Massachusetts Clean Energy Center
www/MassCEC.com March 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 will reduce its incentive level to $2,000 per 12,000 BTU/hr of capacity from the current $3,500 per 12,000 BTU/hr level.
To provide adequate time for installers and customers to submit applications for outstanding applications, this change will take effect May 4, 2018. Any complete applications submitted prior to that date will be awarded at the current incentive level.
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 eight years.
NEGPA thanks Mass CEC for
being a $5000 Platinum Sponsor in 2018.
This allowed a NEGPA subsidized training to occur in February.
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.
May 4 is a hard deadline. Note that this is the deadline to submit applications. If they are mostly complete but need minor updates after submission, they will still receive the higher rebate levels.