Explained: Massachusetts SMART program changes in 2026

On May 19, 2026, the Massachusetts Dept. of Public Utilities (DPU) approved a full redesign of the Commonwealth’s primary solar incentive program, Solar Massachusetts Renewable Target (SMART), altering how solar projects will be funded, how much ratepayers will pay and how fast new solar capacity can come online. Solar developers, ratepayers and clean energy observers should all pay attention.

What changed?

The DPU approved two updated model tariffs without changes: (i) a revised SMART 2.0 Provision and (ii) a new SMART 3.0 Provision. SMART 3.0 is the bigger story, as it makes fundamental changes to how the program works.

The previous program used a “declining block” structure. Incentive rates were set at the start and dropped as capacity increased. Under SMART 3.0, the Department of Energy Resources (DOER) will annually adjust incentive rates, capacity allocations and other program features. The new program moves DOER from a fixed structure to one that adapts annually by adjusting tariffs on current real-world data, including operating costs, market conditions, and policy goals.

How much will this cost?

The utilities estimate that SMART 3.0 will cost ratepayers about $4.5 billion over 20 years. That covers solar projects enrolling in program years 2025 and 2026. The number dropped from an earlier $6.7 billion projection, mainly because fewer projects enrolled in 2025 than expected.

The DPU acknowledged that these are large numbers but concluded that the prior method of cost measurement (projected net-dollars-per-megawatt-hour over decades) no longer fits a program that adjusts every year. The underlying notion is that a program that responds annually to current data can manage costs better than one built on 20-year projections.

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