The community renewable energy program in Massachusetts was first brought to legislation on July 2nd, 2008 through Chapter 169 of the Act of 2008 within Massachusetts' session laws. This Act introduced "neighborhood net metering" to Massachusetts, establishing the framework for community net metering projects. Neighborhood net metering is any Class I, II or III net metering facility serving 10 or more residential customers, served by a single distribution company and located within the customers' neighborhood. Net metering facility classification definitions may be found within the act here.
An important addition to neighborhood net metering comes from the Code of Massachusetts Regulations (CMR), 225 CMR 20.00. This code establishes the Solar Massachusetts Renewable Target (SMART) program, administered by the Department of Energy Resources and designed with the intention to expand statewide solar energy by 3200 MW. Updated July 10th of 2020, this program replaced Massachusetts' Solar Carve-Out I and II projects.
As part of the SMART program, Community Shared Solar Tariff Generation Units (CSTGUs) may receive incentive payments to assist in neighborhood net metering projects. CSTGUs are electricity generating units which use solar photovoltaics and provide electricity or bill credits to three or more customers. No more than 2 participants may receive bill credits in excess of those produced annually by 25 kW of nameplate AC capacity, nor will their ownership exceed 50% of the total capacity of the generation unit, except in the case the generation unit is smaller than 100 kW AC. SMART incentive payments are equal to the base compensation rate, plus program adders, minus a greenfield subtractor, multiplied by the total kWh generated, minus the value of energy generated. Base compensation rates are submitted for approval to electric utilities, and are not to exceed system ceiling rates. For systems between 1 and 5 MW, the ceiling rate is $0.17/kWh. For systems under 1 MW rated capacity, a rate factor is applied to the base compensation rate. The rate factors are as follows:
SMART program adders range from $0.02 - $0.06/kWh, with community solar adders being $0.05/kWh for regular systems and $0.06/kWh for low-income community solar projects. Greenfield subtractors relate to land use categorizations and can reduce incentive payments between $0.0005 - $0.001/kWh per acre.
|Incentive Type:||Community Solar Rules|
|Eligible Renewable/Other Technologies:||
|System Capacity Limit:||SMART Program: Maximum aggregate capacity of Solar Tariff Generating Units is not to exceed 5 MW on a single parcel of land.|
|Program Capacity Limit:||SMART Program: 3,200 MW|
|Participant Credit Rate:||
SMART Program Incentive: (base compensation rate + adders - greenfield) * kWh generated - value of energy
Neighborhood Net Metering Credit Rate: (excess kilowatt-hours by time of use billing period) * (NE-ISO default service kWh charge + transmission kilowatt-hour charge + transition kilowatt-hour charge).
|Low-Moderate Income Provisions:||SMART Program: Low-income community solar adder is $0.06/kWh.|
|Name:||M.G.L. Chapter 164, Section 138 to 140|
|Name:||225 CMR 20.00|
|Name:||Massachusetts Department of Energy Resources|
100 Cambridge St., 9th Floor
Boston MA 02114
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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