Navigating the New MassSave Plan: Key Takeaways for Nonprofits and Public Entities
On October 31, 2024, the Massachusetts investor-owned utilities (Eversource, National Grid, and Unitil) proposed their three-year Plan, which outlines how the MassSave Program will provide financial incentives to help customers of investor-owned utilities make energy efficiency and electrification upgrades more affordable. After months of review and public input, the DPU issued its decision on February 28, 2025, conditionally approving the Plan, but not without modification. but not without modification.
The DPU did not approve the full proposed budget of $5.1 billion, finding the full $1.2 billion increase from the last three-year plan unreasonable. The DPU cited concerns over increased ratepayer burdens, high inflation, and existing energy costs. Furthermore, the DPU ordered a $500 million reduction to the total residential budget, split evenly between the electric and gas programs. Even with this cut, the Plan’s budget is still approximately $500 million higher than the last three-year plan, which includes new updates to keep Massachusetts on track for its 2050 climate goals.
The 2025-2027 Plan shifts its focus more strongly toward decarbonization than previous iterations, phasing out fossil fuel incentives and investing more in clean energy solutions. It also emphasizes improving customer experience, expanding equity-focused programs, and making it easier for more households, nonprofits, and businesses to benefit. For nonprofits and public entities, the most significant changes are in commercial and industrial programs, which have been restructured to better support their projects.
Commercial and Industrial Sector Key Programs
Commercial and industrial buildings, large or small (often owned by nonprofits and public entities), face unique challenges to electrification. Unlike homes, these buildings often need more complex technologies and tailored strategies to reduce their reliance on fossil fuels. The 2025-2027 MassSave Commercial and Industrial (C&I) Programs were designed specifically to address these challenges.
The C&I programs available in the 2025-2027 MassSave Plan are outlined below:
| Program | Description |
| New Buildings & Major Renovations | Aimed to support and provide incentives for customers to achieve decarbonized, low energy use buildings. Eligible projects include new commercial, industrial, institutional, or municipal buildings or those undergoing major renovations. New buildings must have all-electric energy systems to participate, with limited exceptions. **Incentive levels and offerings vary by which pathway a customer takes |
| Existing Buildings | Provides incentives and technical assistance to help C&I customers reduce their energy costs and decarbonize their operations. It also offers custom, prescriptive incentives based on project needs. Technical assistance is available for a multitude of studies with an emphasis on long-term decarbonization studies. Eligible customers include existing commercial, industrial, institution or municipal buildings. |
| Equipment Rebates & Instant Incentives | Focuses on equipment and product categories to provide incentives and rebates to buy down up-front and overall equipment costs. Eligible customers are commercially metered municipalities, school districts, colleges, institutional, and multi-family facilities with five or more units. Examples of eligible equipment include: – HVAC Equipment – Lighting controls – Food service and refrigeration – Heat pump water heaters – Vending machine controls |
| Small Business Turnkey Retrofit | Offers a turnkey service where a contracted vendor manages the assessment, proposal, installation and data reporting of a project. Eligible customers must be using less than 1.5 million kWh of electricity or less than 40,000 therms of gas annually. Enhanced incentives are available to accommodate for small business and nonprofit needs. Eligible projects include all cost-effective energy efficiency and electrification measures including but not limited to: – Hot water systems – HVAC systems and controls – Weatherization – Pipe insulation |
| ConnectedSolutions | The program is designed to ease pressure on the electric grid by rewarding customers who lower their energy use during times of highest demand. To take part, customers need demand response equipment that can automatically adjust their energy use when the program signals an event. |
Enhancements to the Commercial & Industrial Sector Programs
As noted before, C&I building portfolios require tailored strategies to achieve successful electrification. In recognition of this, the Plan introduces three types of decarbonization studies designed to help C&I customers develop long-term strategies for reducing building emissions. These studies are offered within select C&I programs as enhanced resources to support comprehensive, forward-looking electrification planning:
Comprehensive Building Assessments
- These high-level assessments evaluate the current state of a building’s energy systems and consumption. The assessment provides customers with potential energy efficiency measures, options for electrification of fossil-fuel burning, and overall information on how to proceed in reducing overall energy consumption.
- Templates for this offering will be posted on the MassSave website soon.
Portfolio Prioritization Plans
- These high-level, cost-efficient studies help identify what buildings within a portfolio should be the priority of decarbonization efforts. These plans leverage specific building information, such as remote audits, billing data, and the age and condition of buildings, to determine which buildings to prioritize.
- Templates for this offering will be posted on the MassSave website soon.
- Customers located within Eversource or National Grid territory are eligible for a Free PPP, so long as their building is over 7,000 square feet.
- PowerOptions was selected as a preferred vendor to support this offering. If interested, Members should connect directly with PowerOptions.
Decarbonization Roadmaps
- These long-term roadmaps are targeted towards large commercial buildings and customers with a portfolio of buildings to gather foresight and planning for decarbonization and emissions reduction efforts.
- The materials needed for this offering are currently under development by the program administrators, as reported by the EEAC.
Beyond Program-Specific Enhancements
Aside from specific C&I program offerings, Program Administrators have created improvements to its decarbonization, customer experience, and equity efforts, including:
Decarbonization
- New technical assistance offerings for C&I customers to support existing building commissioning and decarbonization planning.
- Incentives for newly funded measures, such as refrigerant and gas leak mitigation.
- Expansion of workforce development and heat pump installer network.
- Weatherization support for small businesses and select non-profit organizations.
Customer Experience
- Standardization of technical support for C&I customers.
- Streamlining the small business customer experience.
- A single, statewide rebate processing vendor to improve rebate processing, current delays.
Equity
- A goal to fully decarbonize five schools in underserved communities.
- Support for schools with plans to decarbonize, such as new municipal energy managers, grant-writing support, enhanced incentives, and technical assistance.
- Increased funding for Community First Partnership.
A notable change for non-profits includes an increased incentive where select tax-exempt entities that meet small business usage thresholds will be offered an incentive of up to 100% percent of energy efficiency project costs to support small non-profits and businesses in the Commonwealth.
Looking Ahead
The 2025–2027 MassSave Energy Efficiency and Decarbonization Plan represents a shift toward deeper decarbonization and equity while keeping ratepayers’ interests at the forefront. With increased investments toward equity and a goal of reducing greenhouse gas emissions by 864,000 tons, the next steps for Massachusetts to meet its 2050 emission reduction mandates have been laid out.
The Plan comes at a critical time for Massachusetts, as the state begins to navigate a world with decreased federal support. Despite federal uncertainties, the 2025-2027 MassSave Plan continues to display the state’s commitment to greenhouse gas reduction, decarbonization, energy efficiency, and low costs across Massachusetts.
Stay Connected and Informed
At PowerOptions, we are excited about the changes present in the new MassSave plan, providing increased incentives to support non-profits and public entities in meeting their energy goals. We are well-positioned to guide our Members through the planning and implementation process of their energy projects and how to fully utilize all available incentives. If you have questions about what these changes mean for you, we’re here to help. Contact our Regulatory and Policy Analyst, Sophia Gosselin-Smoske, at sgosselinsmoske@poweroptions.org.
Get Started
Ready to see where to focus your decarbonization efforts? Reach out to Erin Camp, PowerOptions’ Energy Sustainability and Analytics Program Director, at ecamp@poweroptions.org to request a Portfolio Prioritization Plan. Members in Eversource or National Grid territory may be eligible to receive their plan at no cost.