Live in another state? See all our Solar Incentives by
State
All of Massachusetts can take advantage of the 26%
Federal Tax Credit, which will allow you to recoup 26% of
your equipment AND installation costs for an unlimited amount.
There may still be other local rebates from your city, county, or utility. Check below!
Massachusetts Solar PV Rebates & Incentives
Data from DSIRE. Last updated: 05/24/2022
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Residential Renewable Energy Income Tax Credit | Massachusetts Department of Energy Resources (DOER) | 09/21/21 | 05/24/22 | 144 | Massachusetts allows a 15% credit -- up to $1,000 -- against the state income tax for the net expenditure* of a renewable energy system (including installation costs) installed on an individual’s primary residence. If the credit amount is greater than a resident's income tax liability, the excess credit amount may be carried forward to the next succeeding year for up to three years. Eligible technologies include solar water and space heating, photovoltaics (PV), and wind energy systems. The original use of the system must begin with the taxpayer, and the system should “reasonably be expected to remain in operation for at least five years.” The credit is available to any owner or tenant of residential property. For a newly constructed home, the credit is available to the original owner/occupant. Joint owners of a residential property shall share any credit available to the property under this subsection in the same proportion as their ownership interest. Any excess credit amount may be carried over to the next 1-3 taxable years. * The term "net expenditure" is defined as the total of the purchase price for any renewable energy source property and installation cost less any federal tax credits and rebates/grants received from the U.S. Department of Housing and Urban Development.
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Renewable Energy Equipment Sales Tax Exemption | Department of Revenue | 09/21/21 | 05/24/22 | 145 | Massachusetts law exempts from the state's sales tax "equipment directly relating to any solar, wind powered; or heat pump system, which is being utilized as a primary or auxiliary power system for the purpose of heating or otherwise supplying the energy needs of an individual's principal residence in the commonwealth." Massachusetts Tax Form ST-12 is available on the Massachusetts Department of Revenue web site. The form may be completed and presented to the vendor at the time of purchase. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Renewable Energy Property Tax Exemption | Massachusetts Department of Revenue | 03/10/21 | 05/24/22 | 146 | Massachusetts law provides that solar energy systems and wind energy systems used as a primary or auxiliary power system for the purpose of heating or otherwise supplying the energy needs of taxable property are exempt from local property tax for a 20-year period.* Hydropower facilities are also exempt from local property tax for a 20-year period if a system owner enters into an agreement with the city or town to make a payment (in lieu of taxes) of at least 5% of its gross income in the preceding calendar year. This incentive applies only to the value added to a property by an eligible system. It does not constitute an exemption for the full amount of the property tax bill. Any components of the energy system that serve dual purposes (for example: structural and energy) are not eligible for the exemption. For instance, windows, thermal drapes and floors are not eligible for the exemption. However, thermal storage rods, storage boxes, fan systems, and duct work that function exclusively as part of the energy system are eligible for the exemption. Solar and wind facilities that generate electricity to sell to the grid may be eligible for a Tax Increment Financing exemption agreement if they are located in an Economic Opportunity or Economic Target Area as designated by the Economic Advisory Coordinating Council. Facilities owned by electric generation or wholesale generation companies may be eligible for a payment in lieu of tax agreement. See the Department of Revenue's Information Sheet to learn more. * Massachusetts' property tax exemption statute includes language that may be interpreted differently from county to county. Check with your county's tax assessors to learn how this exemption is interpreted in your county. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Alternative Energy and Energy Conservation Patent Income Tax Deduction (Corporate) | Massachusetts Department of Revenue | 07/18/21 | 05/24/22 | 149 |
Massachusetts offers a corporate income tax deduction for (1) any income -- including royalty income -- received from the sale or lease of a U.S. patent deemed beneficial for energy conservation or alternative energy development by the Massachusetts Department of Energy Resources, and (2) any income received from the sale or lease of personal or real property or materials manufactured in Massachusetts and subject to the approved patent. The deduction is effective for up to five years from the date of issuance of the U.S. patent or the date of approval by the Massachusetts Department of Energy Resources, whichever expires first. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Alternative Energy and Energy Conservation Patent Income Tax Deduction (Personal) | Massachusetts Department of Revenue | 07/18/21 | 05/24/22 | 229 | Massachusetts offers a personal income tax deduction for (1) any income -- including royalty income -- received from the sale or lease of a U.S. patent deemed beneficial for energy conservation or alternative energy development by the Massachusetts Department of Energy Resources, and (2) any income received from the sale or lease of personal or real property or materials manufactured in Massachusetts and subject to the approved patent. The deduction is effective for up to five years from the date of issuance of the U.S. patent or the date of approval by the Massachusetts Department of Energy Resources, whichever expires first. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Energy Investment Tax Credit (ITC) | U.S. Internal Revenue Service | 02/24/21 | 05/24/22 | 658 | Note: The Taxpayer Certainty and Disaster Tax Relief Act of 2020, signed in December 2020, extended the phase out of this tax credit for certain technologies. The bill also provides a 30% tax credit for offshore wind facilities in inland navigable waters or coastal waters of the United States for which construction commences prior to 2026. The federal Business Energy Investment Tax Credit (ITC) has been amended a number of times, most recently in December 2020. The table below shows the value of the investment tax credit for each technology by year. The dates are based on when construction begins.
