Massachusetts Farm Energy Program

Immediate Assistance: Existing Energy Programs

View or download a two page document "What you can do to start saving money and participate in the MFEP at no cost to you!"

View or download a one page summary document "Mass Farm Energy Program Services for Farmers"

Farm Energy Discount Program

The Massachusetts Department of Agricultural Resources (MDAR) is the state agency responsible for determining and certifying eligibility for the Farm Energy Discount Program included in the legislation enacted to restructure the utility industry. As a result of the utility restructuring, all agricultural ratepayers will enjoy a mandated ten percent reduction on their energy bills for electricity and natural gas. Those persons or corporations that are principally and substantially engaged in the business of production agriculture or farming for an ultimate commercial purpose are eligible. Upon determination that the applicant qualifies for the Farm Discount, MDAR will certify to the appropriate power supplier (electricity and/or natural gas) that the applicant meets the requirements for the Farm Discount and is eligible for a ten percent discount on rates. To maintain the Farm Discount, the applicant is required to submit a yearly renewal application to MDAR for confirmation of information and signature. The discount is not available for propane or fuel oil accounts. As of October 1, 2007, about 1500 farmers were in the program. Interestingly, the latest Agricultural Census reports there are about 6100 farms in Massachusetts. The Farm Energy Discount Program may be underutilized.

A two-page application is available at http://www.mass.gov/agr/admin/farmenergy.htm or contact Linda Demirjian, Office Manager, MDAR, at (6l7) 626-1733.

Farm Energy Discount Program Update: The Massachusetts Department of Agricultural Resources (MDAR) and the Massachusetts Department of Public Utilities have been working together over the last few months to clarify the provisions of the Farm Energy Discount Program.  While local gas and electric distribution companies (LDC’s) as well as municipal plants are required to provide the discount, there has been much confusion as to whether competitive electric and natural gas providers (competitive suppliers) have the same obligation to provide the discount.

We have concluded that trying to impose and enforce the Farm Energy Discount Program on competitive suppliers is not possible because the rates charged by competitive suppliers are not regulated. However farms still have a means to pursue a discounted commodity rate when shopping for competitive supply:

  • Find out from your LDC or municipal light plant how much they will charge you for gas or electricity, including the 10% discount.
  • Have a conversation with your LDC representative to better understand past and existing rates and possibly even discuss future projected rates. While LDC rates are set by tariff, this information can be leveraged to negotiate with several competitive suppliers and brokers to ensure that any proposal is competitive with your LDC’s discounted rate.
  • Work with competitive suppliers, brokers, and LDC’s to negotiate lower energy supply prices to achieve an equivalent discounted rate, or other favorable terms and conditions.

Currently MDAR is tracking and will be posting companies that provide the discount on the Farm Energy Discount Program web page, http://www.mass.gov/agr/admin/farmenergy.htm.

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Massachusetts Department of Agricultural Resources (MDAR)

The Massachusetts Department of Agricultural Resources (MDAR), through their renewable energy coordinator position, offers support for farms interested in energy efficiency, conservation, and renewables. The primary function of the coordinator is to promote energy knowledge and awareness and to facilitate the implementation of energy related projects for our agri-businesses through energy efficiency, energy conservation and renewable energy applications, as a means to reduce both energy costs and environmental pollution. A number of data bases of relevant resources and informative web-links are identified to assist in your ability to obtain technical and financial assistance toward energy related matters for your agricultural business. More information and technical resources are available at http://www.mass.gov/agr/programs/energy/index.htm.

MDAR occasionally offers energy related grant opportunities in addition to the annual Ag Environmental Enhancement Program, which accepts proposals in May-June each year.

To discuss the technical aspects of your proposed energy project, please contact Gerry Palano, MDAR Renewable Energy Coordinator and partner in the MFEP at 617-626-1706 or Gerald.Palano@state.ma.us.

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Department of Public Utilities (DPU) Net Metering

Net metering for wind, solar and agricultural energy installations, a provision of the Green Communities Act designed to encourage development of renewable power, commenced on December 1, 2009, under an order adopted by the Department of Public Utilities (DPU) on November 13, 2009. The Green Communities Act includes provisions for Agricultural Net Metering facilities whereby farms are able to install additional electrical renewable technologies besides wind and solar.

