SMART, set to launch at the end of 2018, will replace Massachusetts’ SREC II solar incentive program. It is a declining block program, which means the incentive levels will decline by prescribed amounts for up to eight blocks per Electric Distribution Company (EDC) territory. This means those who enroll earlier will benefit more.
How is SMART different from SREC II?
SMART and SREC II both award solar customers based on the amount of electricity they produce. But while SRECs are traded for a value determined by market conditions (including supply and demand) at the time they are redeemed, SMART credits are fixed: once you’re awarded a particular incentive amount per kWh, that is what you receive for the duration of the program. Another major difference is that along with the baseline incentive amount, SMART offers “adders”—bonuses for innovative installations such as solar canopies, energy storage and systems built on landfills.
How does SMART work?
SMART is structured in declining “blocks.” This means as participants join, they become part of a group or block that will fill up to a threshold of 200 megawatts (MW) of solar panel capacity. Once that block is full, the incentive is reduced by four percent for each subsequent block. Enrolled projects will receive tariff-based payments for 10 or 20 years depending on project size. Compensation rates are also subject to adders and subtractors based on the project’s characteristics.
How can I apply?
All solar PV developers with projects up to 5 MW are welcome to apply online. In-depth information and application timing and instructions are available on the official SMART website.
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