MassCEC offers awards to businesses that install qualifying modern wood heating systems. This program is part of MassCEC’s Clean Heating and Cooling program, which supports technologies that provide customer cost-savings and environmental benefits while maintaining a high level of comfort and reliability.

Awards are available for project sites that receive electrical service from National Grid, Eversource, Unitil, and participating municipal lighting plant communities.

MassCEC has different application requirements depending on your system size. Any business installing a system with a heating capacity up to120,000 BTU/hr should read the instructions for the Small-Scale Program Manual . Any business installing a system with a heating capacity over 120,000 BTU/hr should read the instructions for the Commercial-Scale Program Manual

If you are interested in installing a modern wood heating system at your business, MassCEC recommends:

  • Visiting our Finding an Installer webpage, which includes a list of eligible designers and installers and questions to ask installers.
  • Soliciting proposals from at least three designers (and possibly installers).

Designers and installers should visit the Installer Resources page.

Commercial-Scale Program:

Throught the Commercial-Scale Biomass Program, MassCEC offers businesses funding of up to $500,000 for construction eligible biomass heating systems, as well as Feasibility Study Grants and Retrofit grants. Please read the Commercial-Scale Program Manual for full details on program eligibility, requirements, and awards and information on Feasbility Study Grants and Retrofit Grants.

The steps for the Construction Grants are summarized below:

  • Any business installing a system with a heating capacity over 120,000 BTU/hr should first select a designer that can meet the requirements in the Commercial-Scale Program Manual. The business owner may select an installer at this time as well (which may be the same entity as the designer).

  • All commercial-scale projects over 3.0 MMBTU/hr are required to complete and submit a feasibility study along with their construction application. Please read Section 1.3 of the program manual to learn about MassCEC's feasibility grant program. Applicants are not required to use the MassCEC feasibility grant program to complete the required study, but are offered the option. 

  • All construction projects should proceed with the following steps:

  • The designer completes a preliminary technical analysis and system design that meets the program requirements and includes an eligible modern wood heating system.

  • The designer and system owner jointly apply for the award, and other financial incentives. The application must include: the Excel Application FormProject NarrativeParticipant’s Agreement (signed by the business), electric bill, load calculation, design documents, equipment test data, and relevant tax documentation. Multifamily Affordable Housing Adder Applicants must submit verification documentation described in the Program Manual. Please note that MassCEC must approve the grant application before installation begins.

  • Once MassCEC issues an award letter, the designer and/or installer can complete the system installation. 

  • Two sets of project milestone deliverables are submitted. With the complete submission of each milestone, the grantee will receive a portion of the grant amount.  A Milestone Completion Form must be submitted with each milestone.

    1. Milestone #1 (system design and equipment purchase), constituting 30% of the grant, should be submitted within 12 months of the award date for existing buildings and 24 months for new buildings.

    2. Milestone #2 (construction and commissioning), constituting the remaining 70% of the grant, should be submitted within 24 months of the award date for existing buildings and 36 months for new buildings.


Small-Scale Program:

Any business installing a system with a heating capacity up to 120,000 BTU/hr should first select an installer that can meet the requirements in the Small-Scale Modern Wood Heating Program Manual. The installer will submit the award application on behalf of the grantee. MassCEC maintains a list of installers who have previously participated in the program.

After selecting an installer, the installer should:

  • Complete the system design.
  • Apply for the award on your behalf and help you apply for other financial incentives.
    •  Information on additional modern wood heating incentives can be found on our Learn About Modern Wood Heating page.
    • The business owner must provide the installer with a signed copy of the and an electric bill, as well as other information about the project site.
    • The business owner must schedule an energy audit to take place with the next six months if you have not had an energy audit within the past four years.
    • MassCEC must approve the grant application before installation begins.
  • Once MassCEC issues an award letter, the installer may complete the system installation.
  • After the project is complete, the installer submits documentation verifying the project is complete.
    • MassCEC may schedule an inspection prior to payment to ensure installation quality.
    • Once complete, MassCEC will issue the award.
    • Payment will typically be issued within four weeks of the time the complete documentation is received.

Please read the Small-Scale Program Manual for full details on program requirements and awards. Installers looking to participate in the program or apply on behalf of business owners should visit the Installer Resources Page.

How much funding will my business receive?

Small-scale systems are eligible for awards of up to $27,000, and commercial-scale systems are eligible for up to $500,000. The awards are based on a percentage of eligible project costs (as defined in the Program Manual), with “adders” for thermal storage, cascading systems, distribution system efficiency, public and non-profit entities, and for multifamily affordable housing developments.  More details can be found in Section 3 of the Small-Scale Program Manual and Commercial-Scale Program Manual.

Why isn’t everyone in Massachusetts eligible for this rebate program?

Projects receiving rebates through MassCEC must be located in a utility territory that contributes funding to the Renewable Energy Trust (RET), which includes communities served by investor owned electric utility companies or a participating municipal lighting plant.

What is an MLP and where are they?

MLP stands for “municipal light plant” and refers to communities who are serviced by a publicly owned local utility instead of an investor-owned electric company, such as National Grid or Eversource. Some of these MLP communities contribute to the RET, which is the original source of our funding for rebates. We are unable to provide rebates to MLP communities that do not contribute to the RET.

The Modern Wood Heating program is one in a suite of MassCEC’s Clean Heating and Cooling programs. In 2015, MassCEC authorized long-term funding for Clean Heating and Cooling programs.

For questions on the Modern Wood Heating program, please contact us at or 617-315-9300.