In general, the original use of the equipment must begin with the taxpayer, or the system must be constructed by the taxpayer. The equipment must also meet any performance and quality standards in effect at the time the equipment is acquired. The energy property must be operational in the year in which the credit is first taken. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Energy Conservation Subsidy Exclusion (Personal) | U.S. Internal Revenue Service | 05/16/18 | 05/24/22 | 666 | According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated. The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Modified Accelerated Cost-Recovery System (MACRS) | U.S. Internal Revenue Service | 08/21/18 | 05/24/22 | 676 | Note: The Tax Cuts and Jobs Act of 2017 increased bonus depreciation to 100% for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. A number of renewable energy technologies are classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A), often known as the energy investment tax credit or ITC to define eligible property. Such property currently includes*:
In addition, for certain other types of renewable energy property, such as biomass or marine and hydrokinetic property, the MACRS property class life is seven years. Eligible biomass property generally includes assets used in the conversion of biomass to heat or to a solid, liquid or gaseous fuel, and to equipment and structures used to receive, handle, collect and process biomass in a waterwall, combustion system, or refuse-derived fuel system to create hot water, gas, steam and electricity. Marine and hydrokinetic property includes facilities that utilize waves, tides, currents, free-flowing water, or differentials in ocean temperature to generate energy. It does not include traditional hydropower that uses dams, diversionary structures, or impoundments.
Bonus Depreciation Bonus Depreciation History
The 50% first-year bonus depreciation provision enacted in 2008 was extended (retroactively for the entire 2009 tax year) under the same terms by the American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009. It was renewed again in September 2010 (retroactively for the entire 2010 tax year) by the Small Business Jobs Act of 2010 (H.R. 5297). In December 2010 the provision for bonus depreciation was amended and extended yet again by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853). Under these amendments, eligible property placed in service after September 8, 2010 and before January 1, 2012 was permitted to qualify for 100% first-year bonus depreciation. The December 2010 amendments also permitted bonus depreciation to be claimed for property placed in service during 2012, but reverted the allowable amount from 100% to 50% of the eligible basis. The 50% first-year bonus depreciation allowance was further extended for property placed in service during 2013 by the American Taxpayer Relief Act of 2012 (H.R. 8, Sec. 331) in January 2013. The Tax Increase Prevention Act Of 2014 (H.R. 5771, Sec. 125), extended these provisions through to December 31, 2014, and thus retroactively for the 2014 tax year. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Energy Conservation Subsidy Exclusion (Corporate) | U.S. Internal Revenue Service | 05/16/18 | 05/24/22 | 727 | According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated. The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Renewable Electricity Production Tax Credit (PTC) | U.S. Internal Revenue Service | 01/27/21 | 05/24/22 | 734 | Note: The Taxpayer Certainty and Disaster Tax Relief Act of 2020, signed in December 2020, extended the deadline for eligible systems to qualify for this tax credit. Wind projects started in either 2020 or 2021 will qualify for a production tax credit at 60% of the full rate on the electrical output for 10 years. Tax credits for other technologies may be claimed at the full rate. The federal renewable electricity production tax credit (PTC) is an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualified energy resources and sold by the taxpayer to an unrelated person during the taxable year. The duration of the credit is 10 years after the date the facility is placed in service for all facilities placed in service. Originally enacted in 1992, the PTC has been renewed and expanded numerous times, most recently by the Taxpayer Certainty and Disaster Relief Act of 2020. Amount The tax credit amount is $0.015 per kWh in 1993 dollars for some technologies and half of that amount for others. The amount is adjusted for inflation by multiplying the tax credit amount by the inflation adjustment factor for the calendar year in which the sale occurs, rounded to the nearest 0.1 cents. The Internal Revenue Service (IRS) publishes the inflation adjustment factor no later than April 1 each year in the Federal Register. For 2020, the inflation adjustment factor used by the IRS is 1.6687. Earlier legislation introduced a step down of the credit amount for wind, while phasing out the credit for other technologies. Subsequent legislation has pushed back the stepdown for wind and the phase out for other technologies. As such, the credit today includes a 40% step-down in the credit amount for wind, but other technologies can receive the full credit amount. Applying the inflation-adjustment factor for the 2020 calendar year, and the 40% step-down for wind, the production tax credit amount is as follows:
Duration The duration of the credit is 10 years after the date the facility is placed in service. Two exceptions applied to facilities placed in service more than a decade ago:
Investment Tax Credit in Lieu of Claiming the PTC Renewable energy facilities placed in service after 2008 and commencing construction prior to 2018 (or 2020 for wind facilities) may elect to make an irrevocable election to claim the Investment Tax Credit (ITC) in lieu of the PTC. Wind facilities making such an election will have the ITC amount reduced by the same phase-down specified above for facilities commencing construction in 2017, 2018, or 2019. Process for Claiming The credit is claimed by completing Form 8835, "Renewable Electricity Production Credit," and Form 3800, "General Business Credit." For more information, contact IRS Telephone Assistance for Businesses at 1-800-829-4933. Determination of Commencing Construction To claim the PTC, construction on an eligible project must have “commenced construction” prior to January 1, 2015. The IRS has issued guidance on how it will evaluate whether construction has commenced in IRS Notices 2013-29, 2013-60, 2014-46, 2015-25, and 2016-31 (please see the full text of these notices for complete information on determining the commencing of construction). The guidelines establish two methods—a “physical work” test and a 5% safe harbor (see sections below for details)—to determine when construction has begun on a qualified facility. Meeting the criteria of either method is sufficient to demonstrate that construction has commenced. Both methods require that a taxpayer make continuous progress towards completion once construction has begun by meeting the Continuous Construction Test (to satisfy the Physical Work Test) or the Continuous Efforts Test (to satisfy Safe Harbor). If a taxpayer places a facility in service during a calendar year that is no more than four calendar years after the calendar year during which construction of the facility began, the facility will be considered to satisfy the Continuity Safe Harbor Physical Work Test The physical work test provides that a taxpayer may establish the beginning of construction by beginning "physical work of a significant nature.” The physical work test is based on the nature of the work performed rather than the cost of the work; if the work performed is of a significant nature, then “there is no fixed minimum amount of work or monetary or percentage threshold required to satisfy the Physical Work Test” (Notice 2014-46). Notice 2013-29 provides several examples of actions that constitute work of a significant nature, including:
Safe Harbor Safe Harbor with respect to a facility is demonstrated by showing that 5% or more of the total cost of the facility was paid or incurred. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy-Efficient Mortgages | 08/05/20 | 05/24/22 | 742 |
Homeowners can take advantage of energy efficient mortgages (EEM) to either finance energy efficiency improvements to existing homes, including renewable energy technologies, or to increase their home buying power with the purchase of a new energy efficient home. The U.S. federal government supports these loans by insuring them through Federal Housing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency, and it secures lenders against loan default.
