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Renewable Energy Programs
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Massachusetts Renewable Energy Tax IncentivesNote: See below for similar information on federal incentives. The commonwealth of Massachusetts offers a number of tax incentives that are designed to promote the development and use of renewable energy resources. This is a brief summary of those incentives. This summary is not intended to replace consultations with your lawyer, tax preparer or the Department of Revenue who can provide a complete explanation of these incentives and their availability.
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Federal Renewable Energy IncentivesNote: See above for similar information on Massachusetts state incentives. The federal government offers a number of tax and other financial incentives that are designed to promote the development and use of renewable energy resources. This is a brief summary of those incentives. This summary is not intended to replace consultations with your lawyer, tax preparer or the Internal Revenue Service who can provide a complete explanation of these incentives and their availability. For a list of Federal Tax Incentives for Renewable Energy in the 2005 Energy Policy Act go to http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#s1. Federal Financial and Tax Incentives for HomeownersAs of December 2001, there were no federal income tax incentives for homeowners who purchase renewable energy equipment. However, rebates from electric utilities for residential solar systems are exempt from federal taxation. Also, special mortgage provisions may be secured from federal HUD, Freddie Mac, and Fannie Mae for solar water heating and photovoltaic systems. Please check with these lenders for details. Federal Financial and Tax Incentives for Businesses, Municipal Entities, and Not-for-Profit EntitiesAt the federal level, numerous tax incentives, deductions, and credits are available to businesses, municipalities and not-for-profit entities. Special financing arrangements and mortgages are offered by some federal agencies to help finance the cost of renewable energy systems. Owners or lessees of renewable energy property may be also be entitled to special depreciation rates as well as special treatment of taxes on bonds and leases. Below is a partial list intended for use as a general overview and introduction. Please consult with a tax professional or the responsible government agency for more information.
WindpowerWhat is Windpower? Costs and Benefits of WindPower: Wind is a local and inexhaustible resource. The money consumers pay for windpower supports local jobs and industry, instead of leaving the region to pay for imported fuels. Windpower has many environmental advantages. There are no air or water emissions; thus wind energy does not contribute to global warming, acid rain or air pollution. Wind turbines do create some noise from the gearbox and the rotating blades. The noise level decreases quickly as distance from the turbine increases. Careful placement of wind systems can mitigate noise concerns. Furthermore, large modern turbines are much quieter than earlier models. To learn more about wind power technology, visit the National Renewable Energy Laboratory or the American Wind Energy Association. Community Wind Fact-Sheet Series Model Zoning By-Laws Small Wind Systems: For additional information on small wind systems, visit this federal web page: http://www1.eere.energy.gov/windandhydro/wind_technologies.html or the American Wind Energy Association web page: http://www.awea.org/smallwind/. Windpower in Massachusetts Because windpower sites require strong, reliable winds, the best locations for windpower in Massachusetts are along the immediate coastline; offshore in the eastern part of the state, and on exposed mountain ridges and hilltops in central and western Massachusetts. Hull: Hull has an established history with windpower. In 1984, the School Department received a grant from DOER for installation of a wind turbine at Hull High School. The Enertech 40 kW wind turbine became operational in the spring of 1985. By 1995, the turbine produced over 80,000 kWh per year, saving the School Department more than $8,500 annually. However, weather damage incapacitated the turbine forcing the Town to seek funding for the new 660 kW turbine. For more information about the Hull turbine, contact the Hull Municipal Light Plant at 781-925-0051 or log on to the official website, www.hullwind.org. Mount Tom/Holyoke: Mount Tom in Holyoke is home to the second largest wind turbine in the Commonwealth. The 250 kW turbine is owned by the University of Massachusetts (UMASS) and used primarily for research and educational purposes. The University's Renewable Energy Research Laboratory (RERL) acquired the turbine from a California wind