Massachusetts Solar Incentives

Legislation

The Massachusetts legislature enacted a law in 1997 to restructure the utilities and promote the production of clean energy in the state. It also created the Renewable Energy Trust, which provides incentives to residents and is funded by a 25 cent monthly charge for residential and small business customers. The 25 cent charge began generating about $25 million annually. The funding is believed by some to have been less effective than it could have beeen so in 2007 Senate Bill 2768, or the Green Communities Act, was introduced in the Senate and became law in 2008. SB 2768 focuses on reducing energy costs, developing renewable sources of energy, and taking the necessary steps to facilitate clean energy activity in the state. The law allows Massachusetts to stay competitive in the emerging market by improving energy efficiency. Utility companies are required to pursue energy efficiency improvements whenever necessary by offering rebates for anyone updating electrical appliances such as lighting and air conditioning. Rebates encourage the initial investments needed to gradually bring the cost of installing solar systems down.

In addition to improving energy efficiency in the state, the Green Communities Act promotes renewable forms of energy in the state by requiring utility companies to enter into long term contracts with renewable energy developers. This helps the developers obtain financing. Net-metering allows people who generate their own electricity to sell their excess generation back to the utility company, and utility companies can now offer Power Purchase Agreements up to 50 MW, but just for the next two years. Power Purchase Agreements allow a third party to own a solar electric installation, even if it's installed on your house.

SB 2768 also doubles the rate of increase in the Renewable Portfolio Standard from 0.5% per year to 1% per year - with no cap. Utilities are required to obtain enough power from renewable sources so as to equal 4% of sales in 2009. In 2020 the percentage will climb to 15, then 25% by 2030.

Rebate Programs

MTC - Commonwealth Solar Rebates is a $68 million, 4 year state rebate program to encourage investment in solar power installations. Commonwealth Solar was announced early in 2008 by the Massachusetts Technology Collaborative (MTC) and provides rebates for photovoltaic (PV) installations for residential locations, commercial, industrial, institutional, and public facilities. Residential rebate amounts are based primarily on the size of the system and start out at $1.00/watt and are subject to a cap of $20,000 per project.You can add $0.15/watt is your system uses Massachusetts-made components, another $2.00/watt if your home is moderately valued, and another $1.25/watt if your income is moderate.

All installations non-residential installations are eligible for a $3.15/watt for the first 15 kW of system capacity, $3.00/watt for the next 75 KW, $2.00/watt for the next 100 KW capacity, $1.40/watt for the next 300 KW of system capacity. Public buildings can add $1.00/watt.

MassSAVE is a residential conservation services program which offers no-interest financing to help residents increase the energy efficiency in their homes and businesses. The HEAT Loan Program is available for one to four family residences. The loans are capped at $15,000 with terms up to 7 years. Eligible improvements include installing insulation, high-efficiency heating and hot water systems, and energy-saving windows.

Chicopee Electric Light offers rebates for residential solar photovoltaic system installations. While limited to the first 15,000 installed watts per year, a rebate of $2.50/watt capped at $5,000 per installation. Chicopee requires customers with PV systems to have an automatic transfer switch to disconnect from the grid during power outages.

National Grid has a Solar Thermal Rebate Program which offers customers a rebate of 15% of project costs for residential locations and 50% of commercial installations. Residential rebates are capped at $1500, commercial locations have a maximum rebate of $100,000 or $250,000 for new construction projects implementing solar power systems. Residential systems must be installed by November 15, 2009 in order to qualify.

Solar Business News

"Small Town Solar Projects"

The Brockton Brightfield in Brockton, Massachusetts is not very big, but it's the largest solar energy system in New England. The plant is built on about four acres previously home to a natural gas plant. The term "brightfield" comes from transforming a "brownfield", or an abandoned and contaminated industrial site, into a solar power site. Funded by a city bond, a grant from the U.S. Department of Energy, and the Massachusetts Technology Collaborative's Renewable Energy Trust, the Brockton Brightfield began sending electricity to the grid in 2006. With a 425 KW capacity, the Brightfield generates environmentally friendly energy from a formerly environmentally contaminated site. Brockton may be a small town, but it has the largest Brightfield in the country and plans to add more capacity soon.

On South Main Street In Attleboro there is a Dunkin Donuts with a solar PV system installed on the roof. Co-owners Roger Deslauriers and Richard Demers got the idea of putting solar panels on their store from their franchise counterparts in Florida. They own two more Dunkin Donuts together, one more in Attleboro and one in Reheboth. According to Deslauriers, they received a grant from the Massachusetts Technology Collaborative and the federal tax break in order to make the project affordable. The store on South Main Street may generate as much as 15% of the necessary electricity from their solar panels, the other store in Attleboro should do a little better, but the third store in Reheboth may generate as much as 50% of that store's electricity needs. Another example of how small towns can take small steps to participate in the clean energy revolution. Older data that used to be contained within this article can now be found here.