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Policy Slides Grouped By State

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Massachusetts

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Department of Public Utilities Issues Order 20-80

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  • Order 20-80 will require local gas distribution companies (LDCs) to consider non-gas alternatives to gas expansion projects.
    • Only applies to new projects
    • Alternatives can include electrification, networked geothermal, and targeted energy efficiency�
  • Additionally, the LDCs will no longer be able to recover costs for the promotion of natural gas use unless evidence of consideration of non-gas alternatives.
    • Additionally prevents marketing of natural gas use for future projects�
  • The LDCs also will be required to file Climate Compliance Plans every 5 years to ensure compliance with the state’s emissions limits
    • Outline how the LDCs intend to transition to clean energy, their pilot programs, and their proposals to climate compliance performance metrics in upcoming performance-based regulation filings

Link to press release: https://www.mass.gov/news/department-of-public-utilities-issues-order-20-80

Link to regulations: https://drive.google.com/file/d/1TV_7OvX_wG3v-LG-OtxAmpaqz4YIXCCc/view?usp=sharing

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Renewable and Alternative Energy Portfolio Standards (For Energy Suppliers)

Standards:

RECs (Renewable Energy Certificate): A certificate of renewable energy created anytime a qualified facility generates 1 megawatt hour (MWh) of electricity. Suppliers in Mass. must generate enough RECs equal to a certain percentage of total electricity they serve (Ex. 15% in 2020)

  • Stored in New England Power Pool (NEPOOL) database�
  • RPS (Renewable Energy Portfolio Standard)
    • Class 1 (Est. After 1997)
      • Solar Photovoltaic, Wind, etc.
      • 24% for 2024, increases by 2% following
    • Class 2 (Est. Before 1997)
      • 3.5634% in 2021*
      • Waste Generation Units -> WECs
        • 3.7% 2021 - 2025
        • 3.5% following
    • If suppliers don’t comply, they pay the ACP (Alternative Compliance Payment)

Link to overview: https://www.mass.gov/info-details/program-summaries

Link to regulation:

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Renewable and Alternative Energy Portfolio Standards �(For Businesses, Institutions, and Companies)

  • APS (Alternative Portfolio Standard)
    • Incentives afforded to aforementioned categories given their technology meets criteria and they generate a certain percentage of state’s electrical load.
    • Qualified Technologies:
      • Combined Heat and Power
      • Flywheel Storage Unit
      • Steam
      • Thermal Units
        • Ex. Heat Pump, Solar Thermal, Biomass, etc.
    • 5% as of 2020, increases by 0.25% per year
      • Multiply this percentage by “total MWh of electrical energy sales by Retail Electricity Suppliers to End-use Customers in the Compliance Year two years prior”�
  • CPS (Clean Peak Energy Standard)
    • Aforementioned categories that utilize Class 1 and/or 2 RPS resources that also include energy storage and demand response resources are given Clean Peak Certificates (CPC) which can be sold to Mass. retail electricity suppliers.
    • 7.5% in 2024, increases 1.5% per year (requirement for suppliers, multiplied by total sales)�
  • CES
    • Generalized requirement for all Retail Suppliers to meet minimum percentage of energy generated by clean energy
      • 16% in 2018, increases 2% annually to 80% in 2050
      • Class 1 RPS compliance counts towards this percentage
      • Can also be paid through ACP (50% of RPS ACP)

Link to APS regulations: https://www.mass.gov/files/documents/2019/07/01/225%20CMR%2016%20APS%20Regulation%20CLEAN%20FINAL%20%28060619%29.pdf

Link to CPS regulations: https://www.mass.gov/regulations/225-CMR-2100-clean-peak-energy-portfolio-standard-cps

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Section 83 (of Ch. 169 of 2008 Act)

  • Instantiated in 2008
    • Energy distribution companies must, at least twice in 5 years after this act, must receive proposals from renewable energy developers and, if the proposals are reasonable in their impact on the distribution companies balance sheet, must enter into “cost-effective, long-term” (10-15 years) contracts to support the financing of renewable energy generation within Massachusetts.
    • This requirement is separate from the Renewable Energy Portfolio Standards (RPS) mentioned earlier
    • https://malegislature.gov/Laws/SessionLaws/Acts/2008/Chapter169#:~:text=shall%20be%20required,adjacent%20federal%20waters�
  • Amended in 2012
    • Extended timeline of initial act from July 1, 2009 - December 31, 2012
    • Inserted Section 83A
      • Between January 1, 2013 - December 31, 2016, distributors must receive and enter two joint (with another distribution company) contracts, given they are reasonable and cost-effective
        • Can get out of having to do joint contracts if the company petitions to the Department of Public Utilities prior to their first joint contract that solicitation of the contract by an individual distribution company would be more cost-effective to ratepayers.
      • Definition of “long-term” changed to 10-20 years
    • https://malegislature.gov/Laws/SessionLaws/Acts/2012/Chapter209#:~:text=Beginning%20on%20January,under%20this%20section