Loan amounts may not exceed the projected savings of the energy efficiency improvements. These loans may be combined with FHA 203 (h) mortgages available to victims of presidentially-declared disasters and with financing offered through the FHA 203 (k) rehabilitation program. FHA loan limits do not apply to the EEM. Borrowers must obtain a home energy assessment by a qualified energy rater, assessor, or auditor using whole-assessment standards, protocols, and procedures.
ENERGY STAR Partnership for Lenders | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
USDA - Rural Energy for America Program (REAP) Grants | U.S. Department of Agriculture | $600 million for FY 2018 | 08/21/18 | 05/24/22 | 917 | Note: The U.S. Department of Agriculture's Rural Development issues periodic Notices of Solicitation of Applications for the Rural Energy for America Program (REAP) in the Federal Register. The FY 2018 solicitation for the REAP program includes a total budget of approximately $800 million. The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance. Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. Application due dates are published annually in the Notice of Funding Availability. Eligibility Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas. Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees. For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator. Regional rural energy coordinators provide loan and grant applications upon request. History
The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office of Indian Energy Policy and Programs - Funding Opportunities | U.S. Department of Energy | 02/26/20 | 05/24/22 | 918 | The U.S. Department of Energy's (DOE) Office of Indian Energy Policy and Programs promotes tribal energy sufficiency, economic growth, and employment on tribal lands through the development of renewable energy and energy efficiency technologies. The program provides financial assistance, technical assistance, and education and training to tribes for the evaluation and development of renewable energy resources and energy efficiency measures. DOE's program offerings consist of program management through DOE headquarters, program implementation and project management through DOE's field offices, and technical support through DOE laboratories. Program management is carried out by DOE's Weatherization and Intergovernmental Program, which provides programmatic direction and funding to DOE field offices for program implementation. DOE's Golden Field Office solicits, awards, administers, and manages financial assistance agreements. Program funding is awarded through a competitive process. Click here to view current program funding opportunities, and here to apply for technical assistance. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Renewable Energy Tax Credit | U.S. Internal Revenue Service | 03/15/21 | 12/31/23 | 1235 | Note: The Taxpayer Certainty and Disaster Tax Relief Act of 2020, signed in December 2020, extended the phase out of this tax credit. A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below. Solar-electric property
Solar water-heating property
Fuel cell property
Small wind-energy property
Geothermal heat pumps
Biomass Heaters
Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previous limitation on the use of the credit for eligible projects also supported by "subsidized energy financing." For projects placed in service after December 31, 2008, this limitation no longer applies. Energy Storage The federal tax code does not explicitly reference energy storage, so stand-alone energy storage systems do not qualify for the tax credit. However, the IRS issued Private Letter Rulings in 2013 and 2018, which address energy storage paired with PV systems. In both cases, the IRS ruled that the energy storage equipment when paired with PV met the statutory definition of a "qualified solar electric property expenditure," as was eligible for the tax credit. It is important to note that Private Letter Rulings only apply to the taxpayer who requested it, and do not establish precedent. Any taxpayer considering the purchase of an energy storage system should consult their accountant or other tax professional before claiming a tax credit. History Established by The Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells. The Energy Improvement and Extension Act of 2008 extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016; the ability to take the credit against the alternative minimum tax; and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. The credit was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009, which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Holyoke Gas & Electric - Residential Energy Conservation Loan Program | Customer Service | 06/03/20 | 05/24/22 | 1337 | The Holyoke Gas & Electric (HG&E) Residential Energy Conservation Program provides residential customers with loans to help make energy saving improvements to eligible homes. The loan provides 0% interest assistance, is repayable over up to five years, and is charged to the customer's monthly HG&E bill. Single-family homes are eligible for a maximum of $5,000, and owner-occupied multi-family dwellings with four or fewer units can receive a maximum of $10,000 (maximum of $5,000 per unit). Solar installations are eligible for loans up to $10,000. Solar assistance is available in addition to energy efficiency assistance, but the total maximum loan amount is $10,000 per customer. The program covers the following home improvements: central air conditioning, gas fired warm air furnaces, gas fired steam boilers, gas fired hot water boilers, electric hot water heaters, gas storage water heaters, gas fired instantaneous hot water heaters, gas conversion burners, indirect water heaters (attached to a gas fired boiler), attic insulation, wall insulation, floor insulation, basement insulation, heating and hot water piping insulation, rim joist insulation, replacement windows and doors, programmable and/or Wi-Fi thermostats, mini-split/ducted air-source heat pumps, solar photovoltaics, and solar hot water heaters. Homeowners installing insulation, replacement windows, replacement skylights, or an indirect water heater must have a free home energy audit performed before application submission. All equipment must meet certain energy efficiency standards that are listed on the application. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Holyoke Gas & Electric - Commercial Energy Conservation Loan Program | Holyoke Gas and Electric Department | 06/03/20 | 05/24/22 | 1338 | Holyoke Gas & Electric's Commercial Energy Conservation Program offers zero interest loans to its commercial customers who are making energy efficiency improvements to facilities. The applicant must obtain cost estimates from contractors before turning in the application. The payback period of the loan is flexible depending on the amount of assistance requested, but cannot exceed five years. Monthly payments are included on the customer's electric bill. All assistance requests greater than $5,000 require approval by the Holyoke Gas & Electric Commission. Eligible measures include (but are not limited to): lighting improvements; installation or upgrading of gas fired boilers, furnaces, conversion burners, water heaters, and central air conditioning systems; weatherization upgrades; and solar photovoltaic or solar hot water installations. Participating facilities must receive gas or electric service from Holyoke Gas & Electric in order to qualify. More information on terms and eligible measures is located on the program application. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Clean Renewable Energy Bonds (CREBs) | U.S. Internal Revenue Service | 08/15/18 | 05/24/22 | 2510 | Note: The Tax Cuts and Jobs Act of 2017 repealed section 54C of the Internal Revenue Code, which authorized the use of New CREBs. IRS Notice 2018-15 announced that the IRS will no longer process applications for or issue allocations of New CREBs. The summary below describes CREBs before they were repealed, and is here for historical purposes only.
