers under 25 kW get both:

• Net metering: the customer's bill is netted to zero or near-zero based on PV export valued at retail rate (Massachusetts net metering preserves retail-rate netting for systems under 25 kW)
• SMART payments: per-kWh production payment for 10 years (under 25 kW) from PTO

For 25 to 250 kW and larger systems, qualifying facility net metering applies and the netting structure differs - confirm with the customer's utility account manager.

The SMART payment is structured as either a fixed-price tariff (Alternative On-Bill Credit, AOBC) which appears as a credit on the customer's utility bill, OR a direct payment for off-takers. Residential customers default to AOBC.

Storage adder mechanics

The SMART storage adder requires:

• Battery capacity at least 25 percent of PV nameplate capacity (kWh of usable storage relative to kW DC of PV)
• Battery cycled at least 52 cycles per year measured at the meter (one cycle equals full nameplate discharge in any pattern)
• Battery dispatched on a schedule that includes the ISO-NE summer peak window

Failure to meet the cycle threshold in a given year reduces the storage adder pro-rata for that year. Customers who size the battery for resiliency only and rarely cycle it will not capture the full adder - sales must disclose this and design must verify the battery management system can be set to a cycling profile that hits 52+ cycles per year.

Common field mistakes

Quoting Block 1 rates after Block 1 filled. The DOER block dashboard is the source of truth; the customer's installer is responsible for accurate quoting.

Missing the 30-day post-PTO SMART registration window. The SQA approval can be delayed, which delays first SMART payment.

Designing a battery sized only for resilience on a SMART storage adder system. Inadequate cycling forfeits a meaningful portion of program revenue over the 10-year term.

Forgetting that residential customers carry BOTH a SMART payment stream and a net metering credit stream. Proposals that show only one understate the customer's actual savings.

Treating the SMART rate as guaranteed for 10 years without disclosing that adders contingent on continued qualification (Pollinator-Friendly, Low Income off-take, Storage cycle threshold) can be reduced if the qualification lapses.

References

• 225 CMR 20.00 Solar Massachusetts Renewable Target (SMART) Program
• Massachusetts DOER SMART Program Guideline current edition
• 220 CMR 18.00 Standards for Interconnection of Distributed Generation
• Massachusetts General Laws Chapter 164 Section 138 (Net Metering)
• NEC 2023 Article 705 Interconnected Electric Power Production Sources
• NEC 2023 Article 706 Energy Storage Systems
• IEEE 1547-2018 Standard for Interconnection of Distributed Energy Resources
• MassCEC Production Tracking System User Manual