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Section 83 (continued)

  • Amended in 2016:
    • Section 83C:
      • Before June 30, 2017, distribution companies must jointly solicit proposals for offshore wind energy generation
      • Can join with distribution companies outside of Massachusetts, must be in the New England region
      • Combined schedule of proposals set by distribution companies must plan to generate approximately 1600 megawatts of aggregate nameplate capacity through offshore wind energy resources no later than June 30, 2027, and no individual solicitation can seek a proposal generating less than 400 megawatts of aggregate nameplate capacity.
        • Aggregate Nameplate Capacity: total megawatt capacity of a energy generation facility’
      • https://malegislature.gov/Laws/SessionLaws/Acts/2016/Chapter188#:~:text=In%20order%20to%20facilitate,effective%20long%2Dterm%20contracts�
    • Section 83D:

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Section 83 (continued)

  • Amended in 2018:
    • Assigned the Department of Energy Resources to conduct an investigation into the “necessity, benefits, and costs” of requiring distribution companies to solicit proposals for an additional 1600 MW of aggregate nameplate capacity in offshore wind energy generation.
      • Based on the study, the DOER confirmed the benefits of the additional solicitations, newly requiring EDCs to solicit an additional 1600MW of offshore wind energy generation by December 31, 2035, and having created 800 MW of that requirement by 2024 at the latest.
      • https://www.mass.gov/doc/offshore-wind-study/download�
  • Amended in 2021:

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Mass. Incentive Programs

  • MassSAVE
    • Provides Incentives and Rebates to customers of Mass Save Sponsors (Berkshire Gas, Eversource, Cape Light Compact, National Grid, etc.) for purchasing different energy-efficient equipment that they list on their website:
      • Heating and Cooling equipment
      • Water Heating and Pipe Insulation
      • Lighting and Controls
      • Building Insulation
      • Building and HVAC Controls
      • Specialty Equipment
        • Commercial Refrigeration, Compressed Air Systems
    • Link to all Rebates and Incentives: https://www.masssave.com/en/business/rebates-and-incentives�
  • Renewable Energy Property Tax Exemption
    • Properties that contain energy systems powered by solar and/or wind as well as an energy storage system can be exempt from property taxes for a 20 year period
    • Must meet the following criteria
      • Energy system produces at most 125% of the annual electricity needs of the real property
      • Has a system capacity that is 25 kW or less
    • Link to program: https://dlsgateway.dor.state.ma.us/gateway/DLSPublic/IgrMaintenance/Index/773

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Mass. Incentive Programs (continued)

  • PACE Massachusetts Financing
    • Allows property owners to borrow money for the purchase of energy improvements to their property.
    • Eligible Improvements Include:
      • Energy efficiency upgrades
      • Renewable energy systems
      • Extension of natural gas distribution to the property
    • Payback period is equal to the “useful life of the longest-lived improvement financed, up to 20 years”.
    • Link to PACE resource page: https://programs.dsireusa.org/system/program/detail/22037/pace-massachusetts-financing�
  • Excise Tax Exemption for Solar or Wind Powered Systems
    • Massachusetts Companies can exempt any “solar or wind powered climate control unit and any solar or wind powered water heating unit” from the tangible property measure of the state’s corporate excise tax.
    • The exemptions lasts as long as the system’s depreciation period.
    • Only eligible if no other deductions, exemptions, or credit be made in reference to the expenditures for the eligible system
    • Link to Excise Tax Exemption Resource: https://programs.dsireusa.org/system/program/detail/145/renewable-energy-equipment-sales-tax-exemption

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New Hampshire

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NH Incentive Programs

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NH Incentive Programs

  • NH Department of Energy Renewable Energy Fund
    • NH’s Renewable Energy Fund provides funding towards various residential and commercial rebate programs for various renewable energy technologies
    • As well, the funding is put towards a competitive grant program that can cover the cost of renewable energy projects if approved
      • In the 2024 Fiscal Year, approximately $1,200,000 in funding was allocated towards commercial rebate programs and approximately $1,600,000 in funding was allocated towards the grant program
        • Allocation Report 2024
    • Link to Fund: https://www.energy.nh.gov/renewable-energy/renewable-energy-fund

