The Massachusetts Department of Public Utilities on Sept. 26 approved compensation for new solar owners under the Solar Massachusetts Renewable Target or SMART program, a long-term, sustainable solar incentive solution that replaces the Solar Renewable Energy Certificate or SERC II program. The program has a goal of 1,600 megawatts, implying that ten percent of the state’s annual electricity needs must be met by solar. The department issued regulations for the program in August 2017, following legislation enacted in 2016 that called for a statewide solar incentive program to encourage continued solar generation. The program provides compensation for new solar projects under 5 megawatts in size in the investor-owned utilities service territory allowing solar owners to receive incentives directly from the utility company. While SRECs are market-based instruments with a value that can vary over time, the SMART approach calls for a fixed tariff aimed at establishing predictable revenue, with base compensation rates based on a "declining block structure." The program is expected to save ratepayers an estimated $4.7 billion over current programs. Massachusetts currently has more than 2,200 megawatts of solar installed.