Massachusetts Clean Energy Center
www/MassCEC.com 2018 message
Hello Ground-Source Heat Pump Stakeholders,
Thank you for your ongoing participating in MassCEC’s Residential Ground-Source Heat Pump (GSHP) Program. Due to recent market changes, MassCEC (reduced) its incentive level to $2,000 per 12,000 BTU/hr of capacity from the past $3,500 per 12,000 BTU/hr level.
To provide adequate time for installers and customers to submit applications for outstanding applications, this change (took) effect May 4, 2018.
Despite this reduction, MassCEC believes that the total available incentives for residential GSHP installations remain strong due to two recent developments:
In December 2017, the Department of Energy Resources (DOER) announced the expansion of the Alternative Portfolio Standard (APS) to include GSHPs and other renewable thermal technologies; and
In February 2018, the 30% Federal Tax Credit (ITC) for GSHPs was reinstated through 2019.
MassCEC is also evaluating its commercial GSHP incentives, but no changes have been finalized. Feel free to reach out with questions. We look forward to continuing to work with you.
The Ground-Source Heat Pump Team
Massachusetts Clean Energy Center
63 Franklin St, 3rd Floor, Boston, MA 02110
NEGPA appreciates Leslie Nash and Josh Kessler's support
for NEGPA through these past years.
NEGPA thanks Mass CEC for
being a $5000 Platinum Sponsor in 2018.
This allowed a NEGPA subsidized training to occur in February, 2018 as shown above.
17 International Ground Source Heat Pump Association
Accredited Installers were trained and tested as shown,
by the North American Technician Excellence program
thanks to NEGPA and MassCEC.
Look for more training of Massachusetts Building Inspection Officials next.
Here is information on the Massachusetts Heat Smart program:
Alternative Portfolio Standard
The Massachusetts Alternative Portfolio Standard (APS) offers incentives for ground-source heat pump (GSHP) systems installed in Massachusetts. The APS was established under the Green Communities Act of 2008 and expanded in 2017 to including “renewable thermal” technologies like GSHP.
Residential-scale systems: The incentive is based on the building’s size and is paid as soon as the system is qualified to participate in the program. A 2,500 sf house is likely to receive a net incentive of approximately $6,000 to $7,000 (see online calculator for details). To be eligible, GSHP system designs must meet the requirements described on page 9-12 of the guidelines for small-scale systems.
Large-scale systems: Systems with at least 134,000 BTU/hr of heating capacity must be metered. The incentive is based on the amount of renewable thermal energy produced. This production must be recorded in a data acquisition system and reported quarterly to the APS Production Tracking System. Requirements and incentive formulas are on page 36-40 of the guideline for large-scale systems.
Calculating incentives: The actual incentive depends on the current market value of an “Alternative Energy Credit” (AEC). Each AEC represents one MWh of electricity. Electricity suppliers are required to buy enough AECs to meet a percentage of the energy they supply to customers (5% of electricity by 2020). If they fail to meet this requirement, they can make an Alternative Compliance Payment (ACP) instead, which effectively caps the value of an AEC. This ACP is set at $22.64 per MWh in 2018. As of 2018, there have not been enough AECs to meet market demand, and AECs have typically been valued at or near the ACP rate.
How to participate: To capture the incentive, each system owner is strongly encouraged to work with an “aggregator.” The aggregator typically submits the online application and sells the AECs on behalf of the customer (and typically takes a small percentage of the proceeds as a fee). Large-scale systems require quarterly validation of production by an “independent verifier.” The APS Statement of Qualification website provides detailed program information, including a list of aggregators.
Status of May 4 reduction in rebate because of implementation of federal tax credit:
MassCEC May 4 incentive reduction – MassCEC received 62 applications between Apr 1 and May 3, totaling $931,000 in rebates. To put that in perspective, from Jan 2017 to Mar 2018, they received 35 applications totaling $423,000 in rebates.
There are "No interest loans" available for commercial and industrial geothermal projects in Massachusetts and Rhode Island.
Funding is sent to the ground source heat pump Distributor to offset costs for the Building Owner.
More information will be published here once Links are available.
Massachusetts Clean Energy Center (MassCEC)
June 6, 2018: The Massachusetts Clean Energy Center (MassCEC) and the Department of Energy Resources (DOER) are getting heated up for another round of HeatSmart Massachusetts with community applications expected to open this summer!
HeatSmart Mass is a community purchasing program similar to the highly successful Solarize Mass Program but for clean heating and cooling technologies, which include air-source heat pumps, ground-source heat pumps, modern wood heating, and solar hot water. These technologies provide heating at a fraction of the carbon emissions of traditional fossil fuel heating systems, all while offering a high level of comfort and cost savings when offsetting high-cost heating fuels such as oil, propane, and electricity.
Four pilot HeatSmart communities were selected in fall 2017 and launched their campaigns in early 2018. While their campaigns are still ongoing, they’re off to a strong start and generating great interest! MassCEC and DOER anticipate releasing the community solicitation requesting applications from interested Massachusetts towns in July 2018.
Is your town interested? If so, how can you prepare?
Spread the word by distributing this one-page handout
Review the HeatSmart Mass Pilot Program Solicitation and Application materials. MassCEC and DOER anticipate that the application for the next round of the program will be similar to the pilot round application.
Familiarize yourself with the clean heating and cooling technologies and think about which ones might be a good fit for your town
Contact your town members and municipal representatives to gauge interest in participating
Talk to local non-profits, community organization, schools, banks, businesses, and utilities about forming strategic partnerships
Review the pilot program FAQs
Please feel free to contact MassCEC with questions.
The HeatSmart Mass Team
For more information, go to: http://www.masscec.com/clean-heating-and-cooling/heatsmart-mass-residential-program-background
July 20, 2018 MassCEC proposed modifications to Geothermal Incentives.
Please read and submit your comments. (NEGPA did comment.)
August 8, 2018: Last week, MassCEC held a webinar which provided details of HeatSmart-eligible heating technologies, gave an overview of the HeatSmart Mass program, and answered questions about the recent HeatSmart RFP.
The recording and slides from the webinar are now available on the on the MassCEC HeatSmart Residential website under the "How Do I Apply?" tab.
Thank you for your continued interest in MassCEC's HeatSmart Program!
The HeatSmart Mass Team