In June 2002, Massachusetts’ primary utility regulatory body, the Department of Telecommunications and Energy (DTE) opened its investigation into distributed generation (PDF 23 KB). The investigation focused on the development of interconnection standards, the calculation of standby rates, and the role of distributed generation in distribution company resource planning.

The rules (PDF 247 KB), developed by a collaborative (the Distributed Generation Interconnection Collaborative) established by the Massachusetts DTE, were approved in February 2004. The DTE requires all of Massachusetts' regulated utilities to file tariffs in compliance with these rules. Note that these guidelines apply to the Commonwealth’s regulated investor-owned utilities: NSTAR Electric, Massachusetts Electric (National Grid), Western Massachusetts Electric Company, and Fitchburg Gas and Electric. Municipally owned utilities may develop their own procedures.

For both small renewable systems and larger DG systems, technical requirements are based on the national safety standards IEEE 1547, IEEE 929 and UL 1741. The rules also specify that utilities will collect and track information on the interconnection process; this information will be used in revising and updating the standards.
 
The standard interconnection tariff developed by the Distributed Generation Interconnection Collaborative serves as the basis for each utility's tariff. The tariff generally follows the structure set forth in consensus interconnection documents filed by stakeholders in the federal docket pertaining to FERC's Advance Notice of Proposed Rulemaking (ANOPR) on standard generator interconnection. However, the Massachusetts tariff has simplified some of the complexities found in the FERC consensus documents, and the Collaborative reached compromises on areas of non-consensus in the FERC process.

The standard tariff specifies simplified treatment for small IEEE-compliant inverter-based interconnections less than 10kW in size. For these systems, there are no fees for the interconnection approval process and applications must be processed within 15 days. The simplified interconnection process does not apply to those connecting within a utility’s area network distribution system.

Interconnections for wind energy systems up to 300 kW generally qualify for "expedited" interconnection, under which timeframes and fees to complete interconnection are limited. Fees are set at $3 per kW of generator capacity, starting at $300 and with a maximum of $2,500. Generators that do not qualify for simplified or expedited interconnection guidelines (including even small renewables connecting to downtown area network distribution systems) will be subject to the utility company’s standard review.

We recommend you contact your installer or utility company in order to find the appropriate interconnection application for your technology and location. Utility contacts are provided below.

Note that these guidelines apply to the Commonwealth’s regulated investor-owned utilities: NSTAR Electric, Massachusetts Electric (National Grid), Western Massachusetts Electric Company, and Fitchburg Gas and Electric. Municipally owned utilities may develop their own procedures.

For more information contact the Massachusetts Department of Telecommunications and Energy or the Public Policy Unit of the Massachusetts Technology Collaborative.

Renewable Energy Trust Fund

As part of its November 1997 electric utility restructuring legislation, Massachusetts created public benefit funds for renewable energy programs. The Massachusetts Technology Collaborative (MTC), a quasi-public research and development entity, is administering this Renewable Energy Trust. MTC’s current programs that include grant funds for small wind are described below. For more information, visit the Massachusetts Technology Collaborative’s website.

Small Renewables Initiative

The Small Renewables Initiative invites rebate applications of up to $50,000 for design and construction of customer-sited eligible renewable energy projects that are up to 10 kilowatts in size. Eligible technologies include wind, photovoltaics, and micro-hydroelectric. The renewable energy generation system(s) must be located at residential, commercial, industrial, or institutional facilities that are connected to one of the investor-owned electric distribution utilities in Massachusetts. These rebate awards may be used to facilitate the installation of distributed renewable energy generation projects on existing buildings (retrofits) or in conjunction with new construction/major renovation/addition projects. The applicant may be a public or a private entity but must be the facility owner or occupant, and must be the electric utility customer of record. For detailed program information, and to download applications, visit www.masstech.org or contact:

Small Renewables Coordinator
Email: smallrenewables@masstech.org
Phone: (508) 439-5640

Commercial, Industrial, & Institutional Initiative Grants

In 2004 and through 2006, the Massachusetts Technology Collaborative's (MTC) Commercial, Industrial, & Institutional Initiative (CI3) is offering a total of $6,000,000 in grant funding to expand the use of distributed renewable energy generation at commercial, industrial and institutional facilities in Massachusetts. Eligible projects must employ renewable energy technologies with a capacity greater than 10kW.

CI3 includes two main activity areas: Feasibility Study Grants and Design & Construction Grants. Feasibility grants are available up to a maximum of $40,000 and require an applicant cost-share of at least 20% or $5,000, whichever is less. Design & Construction grant amounts will be calculated on an incentive-per-watt of renewable energy capacity basis. The Design phase award will not exceed $150,000 or 50% of the actual incremental design costs. The Construction phase award will not exceed $500,000 or 50% of the actual incremental construction costs.

