Cost Reduction Lab

MassCEC / High Performance Buildings / Funding / Cost Reduction Lab

The Challenge

Small residential buildings account for over 60% of Massachusetts buildings’ greenhouse gas emissions. Decarbonizing small residential buildings is often hindered by high costs and fragmented delivery. For example, electrification can trigger expensive electrical upgrades, projects are rarely coordinated to capture whole project savings, geothermal and heat pump deployments remain costly due to drilling, design, and lack of standardization, and high upfront and soft costs for solar further slow adoption, despite declining equipment prices. The Cost Reduction Lab will support selected applicants to demonstrate, document, and disseminate novel cost reduction approaches for decarbonizing existing small residential buildings to address these challenges.

About the Cost Reduction Lab

The Cost Reduction Lab is seeking proposals for projects that demonstrate solutions to lower the cost of decarbonization in existing small residential buildings (1-4 units) in Massachusetts, with a focus on business models, market approaches, and technologies that can drive cost reductions.

The Cost Reduction Lab aims to identify and publicly disseminate open-source solutions that are freely available for implementation and whose benefits are not limited due to their proprietary nature or status as intellectual property.  

Applicants are expected to propose solutions to a Problem Statement with a Demonstration Project to test the effectiveness of the proposed solution.

The following are example Problem Statements applicants may choose to provide solutions to:

  • Electrical Upgrade Triggers: Reducing need for costly panel upgrades with load management solutions.
  • Lack of Project Coordination: Leveraging complementary projects to capture whole-project savings.
  • Geothermal Cost Barriers: Reduce costs with new business models, drilling tech, financing innovation.
  • Non-Standardized Heat Pump Installation: Streamlining heat pump design and deployment.
  • High Upfront Costs to Solar: Reducing soft costs and accelerating adoption.
     

Cost Reduction Lab - Flyer

Who's Eligible

This program is open to applicants who will demonstrate cost savings of a decarbonization solution, including, but not limited to:

  • Home performance contractors
  • Technology installers
  • Technology providers
  • Academics
  • Consultants

Proposals must be for projects that will demonstrate decarbonization cost reductions applicable to Massachusetts.

Connect

We encourages applicants to develop new partnerships to brainstorm ideas, build industry connections, and eventually collaborate as project partners.

Join our collaboration platform to discuss potential projects with other interested applicants. Please note, conversations on our platform are public record. For private conversations, please connect outside of our platform with potential collaborators.

Open
Award Potential

$2.5M total funding
Up to $500k per grantee

Application Deadline

May 8, 2026 at 11:59 PM

Questions? Contact

Funding Schedule

Process Step Timing
Release of RFP March 20, 2026
Informational Webinar March 31, 2026 at 12 PM ET
Questions Due to MassCEC via Email to buildings@masscec.com April 24, 2026
Questions with Answers Posted to Program Webpage May 1, 2026
Proposals Due May 8, 2026 at 11:59 PM ET
Interviews of Top Applicants (If Applicable) Late May-Early June
Notification of Award July 2026

 

Apply

Application Process

The response to the RFP should be submitted via JotForm.

Before submitting an application, applicants must review the following RFP attachments.

  • Attachment A: Authorized Applicant’s Signature and Acceptance Form (sign and upload to JotForm)
  • Attachment B: Sample Grant Agreement (for reference only)

If you need assistance filling out the JotForm application, please email buildings@masscec.com. "Cost Reduction Lab RFP Application" and Applicant name should appear in the email subject line.

Applicants may submit multiple separate proposals if the Projects are distinctly different from each other. Applicants may be awarded multiple grants at the discretion of MassCEC.

MassCEC webinar image - square

Pre-Application Webinar

MassCEC will host an informational webinar on March 31, 2026 from 12:00 PM - 1:00 PM EST.

The first 30 minutes of the webinar will include an overview of the Cost Reduction Lab funding opportunity and application process, with time for questions. The second half of the webinar will be an open discussion where participants will have the opportunity to create connections and brainstorm ideas with potential project partners.

MassCEC / High Performance Buildings / Funding / Cost Reduction Lab

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