Skip Navigation to main content U.S. Department of Energy U.S. Department of Energy Energy Efficiency and Renewable Energy
Bringing you a prosperous future where energy is clean, abundant, reliable, and affordable EERE Home
Federal Energy Management Program
 
About the ProgramProgram AreasInformation ResourcesFinancing MechanismsTechnologiesServicesHome
Equipment Procurement
New Construction / Retrofits
Operations and Maintenance
Utility Management Federal Utility Partnership Working Group Energy-Efficiency Funds and Demand Response Programs Purchasing Renewable Power Reducing Natural Gas Use Resources Contacts

Energy-Efficiency Funds and Demand Response Programs, Massachusetts

Updated August 2007

Some of the following documents are available as Adobe Acrobat PDFs. Download Adobe Reader.

What public-purpose-funded energy efficiency programs are available in my state?

Massachusetts' comprehensive legislation on electricity restructuring includes a non-bypassable Demand Side Management surcharge for energy-efficiency programs. Roughly $150 million is available across all program types (including low-income and residential). The energy efficiency programs funded by this surcharge are administered by the local utilities.

Rebates are available through two statewide programs sponsored by National Grid, NSTAR, Western Massachusetts Electric, Unitil, and Cape Light Compact:

  • The MotorUp (PDF 146 KB, 2 pp) initiative provides rebates for premium efficiency three-phase motors up to 200 horsepower. Rebates range from $45 to $700, depending on horsepower and enclosure type (open or closed).
  • The Cool Choice (PDF 162 KB, 2 pp) program provides rebates for high-efficiency HVAC equipment, including packaged air conditioners, air-to-air heat pump systems, water-source heat pumps, and packaged terminal air conditioners. Dual enthalpy economizer controls, demand-controlled ventilation, and electronically commutated motors (ECMs) for supply fans are also included in the program.

In addition to these statewide programs, National Grid offers a variety of energy efficiency services, all of which are organized under two initiatives:

  • The Large Business Programs include: (1) Rebates for energy-efficient lighting, VSDs, HVAC equipment, dry-type transformers, compressed air systems, and other custom measures; (2) Technical assistance in identifying, implementing, and evaluating energy efficiency opportunities for new construction, renovations, and equipment replacement; (3) Competitive financing of energy-efficient equipment and projects; (4) Building commissioning to verify that newly installed systems are operating according to specifications; and (5) Fixed low prices, through the Buyers' Alliance, for lighting materials such as electronic ballasts, high-efficiency fixtures, and energy-efficient lamps.
  • The Small Business Program pays 80% of the cost of the installation of the company's energy-saving improvements and finances the remaining 20% interest-free, for up to 24 months. The program is open to business customers with an average demand of 200 kilowatts or less . Free energy audits are also offered.

National Grid also co-sponsors the Building Operator Training and Certification Program, which trains and certifies building operators to optimize the operations of their facilities.

NSTAR provides a number of energy efficiency programs and services:

  • The Construction Solutions program provides commercial and industrial customers with rebates of up to 75% of the cost difference between standard and high-efficiency equipment, as well as 90% of the incremental cost of comprehensive design services. Commissioning, as well as cost sharing for engineering services, is also available.
  • The Business Solutions program provides medium and large commercial and industrial customers up to 50% of total project costs when retrofitting existing electrical or mechanical equipment, and up to 75% when comprehensive efficiency projects are implemented. Design and commissioning services, as well as cost-sharing of engineering services, are also provided within the program.
  • The Small Business Solutions program is available to commercial customers whose average monthly demand is 200 kW or less. It offers a free energy audit to identify energy-saving opportunities, and can also pay up to 70 percent of the total cost for retrofitting qualifying lighting and mechanical systems. Energy-saving measures include upgrades to energy-efficient lighting fixtures, electronic controls, and efficient HVAC and refrigeration systems.
  • Rebates for up to 50% of high efficiency gas space and water heating equipment, as well as a variety of gas air conditioning equipment, are available through NSTAR's Gas Programs. The Custom Program accommodates unusual technology options such as desiccant dehumidification and direct contact water heaters.
  • Vending machine occupancy sensors are eligible for $30 (non-refrigerated machine) to $75 (refrigerated) rebates through NSTAR's Vending Machine (PDF 263 KB, 2 pp) program.

