Alternative Energy Portfolio Standard (APS) & Renewable Thermal (RT) Technologies

Overview

The Alternative Energy Portfolio Standard (APS) was established as of January 1, 2009, under the Green Communities Act of 2008. The APS offers an opportunity for Massachusetts businesses, institutions, and governments to receive an incentive for installing eligible alternative energy systems, which are not necessarily renewable, but contribute to the Commonwealth's clean energy goals by increasing energy efficiency and reducing the need for conventional fossil fuel-based power generation. Like the Renewable Portfolio Standard (RPS), this program requires a certain percentage of the state's electric load to be met by eligible technologies, which for the APS include Renewable Thermal (RT) technologies, Combined Heat and Power (CHP), flywheel storage, fuel cells and efficient steam technologies. Eligible facilities generate Alternative Energy Certificates (AECs), and the annual percentage requirement increases by 0.25% per year indefinitely.

The APS is a regulation that is administered by the Massachusetts Department of Energy Resources (DOER).

Eligibility/Compliance

All Renewable Thermal Generation Units must:

  • Generate useful thermal energy using sunlight, biomass, biogas, biofuel or naturally occurring temperature differences in ground, air or water
  • Deliver a useful thermal load to a facility located in Massachusetts
  • Have an operation date of January 1, 2015, or later

Eligible APS Renewable Thermal technologies include:

  • Air source heat pumps systems
  • Ground source heat pumps systems
  • Solar thermal systems 
    • Solar hot water
    • Solar hot air
    • Solar sludge drying 
  • Woody biomass systems
    • Wood pellet
    • Wood chip 
  • Liquid biofuel systems 
  • Biogas systems 
  • Deep geothermal systems 
  • Compost heat exchange systems 

Application/System Registration

Application Deadlines for Statements of Qualification

DOER has established deadlines for submitting applications for each quarter. If a system wishes to receive credit for production in a particular quarter, it must submit a complete application by the deadline for that quarter. For example, if a project interconnected on January 1st submitted an application after the Q1 deadline of May 15th, it would lose all credit for production occurring between January 1st and March 31st. 

Calendar Quarter

Application Submission Deadline

Q1

May 15th

Q2

August 15th

Q3

November 15th

Q4

February 15th

Application Instructions

The APS Renewable Thermal application is a web-based application form hosted by the Massachusetts Clean Energy Center's Production Tracking System. To qualify an APS-eligible Generation Unit, applicants must register in the online APS Renewable Thermal Application Portal by

  1. creating a username and password and
  2. completing the application for each system they wish to qualify.

Once applicants have registered, they will be able to save new applications, log out, and reenter the application platform. 

All system owners are encouraged to work with an aggregator who may submit the application on their behalfTo assist those using the application portal, MassCEC provides a video overview.

For the following technologies, all applicants should contact DOER at thermal.DOER@mass.gov for more information. 

  • Intermediate liquid biofuels systems 
  • Deep geothermal systems
  • Solar sludge drying systems 
  • Compost heat exchange systems

System Size Classifications

Small

Intermediate

Large

Solar Thermal: evacuated tube and flat plate solar hot water

Collector surface area less than or equal to 660 sq ft

Collector surface area between 660 and 4,000 sq ft

Collector surface area greater than or equal to 4,000 sq ft

Solar thermal: solar hot air

--

Collector surface area less than or equal to 10,000 sq ft

Collector surface area greater than 10,000 sq ft

Solar sludge dryer

--

--

All

Eligible Biomass Fuel

--

Capacity less than or equal to 1,000,000 Btu per hour

Capacity greater than 1,000,000 Btu per hour

Compost heat exchange system

--

--

All

Air-source heat pump: electric motor or engine-driven

Output capacity less than or equal to 134,000 Btu per hour

Output capacity between 134,000 and 1,000,000 Btu per hour

Output capacity greater than or equal to 1,000,000 Btu per hour

Ground-source heat pump

Output capacity less than or equal to 134,000 Btu per hour

Output capacity between 134,000 and 1,000,000 Btu per hour

Output capacity greater than or equal to 1,000,000 Btu per hour

Deep geothermal

--

--

All

 

The size classification of a Generation Unit determines the metering methodology that must implemented for APS implementation. More information on metering methodologies can be found in the guidelines, below: 

Small Generation Units have the option to be classified as either intermediate or large Generation Units if they wish to forgo pre-minting or forward minting and instead meter their production. Intermediate Generation Units also have the option to be classified as large Generation Units if they wish to fully meter their production. Generation Units which opt to change their size classification must notify the Department in their Statement of Qualification Application and must remain their chosen size classification for the duration of their qualification period.

Multipliers

To provide a meaningful incentive to APS Renewable Thermal Generation Units, DOER has established the following multipliers:

APS Renewable Thermal Generation Unit Multipliers

Small

Intermediate

Large

Active solar hot water systems used for domestic hot water

3

3

3

Active solar hot water systems used for domestic hot water, space condition, or process loads

1

1

1

Active solar hot air systems

--

5

5

Solar sludge dryer

--

--

1

Ground source heat pumps

5

5

5

Deep geothermal

--

--

1

Air source heat pumps (electric or engine drive) -- supplying less than 100% of buidling heating load

2

--

--

Air source heat pump (electric or engine driven) -- all other

3

3

3

Compost heat exchange system

--

--

1

Biomass, biofuels, biogas

N/A

N/A

N/A

More information about multipliers is available from DOER.

Reporting

Intermediate Woody Biomass Fuel Systems - How to Use Online Portal

 

For information about Independent Verifiers, Aggregators, and related topics, please review DOER's resources.

AEC Reporting and Minting TImeline

MassCEC’s PTS team reports the AECs to NEPOOL GIS for minting once per calendar quarter, with a one calendar quarter delay.

Calendar Quarter

Months

AECs Reported to NEPOOL

NEPOOL Mints AECs

Q1

Jan-Mar

Jul 10

Jul 15

Q2

Apr-Jun

Oct 10

Oct 15

Q3

Jul-Sep

Jan 10

Jan 15

Q4

Oct-Dec

Apr 10

Apr 15

More Resources and Contacts

For Statement of Qualification and Registration questions, please contact DOER at thermal.doer@state.ma.us.

For Intermediate Woody Biomass Reporting questions, please contact MassCEC atRT@masscec.com