Massachusetts has set ambitious goals to reduce transportation-related greenhouse gas emissions. The state aims to cut vehicle emissions by 86% from 1990 levels by 2050 as outlined in its clean energy and climate plan. To achieve this target, Massachusetts plans to increase the adoption of electric vehicles (EVs), with a target of having all new vehicles sold in the state be electric by 2035. Additionally, the state aims to have 900,000 EVs on the road by 2030, further driving the transition to clean and sustainable transportation. In this blog post, we will explore the various programs available in Massachusetts that provide financial support and incentives to businesses for installing EV charging stations. These initiatives not only aim to make EV charging more accessible and convenient but also to promote the growth of a robust charging network throughout the state.
Types of Incentives and Rebates
Massachusetts offers a range of incentives for electric vehicle (EV) charging stations, such as tax credits, grants, and rebates, available at the State, Utility level or through Laws and Regulations.
State Level Incentives and Rebates
- The Massachusetts Electric Vehicle Incentive Program (MassEVIP): The MassEVIP provides financial assistance to property owners for the installation of Level 2 and DC fast charging stations. Hotels, mixed-use developments, and multifamily properties can take advantage of this program to offset the costs associated with purchasing and installing EV charging equipment. The MassEVIP Direct Current (DC) Fast Charging program specifically offers grants that up to 80% of the cost of DC Fast charging hardware and installation expenses, up to a maximum of $50,000 per site, for properties with publicly accessible parking.
Utility Level Incentives and Rebates
- EV Make Ready Program: Make Ready programs simplify the installation of EV charging stations for property owners by shifting the responsibility of utility-related work to the electric utility. This eliminates the financial burden and logistical challenges associated with utility upgrades, allowing property owners to focus on deploying charging infrastructure.
- Electric Vehicle (EV) Charging Station Installation Incentive – Eversource: Eversource’s Electric Vehicle Charging Station program offers make-ready installation cost assistance for non-residential customers in Massachusetts. This initiative covers eligible expenses such as trenching, dedicated service meter installation, conduit placement, and wiring costs for Level 2 and direct current fast charging (DCFC) stations. By participating in this program, businesses, multi-unit dwellings, workplaces, and fleet facilities can simplify the installation process of EV charging infrastructure.
- Non-Residential Electric Vehicle (EV) Charging Station Program - National Grid: National Grid's Electric Vehicle Charging Station Program assists non-residential customers in installing Level 2 and DCFC stations. This program provides installation support and funding for businesses, multi-unit dwellings, and other non-residential properties. Multifamily properties can receive incentives covering service upgrades and up to 100% of make-ready utility and customer-side infrastructure costs. While there is no cap for incentives for utility-side infrastructure, there is a cap of up to $30,000 per port for DCFCs of up to 149 KW and $40,000 per port for charges of over 150 KW for customer-side infrastructure. There is also an overall cap of $400,000 per site.
- National Grid DCFC Equipment Incentives: National Grid provides incentives for the cost of DCFC hardware at publicly accessible workplaces and retail locations. These can be as much as 100% of the cost of the equipment subject to a cap of $40,000 per port for chargers of capacity of up to 149 KW and 50% of the cost with a cap of $40,000 per port for chargers of 150 KW and higher capacity, for non-Environmental Justice Communities (EJC). For EJCs, the incentives can extend up to 100% and $80,000 per cap for chargers of 150 KW capacity and upwards.
- Electric Vehicle (EV) Infrastructure Support: Massachusetts utilities have joined the National Electric Highway Coalition (NEHC) with the goal of establishing a network of DCFC stations that connect major highways across the United States, spanning from the Atlantic Coast to the Pacific. As part of their commitment, the utility members of NEHC aim to develop efficient and effective deployment plans for fast charging infrastructure, ensuring seamless long-distance travel for electric vehicles (EVs). This collaborative effort focuses on avoiding unnecessary duplication of charging stations among coalition utilities while also complementing existing DCFC sites along the designated highway corridors.
Supportive Laws & Regulations
- Electric Vehicle (EV) Charging Station Building Standards: In accordance with the regulations, any new commercial construction project with more than 15 parking spaces is required to allocate at least one parking space that is prepared for EV charging stations. This means that the designated space must have a dedicated branch circuit specifically designed for EV charging. It is important to note that there may be additional terms and conditions that need to be met in order to comply with this requirement.
- Direct Current Fast Charging (DCFC) Station Alternative Rate Structure Requirement: As part of the regulations, public electric utilities in Massachusetts are obligated to submit at least one commercial tariff or program to the Department of Public Utilities (DPU). These tariffs or programs aim to offer alternative rate structures for demand charges specifically for DCFC stations. Each submitted tariff or program is required to assess and analyze the costs and benefits associated with different rate designs, taking into account various scenarios of EV adoption.
In addition to the above, several Government entities including the Zero Emission Vehicle (ZEV) Commission, the ZEV Program Implementation Task Force, Mass Department of Transportation and Massachusetts Executive Office of Energy and Environmental Affairs have or are in the process of bringing out studies, plans and policies that promote the development of EV charging infrastructure.
Massachusetts has set ambitious targets for the accelerated adoption of EVs as part of its overall sustainability strategy. Incentivizing the rapid deployment of EV charging equipment is an essential part of this strategy. In this regard, a number of incentives and supportive policy initiatives have been put in place to promote the development of DC Fast Chargers in locations that include retail properties, hotels, multi-family apartments, and offices. These incentives cover both the costs of the chargers themselves as well as, in many cases, the cost of installation of the chargers, customer-side infrastructure improvements and utility-side infrastructure improvements that are required to support DC Fast Chargers. By carefully analyzing the available incentives and taking advantage of them, property owners can significantly offset the cost of deploying DC Fast Chargers at their hospitality, retail, multifamily and office properties while attracting the increasing numbers of EV owners in Massachusetts.