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October 22, 2015
Peter McPhee
Director of Renewable Heating & Cooling Programs
Massachusetts Clean Energy Center
Clean Heating & Cooling:
Overview of MassCEC’s 5‐Year Commitment
2
Motivation for Clean Heating & Cooling
Massachusetts GHG
Primary Heating Fuel Used
MA Background
 Heating: 30% of MA GHG emissions
 MA GHG reduction goals:
 25% by 2020
 80% by 2050
 Requires tens of thousands of new clean
heating systems per year – starting now
Clean Heating Strategy
 MassCEC supports clean heating: ASHPs,
central biomass, GSHPs, solar thermal
 August 2015: 5-year, $30 Million commitment
 Goal: support rapid growth of industry into self-
sustaining, mature market
3
What is Success?
Grow the market significantly, but also focus on:
1. Technology maturation: higher efficiencies, proven reliability,
more consumer options
2. High-quality installations: improved reliability and performance
 Maximizing positive customer experiences
 Build trust and credibility
3. Cost-competitiveness: reduction in costs (especially soft costs)
 Growing competitive with fossil fuels, even with limited incentives
 Competitive, despite fuel price volatility
How MassCEC is working toward these goals
1. Aggressive technology standards
2. Quality control: training reqs, project reviews, and inspections
3. Performance monitoring
Air-Source Heat Pumps
4
Qualifying Technologies:
• Single-head and multi-head mini-splits
• High efficiency (COP of 1.75) and full-capacity at
cold temps: 7 manufacturers participate
Installer Qualifications:
• Manufacturer training required
• 2016: will require installer participation agreement
Rebate:
• $750 per single-head mini-split (max of 3), or
• $750 per heating ton (max of 5 tons)
• Mass Save rebate may also be available
Most Common Applications:
• Retrofits (no distribution system required)
offsetting electric, oil, or propane
• High-efficiency or net-zero homes
• Also provides A/C
Central Biomass Heating
5
Qualifying Technologies:
• Highest efficiency and cleanest systems: 80%
efficient, PM emissions <0.08 lb/MMBTU
• Currently only pellet boilers qualify
• 11 qualifying manufacturers
• Thermal storage usually required
Installer Qualifications:
• Manufacturer training required
• Installer participation agreement required
Rebate:
• 45% of installed costs up to $12,000
Most Common Applications:
• Offsetting oil
• Retrofits with hydronic heating distribution
• New construction with hydronic distribution
Ground-Source Heat Pumps
6
Qualifying Technologies:
• Highest efficiency “EPA Tier 3” systems
• Minimum COP of 3.1, 3.6, or 4.1 depending on type
• Open or closed loop, vertical or horizontal loop
Installer Requirements:
• IGSHPA accreditation required
• Installer participation agreement required
Rebate:
• $1500 to $2500 per heating ton (5 ton max)
Most Common Applications:
• New construction
• Retrofits with sufficient ductwork
• Some radiant floor applications
• Proper systems are extremely efficient
• Additionally offers A/C, hot water
Solar Heating and Hot Water
7
Qualifying Technologies:
• SRCC-rated collectors and systems
Installer Evaluation:
• Design reviews and inspections for new installers
• Participation agreement likely required in future
Rebate:
• Up to 40% of residential project costs
• Up to 65% of project costs for non-profits,
municipalities
Most Common Applications:
• Offsetting oil, electric, or propane water heating
• New construction or retrofits
• Some heating applications using radiant floor or
hydronic distribution systems
• Typically a back-up system is required
8
Considerations through 2020
Will technology standards change over the years?
 Yes. As technologies mature, so will our standards.
How certain is MassCEC funding?
 Very certain, but never absolute. Additional funding possible.
Will rebate levels change?
 As volume increases and costs reduce, rebates will adjust.
 MassCEC also takes into account other incentives available.
What about the Alternative Portfolio Standard and Mass Save?
 Some overlapping goals and incentives. We’re working to coordinate
rebates.
Are there financing options available?
 Yes. The Mass Save HEAT loan offers 0% financing.
Will there be commercial incentives available?
 MassCEC will likely offer commercial programs late this year.
