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Combined Heat and Power Partnership

MassSAVE - Utility Energy Efficiency Program (CHP)

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated9/23/2013
Incentive TypeRebate
State/FederalMA
Incentive Administrator/Contact OfficeNSTAR, National Grid, Western Massachusetts Electric Company, Unitil, Cape Light Compact
Incentive Initiation Date1/1/2008
Incentive Size and Funding SourceThere are three tiers of incentives for utility customers considering energy efficiency measures in conjunction with installing a CHP system: Level 1 - Basic, Level 2 - Moderate, Level 3 - Advanced.
  • Level 1: $750 per kW. Not to exceed 50% of total project costs.
  • Level 2: Up to $950 per kW for units larger than 150 kW or up to $1,000 per kW for units 150 kW or less. Not to exceed 50% of total project costs.
  • Level 3: Up to $1,100 per kW for units larger than 150 kW or up to $1,200 per kW for units 150 kW or less. Not to exceed 50% of total project costs.
Final incentive amounts are at the discretion of the associated Program Administrator.
Eligible RecipientAll owners of CHP systems are eligible, but the best applications are typically those with high annual hours of operation with near full use of the thermal output, including process industry (24/7) operation, as well as commercial applications such as hotels, hospitals, nursing homes, schools, colleges, laundries, health facilities and multi-unit apartments.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)
  • Level 1: Size must not exceed thermal and/ or electrical load of the building assuming implementation of efficiency measures.
  • Level 2 and Level 3: Sized to follow thermal loads of the building post implementation of all efficiency measures with a simple payback of 3 years or less.
Minimum Efficiency Required (%)
  • Level 1: None.
  • Level 2: Annual estimated efficiency greater than 60%.
  • Level 3: Annual estimated efficiency greater than 65%.
Other Selected Eligibility CriteriaFor each tier, the incentives are based on different conditions.
  • Level 1: Efficiency opportunities must be identified prior to determining proper size of CHP system.
  • Level 2: An ASHRAE Level 1 audit by PA approved vendor or qualified engineering firm is required. All identified cost-effective measures with simple payback of less than 3 years must be implemented within 18 months of PA incentive commitment for CHP system.
  • Level 3: An ASHRAE Level 2 audit by PA approved vendor or qualified engineering firm is required. All identified cost-effective measures must be implemented within 3 years of PA incentive commitment for CHP system. Also, a savings goal of more than 10% total site energy use reduction through electrical and/or thermal measures is required. Measures installed within previous 2 years can be applied toward 10% goal.
All proposals must pass program cost effectiveness test to be eligible for incentives. Specific requirements are determined by the applicable Program Administrator. Generally, equipment qualifying for CHP incentives include reciprocating engines, gas turbines (also commonly referred to as combustion turbines) and back pressure steam turbines which recover waste heat for useful purposes. It is important to note that for the purposes of receiving an incentive under this program, a CHP system must directly produce electricity and not simply offset the use of electricity.
UtilityNSTAR, National Grid, Western Massachusetts Electric Company, Unitil, Cape Light Compact
Other Incentive DetailsContact your utility for more details on the program and incentives available to you.
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