Electrification And Energy Efficiency: National Grid's Tools For Massachusetts' Multifamily Industry

In its push to help building owners demystify the decarbonization process, electric and natural gas company National Grid is taking the approach of a partner rather than a service provider. 

In Massachusetts, the company has rolled out a suite of incentives and advisory services for apartment building owners and developers, said Frank Nitti, senior program manager with the company’s Residential Energy Efficiency program.

The goal is to move properties away from fossil fuels and onto the grid by accelerating the adoption of energy-efficient technologies like heat pumps and induction stoves.

To many multifamily owners, the transition to electrification can feel more like a headache than an opportunity due to the high upfront costs and disruption to tenants that building retrofits can entail.

National Grid offers incentives to building owners to blunt that upfront cost, but the team goes beyond that, Nitti said. Experts at the utility are on hand to advise owners and developers on every aspect of electrification strategy, offering solutions that property owners might not be aware of.

As a result of the company’s multi-pronged outreach strategy, many multifamily owners are already successfully adopting energy-efficient updates and unlocking utility cost savings, increasing tenant comfort, reducing maintenance and service calls and bringing their buildings in line with state regulatory compliance, Nitti added.

Support From Concept To Completion

Part of what has made the program successful to date has been its comprehensiveness. National Grid offers energy efficiency program support for Massachusetts multifamily owners “from concept to completion,” Nitti said.

The process starts with an owner or developer calling the Mass Save multifamily program line. After providing some basic information about their property, a National Grid energy expert schedules a no-cost assessment of the asset, Nitti said.

“Once the assessment has been conducted, National Grid provides a comprehensive report detailing all the energy-saving opportunities our experts have identified,” he said. “The assessment, which includes some sampling of units, common areas and mechanical equipment, is as streamlined as possible. It typically takes a couple of hours for a 100-unit building.”

From there, National Grid’s engineering firm vendor can proceed with installing weatherization and air sealing measures at the property and designing heat pump systems, or, for more complicated projects, they run a procurement process through National Grid’s partner contractors across the state to get customers the best price to complete any energy-efficiency work that National Grid has identified, Nitti said.

“The incentive is taken directly off the cost of the job, so National Grid customers don’t have to sit around and wait for their incentive check to come in the mail in order to be reimbursed,” Nitti said. “It’s a turnkey process from start to finish.”

Among other benefits, the program provides a 100% incentive for air sealing, up to 75% for weatherization, 100% for LED lighting fixtures for interior and exterior areas and common areas, and up to $3,000 per ton for heat pump systems, Nitti said.

“We also have custom incentives for other energy efficiency opportunities that don’t necessarily fall into these categories, such as building control systems,” he added.

Of all the decarbonization tools at owners' disposal, weatherization yields the greatest return on investment, Nitti said.

“It also provides that additional comfort and indoor air quality for customers that is the biggest bang for your buck,” he said.

Regulation

The regulatory environment in Massachusetts plays a significant factor in owners’ decisions to adopt more sustainable energy practices, Nitti said.

There is a fund created by the state that all National Grid customers in Massachusetts, both residential and commercial metered accounts, pay into, Nitti said.

“This rate-payer-funded program was reviewed and approved by the Department of Public Utilities,” Nitti said. “Our greenhouse gas reduction targets are set by the administration.”

Beyond policies set at the state level, there are local court ordinances, like BEUDO and BERDO in Cambridge and Boston, respectively, that require properties to drive toward net-zero gas emission target milestones over time or be subject to fines, Nitti said.

“Other municipalities are interested in adopting similar ordinances,” he said.

Spreading Out The Work Over Time

There’s a common misperception among apartment owners that once they have an energy assessment completed, all the recommendations need to be completed on day one, Nitti said.

“National Grid’s expert advisers understand how challenging capital projects can be for owners, and we work around these challenges,” he said. “One way we do that is to sometimes split our incentives into stages as work gets completed over time.”

For instance, if an owner is converting multiple buildings in one apartment community over to heat pumps, National Grid can stage and split the associated incentives as work gets completed, building-by-building, Nitti said.

“The capital project costs don’t have to be encumbered all at one time,” he said.

Another way National Grid can help owners tackle big electrification and energy efficiency projects is by offering incentives for studies that encompass a whole portfolio of buildings, Nitti said. The studies create a “decarbonization road map” and list out the incentives the utility is able to provide for the necessary work over time.

Net-zero gas emission target milestones can be stress-inducing for owners of aging buildings especially, but Nitti noted that National Grid’s three-year 2025-2027 plan is “the most ambitious and comprehensive to date” in terms of unlocking opportunities for building owners.

“It’s definitely worth inquiring what support is available,” he said.

Those who are interested can start the process by calling National Grid’s Mass Save multifamily program line: (800) 594-7277 or visit ngrid.com/multifamily to learn more.

This article was produced in collaboration between National Grid and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.