Massachusetts Rolls Back Solar Subsidies, Could Save Ratepayers Billions

Massachusetts is reforming the way it credits owners of solar panel installations, adopting a system that is expected to save people billions on their electricity bills.

The Massachusetts Department of Public Utilities issued an order Wednesday that officially green-lights a new form of solar panel compensation. The system, known as the Solar Massachusetts Renewable Target (SMART) program, will incentivize solar development by allowing utility companies to directly compensate the panel owner.

State officials believe the new program will save residents $4.7 billion on their electricity bills.

“[T]he SMART program will allow Massachusetts to expand its leadership by significantly increasing solar capacity while lowering costs for ratepayers,” Massachusetts Republican Gov. Charlie Baker said in a statement. “In addition to the benefits to ratepayers and the commonwealth’s energy portfolio, the SMART program will be the first in the nation to offer incentives to solar projects that are paired with storage to capture the benefits of solar regardless of time of day or weather conditions.”

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