5 years after it was first proposed, Massachusetts’ Cape Gentle Compact (CLC) celebrated the long-awaited and tough regulatory approval of a first-in-the-nation power storage pilot program for purchasers. with low revenue. However in a wierd twist, the Division of Public Utilities concurrently accredited the pilot supply, whereas banning any comparable proposals for the foreseeable future.
The Cape & Winery Electrification Providing (CVEO) units a brand new commonplace for utilities throughout Massachusetts by providing free batteries, photo voltaic PV, and warmth pumps to income-qualified prospects. And because the solely buyer battery fairness supplied in Massachusetts, CVEO demonstrates that the state power effectivity funds can be utilized to cost-effectively present free battery storage to low-income prospects.
The pilot program might be carried out subsequent 12 months, concentrating on 100 households in Cape Cod, Martha’s Winery, and Duke County. Eighty of those households are beneath the 60% Space Median Revenue (AMI) threshold, and twenty might be between 60-80% AMI. Low-income (LI) households obtain rooftop photo voltaic and warmth pumps utterly freed from cost whereas median-income (MI) households should pay 20% of the fee. In addition they have entry to HEAT loans that present interest-free financing.
Of those 100 households, twenty 5 will even obtain battery storage. Low-income prospects will obtain two batteries totally free, whereas MI prospects will obtain a $15,000 incentive for his or her battery methods (and entry to HEAT loans to assist cowl the remaining bills). The rationale behind offering two batteries to LI households is that the additional storage capability will allow them to run their warmth pumps within the occasion of an influence outage. That is just like Inexperienced Mountain Energy’s Resilient Dwelling program, which additionally gives two batteries to taking part residential prospects to create a whole-home resilient system.
Households receiving battery storage beneath CVEO are routinely enrolled in Massachusetts’ ConnectedSolutions program, however don’t obtain extra funds via ConnectedSolutions to keep away from “double-dipping.” ConnectedSolutions efficiency charges might be paid to CLC to offset program prices.
To qualify for this system, CLC prospects should not solely meet revenue {qualifications}; they need to even have participated in an power effectivity audit inside the final two years, and carried out all really useful effectivity upgrades, together with changing fossil gasoline home equipment. In truth, certified prospects may have totally decarbonized properties.
DPU approval of this new program has been a very long time coming. The Cape Gentle Compact submitted three earlier variations of this system since 2018 earlier than lastly gaining regulatory approval for this fourth (barely scaled-down) model; and the DPU could have simply given permission due to the passage of the Massachusetts 2022 Clear Power Act (formally titled An Act Driving Clear Power and Offshore Wind). Part 87A of the act authorizes an electrical power effectivity Program Administrator to undergo the DPU “proposed low and reasonable revenue complete constructing effectivity, electrification and greenhouse fuel emissions discount choices to a restricted variety of contributors inside the low and reasonable revenue buyer teams.” In its order approving the CVEO, the DPU cited Part 87A a number of instances.
Nevertheless, the DPU discovered the pilot program to be “In the most effective curiosity of ratepayers” and said that “the advantages of the proposed demonstration mission justify the prices to taking part and non-participating prospects.” Which means offering free battery storage, photo voltaic PV and warmth pumps to LMI households is a constructive funding for Massachusetts ratepayers. Advantages embrace larger power effectivity, elevated renewable use and lowered fossil gasoline use, lowered statewide electrical energy prices as a consequence of lowered peak demand, elevated local weather resilience, and enhancing indoor air high quality. This system will even assist the Commonwealth meet its power fairness and decarbonisation targets.
CVEO’s approval creates an necessary precedent that different utilities throughout Massachusetts should observe. Sadly, the approval got here with a DPU ban on any comparable packages being proposed for 5 years, or till the outcomes of the CVEO pilot will be evaluated. It seems that income-eligible prospects exterior of Cape Cod should wait some time for the same fairness supply… until, in fact, a courtroom ought to overturn the DPU’s ban on copying in a program that it already considers helpful and cost-effective.
No matter whether or not the DPU ban stands, different utilities in Massachusetts should now make their very own revenue-qualified battery proposals. And naturally, the Massachusetts DPU’s surprisingly strict resolution has nothing to do with different states. As Connecticut expands and improves the ConnectedSolutions mannequin – first carried out in Massachusetts – with the Power Storage Options program, different states must also take note of the brand new low-income electrification providing of the Cape Gentle Compact. .