Net metering encourages homeowners, businesses, and municipalities to install solar panels and wind turbines, and for farms additional renewable technologies such as anaerobic digesters, by allowing them to earn credit on their electric bills if they generate more power than they need. Under the Green Communities Act signed by Governor Patrick in 2008, utility companies must compensate their customers for this excess electricity at the retail rate rather than the lower wholesale rate. Additionally, customers may allocate their credits to other customers, allowing those without facilities to take advantage of net metering benefits as well.

The DPU order was the last regulatory step needed for electric customers to take advantage of the Act's net metering provisions. As a result, customers who own renewable energy installations can now submit net metering applications to their electric distribution companies. The DPU issued its final net metering regulations in June 2009, followed by a model net metering tariff in August 2009. The DPU order approves electric utility interconnection tariffs and requires that the electric companies immediately file net metering tariffs that comply with the terms of the model tariff approved in August 2009.

Prior to the Green Communities Act, net metering was restricted to on-site renewable energy projects capable of generating 60 kilowatts or less, and customers were able to sell their power back to the grid only at the wholesale rate. Now, customers who own larger wind turbines or solar power installations - up to 2 megawatts, and even larger for municipal and state installations - can sell excess power back to the grid at the higher retail rate. Even customers who do not generate excess power will save money on their electric bills by generating some portion of the electricity they use.

To view the DPU's final net metering order, click here

To find out how you can apply for net metering contact your local eligible utility, being either NGRID, NSTAR, WMECO or UNITIL.

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Non-Municipal, Investor-owned ("Public") Utility Conservation & Energy Efficiency Programs

There are four investor-owned electric utility companies in Massachusetts: National Grid, NSTAR, UNITIL (Fitchburg Gas & Electric), and Western Massachusetts Electric Company. In addition, Cape Light Compact operates the regional energy efficiency program for the Cape and islands. Natural gas companies include Berkshire Gas, Bay State Gas, National Grid (formerly Keyspan Gas), and NSTAR. Customers of these investor-owned ("public") utility companies pay into conservation and renewable energy funds and therefore have access to energy conservation programs, as well as the renewable energy programs offered by the Massachusetts Technology Collaborative. These "public" conservation and energy efficiency programs are regulated by the MA Department of Public Utilities. Typically, energy audits and some types of energy assessment, performed by a contractor or employee of the utility company, are offered as well as financial incentives (cost-share) on energy efficiency measures that are cost effective relative to energy savings. In simple terms, the energy cost savings divided by the investment costs must be greater than one. However, there may be some energy efficiency measures that would be of great benefit to agricultural operations but do not meet the cost effectiveness formula used by the public utility industry.

Investor-owned Utility Contact Information:

Cape Light Compact
To request an energy audit for your farming operation, contact contact Vicki Marchant, Superior Court House, PO Box 427, Barnstable, MA 02630, vmarchant@capelightcompact.org, 508-744-1278, fax 508-362-4136
Bay State Gas Co.
To request an energy audit for your farming operation, contact Partners in Energy Intake Center, 300 Friberg Parkway, Westborough MA 01581, www.baystategas.com, 800-232-0120
Berkshire Gas
To request an energy audit for your farming operation, contact Robert Gyurjan, 115 Cheshire Rd., Pittsfield, MA 01201, rgyurjan@berkshiregas.com, 413-445-0345
National Grid
To request an energy audit for your farming operation, contact Michael Pace, 40 Sylvan Rd., Waltham MA 02451, michael.pace@us.ngrid.com, 781-907-1610
NSTAR Electric & Gas
To request an electric energy audit for your farming operation, contact Augustine Pimentel, One NSTAR Way, SW 360, Westwood MA 02090, augustine.pimentel@nstar.com, 781-441-8705 or 339-987-7568
To get information about incentives on installing gas equipment contact Paul Degnan, Paul.Degnan@NSTAR.com, 781-441-8997
Fitchburg Gas & Electric/UNITIL
To request an energy audit for your farming operation, contact Ed Mailloux, 6 Liberty Lane W., Hampton NH 03842, mailloux@unitil.com, 603-773-6541
Western MA Electric Co (WMECO)
To request an energy audit for your farming operation, contact Robert Dvorchik, 333 West St., Pittsfield MA 01201, dvorcrs@nu.com, 413-499-9004

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Municipal Utilities

Many farmers fall through the cracks of the commercial energy conservation programs for various reasons. Customers that are serviced by the forty municipal electric, and in some cases gas, utility departments typically do not pay into conservation or renewable energy funds. Municipal customers therefore do not have access to energy conservation programs offered by the utility industry. However, because some municipal utility companies have developed fee for service audit programs, it is important to contact your individual municipal utility company to see if other options are available. Many renewable energy projects are funded through the Massachusetts Renewable Energy Trust (MRET) programs (see below) which are typically not available to municipal customers. However, some municipal electric communities have entered into an agreement with the MRET. To determine if your municipal utility has an agreement with the MRET, click here.

