What Is the SMART Program and How Do Massachusetts Homeowners Qualify?

If you're researching solar in Massachusetts, you'll hear about the SMART program early and often. It's one of the state's main solar incentives — but it's also one of the most misunderstood. Homeowners are frequently confused about how it works, what it actually pays, and how it fits alongside net metering and other programs.

This guide gives you a clear, plain-English explanation of how SMART works, who qualifies, what it pays in 2026, and how to make sure your system is set up to take advantage of it.

I'm Dave Simmer, a NABCEP-trained solar designer based in Scituate. I've been working with Massachusetts solar incentive programs since 2011 and have helped homeowners across the South Shore — from Hingham to Plymouth — navigate SMART enrollment for over a decade.

What is the SMART program?

SMART stands for Solar Massachusetts Renewable Target. It's a state-administered incentive program designed to grow residential and commercial solar capacity in Massachusetts by paying system owners for the electricity their panels produce.

The program is run through the Massachusetts Department of Public Utilities (DPU) and administered by the state's investor-owned utilities — primarily National Grid and Eversource, which serve the vast majority of South Shore homeowners.

The core concept is simple: once your solar system is installed and approved, you earn a fixed payment per kilowatt-hour your system produces over a 10-year contract period. That payment is on top of the bill savings you're already getting through net metering — SMART is purely a production incentive.

How does SMART work exactly?

Production-based, not usage-based

This is the most important thing to understand about SMART: it pays you based on what your system produces — not on whether you use that electricity yourself or send it back to the grid. If your system generates 12,000 kWh in a year, you earn the SMART payment on all 12,000 kWh, period (learn how to calculate your solar savings).

This makes it completely separate from net metering, which tracks what flows back to the grid. SMART tracks total production from your system meter.

Fixed rate, locked in at enrollment

Your SMART payment rate is set at the time your system is approved and enrolled in the program. That rate doesn't change for the full 10-year contract term — regardless of what happens to program rates afterward. This predictability is one of SMART's most valuable features. You know exactly what you'll earn from it each year.

Paid through your utility bill

SMART payments show up as credits on your monthly utility bill — the same bill where your net metering credits appear. The two are separate line items, but they're both reflected in what you owe each month.

What does SMART pay in 2026?

SMART has gone through multiple program "blocks" since its launch in 2018. Each block has a set capacity, and when it fills, the next block opens at a slightly lower rate. This declining structure is intentional — it's designed to phase the incentive down as solar adoption grows and costs fall.

To put that in context: an average 11.4 kW system producing roughly 12,755 kWh per year would earn approximately $350–$400 per year through SMART. Over a 10-year contract, that's $3,500–$4,000 in total SMART payments. Wondering if is solar still worth it without the federal credit?

SMART is not the largest piece of the financial picture — net metering delivers far more value in most cases (see how net metering works in Massachusetts). But it adds consistent, predictable income that improves your overall payback period and ROI, particularly in the first decade of ownership.

Who qualifies for SMART?

Utility service territory

To qualify for SMART, your home must be served by one of Massachusetts's investor-owned utilities — National Grid, Eversource, or Unitil. If you're on a municipal electric utility (like those serving some towns in the state), SMART is not available to you. Most South Shore homeowners are on National Grid or Eversource and do qualify.

System size

SMART is available for residential systems up to 25 kW in size. The vast majority of residential installations fall well under this limit — a typical South Shore home needs an 8–14 kW system. Systems larger than 25 kW fall under a different category with different program terms.

New installations only

SMART enrollment is for newly installed systems — not systems that were installed before the program launched or before a specific block opened. Your system must be installed, inspected, interconnected with the utility, and then formally enrolled in SMART through the utility.

Program block availability

SMART operates in blocks of capacity. Each block has a fixed amount of megawatts available, and enrollment is first-come, first-served. As of 2026, SMART is still accepting new enrollments, though rates vary by block and utility territory. Availability can change — it's worth confirming current status as part of your proposal process.

How does the enrollment process work?

You don't enroll in SMART yourself — your installer handles the enrollment process on your behalf. Here's the general sequence:

The timeline from installation to SMART enrollment can take several weeks to a few months depending on the utility and current application volume. During that period, your system is producing and you're getting net metering credits — SMART payments begin once enrollment is confirmed. See what the full process timeline looks like.

SMART vs. selling RECs — which is better?

Some homeowners ask about selling their solar production into the Class I Renewable Energy Certificate (REC) market as an alternative to SMART. RECs represent one megawatt-hour of renewable electricity production and can be sold on the open market.

The difference comes down to predictability vs. potential upside. SMART gives you a guaranteed, fixed rate for 10 years. REC prices fluctuate based on market conditions — they can be higher than the SMART rate in good years, or lower in weak markets.

For most residential homeowners, SMART is the better choice. The predictability and simplicity outweigh the potential upside of REC market exposure. But for the right system and situation, RECs are worth evaluating. I walk through both options with every homeowner before enrollment. See how all Massachusetts incentives stack together.

The bottom line on SMART

The SMART program is a solid, reliable piece of the Massachusetts solar incentive stack. It won't make or break the financial case for solar on its own — but combined with net metering, the state tax exemptions, and potentially the ConnectedSolutions battery program, it contributes meaningfully to your total return over the first decade of ownership.

The most important thing is making sure your installer actually enrolls you and that the enrollment is completed correctly. It sounds basic, but SMART enrollment is one of those details that can slip through the cracks if you're not working with someone who handles it as a standard part of every install.

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