farm. After being modified for cold weather operation, the turbine was installed in late 1994. RERL conducts ongoing research on both the turbine components and the automated turbine control systems. For more information about the Mount Tom turbine and other RERL projects, log on to www.ecs.umass.edu/mie/labs/rerl or contact Jim Manwell, Director, at 413-545-4359. Beverly: Since 1997, the City of Beverly has benefited from the 10kW Bergey wind turbine installed at Beverly High School. A group of Beverly fifth graders acquired the turbine in 1995 with a private donation. The turbine was replaced in July 1999 with a similar model, donated by DOER. The wind turbine, together with Beverly High School's solar panel array, save the City of Beverly an average of $10,500 per year. Both renewable energy projects are maintained in cooperation with Solar Now Inc., which offers tours of both projects to interested students, citizens and others. For more information about the Beverly High School wind turbine, log on to www.solarnow.org/beverly.htm or contact Carmel Valianti-Smith, Solar Now Education Director, at 978-927-9786. Princeton: Princeton Municipal Light Department (PMLD) operates the oldest windpower plant in Massachusetts. Located in central Massachusetts, the Town of Princeton installed eight Enertech wind turbines in 1984 on a hilltop near Mt. Wachusett. Each turbine has a rated power of 40 kW and stands 100 feet high. The entire facility produces approximately 250,000 kWh per year, enough to supply the annual energy needs of over 40 households. In June 2002, PMLD replaced one of the older turbines with a new 50kW Atlantic Orient turbine. DOER assisted in securing funding for the turbine through the US Department of Energy (DOE). Princeton is currently considering the replacement of all eight existing turbines with two new turbines, each with greater than one-MegaWatt (MW) capacity. For more information about the Princeton windpower systems, log on to www.pmld.com. Great Island, Westport: Great Island is a private island that is home to a 1.5 kW Bergey wind turbine. The turbine is used for residential purposes only. Wind Program Funding in Massachusetts Massachusetts Renewable Energy Trust (MRET): Managed by the Massachusetts Technology Park Corporation, MRET was established by the 1997 Electric Restructuring Act, and provides funding for renewable energy projects throughout the state. Funds are collected through the Renewable Energy Charge on ratepayers' bills. For more information on MRET, log on to its website at www.masstech.org/RenewableEnergy/index.htm. The following program ended June 30, 2003: The Wind Energy Predevelopment Support Program, sponsored by the University of Massachusetts, through its Renewable Energy Research Laboratory (RERL), facilitated the introduction of more wind energy in the Commonwealth of Massachusetts, for communities, farms, and small-businesses. The program loaned wind-monitoring equipment and provides assistance at all stages of pre-development, including wind resource monitoring, site evaluation, permitting, RFP development and bid evaluation. DOER and the US Department of Energy provided funds to UMASS through the Strategic Environtechnology Partnership (STEP) program. Wind Power in New England Searsburg, Vermont: The Searsburg Wind Power Project is a 6 MW facility located in southern Vermont. Commissioned in July 1997, the wind project serves the annual electricity needs of 2,000 average Vermont households. Additionally, the Searsburg Wind Project serves a valuable educational resource, providing information on wind energy generation in cold weather and environmentally sensitive area. The US Department of Energy and the Electric Power Research Institute provided funding for roughly one-third of the $11 million project cost. For more information, log on to www.northeastwind.com/searsburg%20project.htm. Barre, Vermont: Northern Power Systems owns and maintains a 100kW wind turbine in Barre, Vermont. Orland, Maine: Atlantic Orient Corporation owns and maintains a 50kW wind turbine in Orland, Maine. Block Island, Rhode Island: Block Island, Rhode Island is home to several residential 10kW Bergey wind turbines. Newport, Rhode Island: The historic Rose Island Lighthouse is powered, in part, by a 1.5 kW Bergey wind turbine. The turbine reduces the facility's use of its diesel generator from 120 hours a month to less than ten hours a month. Because Rose Island Lighthouse is a National Historic Site, the wind turbine complies with strict noise and visual impact standards. The Newport School District utilizes the project as a teaching facility for their environmental studies program. For more information, log on to www.roseislandlighthouse.org. Links:
BiomassBiomass is a class of renewable fuels that includes woody and herbaceous crops and residues, solid waste, sewage, and liquid fuels (such as alcohol and biodiesel) derived from agricultural products. Woody biomass comes from forest thinnings and residues. For example, the MDC forest at the Quabbin Reservoir is routinely thinned to promote healthy growth. The harvested logs are then sent to wood burning power plants in Maine, Vermont and Massachusetts. Outstanding examples of wood burning power plants include the 58-megawatt McNeil Station of the Burlington (VT) Electric Department and the 18-megawatt Pinetree Resources plant in Westminster, MA. Modern day forest practices are quite positive. For example, today, more than two-thirds of Massachusetts is covered with forests -- that's up from 30% 150 years ago. Agricultural biomass, such as soybeans and rapeseed, provide the resource for the manufacture of biodiesel fuels. A successful replacement for conventional diesel fuel, biodiesel reduces particulate emissions from diesel-fuel vehicles. Research has also shown that biodiesel can be manufactured from food wastes such as frying oils and animal fats. Another agricultural product -- corn -- has become a staple for the production of ethanol and ETBE, an additive used in reformulated gasoline that reduces carbon monoxide. Methane, a natural by-product of wastewater treatment and landfill decomposition processes, can be captured and used to generate electricity. The use of woody biomass and the harnessing of methane emissions, when used to replace fossil fuels, are powerful counteractants to the production of greenhouse gases. DOER is working with Massachusetts Bay Transportation Authority and private industry to study and expedite the introduction of biodiesel as a fuel additive to conventional diesel fuels in older urban buses. The goal is to provide near-term relief from the black smoke emissions characteristic of these buses. DOER is also working with the Massachusetts Bureau of Waste Prevention, and the U.S. Environmental Protection Agency to develop programs to capture and use methane from landfills and to plant fast growing trees on landfills; two processes that counteract greenhouse gas emissions.
For more information on this topic, please contact us at 617-727-4732, or by e-mail at DOER.Energy@State.MA.US. Biomass Projects in Massachusetts Gardner: Mt. Wachusett Community College, Biomass Central Heating Plant - In 1996, the Massachusetts Division of Energy Resources funded a study to assess workable solutions to lowering the college’s high-energy costs. The study focused on the potential of converting the existing all-electric system to a biomass-fired hydronic system. Results of this study showed potential annual savings of $276,000 with a simple payback on investment (excluding financing) of 8.9 years
Athol: - Athol-Royalston Regional School District - In 1998 the Athol High School replaced their aging fuel oil system with a turnkey wood chip heating system provided by Chiptech of South Burlington, VT.
Northampton: Cooley Dickinson Hospital, as part of a recent major expansion, seeks to also expand its long time use of wood chips to heat and cool (with an absorption chiller) the hospital by installing a new biomass combined heat and power (CHP) system that will also generate 80 kW of electricity. The CHP system will add reliability to the hospital’s operations and reduce long-term operating costs, providing greater financial capacity to invest in medical equipment crucial for its mission.
Landfill Gas Recovery ProgramDOER is working with the Environmental Protection Agency's Landfill Gas Outreach Program (LMOP), the CONEG Northeast Regional Biomass Program, the Mass Department of Environmental Protection's Solid Waste Bureau and the Mass Department of Public Utilities' siting board to evaluate the potential for C02 mitigation through the capture of and energy recovery of methane gas from landfills. Small landfills (less than 1 million tons) are not required to install landfill gas (LFG) control systems, because economies of scale are not available to viably capture LFG. Since methane is 20 times as powerful a greenhouse gas precursor as C02, extending controls to such small landfills which make up 80% of the total number of landfills in the Commonwealth can be an important determinant in health protection. Under study is a plan to allow future power plant developers to contribute to a fund that reduces the cost of LFG capture from small landfills, thereby overcoming the economic penalty of small size. EPA is funding two companion studies: (1) collecting data on Massachusetts landfills characteristics and (2) evaluating policy options for administering a Methane-mitigation fund. Note: On October 5, 1999, the State awarded a $100,000 grant to Braintree Electric Light Department to fund a fuel cell using landfill gas. For more information on this, or our other biofuels efforts, please contact us at 617-727-4732, or by e-mail at DOER.Energy@State.MA.US.