Clean renewable energy bonds (CREBs) may be used by certain entities -- primarily in the public sector -- to finance renewable energy projects. The list of qualifying technologies is generally the same as that used for the federal renewable energy production tax credit (PTC). CREBs may be issued by electric cooperatives, government entities (states, cities, counties, territories, Indian tribal governments or any political subdivision thereof), and by certain lenders. The bondholder receives federal tax credits in lieu of a portion of the traditional bond interest, resulting in a lower effective interest rate for the borrower.* The issuer remains responsible for repaying the principal on the bond. The tax credit rate is set daily by the U.S. Treasury Department. Under past allocations, the credit could be taken quarterly on a dollar-for-dollar basis to offset the tax liability of the bondholder. However, under the new CREBs allocation, the credit has been reduced to 70% of what it would have been otherwise. Other important changes are described in IRS Notice 2009-33. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
USDA - Rural Energy for America Program (REAP) Loan Guarantees | U.S. Department of Agriculture | 08/21/18 | 05/24/22 | 2511 | The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance. Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. Application due dates are published annually in the Notice of Funding Availability. Eligibility Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas. Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees. For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator. Regional rural energy coordinators provide loan and grant applications upon request. History
The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chicopee Electric Light - Residential Solar Rebate Program | Chicopee Electric Light | 12/12/19 | 05/24/22 | 2886 | Chicopee Electric Light offers rebates to residential customers who install solar photovoltaic (PV) systems on their homes. Customer rebates are $1.20 per watt for a maximum of 50% of project costs or $12,000 per installation. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Department of Energy - Loan Guarantee Program | U.S. Department of Energy | 08/18/16 | 05/24/22 | 3071 | Note: President Obama and DOE issued new supplemental guidance for Renewable Energy and Efficient Energy (REEE) Projects that adds $500 million of loan guarantee authority, making the total available approximately $4.5 billion. It also released guidance to clarify the types of Distributed Energy Projects it can support under the Title XVII program. The additional loan guarantee authority was officially available as of October 2015. Section 1703 of Title XVII of the Energy Policy Act (EPAct) of 2005 created the Department of Energy's (DOE's) Loan Guarantee Program. The program was reauthorized and revised by the American Recovery and Reinvestment Act (ARRA) of 2009 by adding Section 1705 to EPAct. The 1705 Program was retired in September 2011, and Loan Guarantees are no longer available under that authority. DOE, however, still has authority to issue Loan Guarantees under the old Section 1703 Program. Under Section 1703, DOE is authorized to issue loan guarantees for projects with high technology risks that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued." Loan guarantees are intended to encourage early commercial use of new or significantly improved technologies in energy projects. The loan guarantee program generally does not support research and development projects. Loan guarantees are provided in response to open solicitations. The application is a two part process; applicants that meet the specified requirements laid out in Part I receive an invitation to submit a Part II application. The updated supplemental guidance for Renewable Energy Projects and Energy Efficiency Projects includes an application solicitation schedule, with final Part I and Part II application due dates to November 30, 2016 (extended in a Fifth Supplement released June 2016). Up to $3 billion is available in loan guarantees for projects in renewable energy, efficient end-use, and efficient generation, transmission, and distribution technologies (plus an additional amount that may be imputed based on the credit subsidy cost of the loan guarantee authority). See the program website for more details on eligibility and the application process. Section 1703 requires either an appropriation to cover the Credit Subsidy Cost (the expected long term liability to the Federal Government for providing the loan guarantee), or payment of the Credit Subsidy Cost by the borrower. A credit-based interest rate spread will be added to certain loans receiving a 100% loan guarantee from DOE and financing from the Federal Financing Bank. Rates and more information are available here.
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Qualified Energy Conservation Bonds (QECBs) | U.S. Internal Revenue Service | 08/22/18 | 05/24/22 | 3098 | Note: The Tax Cuts and Jobs Act (HR 1) of 2017 repealed the use of tax credit bonds effective January 1, 2018. Issuers of QECBs that elected to receive direct payments from the Treasury issued on or before December 31, 2017, consistent with the Internal Revenue Code (Section 54D), will continue to receive direct payments. The summary presented below is for historical purposes.
