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Incentives/Policies for Renewables & Efficiency

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Energy Efficiency First Fuel Requirement (Gas and Electric)   

Last DSIRE Review: 11/27/2012
Program Overview:
State: Massachusetts
Incentive Type: Energy Efficiency Resource Standard
Eligible Efficiency Technologies: Unspecified Technologies
Applicable Sectors: Utility, Investor-Owned Utility, Cape Light Compact
Electric Sales ReductionReduce 1,103 GWh electricity in 2012
Natural Gas Sales ReductionReduce 24.7 million therms by 2012
Web Site:
Authority 1:
Date Enacted:
Date Effective:
M.G.L. ch. 25, ยง 21
Authority 2:
Date Enacted:
D.P.U. 09-116 through D.P.U. 09-120 Order on Electric Three-Year Efficiency Plans
Authority 3:
Date Enacted:
D.P.U. 09-121 through D.P.U. 09-128 Order on Gas Three-Year Efficiency Plans

Note: The 2013 Three Year Efficiency Plans have not yet been approved. The process is underway. For the latest draft plan, review the Massachusetts Energy Efficiency Advisory Council web site.  This summary will be updated once the Three Year Efficiency Plans have been approved in early 2013.

In 2008, Governor Patrick signed a major energy reform bill, the Green Communities Act (S.B. 2768). This bill required electric and gas utilities prioritize cost-effective energy efficiency and demand reduction resources over supply resources and ordered that utilities submit three-year plans outlining how they would meet the requirement. The bill also created the Energy Efficiency Advisory Council (EEAC) to play a key role in designing and reviewing utility plans designed to meet the requirements of the Green Communities Act.

According to the approved three-year plans, Massachusetts will save approximately 2,625 gigawatt hours (GWh) and 57 million therms of natural gas during the three year period (2010-2012). In September 2012, the Massachusetts EEAC issued its 2011 report outlining progress towards those goals.

Funding to implement the plans comes from a variety of sources including: a non-bypassable surcharge of surcharge is $0.0025 per kilowatt-hour (2.5 mills/kWh), imposed on customers of all investor-owned electric utilities in Massachusetts; amounts generated under the Forward Capacity Market program administered by ISO-NE; cap-and-trade pollution-control programs, including the Regional Greenhouse Gas Initiative (RGGI) and the NOx Allowance Trading Program; and other sources approved by the Massachusetts Department of Energy Resources (DOER), the Energy Efficiency Advisory Council and the Department of Public Utilities (DPU).

S.B. 2768 also established the alternative energy portfolio standard (APS), which requires meeting 5% state's electric load with "alternative energy" by 2020 --most of which will be met by combined heat and power. For more information on this standard, see Alternative Energy Portfolio Standard.

  Information - EEAC
Massachusetts Energy Efficiency Advisory Council
Web Site:
  Mike Sherman
Massachusetts Department of Energy Resources (DOER)
100 Cambridge St., Suite 1020
Boston, MA 02114
Phone: (617) 626-7387 Ext.40187
Fax: (617) 727-0030
Web Site: http://www.Mass.Gov/DOER
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.