Frequently Asked Questions
1. What is the Renewable Energy Trust?
The Renewable Energy Trust was created by the Legislature in 1998 as an essential component of electric utility industry restructuring to promote the development of renewable energy in the Commonwealth. The Trust is administered by the Massachusetts Technology Collaborative, a statewide quasi-public economic development agency, which specializes in working with high-tech companies.
2. Why was the Trust created?
The goal is to generate the maximum economic and environmental benefits from clean energy resources (e.g. wind, solar) to citizens of the Commonwealth. The Trust also provides critical support to help the nascent renewable energy industry thrive and create new jobs in Massachusetts.
3. How is it funded?
The Trust is funded through a small monthly charge on customer electric bills known as a systems benefit charge. For residential customers, it represents about $0.50 a month or about $6 a year.
4. What technologies are eligible for Trust investments?
The following technologies are defined by law as renewable and eligible for support from the Trust. They are:
. solar photovoltaic and solar thermal
electric energy
. wind energy
. ocean thermal, wave or tidal energy
. landfill gas
. naturally flowing water and hydroelectric
. low emission, advanced biomass power conversion technologies
. storage and conversion technologies connected to qualifying generation projects
. fuel cells
. waste-to-energy (limited to the municipal Waste-to-Energy Grant Program only)
Throughout its programs and activities, MTC uses the legislative definition of the term "renewable." In some instances, the legislative definition of renewable is not consistent with the traditional definition of renewable; for instance, it includes fuel cells powered by natural gas, a fuel source not historically considered to be renewable.
5. Who is eligible to apply for funds from the Renewable Energy Trust?
Specific eligibility for funds varies from program to program.
6. Are there any formal criteria by which applications for funding will be judged?
Each program has its own specific set of appropriate criteria. For instance, the criteria relevant to the Waste-to Energy-Grant Program are specified in that program's implementing documents. However, as a general matter, MTC will incorporate and apply some or all of the following standards as appropriate:
Potential public benefits. MTC will evaluate an application based on the degree to which it furthers the public purposes specified in the enabling Legislation. To this end, where appropriate, preference will be given to projects located in Massachusetts and renewable energy technologies that are manufactured in the state.
Net cost per kWh. MTC may consider the projected net cost per kilowatt-hour of the renewable energy system. The net cost will be estimated based on the annualized total system costs, accounting for potential energy savings and other benefits.
Commercial potential. MTC may judge an application based on the degree to which it is likely to advance the commercial prospects of the underlying renewable energy technology.
Geographic location. As electricity consumers throughout the state contribute to the Trust, MTC will strive to support applications in all regions of Massachusetts.
Leverage of the Trust's resources. MTC may consider the strength of the financial obligations of other parties involved in a particular application. Financial leverage is important to demonstrate commitment, to validate commercial potential, and to maximize the impact of the Trust.
Contribution to public debate. MTC may consider the degree to which a particular application furthers increased awareness of renewable energy and its relative costs and benefits because such increased awareness is essential to the success of our renewable energy programs.
7. Who will review the proposals?
Requests for funding are subject to internal review by MTC staff and external review by the members of an appropriate review panel. As required by law, final responsibility for approval or disapproval of an application rests with the Trust's Trustee - the Board of Directors of the Massachusetts Technology Collaborative.
8. What types of funding will be offered? Grants? Loans?
The Trust has many different financing products available to support projects including grant and loans. As provided by law, MTC's Board of Directors "may expend monies from the fund to make grants, contracts, loans, equity investments, energy production credits, bill credits, or rebates to customers, to provide financial or debt service obligation assistance, or to take any other actions, in such forms, under such terms and conditions and pursuant to such selection procedures as the Board deems appropriate and otherwise in a manner consistent with good business practices."