Massachusetts offers a range of financial and sustainability incentives for Commercial and Industrial (C&I) companies investing in solar and storage. It aims to be a national leader in the energy storage market, with a target of 1 GWh by the end of 2025. This will help improve grid resilience, lower energy costs, and protect against outages. This blog discusses the key incentive programs in Massachusetts and how businesses can benefit, especially by integrating solar-plus-storage solutions.
Solar Massachusetts Renewable Target (SMART) Program
The Solar Massachusetts Renewable Target (SMART) Program offers performance-based incentives to support residential and commercial solar projects. This Department of Energy Resources (DOER) initiative facilitates 3,200 MW of tariff-based declining block incentives, paid directly by the utility. Projects must be in Massachusetts and interconnected to Eversource, National Grid, or Unitil.
As the incentive rates decline over time as blocks are filled, some solar projects may receive a low monthly incentive payment or no payment due to rising electricity prices. Including energy storage brings an additional form of revenue that further improves the project's economics. The Storage Adder rate is available for batteries that cycle at least 52 times per year, boosting the base compensation rate for the solar unit.
Larger systems (1 MW or more) may receive Block 1 incentives, while others may enter a holding queue or apply for later blocks. After the term ends, the system owner gains full rights to the Class I RECs. The complete list of the SMART Program Regulations is available here.
Clean Peak Energy Standard (CPS)
The Massachusetts Clean Peak Energy Standard (CPS) aims to reduce emissions during peak energy demand periods by rewarding clean energy production. It incentivizes clean energy technologies that supply electricity or reduce demand during seasonal peak periods. C&I companies that install solar and storage systems can earn Clean Peak Certificates (CPCs), which can be sold on the market providing additional revenue streams.
Participation in both CPS and SMART is allowed, but the Electric Distribution Company owns the Clean Peak Energy Certificates (CPECs) from Solar Tariff Generation Units (STGUs). However, this ownership does not apply to energy storage systems paired with STGUs that qualify for a SMART energy storage adder—further highlighting the benefits of including storage in Massachusetts C&I solar projects. In these cases, the facility owner owns the energy storage-generated CPECs, unless specified otherwise in the contract.
C&I can also co-participate in Connected Solutions, a demand response program offered by utilities to incentivize energy storage dispatch during peak demand periods. This incentive program helps democratize storage ownership by making batteries more accessible with performance payments while also improving the grid’s energy resilience.
Key Benefits for C&I Companies
- Lower Energy Costs: Onsite generation reduces reliance on grid electricity and lowers operational expenses. When paired with battery storage systems, companies can optimize energy use and capitalize on lower rates during off-peak hours.
- Revenue Generation: Programs like SMART, Clean Peak, and Connected Solutions offer multiple revenue streams through incentives, CPCs, and demand response payments.
- Sustainability and Corporate Responsibility: Adopting solar and storage demonstrates a commitment to environmental sustainability, aligning with ESG goals and enhancing corporate reputation.
- Energy Resilience: Solar plus storage systems provide backup power during outages, ensuring uninterrupted operations and protecting against energy disruptions.
- Attracting Tenants and Investors: Green buildings attract environmentally conscious tenants and investors, increasing occupancy rates and property values.
Take Advantage of Massachusetts’s Solar and Storage Opportunities
Massachusetts offers a prime opportunity for commercial and industrial businesses to capitalize on solar-plus-storage solutions. The incentives discussed earlier greatly enhance your solar project's financial returns while contributing to a more resilient and sustainable grid.
Ready to take advantage of these benefits? Contact GreenStruxure’s Energy-as-a-Service experts for a consultation and energy assessment to quantify the benefits for your location or portfolio.