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Massachusetts Renewable Energy Trust (MRET)

Although there are numerous farmers investing in renewable and alternative energy projects, there are many more who could be taking advantage of renewable energy programs administered by the Massachusetts Renewable Energy Trust (MRET). MRET, in combination with the Federal Investment Tax Credit (ITC – see below), or an alternative cash payment under the American and Recovery and Reinvestment Act of 2009 valid through October 1, 2011, can fund at least 50% of an eligible renewable energy project.

MRET Programs for Businesses and Nonprofits

Commonwealth Solar
Phase 1 of Commonwealth Solar, Governor Patrick's initiative to install a minimum of 250 MW of solar in Massachusetts by 2017, ended in October 2009 with excellent results. Phase 2 of Commonwealth Solar involves introducing the Solar Credit market: The Solar RPS Carve-Out (or Solar Credit) program is expected to be introduced in January 2010. See Commonwealth Solar for all details.
Commonwealth Wind
The Commonwealth Wind Incentive Program provides rebate, grant, and loan funding for the installation of wind projects in Massachusetts. Funding is available for residential, commercial, industrial, and public facilities that are customers of investor-owned electric distribution utilities or Municipal Light Plant Departments that pay into the Renewable Energy Trust. There are three initiatives within this program: 1) Micro Wind, 2) Community-Scale Wind, and 3) Commercial Wind.

Contact Information for Massachusetts Renewable Energy Trust (MRET):

Massachusetts Renewable Energy Trust (MRET)
To inquire about Commonwealth Solar, contact Elizabeth Kennedy at 508-870-0312, ext. 1241 or kennedy@masstech.org.
To inquire about Commonwealth Wind, contact Tyler Leeds at 508-870-0312, ext. 1273 or leeds@masstech.org.

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Business Investment Tax Credit (ITC) and American Recovery and Reinvestment Act of 2009 (ARRA)

The federal business energy investment tax credit available under 26 USC § 48 was expanded significantly by the Energy Improvement and Extension Act of 2008 (H.R. 1424), enacted in October 2008. This law extended the duration -- by eight years -- of the existing credits for solar energy, fuel cells and microturbines; increased the credit amount for fuel cells; established new credits for small wind-energy systems, geothermal heat pumps, and combined heat and power (CHP) systems; extended eligibility for the credits to utilities; and allowed taxpayers to take the credit against the alternative minimum tax (AMT), subject to certain limitations. The credit was further expanded by The American Recovery and Reinvestment Act of 2009, enacted in February 2009. In general, credits are available for eligible systems placed in service on or before December 31, 2016.

The American Recovery and Reinvestment Act allocated funds for the U.S. Department of the Treasury to make payments to eligible persons who put in service eligible property and who apply for the payments. By accepting payments, eligible individuals are choosing to forgo tax credits for the qualified property in subsequent years.

The following chart lists the Credit Termination Date and the applicable percentage of eligible cost basis used in computing the payment for each specified energy property.

Specified Energy Property Credit Termination Date Applicable Percentage of Eligible Cost Basis
Large Wind Jan 1, 2013 30%
Closed-Loop Biomass Facility Jan 1, 2014 30%
Open-loop Biomass Facility Jan 1, 2014 30%
Geothermal under IRC sec. 45 Jan 1, 2014 30%
Landfill Gas Facility Jan 1, 2014 30%
Trash Facility Jan 1, 2014 30%
Qualified Hydropower Facility Jan 1, 2014 30%
Marine & Hydrokinetic Jan 1, 2014 30%
Solar Jan 1, 2017 30%
Geothermal under IRC sec. 48 Jan 1, 2017 10%
Fuel Cells Jan 1, 2017 30%
Microturbines Jan 1, 2017 10%
Combined Heat & Power Jan 1, 2017 10%
Small Wind Jan 1, 2017 30%
Geothermal Heat Pumps Jan 1, 2017 10%

