Massachusetts Advances Clean Energy with SMART 3.0

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The Healey-Driscoll Administration officially launched SMART 3.0, the redesigned solar incentive program that will deliver $300 million in annual ratepayer savings and accelerate solar deployment across the Commonwealth. The program is a central piece of Massachusetts’ broader clean energy transition, which now encompasses solar, offshore wind, battery storage, grid modernization, and equitable energy access.

“To drive down costs, we need more energy — and solar is the fastest, cheapest energy we can bring into Massachusetts,” said Governor Maura Healey.

“With SMART 3.0, we are revitalizing a successful program to lower costs for customers and boost our economy,” added DOER Commissioner Elizabeth Mahony.

SMART 3.0, formally known as Solar Massachusetts Renewable Target 3.0, opened for applications on October 15, 2025, following updated regulations finalized in September 2025. The program offers 900 MW of available capacity this year, structured to align with federal Investment Tax Credit rules and designed to bring more low-cost clean energy online across Massachusetts. 

Clean Energy Landscape: Beyond Solar

Rapid Growth Across Massachusetts

Massachusetts now supports more than 115,000 clean energy jobs, over twice the number recorded in 2010, according to the Massachusetts Clean Energy Center. The state’s energy strategy integrates solar, offshore wind, and storage with policy efforts targeting reliability, affordability, and equity.

Offshore Wind Powers the Transition

Offshore wind remains a cornerstone of the state’s decarbonization plan. The Vineyard Wind project is already delivering power to the New England grid and will eventually supply energy to about 400,000 homes. 

Storage and Grid Modernization

To accommodate the surge in renewable power, Massachusetts is prioritizing battery storage and smart grid upgrades. Studies indicate that targeted deployment of storage could reduce peak-demand stress and offset costly infrastructure upgrades, ensuring a more resilient grid. The Future Grid 2025 initiative explores these challenges through public forums on equitable electrification and grid reliability.

Affordability and Equity

As electrification expands, energy affordability remains a challenge—especially for households still reliant on natural gas. Recent analyses predict that uncoordinated electrification could increase energy bills for some customers by up to 46% over the next 15 years. SMART 3.0 helps mitigate these risks by offering enhanced solar incentives for low-income households, broadening eligibility definitions, and mandating that at least 40% of community solar participants be low-income customers. 

A Broader Policy Framework

SMART 3.0 is part of the Healey Administration’s larger Energy Affordability, Independence & Innovation Act, designed to relieve energy costs, expand procurement authority for renewables, and bring more energy into the state. The legislation is projected to deliver over $10 billion in savings for ratepayers over time.

In September, Governor Healey convened a Solar Summit with developers, labor leaders, and trade associations to explore actions that could unlock more solar investment. However, policy reforms such as potential changes to net-metering rules have drawn cautious feedback from developers who warn that reduced compensation could slow project development. 

SMART 3.0: What’s New and Why It Matters

  • Flat incentive rate for residential customers, with enhanced rates for low-income households.
  • Stronger consumer protections, including bans on early-termination fees and tighter oversight of community solar contracts.
  • Environmental mitigation fund directing payments from large solar installations toward conservation, biodiversity, and land protection.
  • Expanded community solar requirements, mandating 40% low-income participation and guaranteed minimum bill-credit discounts.
  • Annual economic review mechanism allowing DOER to adjust incentive levels as market conditions evolve.

These provisions aim to balance affordability, equity, and sustainability while maintaining Massachusetts’ leadership in distributed generation.

Challenges Ahead

Massachusetts faces several hurdles in executing its clean energy vision:

  • Federal headwinds on offshore wind permitting could slow expansion of projects like New England Wind.
  • Debate over net-metering reforms may test the balance between ratepayer savings and developer incentives.
  • Grid integration complexity continues to grow with higher shares of intermittent generation.
  • Equity gaps persist as low-income and environmental justice communities remain disproportionately affected by energy cost burdens.

What It Means for Massachusetts

With SMART 3.0 anchoring a new phase of distributed generation, Massachusetts is signaling a strategic shift from incremental adoption to coordinated clean energy scaling. The program’s focus on affordability, equity, and adaptability positions it as a blueprint for how states can modernize energy incentives while maintaining consumer trust and environmental stewardship.

As Governor Healey summarized: “Massachusetts is open for solar business — applications open today.”

Environment + Energy Leader