SMART Enough? Impact of Declining Incentives on Project Values & IRR

Ali Shajrawi, Richard Weihe, Greg Owens, Liam Brooks Market Research Briefs

On September 26, 2018, Massachusetts approved a much anticipated solar program that radically transitions solar incentives away from the SREC market and towards a structure akin to a feed-in-tariff regime, dubbed the Solar Massachusetts Renewable Target (SMART) program. The program targets 1,600 MW in total solar capacity divided over eight Capacity Blocks.

So the questions now is how quickly will these Capacity Blocks be filled up, knowing that compensation rates and adders’ values step down 4% Block-on-Block? To answer this question, Karbone discusses project valuations and returns under each Block in the attached research report.

Report Downloads

File Date added File size Downloads
pdf SMART Program Project Economics Valuation Reserarch Report (10.23.18) 25th October 2018 6:49 pm 436 KB 48