The Energy Improvement and Extension Act of 2008, enacted in October 2008, authorized the issuance of Qualified Energy Conservation Bonds (QECBs) that may be used by state, local and tribal governments to finance certain types of energy projects. QECBs are qualified tax credit bonds, and in this respect are similar to new Clean Renewable Energy Bonds or CREBs. The October 2008 enabling legislation set a limit of $800 million on the volume of energy conservation tax credit bonds that may be issued by state and local governments. The American Recovery and Reinvestment Act of 2009, enacted in February 2009, expanded the allowable bond volume to $3.2 billion. In April 2009, the IRS issued Notice 2009-29 providing interim guidance on how the program will operate and how the bond volume will be allocated. Subsequently, H.R. 2847 enacted in March 2010 introduced an option allowing issuers of QECBs and New CREBs to recoup part of the interest they pay on a qualified bond through a direct subsidy from the Department of Treasury. Guidance from the IRS on this option was issued in April 2010 under Notice 2010-35. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MuniHELPS - Offered by 17 Utilities through the MMWEC | MMWEC in collaboration with municipal utilities | 02/14/19 | 05/24/22 | 3217 | The Massachusetts Municipal Wholesale Electric Company (MMWEC) provides the Home Energy Loss Prevention Services (HELPS) Program to eighteen municipal utilities in Massachusetts. HELPS offers a home energy audit, appliance and lighting rebates, air conditioner and heat pump rebates, and other incentives for the implementation of measures recommended in an audit. Participating utilities customize the suite of rebates provided to customers in order to help those customers implement measures recommended in the energy audit. In addition, HELPS offers utilities the opportunity to offer rebates for installing solar photovoltaic systems. The following municipalities offer HELPS rebates: Ashburnham, Boylston, Chicopee, Groton, Holyoke, Hull, Ipswich, Marblehead, Paxton, Princeton, Russell, Shrewsbury, South Hadley, Sterling, Templeton, Wakefield, West Boylston, and Westfield. Please check the MuniHELPS list of rebate programs to verify programs and to download each utility's rebate application. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concord Municipal Light Plant - Solar Photovoltaic Rebate Program | Concord Municipal Light Plant | 09/20/21 | 05/24/22 | 3728 | Concord Municipal Light Plant (CMLP) offers rebates to customers who install solar photovoltaic (PV) systems that are designed to offset the customer's electrical needs. Systems must be owned by the customer or leased under a leased agreement approved by Concord Light's legal counsel. Systems must be located at the customer's premise. Customers should complete the solar application and sign the terms and conditions. In addition, customers must submit a copy of the installation contract, and CMLP interconnection application. Furthermore, customers must allow CMLP access to the property and system for a rebate verification inspection. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Green Communities Grant Program | Massachusetts Department of Energy Resources | 05/30/17 | 05/24/22 | 4067 | Note: The Green Communities Grant Program is not currently accepting applications. The application deadline to receive a Green Communities designation was November 21, 2016. For designated communities, the grant application period closed February 10, 2017. In 2008, Massachusetts enacted the Green Communities Act (S.B. 2768), creating the Green Communities Division within the Department of Energy Resources (DOER) to support Massachusetts communities efforts towards a sustainable future, specifically in terms of energy use. The Green Communities Division offers educational, technical, and networking support to the states' communities. In addition, they provide financial incentives. The Green Communities Grant Program offers funding for communities investing in energy efficiency upgrades and policies, renewable energy technologies, and energy management systems and services. To be eligible, communities first must apply for and achieve official designation as a "Green Community." The basic steps required for this designation include:
The Green Communities Division provides several model ordinances and guides and is staffed with energy experts to help communities take these steps to earn designation. As of January 2017, there are 185 officially designated Green Communities in Massachusetts. At the time of designation, the Green Communities Division will inform the municipality of its grant amount, which is based on the available funds, number of applications, and a grant formula. Then, the Green Community is invited to submit a grant application with proposed projects for the grant amount. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taunton Municipal Lighting Plant - Residential PV Rebate Program | Taunton Municipal Lighting Plant (TMLP) | 03/10/21 | 05/24/22 | 4282 | Taunton Municipal Lighting Plant (TMLP) offers a rebate of $0.60/Watt rebate on solar photovoltaic (PV) installations, up to a maximum rebate of $4,500. Additionally, customers can receive a $0.60/Watt rebate from the DOER, up to $4,500, totaling a maximum possible rebate of $9,000. The system must be installed on a single family dwelling residence and the customer must be the owner of the PV system and be current on his/her electric bill. This is a first-come, first-served program with a limited budget, so customers are encouraged to verify funding levels prior to making financial decisions. As of January 20, 2021, all applications will require a $250 application fee. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Local Option - Energy Revolving Loan Fund | Programs administered locally | 05/31/17 | 05/24/22 | 4283 | Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. The Federal Housing Administration (FHA), a branch of the U.S. Department of Housing and Urban Development (HUD), has released initial guidelines for using PACE with FHA-secured single or multifamily properties. This guidance is independent of FHFA policy. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing and a comprehensive list of all PACE programs across the country. In August 2016, Massachusetts enacted legislation to implement a statewide commercial PACE financing program, which municipalities may opt into. To view details on this program, click here. Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Massachusetts has authorized local governments to establish such programs, as described below. (Not all local governments in Massachusetts offer PACE financing; contact your local government to find out if it has established a PACE financing program.) In July 2010, Massachusetts established PACE financing as part of a larger "Municipal Relief Bill" (H.B. 4877). This law authorizes local governments to establish an "Energy Revolving Loan Fund" to provide financing to private property owners (including condominium owners, as long as the improvements include part of the common areas/facilities) for energy efficiency and renewable energy improvements. The law permits local governments to consult with the Division of Green Communities (part of the Massachusetts Department of Energy Resources) to determine which improvements should be eligible, but in November 2010 the Division of Green Communities announced that it was not providing PACE guidance until the FHFA situation has been resolved. Local governments interested in establishing an Energy Revolving Loan Fund must first hold a public meeting. Then, the local government must pass an ordinance or by-law to create the program and identify the fund's administrator. Local governments are allowed to enter into agreements with other local governments to create and administer a program. After establishing an Energy Revolving Loan Fund, the administrator is authorized to provide financing to property owners for energy efficiency and renewable energy improvements, provided those property owners have had an energy audit* and meet any additional energy conservation requirements. Property owners that opt in to a local program will enter into a "betterment" agreement and are responsible for repaying the assessment according to the agreement's terms. * An energy audit must be performed for facilities that have not undertaken such an audit after July 1, 2008. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
USDA - High Energy Cost Grant Program | USDA Rural Utilities Service | $10 million (2015 solicitation) | 06/09/16 | 05/24/22 | 4359 |
NOTE: The most recent solicitation for this program closed December 14, 2015. Please check the program website for information on future solicitations.