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NH Regulatory Policies

  • Fuel Mix and Environmental Characteristics Disclosure
    • Enacted in 2010, the NH Public Utilities Commission requires “all suppliers of electricity in the state to provide their customers with periodic environmental disclosure statements”.
      • These disclosure statements provide customers information on:
        • 1. The amount of Carbon Dioxide (CO2), Sulfur Dioxide (SO2), and Nitrogen Oxides (NOx) emitted by the supplier
        • 2. The percentage of total electricity generated supplied by each fuel source (renewable & nonrenewable)
      • The disclosure statements also display a regional comparison of a supplier’s data with others in the region
      • The disclosure is valuable in that it equips customers with more agency in their environmental impact from where they have their electricity supplied from, and how much of it is produced from renewable sources
      • Link to Policy details: link�
  • NH Interconnection Standards
    • New Hampshire requires all utilities selling electricity in the state to offer net metering to customers who own or operate systems up to one megawatt in capacity that generate electricity using solar, wind, geothermal, etc.
    • Interconnection for large systems (100 kW - 1 MW) is generally governed by each utility’s interconnection practices as outlined in the utility’s tariff filed with the PUC.
      • Currently issues with interconnection for large systems as utility companies enforce delays that go unregulated since utility companies govern their own practices currently for large systems
      • Link to Article discussing this issue: Link
    • Link to Policy: Link

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Rhode Island

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RI Incentive Programs

  • Sales and Use Tax Exemption for Renewable Energy Products
  • RI Energy Retrofit and Commercial Heating Large Business Program
    • Rhode Island Energy has two programs to support Large Businesses (definition dependent on industry) in RI:
      • Retrofit Programs - RI Energy will provide financial incentive and technical support to large businesses looking to retrofit and replace older, less-energy efficient technologies with new, more energy-efficient ones. Eligible projects include lighting, energy management system, motor and variable-speed drive, etc. retrofit projects.
      • Commercial Heating Rebates - RI Energy will provide rebate payment to large businesses that purchase and install eligible commercial gas heating technologies in the respective application year.
    • Link: https://www.rienergy.com/RI-Business/Energy-Saving-Programs/Large-Business-Program�
  • RI Energy Small Business Program
    • Rhode Island Energy has a similar program to the large business program for small businesses (average annual usage of 1M kWh or 40k therms or less)

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RI Incentive Programs (continued)

  • Rhode Island Commerce Commercial-Scale Program
    • Program provides incentives to businesses looking to install commercial scale renewable energy projects generating electricity for onsite- consumption.
      • Incentive depends on kW generated (i.e. $0.70/W for first 0-50 kW generated, $0.40/W for 50-100 kW generated, etc.)
    • Eligible technologies include solar, wind, ocean, small hydro, biomass, and fuel cells.
    • Link: https://commerceri.com/financing/renewable-energy-fund/�
  • Rhode Island C-PACE Program
    • RI C-PACE provides financing options for businesses (Office buildings, manufacturing facilities, and agricultural facilities) to install renewable energy technology, energy-efficiency improvements, system reliability upgrades, etc.
    • Link: https://www.riib.org/solutions/programs/commercial-property-assessed-clean-energy/

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Vermont

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VT Incentive Programs

  • Vermont Investment Tax Credit
    • Vermont offers an investment tax credit for installations of renewable energy equipment on business properties, in order to encourage investment in rehabilitation and qualifying renewable energy projects.
    • The credit is equal to 24% of the "Vermont-property portion" of the federal business energy tax credit for project leaders
    • Link: https://tax.vermont.gov/business/tax-credits�
  • Efficiency Vermont Commercial Energy Efficiency Rebate Program
    • Efficiency Vermont offers rebates for businesses purchasing improvements to energy-efficient technologies, such as lighting, refrigeration and commercial kitchens, heating and cooling, industrial equipment, etc.
    • Link: https://www.efficiencyvermont.com/rebates/list?cat=&hvacfilter=&type=biz�
  • Vermont Renewable Energy System Sales Tax Exemption