The basic incentive level for wind installations through CI3 is $1.50 per Watt. Additional incentives can be earned by meeting value-added criteria such as using the renewable energy system to provide back-up power for a critical load, or for installing the project as part of a LEED Certified green building. The building or facility utilizing the power generated by the project must be grid-connected, and greater than 50% of the renewable energy produced must be consumed on-site. By fall of 2005, this program is likely to be extended until 2009, under the name Large Onsite Renewables Initiative. For more information, visit www.masstech.org or contact: 

Jim Christo
Email: ci3@masstech.org
Phone: (508) 870-0312 x 263

Tax Incentives for Businesses

Solar and Wind Energy System Deduction

Businesses may deduct from net income, for state tax purposes, costs incurred from the installation of any "solar or wind powered climatic control unit and any solar or wind powered water heating unit or any other type unit or system powered thereby." The installation must be located in Massachusetts and used exclusively in the trade or business of the corporation.
 
Businesses that qualify for this deduction may also qualify for the corporate excise tax exemption on solar or wind powered devices. This exemption is available for the length of the equipment's depreciation period. For more tax information contact the Massachusetts Department of Revenue. For more information on legality, contact the Massachusetts Division of Energy Resources (DOER).

Solar and Wind Power Systems Excise Tax Exemption

Solar and wind energy systems are exempt from the corporate excise tax for the length of the system’s depreciation period. Specifically, "if the energy system is the kind of business property considered to be personal property and subject to the state excise, it is then exempt." The state excise tax in Massachusetts is applied at a rate of $7.00 per $1,000 of assessed valuation. For more tax information contact the Massachusetts Department of Revenue. For more information on legality, contact the Massachusetts Division of Energy Resources (DOER).

Tax Incentives for Homeowners

Residential Renewable Energy State Income Tax Credit

This statute provides a 15% credit against the state income tax for the cost of a renewable energy system (including installation) installed on an individual’s primary residence. The maximum limit to the credit is $1,000 and can be carried over in the case that the credit is greater than one’s income tax liability in one year. Eligible technologies include solar thermal, solar water and space heat, photovoltaics, wind, and hydro systems. For more tax information contact the Massachusetts Department of Revenue. For more information on legality, contact the Massachusetts Division of Energy Resources (DOER).

Local Property Tax Exemption

Solar and wind powered devices utilized as a primary or auxiliary power system for the purpose of heating or otherwise supplying the energy needs of taxable property qualify for property tax exemptions for a period of 20 years from the date of installation. For more tax information contact the Massachusetts Department of Revenue. For more information on legality, contact the Massachusetts Division of Energy Resources (DOER). 

State Sales Tax Exemption

State law exempts from the state sales tax, the sale of equipment directly relating to any solar, wind, or heat pump system to be used as a primary or auxiliary power system for heating or otherwise supplying the energy needs of a person’s principal residence in the state. The exemption does not apply to commercial users.

Other Tax Incentives

Alternative Energy and Energy Conservation Patent Exemption

We are unaware of any wind incentives offered by individual utility companies in Massachusetts. However, wind system owners may benefit from the sale of their system’s green energy attributes. In addition, the Commonwealth’s Renewable Portfolio Standard (RPS) gives utilities an incentive to purchase energy from wind systems installed after 1997.

Mass Energy - Renewable Energy Certificate Incentive

The Massachusetts Energy Consumers Alliance (Mass Energy), a non-profit organization in Boston, and People’s Power & Light (PP&L), a sister organization serving Rhode Island, are buying green attributes from wind and solar energy systems in Massachusetts and Rhode Island. The renewable energy attributes from small-scale systems will be packaged together with those from other wind, small hydro and biomass certificates and sold as New England GreenStart^SM, a renewable energy product sold through utility green power programs in Massachusetts and Rhode Island.

Mass Energy and PP&L are offering to purchase renewable energy certificates at a rate of $30 per Megawatt-hour (or $.03 per kWh) for a period of three years from owners of small-scale wind turbines installed after 1998. Income from the sale of green attributes will not reduce the savings received through net metering with the local utility company. For more information, visit www.massenergy.com.

Renewable Portfolio Standard

Beginning in 2003 Massachusetts retail electricity providers must comply with a Renewable Portfolio Standard. The RPS requires utilities to utilize new renewable energy sources for at least 1% of their power supply in 2003, increasing to 4% by 2009. Eligible resources include wind energy systems installed after 1997. Electricity suppliers can alternatively meet compliance by submitting Alternative Compliance Payment (ACP) to the Massachusetts Technology Park Corporation, which administers the state's Renewable Energy Trust. For more information contact the Massachusetts Division of Energy Resources.