This grant program is not limited to renewable energy or energy conservation and efficiency measures, but these measures are eligible for this grant program. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reading Municipal Light Department - Business Energy Efficiency Rebate Program | RMLD | 06/11/20 | 04/30/15 | 4595 | Reading Municipal Light Department (RMLD) offers energy efficiency incentives to eligible commercial and industrial customers. Rebates of up to $50,000 are available to customers who wish to reduce energy consumption in their facilities through the Commercial Energy Initiative Rebate Program. Incentive amounts are based upon project size and energy savings. See the program website for a list of eligible measures for this program. Additionally, incentives are available for air-source heat pumps, lighting, lawn equipment, and renewable energy installations. NOTE: RMLD is offering a temporary MLP solar rebate program with enhanced incentives until the program is set to expire on 12/30/2020, with projects requiring completion by 12/30/2021.
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Reading Municipal Light Department - Residential Renewable Energy Rebates | Reading Municipal Light Department | 06/10/20 | 05/24/22 | 4605 | Reading Municipal Light Department (RMLD) offers rebates of $1.00/watt for solar photovoltaic installations up to a maximum of $2,000 for residential customers under its Residential Renewable Energy Rebate Program. For a limited time, RMLD has partnered with the Massachusetts Department of Energy Resources (DOER) to offer the MLP Solar Rebate Program which offers enhanced incentives. Currently, this program is slated to expire on 12/30/2020, and all projects must be completed by 12/30/2021. Pre-approval is required and interested residential customers should contact RMLD at the onset of project interest and implementation. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hudson Light & Power - Photovoltaic Incentive Program | Hudson Light & Power | 02/14/19 | 05/24/22 | 5189 | Hudson Light & Power Department, the municipal utility for the Town of Hudson, offers a limited number of solar photovoltaic (PV) rebates for residential, commercial, industrial, and municipal customers. Panels oriented between 170° and 220° (Range 1) receive $1.00/watt, and panels oriented between >220° and 300° (Range 2) receive $1.25/watt. Range 2 systems are intended to reduce late afternoon summer system peak demand. The maximum incentive for residential Range 1 systems is $5,000 per installation per 12-month period, and $10,000 for commercial Range 1 systems. The maximum incentive for residential Range 2 systems is $6,000 per installation per 12-month period, and $12,000 for commercial Range 2 systems. Only grid-connected systems are eligible. Interested customers must first complete the "Request for Rebate" for pre-approval; after receiving approval, the customer has one year to complete the installation. Hudson Light & Power Department will perform an inspection after the installation is completed. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FHA PowerSaver Loan Program | 03/07/16 | 05/24/22 | 5631 | Federal Housing Administration (FHA) through its PowerSaver loan program offers three financing options for homeowners to make energy efficiency and renewable energy upgrades in their residences. For all three PowerSaver products, borrowers must select from a list of approved PowerSaver lenders. Please check the HUD website to find a list of participating FHA approved lender for the program. PowerSaver products are not currently offered in all states, so all potential applicants are encouraged to first check the program website to ensure product availability in their location. Eligibility Homeowners must have following requirements to be eligible for the program:
Eligible Measures Eligible home energy upgrades include, but are not necessarily limited to, the following:
PowerSaver Home Energy Upgrade—Up to $7,500 This unsecured consumer loan is intended for smaller projects (e.g., insulation, air and duct sealing, water heating, replacing heating and cooling equipment, etc.). It does not require a home appraisal or lien on the property. Single-family homeowners may qualify for the loan if they have manageable debt and a credit score of 660 or higher. Interest rates vary, but typically range from 4.99% to 7.75%. PowerSaver participating lenders, markets, and contact information is available here. PowerSaver Second Mortgage (Title I)—Up to $25,000 This Title I loan is intended for financing larger retrofit projects, including energy efficiency, PV, solar hot water, geothermal, or other renewable energy projects. A home appraisal or equity is generally not required, but PowerSaver lenders may request it if required by their investor. Borrowers cannot currently have an existing home equity loan, a second lien, or second mortgage to qualify for this product. Interest rates vary but typically range from 4.99% to 9.99%, and the maximum loan term is 20 years. PowerSaver Title I participating lenders, markets, and contact information is available here. PowerSaver Energy Rehab (203(k))—First mortgage up to FHA loan limits This 203(k) loan is for home purchase or refinance, targeting either home buyers wishing to combine home improvements with a home purchases or to homeowners wishing to include home improvements when refinancing an existing mortgage. It is FHA-insured up to 100% for a home purchase or refinance, plus the cost of a home improvement project. Current loan limits for a single-unit property vary by area from $217,500 to $625,000 (higher amounts are permitted for two-, three- and four-unit properties); specific loan limits for an area can be found at this website. In order to qualify as a 203(k) PowerSaver loan, at least $3,500 of the home improvements must consist of eligible PowerSaver measures. PowerSaver 203(k) participating lenders, markets, and contact information is available here. The two types of PowerSaver 203(k) loans are Standard and Streamlined. Standard 203(k) loans are for major improvements, where a home improvement project costs at least $5,000 and includes $3,500 in energy upgrades. The Streamlined 203(k) loans are for minor home improvements, where the home improvement project cost must not exceed $35,000. A HUD consultant is only required for oversight of home improvements for Standard 203(k) loans. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solar Renewable Energy Certificates (SREC-II) | 05/25/17 | 05/24/22 | 5679 | Note: Massachusetts is in the process of implementing a new solar incentive program - the Solar Massachusetts Renewable Target (SMART) program - to follow the SREC II program. Massachusetts' renewable portfolio standard (RPS) requires each regulated electricity supplier/provider serving retail customers in the state* to include in the electricity it sells 15% qualifying renewables by December 31, 2020. Legislation enacted in July 2008 (S.B. 2768) significantly expanded the RPS, establishing two separate renewable standards -- a standard for “Class I” renewables and a standard for “Class II” renewables. The Massachusetts Department of Energy Resources (DOER) regulates the RPS and developed corresponding rules. In January 2011, final rules were implemented for the state's Solar Carve-Out program, which is the portion of the required renewable energy under the Class I Standard that must come from qualified, in-state, interconnected solar facilities. In April 2014, final rules were implemented that ended the application period for the original Solar Carve-Out Program, and established the Solar Carve-Out II Program. Facilities qualified under the Solar Carve-Out II Program generate Solar Renewable Energy Certificates (SREC IIs), which represent the renewable attributes of solar generation, bundled in minimum denominations of one megawatt-hour (MWh) of production. Massachusetts' Solar Carve-Out II provides a means for SREC IIs to be created and verified, and allows electric suppliers to buy these certificates in order to meet their solar RPS requirements. All electric suppliers must use SREC IIs to demonstrate compliance with the RPS. The price of SREC IIs is determined primarily by market availability, although the DOER has created a certain amount of market stability by establishing a state Solar Credit Clearinghouse Auction II (where prices are fixed according to a yearly schedule minus a 5% administrative fee), as well as the Solar Alternative Compliance Payment (SACP) for the state RPS (set at $350/MWh for 2017). The Solar Credit Clearinghouse Auction II should only be utilized if or when SREC II generators cannot sell their SREC IIs on the open market. Only solar electric facilities built on or after January 1, 2012, may qualify to generate SREC IIs. SREC IIs are generated on or after January 1, 2014, since that is the date the Solar Carve-Out II program took effect. Generators must apply and receive a statement of qualification (SQ) from the DOER and must establish an account with NEPOOL GIS in order to participate in this program. The SACP is currently set at $350 (2017) and the Solar Credit Clearinghouse Auction II price is currently set at $285 (2017). Both prices decline over time according to the following schedules:
Under the Solar Carve-Out II, facilities are differentiated by project type and are assigned a particular SREC Factor according to the market sector under which they are classified. The SREC Factor determines the percentage of output that is eligible to generate SREC IIs. For example, a building-mounted project larger than 25 kW would receive an SREC Factor of 0.9, meaning that it would receive 0.9 SRECs for every MWh it generates. Facilities are each assigned to a particular market sector as follows:
The Solar Carve-Out and Solar Carve-Out II programs are intended to support approximately 1,600 MW of solar facilities in Massachusetts. Qualified projects will generate SREC IIs for the ten years from the date they are qualified. After ten years, facilities will continue to be eligible to generate renewable energy credits (RECs) and will be able to sell those for compliance under the Class I standard. Transition to the Solar Massachusetts Renewable Target (SMART) Program While the 1,600 MW program cap has been reached, the SREC II program has been extended in order to smoothly transition to the new Solar Massachusetts Renewable Target (SMART) incentive program. Systems that receive an extension for good cause and are mechanically complete or operational by March 31, 2018 and before the effective date of the SMART program will receive the following SREC factors:
System up to 25 kW may receive an SREC factor of 0.8. More details on SREC factors during the program extension period can be found here. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae Green Financing – Loan Program | 05/08/20 | 05/24/22 | 5780 | NOTE: Only multifamily properties are eligible for the program. Single family homeowners are not eligible for this program. The Fannie Mae Green Financing Business provides mortgage financing to apartment buildings and cooperatives (with 5 or more units) to finance energy and water efficiency property improvements. Its green financing programs include Green Rewards, and preferential pricing for loans secured by a property with an eligible Green Building Certification. All Fannie Mae green loans are securitized as Green Mortgage Backed Securities (Green MBS). To learn more about these programs, multifamily property owners should coordinate with a Fannie Mae DUS Lender: https://multifamily.fanniemae.com/about-multifamily/our-partners/dus-lenders Green Rewards, launched in 2015, provides preferential pricing and up to an additional 5% of loan proceeds by including up to 75% of projected owner energy and water savings and 25% of projected tenant savings in the loan underwriting. Conventional and affordable multifamily properties, as well as cooperatives, seniors, military, and student housing properties are eligible for this program. To qualify for a Green Rewards loan the property owner must commit to making property improvements that are projected to reduce the whole property’s annual energy and water consumption by at least 30%, which a minimum of 15% must be attributable to savings in energy consumption. Properties may be located anywhere in US, and the selected property upgrades must be completed within 12 months of loan closing. Fannie Mae also provides preferential pricing for an acquisition or refinance loan on a conventional or affordable property that has a current, eligible Green Building Certification per Fannie Mae Form 4250. Please visit the Fannie Mae Green Financing website for more information and detailed program requirements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mass Solar Loan Program | $45 million | 08/14/19 | 05/24/22 | 5850 | Massachusetts offers fixed low-interest loans to residents purchasing solar photovoltaic (PV) systems. One purpose of this program is to provide more opportunity for residents to own solar PV systems, rather than enter into third-party ownership arrangements. This program is administered by the Massachusetts Clean Energy Center, with oversight from the Massachusetts Department of Energy Resources. The program is funded by alternative compliance payments paid to comply with the state's renewable portfolio standard. Eligibility Requirements Loans are available to Massachusetts residents purchasing a solar PV system or a share in a behind-the-meter community shared solar system. Third-party owned projects are not eligible to participate in this program. Qualified projects must have a minimum cost of $3,000; the maximum project cost is $60,000. Projects that have received a rebate through the Commonwealth Solar II Program or Solarize Mass programs are not eligible to participate in the Mass Solar Loan