Massachusetts
Incentives/Policies for Renewable Energy
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Last DSIRE Review: 08/31/2009
| Incentive Type: |
Net Metering |
| State: |
Massachusetts |
| Eligible Renewable/Other Technologies: |
Solar Thermal Electric,
Photovoltaics,
Wind,
Biomass,
Hydroelectric,
Geothermal Electric,
Fuel Cells,
Municipal Solid Waste,
CHP/Cogeneration,
Anaerobic Digestion,
Small Hydroelectric,
Other Distributed Generation Technologies
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| Applicable Sectors: |
Commercial,
Industrial,
Residential,
Nonprofit,
Schools,
Local Government,
State Government,
Fed. Government,
Agricultural,
Institutional
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| Applicable Utilities: | Investor-owned utilities
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| System Capacity Limit: | 2 MW for "Class III" systems; 1 MW for "Class II" systems; 60 kW for "Class I" systems
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| Aggregate Capacity Limit: | 1% of utility's peak load
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| Net Excess Generation: | Varies by system type and customer "class"
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| REC Ownership: | Customer owns RECs
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| Meter Aggregation: | Neighborhood net metering allowed
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Authority 1:
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M.G.L. ch. 164, § 1G et seq. (subsequently amended)
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Authority 2:
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S.B. 2768
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| Date Enacted: | 7/2/2008 |
| Date Effective: | 7/2/2008 |
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Authority 3:
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220 CMR 11.04
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| Date Effective: | 1997 (subsequently amended) |
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Authority 4:
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220 CMR 18.00 et seq.
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Authority 5:
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220 CMR 8.00 et seq.
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Authority 6:
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Net Metering Model Tariff
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| Date Enacted: | 08/20/2009 |
| Date Effective: | 08/20/2009 |
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Summary:
The Massachusetts Department of Public Utilities (DPU) adopted amended net-metering rules in July 2009 (see final order). These DPU rules were ordered in accordance with the legislative changes instituted in 2008. Furthermore in August 2009, the DPU issued its model net metering tariff so that customers in Massachusetts are subject to the same net metering tariffs regardless of utility.
The state's investor-owned utilities must offer net metering. Municipal utilities are not obligated to offer net metering, but they may do so voluntarily. (There are no electric cooperatives in Massachusetts.) The aggregate capacity of net metering is limited to 1% of each utility’s peak load.*
In Massachusetts, there are several categories of net-metering facilities. "Class I" facilities are generally defined as systems up to 60 kW in capacity. "Class II" facilities are generally defined as systems greater than 60 kW and up to one megawatt (MW) in capacity that generate electricity from agricultural products, solar energy or wind energy. "Class III” facilities are generally defined as systems greater than 1 MW and up to 2 MW in capacity that generate electricity from agricultural products, solar energy or wind energy. Massachusetts also allows “neighborhood net metering” for neighborhood-based Class I, II or III facilities that are owned by (or serve the energy needs of) a group of 10 or more residential customers in a single neighborhood and served by a single utility. The neighborhood facility may also serve additional customers (including commercial) as long as the base requirements are met. All net-metered facilities must be behind a customer’s meter, but only a minimal amount of load located on-site is required.
The treatment of customer net excess generation (NEG) varies by facility class and customer type. In all cases, the NEG is monetized and Net Metering Credits are calculated based on the excess kilowatt hours (kWh) produced. In summary, value of the Net Metering Credits at the end of a billing period is slightly less than the utility’s full retail rate for Class I solar and wind facilities, Class II facilities, and Class III facilities used by government customers as they would receive credit for the default service, distribution, transmission, and transition charge (kilowatt hour, kWh). Net Metering Credits for Class III facilities and neighborhood facilities that are used by customers other than government entities differs only in that they do not receive credit for the distribution component. Class II and Class III customers are required to install revenue-grade meters to measure kWh output.
Credits may be carried forward to the next month indefinitely, and credits from net metering facilities may be transferred to another customer of the same utility as long as they are within the same service territory and ISO-NE load zone. Utilities may choose to pay for the net metering credits for Class III facilities rather than allocating the credits. If a neighborhood facility has NEG at the end of a billing period, the credits are awarded to designated neighborhood customers. The amount of NEG attributed to each such customer is determined by the allocation provided by the neighborhood net metering facility. Credits may be carried forward to the next month indefinitely.
Third-party owned systems may be net metered. Utilities are not granted the renewable energy credits or environmental attributes generated by a net metered facility.
As part of the interconnection application, customers applying for net metering must complete "Schedule Z." See Massachusetts' Interconnection in DSIRE for more information.
History
Net metering was originally authorized for renewable-energy systems and combined-heat-and-power (CHP) facilities with a generating capacity up to 30 kilowatts (kW) by the Massachusetts Department of Public Utilities in 1982. In 1997, the maximum individual system capacity was raised to 60 kW and customers were permitted to carry any net excess generation (NEG) -- credited at the "average monthly market price of generation" -- to the next bill. In July 2008, net metering was significantly expanded by S.B. 2768 and the DPU adopted rules implementing the law in June 2009.
* For the purpose of calculating the aggregate capacity, the capacity of a net-metered solar facility is 80% of the facility’s DC rating at standard test conditions (STC) and the capacity of a net-metered wind facility is the name plate capacity.
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Contact:
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Nathan Phelps
Department of Public Utilities
Electric Power Division
One South Station
Second Floor
Boston, MA 02110
Phone: (617) 305-3707
Web Site: http://www.state.ma.us/dpu
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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