Renewable Energy Permitting in Massachusetts
Massachusetts leads in policy innovation with the SMART incentive program, robust net metering, and a deregulated retail energy market. The state has the third-largest community solar market in the country.
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Key Permitting Highlights in Massachusetts
SMART incentive program (3,200 MW capacity)
Full retail rate net metering
Deregulated electricity market
Strong SREC market ($260-280/MWh)
Overview
Massachusetts has established itself as a leader in solar policy innovation, driven by the Solar Massachusetts Renewable Target (SMART) incentive program with 3,200 MW of capacity. The state operates a deregulated electricity market allowing customers to choose their supplier. With over 725 MW of community solar across 452 projects, Massachusetts ranks third nationally in that segment while also supporting robust utility-scale and distributed generation development.
Permitting Guide
Common Challenges & Landmines
Local moratoria + ordinance churn (solar setbacks, BESS bans, decommissioning bonds) are usually the #1 surprise cost. Stormwater + erosion compliance (CGP/SWPPP) enforcement risk + stop-work exposure. Wetlands/401/404 + floodplain can be route/site killers—plan alternatives early. BESS fire code adoption + AHJ posture: IFC/NFPA 855/UL 9540A documentation expectations vary by locality.
Tax Considerations
Property tax is commonly local and negotiable; incentives are often deal-specific.
Data Center Considerations
Incentives vary widely and often include sales/use exemptions and sometimes property tax relief.
Net Metering & Utilities
Net metering is available through major utilities including National Grid and Eversource Energy. Residential customers receive full retail rate credits, while commercial customers receive credits based on Market Net Metering rates. System caps vary by utility and customer class. Interconnection fees are $0 for simplified applications (systems up to 15 kW single-phase or 25 kW three-phase), with larger systems requiring more extensive review over 3-4 months.
SMART Incentive Program
The SMART program provides declining block incentives for solar projects, with additional adders for preferred siting (landfills, brownfields, rooftops) and low-income participation. The Low-Income Community Shared Solar (LICSS) adder starts at $0.06/kWh for projects allocating at least 50% of output to low-income customers. The program was doubled in size in 2020 to support continued market growth.
REC Market
Massachusetts maintains an active SREC market with prices ranging from $260-280/MWh under SREC II. The original SREC I program (pre-2014 systems) saw higher prices of $319-343/MWh. Projects can generate significant additional revenue through REC sales alongside energy credits.
Frequently Asked Questions
What are net metering system size limits in Massachusetts?
System size limits vary by utility. National Grid has caps of 359 MW for residential and 410 MW for non-residential aggregate capacity. Eversource offers Class I, II, and III customer categories with different credit structures. Systems should generally be sized to meet on-site electricity demand.
Can I choose my electricity supplier in Massachusetts?
Yes, Massachusetts has a deregulated electricity market. Customers can choose from competitive suppliers while National Grid and Eversource continue to own and maintain the distribution infrastructure. Municipal aggregation programs also provide alternative supply options.
How Spark Accelerates Development in Massachusetts
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Community Sentiment
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