Photovoltaics: Solar Energy
Sunlight can be converted directly into electricity by using photovoltaic (PV) cells. PV cells, which are made with semiconductor materials, make electricity with no moving parts, noise, or pollution. Some of their more common uses are in calculators, watches, on highway warning signs and satellites. PV is also increasingly used to provide electricity for buildings. When the sun isn't shining, PV systems cannot make electricity, but this can be overcome by storing power in batteries during sunny periods or by purchasing backup power from the local electric system. PV in Massachusetts Given the diverse weather conditions in New England, many people may have the misconception that PV systems do not work in Massachusetts. Quite the contrary is true. PV modules are relatively unaffected by inclement weather and actually operate better in colder weather. Snow accumulation is also not a problem because the panels are installed at an angle necessary to catch the sun. The angle makes it unlikely that snow will collect on the PV module or if it does, it will be a small amount that melts quickly. Most experts agree that Massachusetts is an excellent location for use of PV.
Commonwealth Solar - On December 14, 2007 the Division of Energy Resources, in coordination with the MTC Renewable Energy Trust, announced a new initiative for Massachusetts residences, businesses, and municipalities to adopt solar PV systems. Cost and Benefits PV systems are still relatively expensive when compared to conventional power sources. In spite of this, PV can be the lowest cost source of electricity for locations that are not served by the electric grid. Even small purchases can play an important role in expanding the market for PV. As the market increases, the price of PV will continue to come down. Environment -- Solar energy is environmentally friendly. Since there are no air or water emissions, solar energy does not contribute to the global greenhouse effect, acid rain, or smog. The systems are also quiet, so they can be installed in most locations. PV systems are generally unobtrusive; therefore neighbors are unlikely to object to PV facilities. Public Schools and Universities
Beverly: One of eight photovoltaic sites created in 1980 as part of President Carter's Photovoltaic Demonstration Project, the PV array at Beverly High School provides the public with the opportunity to study solar energy. The PV system received an overhaul in 1994, when Solar Now, Inc. was created through a grant from Congress to update and manage the site. A wind power system was added in 1997 and currently the site provides the city of Beverly with approximately $10,500 worth of energy a year. Solar Now also continues to run both systems while providing valuable educational and economic information to those citizens and businesses interested in solar and wind power. For more information on the Beverly PV System, including a tour of the site, please click here.
Northeastern University: Located on the roof of the Ell Student Center at Northeastern University in Boston, this PV System was installed in 1995 by Ascension Technology of Waltham. Funding was provided by The Electric Power Research Institute (EPRI), Boston Edison and the US Environmental Protection Agency (EPA). The system generates an average of 2,375 kWh per month. Community Projects/Residential Residential Availability: Though still somewhat expensive, PV systems have continued to drop in price as the market continues to expand. In addition, Massachusetts offers tax credits for residents and businesses that install renewable energy systems. For more information on installing a PV system at your home, contact DOER at Energy@State.MA.US. Also, download DOER's Solar Energy Tipsheet Medford: Making its debut in February 1999, the Medford Solar Project is a joint effort of the Massachusetts Electric Co. (MECo) and Ascension Technologies. It allows MECo Customers in Medford, with south-facing, asphalt-shingled roofs, to put one of two PV systems on their homes and business for half the usual installation price. The first PV system costs $1400 (or $30 a month for 4 years) and is a one panel system that generates 365 kWh/year. The second system includes two PV panels at a price of $2800 (or $60 a month for 4 years) and generates 730 kWh/year or about 5% of total household consumption and saves the consumer about $73 a year on the bill. An added benefit of the PV systems is that each system cuts down on the emissions of carbon dioxide and greenhouse gases because customers are using less energy from the regional grid. Participants are also eligible for the renewable energy tax credits offered by the state. As of August 1999, several residents and businesses have taken advantage of the project. One such business was the Medford Veterinary Clinic, which installed the one-panel PV system. In addition, both the Medford City Hall and High School each received eight panels that were donated by the program. Each system will each produce 2,920 kWh/yr--a savings of $292 per year/per facility. Fairmont House on the Tufts University Campus also received a donation of a two-panel system. Gardner: In 1985, Massachusetts Electric Co. (MECo) began the longest running large-scale test of residential and institutional PV panel installations in