Commercial, Non-Profit and Agricultural Incentives
Case Study: Cricket Creek Farm, Williamstown MA
8 Stiebel Eltron Panels, 60 SPower Evacuated Tubes
Used for cheese making and sanitizing
Installed Summer 2015
Annual Estimated Savings: $1,300 (458 gallons of oil)
Used for cheese making and sanitizing
Installed Summer 2015
Annual Estimated Savings: $1,300 (458 gallons of oil)
Massachusetts Alternative Energy Certificate Program
Solar hot water qualifies for the Alternative Energy Certificate (AEC) program run by the Massachusetts Department of Energy Resources (DOER). Unlike rebate programs, certificate programs (like the SREC program for solar electric) are market-based incentives. Under these programs, renewable energy systems earn certificates based on their energy production. You can then earn money by selling those certificates to buyers. The buyers are most often utilities who are required by law to demonstrate that a certain fraction of the energy they generate comes from renewable resources.
Small solar hot water systems (up to 20 panels) will receive their AECs in a single lump sum upon the system's completion. The lump sum will based on 10 years of projected energy generation. For systems greater than 20 panels, monitoring equipment will be installed that will track the energy production of the system, and AECs will be issued accordingly over the course of the following 10 years. The selling of certificates is complex, so it is necessary to have an aggregator (a broker) to sell them. The customer can choose their aggregator from a list on the DOER's website. Different aggregators will have varying levels of service and fees; Spartan Solar can help you choose one. Since certificate programs are market-based solutions, the net dollar value of the incentive will vary depending on what the market will bear. Like the SREC market for solar electric, we fully expect that the AEC market will be a stable one, whereby which, the mechanisms put in place will ensure the value of one AEC stays around $20 before brokerage fees.
While the underlying processes for certificate programs can be complicated, you will not have to deal with them. Spartan Solar and the aggregator will take care of the details, you will only need to fill out one or two short forms. Payments from the program are made on a quarterly basis. The income from AECs may be subject to income tax; please consult a tax professional.
Small solar hot water systems (up to 20 panels) will receive their AECs in a single lump sum upon the system's completion. The lump sum will based on 10 years of projected energy generation. For systems greater than 20 panels, monitoring equipment will be installed that will track the energy production of the system, and AECs will be issued accordingly over the course of the following 10 years. The selling of certificates is complex, so it is necessary to have an aggregator (a broker) to sell them. The customer can choose their aggregator from a list on the DOER's website. Different aggregators will have varying levels of service and fees; Spartan Solar can help you choose one. Since certificate programs are market-based solutions, the net dollar value of the incentive will vary depending on what the market will bear. Like the SREC market for solar electric, we fully expect that the AEC market will be a stable one, whereby which, the mechanisms put in place will ensure the value of one AEC stays around $20 before brokerage fees.
While the underlying processes for certificate programs can be complicated, you will not have to deal with them. Spartan Solar and the aggregator will take care of the details, you will only need to fill out one or two short forms. Payments from the program are made on a quarterly basis. The income from AECs may be subject to income tax; please consult a tax professional.
Massachusetts CEC Rebate
Up to $100,000 available through the Massachusetts CEC (Clean Energy Center) the rebate for commercial / non-profit / agricultural (including multi-family homes with five or more units).
Commercial scale project grants are also capped at a percentage of total installed costs, which varies based on the system owner’s entity type. Commercial entity awards are capped at 40% of the installed cost. Public or nonprofit entity awards are capped at 65% of installed cost.
The base rebate amount is determined by the number of collectors installed and the SRCC thermal performance rating of the collectors. The rebate is calculated using the following equations:
• For-Profit Commercial: SRCC rating x the # of collectors x $75
• Public / Non-Profit: SRCC rating rating x the # of collectors x $150
Example: A 12 panel system for a privately owned apartment building would net a rebate of $12,650 assuming it didn't reach the 40% cap.
More information: http://www.masscec.com
MassSave 0% Interest Financing and Custom Measures
Agricultural Specific Renewable and Energy Efficiency Incentives
IRS Accelerated Depreciation for Solar Systems
Up to $100,000 available through the Massachusetts CEC (Clean Energy Center) the rebate for commercial / non-profit / agricultural (including multi-family homes with five or more units).
Commercial scale project grants are also capped at a percentage of total installed costs, which varies based on the system owner’s entity type. Commercial entity awards are capped at 40% of the installed cost. Public or nonprofit entity awards are capped at 65% of installed cost.
The base rebate amount is determined by the number of collectors installed and the SRCC thermal performance rating of the collectors. The rebate is calculated using the following equations:
• For-Profit Commercial: SRCC rating x the # of collectors x $75
• Public / Non-Profit: SRCC rating rating x the # of collectors x $150
Example: A 12 panel system for a privately owned apartment building would net a rebate of $12,650 assuming it didn't reach the 40% cap.
More information: http://www.masscec.com
MassSave 0% Interest Financing and Custom Measures
- The loan has 7 Year Terms and up to $500,000 may be borrowed. More information: http://www.masssave.com
- One can apply through the MassSave Custom Measures program for additional financial assistance
Agricultural Specific Renewable and Energy Efficiency Incentives
- For agricultural institutions there is a Massachusetts state grant for $20,000 which might be available. More information is available here: http://www.mass.gov/eea/agencies/agr/about/divisions/ag-energy.html
- 25% of a renewable energy system or energy efficiency upgrades can be paid for by the USDA's Rural Energy for America Program (REAP). This is can be combined with other grants and is based on the un-subsidized cost. Click here for an information brochure
- Energy Audits catered to farms are available through Massachusetts Farm Energy: http://massfarmenergy.com/ Mass Farm Energy also has an extensive list of best practices that cater to the energy uses of farms.
- Grants and funding programs available through the Massachusetts Dept. of Agriculture (MDAR)
IRS Accelerated Depreciation for Solar Systems
- Ordinarily depreciation takes decades to capitalize on. Through the Modified Accelerated Cost-Recovery System (MACRS), the IRS allows the entire solar project to be depreciated in 7 years.