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VT Incentive Programs

  • Vermont Tax Exemption for Solar
    • Uniform Capacity Tax:
      • Solar photovoltaic (PV) systems 50 kW or greater have a uniform capacity tax rate of $4.00/kW capacity, while systems less than 50 kW are exempt.
    • Statewide Education Property Tax:
      • Vermont fully exempts solar PV systems 50 kW or greater from the statewide education property tax. For systems less than 50 kW, the state grants a full exemption only if net-metered OR not connected to the grid.
    • Municipal Property Tax
      • A system with a capacity greater than or equal to 50 kW is taxed unless locally exempt. A system up to 50 kW that is net-metered OR is not connected to the grid is exempt.
    • Link: https://tax.vermont.gov/municipal-officials/solar-plant-taxation�
  • VEDA Commercial Energy Loan Program
    • Administered by the Vermont Economic Development Authority, the CELP provides loans to businesses for larger renewable energy and energy efficiency projects.
    • The maximum loan amount is $2,000,000, and VEDA is generally limited to 60% of the project cost; and in some cases up to 90% of cost financing.
    • Link: https://www.veda.org/financing-options/vermont-commercial-financing/commercial-energy-loan-program/�

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Connecticut

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CT Incentive Programs

  • Financing and Incentives:
    • Small Business and Municipal Loan Program
      • Commercial or industrial businesses participating in the Small Business Energy Advantage (SBEA) program can apply for loans ranging from $500-$100,000
        • Link to SBEA eligibility: link
          • Ex. Restaurants, Retail stores, Non-profits, etc.
      • Must be a customer of Eversource or United Illuminating Co.
      • The loan must be used to upgrade or replace existing electric and natural gas equipment with high-efficiency equipment.|�
    • Commercial Property Assessed Clean Energy (C-PACE) Financing
      • Commercial properties can use C-PACE financing for various green upgrades to new and existing buildings, either for retrofit projects replacing old technology or new construction projects installing newer systems
        • Link to C-PACE eligibility: link�
    • Energize Connecticut Rebates
      • Energize Connecticut offers rebates for various energy efficient upgrades for commercial customers
        • Link to all of the eligible rebate programs: link
      • Ownership of the RECs generated is transferred directly to United Illuminated Co

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CT Incentive Programs

  • Tax Exemptions:
    • Property Tax Exemption for Renewable Energy Systems
      • Connecticut provides a property tax exemption for "Class I" renewable energy systems, including commercial and industrial systems, as long as the nameplate capacity does not exceed the load for the location where the system is installed
        • Link to Legislation: Link�
    • Sales and Use Tax Exemption for Solar and Geothermal Systems
      • The sales and use exemption covers both the equipment related to eligible systems, and labor (services) relating to the installation of eligible systems
      • Consumers purchasing the eligible equipment or services must present form CERT-140 to the seller at the time of purchase
        • Link to Legislation: Link

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Maine

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MN Incentive Programs

  • Financing and Incentives:
    • Efficiency Maine Commercial and Industrial Prescriptive Program
      • Efficiency Maine’s Commercial and Industrial Prescriptive Program offers prescriptive incentives for a variety of equipment types as well as custom incentives for new construction and retrofits
      • Much of the incentives are rebate programs where Efficiency Maine will reimburse customers for a flat number or percentage of the cost
    • Efficiency Maine C-PACE Program
      • Efficiency Maine also offers commercial property financing options where they will cover the upfront cost of eligible projects and participating commercial properties will pay it back over time.
    • Net Energy Billing Tariff Rate Program
      • Instead of receiving kWh credits on their electric bills through Net Metering, participants receive dollar credits on their bills. This allows participants to potentially offset the demand charge components of their bill, which would not otherwise be offset by kWh credits.
      • Only available to non-residential customers

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MN Incentive Programs

  • Tax Exemptions:
    • Solar and Wind Energy Property Tax Exemption
      • Maine offers a property tax exemption for solar and wind energy equipment generating heat or electricity, as long as all of the energy is used on-site where the property is located
      • Link to Policy: Link

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Federal Incentives

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Federal Financial Incentives for Renewable Energy

  • Federal Solar Tax Credits
    • Investment Tax Credits
      • The investment tax credit (ITC) is a tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.
      • Not formally accessible to tax-exempt institutions (schools), however they can receive the ITC themselves through a direct payment �
    • Production Tax Credits
      • The production tax credit (PTC) is a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces the federal income tax liability and is adjusted annually for inflation.
      • Not accessible to tax-exempt institutions (schools)

​

Link to both: https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses

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Federal Financial Incentives for Renewable Energy

  • Federal Cost-Recovery Systems
    • Modified Accelerated Cost-Recovery System (MACRS)
      • Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated.�
      • Many Renewable Energy projects qualify under this system for a 5-year period, such as:
        • a variety of solar-electric and solar-thermal technologies
        • fuel cells and microturbines
        • geothermal electric
        • direct-use geothermal and geothermal heat pumps
        • Etc.

Link here: https://www.irs.gov/instructions/i4562