Guidance provided by Treasury points out that a taxpayer can take the energy investment tax credit for 30 percent of the basis of qualified solar or wind property. Instead of taking the energy investment credit, a taxpayer can apply for and receive from the Department of Treasury a cash payment of 30 percent of the taxpayer's basis for qualified solar or wind property (section 1603 Cash Payment). A taxpayer who receives a USDA grant also either can take the energy investment tax credit of 30 percent of his or her basis in the qualified solar or wind property or can receive the section 1603 Cash Payment for 30 percent of his or her basis in the qualified solar or wind property. A taxpayer who receives a USDA grant under EQIP or REAP for solar or wind is not required to reduce his or her tax basis in the property on account of the grant because the taxpayer must include the grant in taxable income. Under the tax law, the taxpayer does not include the section 1603 Cash Payment in taxable income but must reduce the basis of the property by one-half of the payment. Similarly, if the taxpayer chooses to take the energy investment credit, he or she must reduce the basis of the property by one-half of the credit, but the taxpayer does not have taxable income as a result of taking the credit. For example, if a taxpayer spends $100x for solar or wind property that qualifies for both a USDA grant of $20x and a section 1603 Cash Payment of $30x, he or she must include the $20x in taxable income. The taxpayer will have a basis in the property for purposes of computing depreciation of $85x (=$100x – 1/2 x $30x).

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USDA-Environmental Quality Incentives Program (EQIP)

The Natural Resources Conservation Service (NRCS) is working to help farmers with conservation practices that improve air quality. Under the 2008 Food, Conservation and Energy Act (2008 Farm Bill), NRCS will provide eligible producers with program support through the Environmental Quality Incentives Program (EQIP) to implement cost effective and innovative practices that improve air quality. Individuals, groups and entities who own or manage farmland, pastureland or non-industrial forest land are eligible to apply. Producers with an annual minimum of $1,000 of agricultural products produced and/or sold are eligible to apply. This requirement does not apply to applicants with forest land. Payments are limited to $300,000 per participant over a 6 year period. Beginning, socially disadvantaged and limited-resource farmers may be eligible for higher payment rates. You may sign up for this program at any time through your local NRCS office. Applications are accepted all year, but are reviewed in a competitive ranking process when funding becomes available - usually once each year.

For 2009, EQIP provided funding for specific conservation practices related to anaerobic digestion, greenhouse energy screens and horizontal air flow, cranberry auto-start systems, solar photovoltaic, solar thermal, and wind turbines. More information about EQIP can be found here.

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USDA-Rural Development's (RD) Section 9007: Rural Energy for America Program (REAP)

The Section 9007 of the 2008 Farm Bill provides funding for renewable energy systems and energy efficiency improvements. Rural Development administers these funds and offers grants, guaranteed loans, or a combination to farmers and rural small businesses. The Massachusetts Farm Energy Program, through Berkshire-Pioneer RC&D and the Massachusetts Woodlands Institute, in cooperation with Rural Development offers informational sessions and grant writing assistance to farmers and forest products businesses for applying to this program, for any project under $200,000 and for a limited number of projects over $200,000. The annual application deadline is generally in the winter-spring.

Grant requests (to RD) must not exceed 25% of the eligible project costs. RD renewable energy grants can range from $2,500 to $500,000, and can be combined with MRET grants (see above). Energy efficiency grants can range from $1,500 to $250,000, and may be combined with public utility incentive programs and MA Farm Energy Program incentives. Guaranteed loans can be made up to 75% of the project to a maximum of $25 million, or a combination of 25% grant and up to 50% guaranteed loan. Projects under $200,000 qualify for a simplified application process. You can learn more about the programs at this link.

Please note that the energy generated or saved by the 9007 program cannot be for residential use. The estimated cost of installing an electrical meter to separate farm use from residential use would be an eligible project expense. Information to determine eligibility can be found here. If you still have questions about eligibility, level of energy assessment, or environmental review requirements, contact your local Rural Development Area Office. This process may be lengthy so RD will advise you on how to get the environmental review started.

The 9007 REAP application process is competitive so it is important that you do the best job possible to attain the highest possible score. To this end, Berkshire-Pioneer RC&D, MA Woodlands Institute and USDA-Rural Development offer a series of information sessions around the state in the fall/winter prior to the application deadline to help farmers learn about the application process. As needed, follow-up grant writing workshops provide technical support and grant writing assistance. These workshops provide one-on-one assistance. The Mass Farm Energy Information Session schedule can be viewed here.