9
Clean Heating & Cooling Resources
Massachusetts Clean Energy Center
Clean Heating & Cooling Programs
www.masscec.com/programs/clean-heating-and-cooling
 Air-Source Heat Pumps: ASHP@masscec.com
 Central Biomass Heating: biomassthermal@masscec.com
 Ground-Source Heat Pumps: GSHP@masscec.com
 Solar Heating and Hot Water: solarhotwater@masscec.com
617-315-9357

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Peter McPhee - Details of the 5 year, $30MM Clean Heating and Cooling Program

  • 2. 2 Motivation for Clean Heating & Cooling Massachusetts GHG Primary Heating Fuel Used MA Background  Heating: 30% of MA GHG emissions  MA GHG reduction goals:  25% by 2020  80% by 2050  Requires tens of thousands of new clean heating systems per year – starting now Clean Heating Strategy  MassCEC supports clean heating: ASHPs, central biomass, GSHPs, solar thermal  August 2015: 5-year, $30 Million commitment  Goal: support rapid growth of industry into self- sustaining, mature market
  • 3. 3 What is Success? Grow the market significantly, but also focus on: 1. Technology maturation: higher efficiencies, proven reliability, more consumer options 2. High-quality installations: improved reliability and performance  Maximizing positive customer experiences  Build trust and credibility 3. Cost-competitiveness: reduction in costs (especially soft costs)  Growing competitive with fossil fuels, even with limited incentives  Competitive, despite fuel price volatility How MassCEC is working toward these goals 1. Aggressive technology standards 2. Quality control: training reqs, project reviews, and inspections 3. Performance monitoring
  • 4. Air-Source Heat Pumps 4 Qualifying Technologies: • Single-head and multi-head mini-splits • High efficiency (COP of 1.75) and full-capacity at cold temps: 7 manufacturers participate Installer Qualifications: • Manufacturer training required • 2016: will require installer participation agreement Rebate: • $750 per single-head mini-split (max of 3), or • $750 per heating ton (max of 5 tons) • Mass Save rebate may also be available Most Common Applications: • Retrofits (no distribution system required) offsetting electric, oil, or propane • High-efficiency or net-zero homes • Also provides A/C
  • 5. Central Biomass Heating 5 Qualifying Technologies: • Highest efficiency and cleanest systems: 80% efficient, PM emissions <0.08 lb/MMBTU • Currently only pellet boilers qualify • 11 qualifying manufacturers • Thermal storage usually required Installer Qualifications: • Manufacturer training required • Installer participation agreement required Rebate: • 45% of installed costs up to $12,000 Most Common Applications: • Offsetting oil • Retrofits with hydronic heating distribution • New construction with hydronic distribution
  • 6. Ground-Source Heat Pumps 6 Qualifying Technologies: • Highest efficiency “EPA Tier 3” systems • Minimum COP of 3.1, 3.6, or 4.1 depending on type • Open or closed loop, vertical or horizontal loop Installer Requirements: • IGSHPA accreditation required • Installer participation agreement required Rebate: • $1500 to $2500 per heating ton (5 ton max) Most Common Applications: • New construction • Retrofits with sufficient ductwork • Some radiant floor applications • Proper systems are extremely efficient • Additionally offers A/C, hot water
  • 7. Solar Heating and Hot Water 7 Qualifying Technologies: • SRCC-rated collectors and systems Installer Evaluation: • Design reviews and inspections for new installers • Participation agreement likely required in future Rebate: • Up to 40% of residential project costs • Up to 65% of project costs for non-profits, municipalities Most Common Applications: • Offsetting oil, electric, or propane water heating • New construction or retrofits • Some heating applications using radiant floor or hydronic distribution systems • Typically a back-up system is required
  • 8. 8 Considerations through 2020 Will technology standards change over the years?  Yes. As technologies mature, so will our standards. How certain is MassCEC funding?  Very certain, but never absolute. Additional funding possible. Will rebate levels change?  As volume increases and costs reduce, rebates will adjust.  MassCEC also takes into account other incentives available. What about the Alternative Portfolio Standard and Mass Save?  Some overlapping goals and incentives. We’re working to coordinate rebates. Are there financing options available?  Yes. The Mass Save HEAT loan offers 0% financing. Will there be commercial incentives available?  MassCEC will likely offer commercial programs late this year.
  • 9. 9 Clean Heating & Cooling Resources Massachusetts Clean Energy Center Clean Heating & Cooling Programs www.masscec.com/programs/clean-heating-and-cooling  Air-Source Heat Pumps: ASHP@masscec.com  Central Biomass Heating: biomassthermal@masscec.com  Ground-Source Heat Pumps: GSHP@masscec.com  Solar Heating and Hot Water: solarhotwater@masscec.com 617-315-9357