Prepared by TrueWind Solutions, LLC, the New England Wind Resource Map is a resource for the New England area. This map update project was sponsored by the Connecticut Clean Energy Fund, Northeast Utilities Systems, and the Massachusetts Technology Collaborative Renewable Energy Trust.

The US Department of Energy has produced wind resource maps for each state. The map for Connecticut, Massachusetts, and Rhode Island can be found here. You may also find the definitions of Wind Power Classes for the maps helpful.

The US Department of Energy’s Energy Efficiency and Renewable Energy Network has also collected wind resource data for Massachusetts.

You may also find useful information at the web site for the National Renewable Energy Laboratory (NREL).  

The Massachusetts Division of Energy Resource maintains a website with much relevant information on renewable energy, including A Massachusetts Consumers Guide to Small Wind Electric Systems.

The American Wind Energy Association provides a list of wind turbine manufacturers. For a list of wind turbine installers in your area, please contact the manufacturers.

The Database of State Incentives for Renewable Energy (DSIRE) is a comprehensive source of information on state, local, utility, and selected federal incentives that promote renewable energy. Another item of interest is the Interstate Renewable Energy Council’s web site on wind energy projects and wind energy events/news occurring through out the country.

The Northeast Sustainable Energy Association (NESEA) maintains a searchable database called the Sustainable Yellow Pages where you can search for wind energy professionals.

Source Guides offer a list of renewable energy companies in each state. To see MA, visit their website.

NSTAR Electric
One NSTAR Way
Westwood, MA 02090
Frank Gundal, Manager of Products and Services
Phone: (781) 441-8151
Website: http://www.nstaronline.com/

National Grid (Massachusetts Electric)
25 Research Drive
Westborough, MA 01582
Tim Roughan, Director of Distributed Resources
Phone: (508) 421-7236
Website: http://www.nationalgrid.com/usa

Unitil (Fitchburg Gas and Electric)
285 John Fitch Highway
Fitchburg, MA 01420
John Bonazoli
Phone: 888-301-7700, (603) 773-6456
Website: http://www.unitil.com/

Western Massachusetts Electric Company (Northeast Utilities)
WMECO Customer Service Center
PO Box 2010
West Springfield, MA 01090
Phone: (800) 286-2000
Website: http://www.wmeco.com/

Department of Telecommunication and Energy (DTE)
One South Station
Boston, MA . 02110
Phone: (617) 305-3500
Website: http://www.mass.gov/dte/

Division of Energy Resources (DOER)
100 Cambridge St., Suite 1020, Boston, MA 02114
Phone: 617-727-4732
Fax: 617-727-0030
Email: DOER.Energy@State.MA.US
Website: http://www.mass.gov/doer

Massachusetts Technology Collaborative
75 North Drive
Westborough, MA 01581
Phone: (508) 870-0312
Fax: (508) 898-2275
Website: http://www.masstech.org/

The Northeast Sustainable Energy Association (NESEA) has information on energy deregulation and renewable energy, and maintains the Sustainable Yellow Pages.

The Massachusetts Technology Collaborative is the state’s development agency for renewable energy and the innovation economy, and administers the Renewable Energy Trust. The Renewable Energy Trust seeks to maximize environmental and economic benefits for the Commonwealth’s citizens by pioneering and promoting clean energy technologies and fostering the emergence of sustainable markets for electricity generated from renewable sources. The Trust supports a Clean Energy Program, Industry Support Program, and a Policy Unit. Grant funds currently available for wind development are described above.

The Massachusetts Energy Consumers Alliance (Mass Energy) is a non-profit organization that uses a market-based approach to advance a mission of energy affordability and environmental sustainability. Mass Energy provides consumers with energy options and information, and participates in energy policy discussion on their behalf.

Center for Ecological Technology (CET), a non-profit (501c3) organization, engages in work that demonstrates and promotes practical, affordable solutions to the environmental challenges encountered in our daily activities.

Cape & Islands Self-Reliance is a non-profit corporation whose mission is to promote environmentally-sound technologies and sustainable practices through education, advocacy and collective membership that provides tangible benefits. Self-Reliance provides information and support to consumers looking into renewable energy, particularly on Cape Cod, Nantucket, and Martha’s Vineyard.

The University of Massachusetts Renewable Energy Research Laboratory (RERL) exists to promote education and research in solar and wind energy conversion technologies.

The Center for Energy Efficiency and Renewable Energy (CEERE) at UMASS Amherst provides technological and economic solutions to environmental problems resulting from energy production, industrial, manufacturing and commercial activities, and land use practices.

Conservation Services Group, Inc. (CSG), based in Westborough, is a nonprofit corporation that specializes in the design, development and delivery of energy efficiency and renewable energy programs for utility companies, public housing authorities, public agencies, and private clients.

Last Updated: April 2005

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