MMWEC, CET Awarded Grant for Inclusive Utility Investments Program

FOR IMMEDIATE RELEASE
Ludlow, MA – May 6, 2024

MMWEC and CET Receive Grant to Advance Residential Decarbonization

The Massachusetts Municipal Wholesale Electric Company (MMWEC) and its energy efficiency partner CET (formerly The Center for EcoTechnology) are excited to announce the receipt of a grant designed to advance decarbonization in the residential sector. With this funding, they take a significant step toward helping more residents, including renters, achieve energy efficiency and sustainability in their homes.

Expanding the Inclusive Utility Investment Program

Building on the success of a pilot program with MMWEC Member Ipswich Electric Light Department (IELD), CET’s Inclusive Utility Investment (IUI) program introduces an innovative approach to financing energy efficiency. By enabling residents to decarbonize their living spaces affordably, the IUI program makes energy efficiency accessible to a broader audience.

Thanks to a grant of over $75,000 from the American Public Power Association’s Demonstration of Energy and Efficiency Developments (DEED) program, MMWEC and CET are now positioned to expand the program to additional municipal light plants (MLPs). Specifically, this funding will provide critical support to two or three MLPs, assisting them in launching their own IUI initiatives.

What excites me about IUI is that it avails equitable access to clean energy improvements for all customers—renters and low income included—and has the potential to unlock the pace and scale of residential decarbonization that science-based targets require.

Ashley Muspratt

President & CEO of CET

How Inclusive Utility Investment Works

Under IUI, also known as tariff on-bill financing, residents who upgrade their home’s electrification or energy efficiency measures pay a monthly tariff. Importantly, this tariff is structured to never exceed the savings achieved through the upgrades, ensuring affordability. Unlike traditional financing models, the tariff is tied to the electric meter rather than the resident, transferring seamlessly to the next occupant if the resident moves.

IUI eliminates the need for adequate credit history or taking on debt, which are common barriers in traditional financing. Consequently, it decouples capital improvements from individual ratepayers, making property upgrades accessible to more residents and businesses. Additionally, these upgrades enhance comfort, health, and environmental sustainability while requiring little or no upfront investment.

IUI addresses one of the key hurdles to decarbonizing and electrifying the residential sector – up-front cost.” We are excited to continue our work with CET to expand the availability of this program to more municipal utility customers. The IUI program is an effective tool to enable more people to
decarbonize their homes without breaking the bank.

Zoe Eckert

MMWEC’s Sustainable Energy Policy and Program Senior Manager

Exploring New Capital Funding Mechanisms

As part of the project, MMWEC will conduct a feasibility study to evaluate the implementation of its pooled loan program as a capital source for MLPs launching IUI programs. By leveraging economies of scale, this approach aims to significantly reduce the time and resources required for individual MLPs to independently source capital. With this strategy in place, MMWEC seeks to streamline the process and enhance the efficiency of launching IUI programs across multiple municipal light plants.

About MMWEC

MMWEC is a not-for-profit, public corporation and political subdivision of the Commonwealth of Massachusetts. Established in 1975, it provides a range of power supply, financial, risk management, and other services to Massachusetts’ municipal utilities. As the largest provider of asset-owned generation for municipal light departments in New England, MMWEC plays a pivotal role in supporting the region’s energy infrastructure.

About CET

CET (formely The Center for Ecotechnology) is a regional nonprofit committed to driving climate action through waste reduction, energy efficiency, and electrification. With nearly 50 years of experience, CET has developed a vision of a just and resilient world built on sustainable climate solutions. By operating at the intersection of innovation and impact, CET empowers individuals and businesses to adopt strategies that not only reduce carbon emissions but also promote environmental stewardship.