Massachusetts Homeowners Can Earn Alternative Energy Credits with a Geothermal System

Massachusetts has a little-known program that offers cash back to homeowners who install geothermal heating systems. All geothermal systems installed in Massachusetts are eligible to earn Alternative Energy Credits (AECs) through the Massachusetts Department of Energy Resources (MA DOER). If the heating capacity of the geothermal system is less than 132,000 Btuh, then the number of AECs earned is simply calculated based on the size of the home. The minimum number of AECs that can be earned is 230. For every square foot over 1,500 and additional 0.158 AECs per square foot is earned.

As a homeowner, you should follow these steps to earn AECS:

  1. Find a geothermal installer who is familiar with the MA DOER Alternative Energy Credits program and other Massachusetts incentives. The documentation required for the program is significant and would be difficult for most homeowners to navigate.
  2. Have your chosen geothermal installer complete the design and installation.
  3. Once the geothermal system is operational, have the geothermal installer complete the MA DOER application on-line. You will need to sign a Service Agreement showing that you authorize your geothermal installer to complete the application on your behalf. The installer will provide you with the appropriate paperwork.
  4. Once the application is completed, wait 6 to 9 months for your check to show up in the mail. It is a one-time payment.

EnergySmart has completed almost 40 applications on behalf of our customers totaling over $164,000 is cash back! As of March 1, 2020, credits were worth approximately $3.75 each (values change quarterly).

If you are interested in a geothermal heating and cooling system for your home but aren’t sure about the current incentives, please call us at 617-955-0063 or complete an on-line info request form for up-to-date information.

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