Western Massachusetts Electric (WMECO) offers a variety of programs and services, including:

  • Lighting rebates are available to commercial and industrial customers through WMECO's Express Service Lighting program. The program pays much of the incremental cost of installing T-5, high-performance T-8, CFL, and pulse-start metal halide lamps, along with LED exit signs and lighting controls, as part of retrofit projects. Rebates are limited to $5,000 per customer.
  • Reimbursement for the cost of an energy audit or focused energy study is available to larger customers through WMECO's Energy Audit and Focused Study program. 50% of the study is reimbursed up-front, with the other half paid out upon installation of suggested measures (which are themselves eligible for rebates of 50-100% of their incremental cost over standard efficiency alternatives).
  • The Small Business Energy Advantage program provides cost-effective turnkey energy-saving products and services for customers with average peak demand between 11 and 100 kW. WMECO will pay up to 50 percent of the costs for retrofit lighting measures and other eligible cost-effective, energy-efficiency installations. The program offers a zero-percent pay-from-savings financing option, also.
  • WMECO's HVAC program complements the Cool Choice program (see above) by providing one-half of the cost of a study of a facility's related systems, paid up front by WMECO. The customer's 50 percent share will be refunded following the installation of the recommended energy-saving measures. C&I customers considering the replacement of individual direct expansion units of up to 30 tons or new systems over 100 tons are eligible.
  • The New Construction and Major Renovations program provides design consulting services and reimburses customers for the difference between standard and energy-efficient equipment installed in new construction projects or major renovations.

Unitil also offers a number of energy efficiency services, including:

  • The Small Business Services program provides small commercial customers (average demand less than 100 kW) with a free energy audit, an energy efficiency project proposal, and rebates toward the cost of the recommended measures.
  • Unitil's Large Business Services offers financial and technical services to commercial, industrial, and institutional customers building a new facility, undergoing a major renovation, or replacing old, inefficient equipment. Prescriptive and custom incentives are available to cover the lesser of a buy-down to a one-year payback or 35% of the installed replacement cost (75% of the incremental cost, in the case of new construction) of the efficient equipment. Prescriptive measures include lighting conversions and controls, energy-efficient motors, variable frequency drives (VFDs), HVAC equipment and controls, compressed air systems, and LED traffic light conversions. Design assistance, audits (with a 25% cost-share from the customer), and commissioning are also available through the program.
  • Through the GasNetworks Rebate Programs, rebates are provided for high efficiency natural gas furnaces, boilers, water heaters, and infrared heating equipment.

Keyspan's Commercial Energy Efficiency Program provides energy audit and engineering services to customers considering gas equipment efficiency improvements, as well as a set of prescriptive rebates and for common measures such as insulation (inc. pipe and duct insulation), steam traps, boiler reset controls, and high-efficiency windows. A custom incentives program that offers up to 50% of installation cost (up to $100,000) for more complex projects is also available.

What utility energy efficiency programs are available to me?

For energy efficiency programs offered by Massachusetts' utilities, see the previous section.

What load management/demand response options are available to me?

The Independent System Operator New England Inc. (ISO-NE) offers its Demand Response Programs, which provide payments to electricity users for load reductions (of as little as 100 kW), either by reducing usage or by operating on-site generation during periods of high demand. Customers may participate in the program through any participating member ("Enrolling Participant") of the New England Power Pool, such as a utility company, power marketer, or competitive energy supplier. ISO-NE offers several options:

  • The Real-Time Demand Response Program provides an opportunity for customers to receive payments for voluntarily responding to system emergencies. Participants are paid for actual load reductions, based on the higher of the real time locational marginal price (LMP) or a guaranteed floor price ($350/MWh for customers that can respond within 2 hours and $500/MWh for those that can respond within 30 minutes). Participants may receive additional incentives by qualifying as an installed capacity (ICAP) resource for their load reduction capacity, although response to system emergencies then becomes mandatory. In order to facilitate notification of emergency events and verification of load curtailments, customers must have an approved Internet-Based Communication System (IBCS) installed.
  • The Real-Time Profile Response Program provides remuneration to customers without interval metering for voluntarily responding to system emergencies. The enrolling participant must have the physical ability to interrupt loads at the customer's facility within 30-minutes' notice of a system emergency. Payment for verified load reductions is based on the real-time LMP, with a $100/MWh floor price. Participants may receive additional incentives by qualifying as an ICAP Resource for their load reduction capacity, although response to system emergencies then becomes mandatory.
  • The Real-Time Price Response Program provides customers with the opportunity to receive payments for voluntarily reducing load during periods when the real-time LMP is projected to be high. ISO-NE will notify participants either the night before or day of an event if the LMP is expected to exceed $100/MWh ($0.10/kWh). Participants can voluntarily respond to the notification and submit load data to verify their load reductions. Payment for verified load reductions is based on the real-time LMP, with a $100/MWh floor price. Customers must have interval metering installed at their facility to participate in this program.
  • The Day-Ahead Option is a more sophisticated variant of the Real-Time Price Response Program. Customers submit offers of hourly load reductions into the day-ahead market and are then notified by their enrolling participant if the offers are accepted. If so, the customer must drop load during the cleared hours but is remunerated by the greater of its bid or the actual clearing price for those hours.

In 2007, ISO-NE is embarking on a new initiative, the Forward Capacity Market, which will allow customers to bid their load reduction capabilities—whether constant (such as an indoor lighting retrofit project), seasonal (such as a new energy-efficient chiller plant), or dispatchible (such as a back-up generator)—into a forward capacity auction that will pit demand-side resources against supply-side ones. The first auction, for resources whose contribution to the grid must begin in June, 2010, will take place on February 1st, 2008, but "Show of Interest" forms for demand-side resources were due by the end of February, 2007 (future auction dates will be announced on the ISO-NE web site). However, in the "Transition Period," which is in effect until June 1, 2010, non-dispatchible demand resources (such as energy-efficiency, load management, or distributed generation) of at least 100 kW are eligible for fixed "installed capacity" payments from NE-ISO. The rate of remuneration is $3.05/kW-month until June of 2008, $3.75/kW-month in 2008-9, and $4.05/kW-month in 2009-10. Applications must include a measurement and verification plan to assure ISO-NE of the ability to perform.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewable Energy (DSIRE) website provides information on programs that offer incentives for renewable distributed generation.

The Massachusetts Technology Collaborative (MTC), the state's development agency for renewable energy, is offering two attractive programs through its Renewable Energy Trust Fund.

  • The Large On-Site Renewable Initiative Grants program will provide up to 75% of design and construction costs for renewable installations of 10 kW or greater (with at least 25% of the power to be utilized at the generator's own facility) using a wide variety of technologies, from fuel cells to biodiesel. Feasibility study grants of up to $40,000, with a 15% cost-share by the host, are also available. Two rounds of funding are offered each year.
  • The Clean Energy Pre-Development Financing Initiative aims to promote larger-scale (from 250 kW to 3 MW, depending on the technology) renewables installations of various types (excluding waste-to-energy, ocean thermal, tidal, and wave energy systems), and is specifically directed toward public sector and non-profit entities' use. $50,000 grants are available for feasibility studies and up to $250,000 in favorable unsecured loans can also be utilized. A 25% cost-share is required.

Keyspan's Solar Thermal Rebate Program, part of its Custom Incentives initiative within the utility's Commercial Energy Efficiency Program, offers $1.50 per therm of first year savings (up to $100,000) for solar thermal space or water heating installations.

Are there energy efficiency programs sponsored by the state government?

Massachusetts currently has no state-sponsored energy efficiency programs available to federal facilities. For more information, contact the Division of Energy Resources (DOER).

What additional opportunities are available to me?

Federal customers also have energy-efficiency opportunities available with utilities (e.g., Keyspan, Bay State Gas, Trigen Boston Energy Group) that have area-wide contracts with GSA (e.g., Bay State Gas, Keyspan, NSTAR, and Trigen Boston Energy) and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.