Program. System owners must attest that they have had an energy audit within the past five years or have one scheduled, and projects must be installed by a professional, licensed contractor to be eligible for a loan. More information about project eligibility is available in the Program Manual. Loan Specifications Lenders are required to offer both secured and unsecured loans up to $35,000, but may offer loans up to $60,000 at their discretion. Loans with a 10-year term are required to be offered, but shorter and longer terms may also be offered at the lender's discretion. Program loans have fixed interest rates with a maximum gross rate of the Wall Street Journal Prime + 2.75%. Closing costs must not exceed $500 per loan. Income-Qualified Incentives Income-qualified customers are eligible to have a portion of their loan principal paid by the Mass Solar Loan Program, up to $10,500. Income qualified customers may also be eligible for an interest rate buy down of 1.5%. Details on income thresholds by household size and available incentives are available here. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PACE Massachusetts Financing | Massachusetts Development Finance Agency | 09/11/21 | 05/24/22 | 22037 | Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. The Federal Housing Administration (FHA), a branch of the U.S. Department of Housing and Urban Development (HUD), has released initial guidelines for using PACE with FHA-secured single or multifamily properties. This guidance is independent of FHFA policy. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing and a comprehensive list of all PACE programs across the country. Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Massachusetts has authorized local governments to establish such programs, as described below. In August 2016, Massachusetts Governor Baker signed H. 4568 into law, which allows local governments to establish commercial PACE financing programs. Municipalities may opt into the program by a majority vote of the city or town council, or board of selectmen. The Massachusetts Development Finance Authority, in consultation with the Department of Energy Resources, is administering the program. Participation is open to commercial and industrial buildings, as well as multi-family residential buildings with five or more units. Improvements eligible for financing include energy efficiency upgrades, renewable energy systems, and extending natural gas distribution to a property. Payback period for investments under this program is equal to the useful life of the longest-lived improvement financed, up to 20 years. As of August 2021, 47 Counties in Massachusetts have opted into PACE Massachusetts. To find which ones, check here. To qualify for PACE Massachusetts financing, PACE projects must meet the savings to investment ratio (SIR) test. This means that the energy cost savings from the Energy Consumption Reduction or Renewable Energy Improvements must exceed the costs of the improvements over the life of the measures, including any financing costs and associated fees. For gas line extensions, energy costs and savings from Energy Consumption Reduction Improvements such as heating equipment upgrades will be considered in the SIR test and savings must exceed the total costs of the Energy Consumption Reduction Improvements and Gas Line Extension combined. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solar Massachusetts Renewable Target (SMART) Program | Department of Energy Resources / CLEAResult | 11/26/19 | 05/24/22 | 22111 | The Solar Massachusetts Renewable Target (SMART) Program provides per-kWh incentives to solar PV projects up to 5 MW. The program is capped at an aggregate of 1,600 MW, and incentives are available in Eversource, National Grid, and Unitil territories. Between 20% and 35% of total program capacity is required to be reserved for projects of 25 kW or less. Program capacity is divided into 80 MW blocks, with incentive amounts declining with each block. Incentive Amount The value of the incentive payment is equal to the following for standalone solar projects: (Base compensation rate + compensation rate adders - greenfield subtractor) * total kWh generated - value of energy generated The value of the incentive payment is equal to the following for behind-the-meter solar projects: (Base compensation rate + compensation rate adders - greenfield subtractor) - (distribution kWh charge + transmission kWh charge + transition kWh charge + three-year average of basic service kWh charge) The initial base compensation rates for each utility territory were determined through a competitive procurement process, with projects between 1 and 5 MW eligible to participate. The Block 1 base compensation rates for each utility were set at the average price of all selected proposals for that utility territory in the competitive procurement process.The base compensation rates decline by 4% per capacity block. The remaining MW capacity in each utility territory can be found on the SMART Program website. Base compensation rates vary by system size. The base compensation rate is multiplied by the following factors for projects 1 MW or less:
The following compensation rate adders are available, with the adder value decreasing by 4% with each capacity block.
Note that for systems 25 kW or less, the combination of a base compensation rate and adder may not exceed the base compensation rate for low-income projects less than or equal to 25 kW. If a project is a Category 2 Land Use project (ground-mounted with a capacity greater than 500 kW and up to 5 MW that is sited on land that has not been previously developed and is zoned for commercial or industrial use) or a Category 3 Land Use project (ground-mounted with a capacity greater than 500 kW and up to 5 MW), the incentive payment will include a greenfield subtractor. This subtractor is equal to $0.0005/kWh for Category 2 Land Use projects and $0.001/kWh for Category 3 Land Use projects. The value of energy generated by the project is the total kWh generated during a billing period multiplied by the net metering credit rate for net-metered projects. For projects receiving the Alternative On-Bill Credit (see below), the value of energy is equal to the total kWh generated multiplied by the energy compensation rate. For projects that are not net-metered or participating in the Alternative On-Bill Credit tariff, the value of energy is equal to the total kWh generated multiplied by the state qualifying facility value. Alternative On-Bill Credit The SMART Program creates a new compensation option, the Alternative On-Bill Credit (AOBC), that may be used instead of net metering or a qualifying facility purchase. The Department of Public Utilities approved model SMART provisions for the state's utilities in September 2018, which set the AOBC credit rate at the applicable basic service rate. AOBC credits may be transferred, with allocations specified to two decimal points. |