Massachusetts Clean Energy Center

Overview of Community Resources

March 29, 2011

1

MassCEC Overview

Solar Incentives

Wind Incentives

Project Financing

Examples

Introduction

MassCEC Areas of Focus

Investments in Clean Technology

Workforce Development

Clean Energy Sector Development

Renewable Energy

Generation

Project/InstallationManufacturingDevelopmentResearchIdea

Source of funding is a Systems Benefits Change on ratepayers’ electric bill

Available for customers of IOUs and MLPs that opt-in

MassCEC Eligible Customers

A list of eligible MLPs is available at:http://www.masscec.com/solar

Renewable Energy Generation Division

Renewable Energy

Generation

Comm. Solar Comm. Hydro Comm. WindOffshore Wind & Marine

Low Income Partnerships

SREC Management

Project/InstallationManufacturingDevelopmentResearchIdea

Program Overview

Commonwealth Solar

Commonwealth Solar I Commonwealth Solar IICommonwealth Solar

Stimulus

Rebates SRECs

Database of State Incentives for Renewables & Efficiency (www.dsireusa.org)

Rebates and Other Incentives

Federal Tax Credits

• Accelerated Depreciation (MACRS)

• Investment Tax Credit (ITC)

State Tax Credits

• Property Tax Exemption

• Sales Tax Exemption

Other Incentives

• Net Metering

Various Options Available:

Direct Ownership Maximizes value of electricity generated

3rd Party Ownership Hedges against future electricity price increases

Minimizes up front cost and O&M costs

Leverages tax incentives to reduce overall project cost

Leasing Potential revenue generator

Project Financing Models

3rd Party Ownership

0

20

40

60

80

100

120

140

160

Commercial

Public

Residential

Commonwealth Solar 3rd Party Ownership Projects

# o

f P

roje

cts

Month

Solar Installed in MA (through 2010)

-

5

10

15

20

25

30

35

40

45

2002 2003 2004 2005 2006 2007 2008 2009 2010

MW

RET-Funded Non-RET Funded Cumulative

Public Projects

Yarmouth Town Hall12.6 kW System

Public Projects (cont.)

Medway Public High School132 kW System

Public Projects (cont.)

Watertown Police Station28.42 kW

Micro Scale Community Scale Commercial Scale

Purpose

Rebates for construction of responsibly-sited and well-performing small wind installations

Assistance for public and non-public utility-scale wind projects, from early assessment to construction

• Assistance for commercial-scale wind projects in early, high-risk, stages.• Identify and evaluate potential sites for commercial wind projects (state facilitated wind)

Eligibility Turbines <100 kW100 kW – 10 MW, typically net metered

~ 2.5 MW – 30 MW

Incentive

• Installation rebates determined by kW and kWh produced. • Maximum of $130,000.

• Site Assessment services for public entities• Feasibility Study grants up to $85,000• Design & Construction grants up to $400,000

• Feasibility study grants up to $55,000• Development Loans up to $250,000• Early-stage technical and environmental site assessments (state facilitated wind)• This program is being modified to address earlier stage risk.

Commonwealth WindPrograms overview

Map of Community Scale Wind ProjectsInstalled and Pipeline as of 12/07/10

Site Assessments Feasibility StudiesDesign &

Construction

Funds awarded $300,296 $5,120,017 $23,708,840

MW awarded 48.4 MW

Projects awarded 50 102 42

Average cost$/project

$6,005 $58,668 $4,107,008

Average incentive % of cost

100% 86% 14%

MW installed 15.9

Community Scale WindAwards as of 12/07/10*

* Data includes projects from the Large On-site Renewables Initiative (LORI) and the Community Wind Collaborative, predecessor programs that made awards for community scale wind projects prior to launch of

Commonwealth Wind in 2009.

Nantucket High School Wind Turbine

Andy Brydges

Program Director

MassCEC

55 Summer St., 9th Floor

Boston, MA 02110

ABrydges@MassCEC.com

Questions?