the nation. Originally scheduled to last for two years, the project is still running today. The goal of the project is to test the effectiveness of PV systems in residences as a supplemental source of power, as well provide MECo's electric distribution grid with any surplus electricity produced at the system's peak capacity. A cluster of 30 homes on 2 streets had PV Panels installed on their roofs. Of the 30 original houses, 27 still have their PV systems in operation. PV systems are also still up and running at the Levi Heywood Memorial Library, a Burger King restaurant, Mt. Wachusett Community College and Gardner City Hall. Andover: Read all about Andover's first grid-connected solar array Businesses Dartmouth: On December 10th 1998, SunPower Station One began operation at BJ's Wholesale Club in North Dartmouth. Funded by Sun Power Electric of Boston in partnership with AllEnergy, the PV System is made up of 52 panels generating 19,500 kW/yr. The electricity is then sold to All-Energy as part of its "green" electricity product called Re-Gen. Over its lifetime, SunPower Station One will help the environment by preventing the following emissions:
Government/Remote Sites Boston Harbor Islands: Between 1984 and 1994, the Massachusetts Photovoltaic Utilization Program installed twelve stand alone PV Systems at the Boston Harbor Islands State Park. Because the islands are not connected to any electric power grid, they are ideal for PV system installation. Among those systems is a 3.2 kW central system on Peddocks Island. This PV System serves five buildings and provides electricity for the Park Rangers and the visitors that come there every year. Alewife and Braintree T Stations: As part of its Alternative Vehicles Program, DOER provided solar charging stations for electric vehicles at the Alewife (Cambridge) and Braintree MBTA parking garages. The PV panels provided enough electricity to recharge the cars while the drivers were at work. This represented a doubly emission free process--no emissions came from driving the cars nor from the generation of electricity used to recharge them at the MBTA Stations. For more information on photovoltaics, please contact us at 617-727-4732, or by e-mail at DOER.Energy@State.MA.US. You can also visit the Solar Boston website at http://www.solarboston.org.
Fuel Cells
What is a Fuel Cell? Fuel cells are available today in sizes that would be appropriate for relatively large electricity consumers, such as schools, hospitals or commercial buildings. Several companies are developing fuel cells for use in homes. Costs and Benefits of Fuel Cells Due to the complexity of the technology and low market demand, electricity from fuel cells costs more than from traditional electricity sources. On the plus side, because fuel cells are quiet and relatively small, they can be installed close to where electricity is needed. This concept of generating electricity where it is needed, called distributed generation, could improve the overall efficiency of our electric system. The environmental impact of fuel cells depends upon the source of the hydrogen. If the hydrogen is produced by electrolysis of water using electricity from a non-polluting source, then the fuel cell does not contribute to the global greenhouse effect, acid rain, or smog. If the hydrogen has been extracted from a fossil fuel, then there will also be low levels of emissions associated with the use of the fuel. Because the emissions are so low, fuel cells are exempt from Massachusetts air quality regulations. Fuel Cell Installations in Massachusetts
Braintree: In June 1999, The Braintree Electric Light Department (BELD) began running Massachusetts' first fuel cell that uses landfill gas from the now-closed Town of Braintree Landfill. The fuel cell uses a reformer to extract hydrogen from the methane in the landfill gas. The fuel cell produces 200 kW of electricity, enough to power to 144 homes. DOER provided a $100,000 grant for partial funding of this $1.1 million installation. Additional funding of $200,000 was contributed by the U.S. Department of Energy (DOE).
Deer Island: In 1997, New England Electric Systems (NEES) began operating a fuel cell at the Deer Island Wastewater Treatment Facility operated by the Massachusetts Water Resource Authority (MWRA) in Boston Harbor. The fuel cell uses a reformer to extract hydrogen from methane gas that is produced by the facility's treatment operations. The fuel cell produces 200 kW of electricity which helps power processes at the Deer Island plant. In addition to the environmental benefits of reducing approximately 40,000 pounds of air pollutants a year, the fuel cell will save the MWRA almost $1 million in energy costs over its lifetime. Natick - Natural Gas Fuel Cell: In 1994, the US Army Natick Research, Development, and Engineering Center (NRDEC) began operating the first fuel cell in New England. The fuel cell runs on natural gas and is part of an $18m 1993 program by the Department of Defense to test and evaluate fuel cells for use as energy sources. As with the Braintree Fuel cell, this fuel cell provides 200kW of electricity to the grid, enough to power 144 homes. For more information on fuel cells, please contact us at 617-727-4732, or by e-mail at DOER.Energy@State.MA.US.
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