DOER Makes $50 Million Available for Low- and Moderate-Income Housing Decarbonization Grant Program

On February 16, the Massachusetts Department of Energy Resources (DOER) announced it will make up to $50 million available in grant funding for decarbonization retrofits of existing low- or moderate-income residential buildings.

Projects must seek to implement energy efficiency measures and decarbonize heating, cooling, and/or hot water systems. Projects must also demonstrate a long-term commitment to providing affordable housing to low- or moderate-income residents.

The goal of this Low- and Moderate-Income Housing Decarbonization Grant Program is to provide grants to projects that result in housing that:

1. Is highly energy efficient;
2. Uses non-combustion clean heating, hot water and/or cooking technologies; and
3. Includes on-site renewable energy generating sources, when possible.

Priority will be given to projects in Gateway Cities, as well as projects located in qualified census tract and municipalities with similar demographics.

Funding is being provided from three sources:

• $6.5 million of federal funding from the American Rescue Plan Act. 
• $25 million in DOER Funding from Alternative Compliance Payments. This funding is available to any eligible project as long as they are customers of electric Investor-Owned Utilities.
• $18.5 million from the Massachusetts Department of Environmental Protection Climate Protection and Mitigation Trust.

Grant funding may be used for:

Grant funding shall be utilized for:

• Energy efficiency including building envelope improvements and other measures resulting in electric load reduction, peak demand reduction, and demand management.
• Electrification (e.g. air or ground source heat pumps for space heating, air source heat pumps for water heating, induction cooking equipment).
• On-site renewable energy generation technologies (i.e., solar pv).
• The removal or mitigation of barriers (e.g., roof repairs, electrical upgrades, knob and tube remediation, and vermiculite and asbestos removal) that result in installation of energy efficiency, electrification, and/or on-site renewable energy generation technologies.

DOER expects applicants’ requests to be for grant funds of at least $240,000 in most cases. For buildings with 6+ units, the maximum grant funding is $40,000 per unit. For buildings with 5 or less units, the maximum grant funding is $50,000. 

Applications will be accepted and evaluated on a rolling basis with applications received by 5:00 p.m. on June 1, 2023 evaluated first. Grants will be reviewed and awarded within 1 month of application due dates.