The Berkshire-Pioneer RC&D and the MA Woodlands Institute also offer assistance to complete the REAP application. (In 2008, the MFEP assisted seven applicants and all were funded. In 2009, the MFEP assisted thirteen applicants, seven were funded.) Energy Efficiency projects require an energy assessment or an energy audit thus additional time and professional services must be planned for. In addition, MFEP strongly encourages producers to plan for and prepare much of the application during the slowest farm season because it is a commitment of time. The MFEP offers technical assistance and financial assistance for energy audits but you must apply for an audit prior to the REAP application announcement in order to prepare technical documents that meet REAP requirements.

Contact Information for USDA/Rural Development:

To inquire about energy efficiency & renewable energy projects for your farming operation, contact the following USDA-RD staff:

Serving Western Massachusetts
Berkshire, Franklin, Hampshire, and Hampden Counties
Donna M. Simcic, Area Specialist
Leonard Shuzdak, Jr., Area Specialist
Phone: 413-585-1000
Fax: 413-586-8648
Email: donna.simcic@ma.usda.gov, len.shuzdak@ma.usda.gov

Serving Central Massachusetts and North Shore
Worcester, Middlesex, Suffolk, and Essex Counties
Lyndon S. Nichols, Area Director
Phone: 508-829-4477 Ext. 4
Fax: 508-829-3721
Email: lyndon.nichols@ma.usda.gov

Serving South Eastern Massachusetts, Cape Cod and the Islands
Bristol, Norfolk, Plymouth, Dukes, Nantucket and Barnstable Counties
Thomas S. McGarr, Area Director
Phone: 508-295-5151 Ext. 3
Fax: 508-291-2368
Email: tom.mcgarr@ma.usda.gov

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Mass Farm Energy Information Sessions Across the State

Want to learn more about funding available for your renewable energy or energy efficiency project? Attend one of a series of free workshops for farmers and forest products business owners about financial incentives available through the MA Department of Agriculture and the Renewable Energy Trust, and the United States Department of Agriculture (USDA) Rural Energy for America Program (REAP), Environmental Quality Incentives Program (EQIP), and the Biomass Crop Assistance Program (BCAP). These workshops are sponsored by the Massachusetts Farm Energy Program (MFEP), a program funded, staffed and supported by the Massachusetts Department of Agricultural Resources and USDA-Natural Resources Conservation Service.

REAP funding supports a diverse range of clean energy technologies and energy efficiency. In 2009, REAP awarded fourteen Massachusetts rural small businesses and farmers $2,409,327 in grants and $1,569,000 in loan guarantees. EQIP provided $1.9 M in 2009 to Massachusetts agricultural producers for nine photovoltaic, wind, and anaerobic digestion projects and thirty one energy efficiency projects including cranberry auto-start irrigation systems and greenhouse thermal blankets and fans. MDAR's AEEP provided $275,000 in funding for over 20 energy related projects including refrigeration, biomass boilers, photovoltaic, wind, and auto-start irrigations systems for cranberry bogs. MDAR also funded projects related to anaerobic digestion, outdoor wood boilers, and zero-net energy buildings for an additional $125,000.

Western Mass: December 16, (Snow Date: Dec 18) 9:30 am - 12:30 pm, Lanesborough Town Hall, Community Room, 83 N. Main St, Lanesborough, MA

Central Mass: January 6, (Snow Date: Jan 8) 9:30 am - 12:30 pm, Doyle Conservation Center, The Trustees of Reservations, 464 Abbott Ave, Leominster, MA

Eastern Mass: January 13, (Snow Date: Jan 14) 9:30 am - 12:30 pm, UMass Cranberry Station, One State Bog Rd, East Wareham, MA

Western Mass: January 19, (Snow Date: Jan 20) 9:30 am - 12:30 pm, MA Department of Agriculture Office, Conference Room, 101 University Drive, Suite C4, Amherst, MA

To register for any of these sessions and for driving directions contact

  • Emily Boss
  • Massachusetts Woodlands Cooperative
  • 1 Sugarloaf Street
  • South Deerfield, MA 01373-1119
  • phone: 413-397-8800 fax: 413-665-7101
  • emily@masswoodlands.coop

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Massachusetts Farm Energy Program