SOURCE is a monthly solar project finance journal that our team distributes to our network of clients and solar stakeholders. Our newsletter contains solar statistics from current real-life solar projects, trends, and observations gained through monthly interviews with our solar project finance team, and it incorporates news from a variety of industry resources.
Below, we have included excerpts from the June 2015 edition. To receive future Journals, please email email@example.com.
PROJECT FINANCE STATISTICS
The following statistics represent some high-quality solar projects and portfolios that we are actively reviewing for investment.
- *Our all-in price statistics exclude projects from Ontario, Hawaii, the U.S. Virgin Islands, and Puerto Rico where all-in prices remain over $3.50/W.
California: Because you know it’s all about that rate, ‘bout that rate… The gold rush is here. Already, 184MW out of the eligible 400MW have been filled for Southern California Edison’s (SCE) Option R rate. Remember, Option R allows developers to better pitch ROI to hosts by focusing on Time of Use (TOU) rate charges instead of demand charges. Get it while you can; we expect the remaining 200MW+ to fill up quickly. Meanwhile, Pacific Gas and Electric’s (PG&E) Option R became available on June 1; look for that to open the market for commercial solar projects in PG&E territory. Unlike Option R in SCE territory, PG&E’s has no cap on the number of customers or megawatts.
New Jersey: We are consistently surprised by the lack of commercial-scale pipeline coming out of New Jersey. Perhaps many hosts are opting for cash purchases instead of third-party financed deals. Or perhaps developers look at the $225 SREC prices of today and long for the $600/mWh pricing from yesteryear. Maybe more third-party financed deals going to leases? We’re stumped; you tell us. Meanwhile, the Garden State seems particularly primed for merchant opportunities.
Rhode Island: Unfazed after falling slightly short of its goal to procure 40MW of renewable energy by 2014, the Ocean State upped the ante with an even more ambitious goal: 25MW of renewable energy for 2015, increasing to 40MW each year for 2016-2018. Applications for small-scale solar (<25kW) opened up on June 15, while applications for projects 26kW – 5MW will be accepted between August 3 and 14. Take note, highly creditworthy utility off-take and above-market rates in this state will continue to appeal to investors. We strongly suggest this market for Northeastern developers, especially as Massachusetts remains stalled, and New York has fallen short of expectations. There’s much to consider for this state that runs only 48 miles long and 37 miles wide.
- Ready, set, go! Bids for 15-year Connecticut ZREC contracts are due on June 18th at 1pm. We expect for LREC and ZREC pricing to ultimately get closer to the price of Class I RECs.
- Residual value is a hot topic among financiers who realize that they must take into account the value of the asset once the PPA expires in order to maintain their competitive edge over the other sources of capital flooding the space. How does Emilio Estevez feel about this?
- This is your monthly reminder that Maryland is the best market where nobody else is doing business. Hint, hint.
- Watch for the Illinois solar market to pop now that its first SREC procurement deadline has passed. Subsequent rounds will take place in November 2015 and March 2016. Meanwhile, pending legislation pushes for a longer term, more robust solar market in the Land of Lincoln.
- Vermont has been gaining traction among developers for its high electricity prices, SPEED program, and Green Mountain Power’s solar adder for projects under 500kW AC. The challenge with the Green Mountain Power program, however, is that its floating rate PPA structure spells out risk to many investors. To increase the likelihood that these deals are financed, put a floor in the PPA to make the investor more comfortable with underwriting the deal.
- The latest Solar Market Insight report showed that residential and utility-scale solar each added more capacity than the natural gas industry brought online in Q1 2015.
- The verdict is still out on Massachusetts net metering, though many in the industry are cautiously optimistic that a solution will be put in place to keep the industry going until the end of 2016. Support is strong in the state senate, while the support from state house of representatives is questionable. In the meantime, developers should look into NSTAR territory.
- According to the International Monetary Fund (IMF), 6.5% of 2015 global GDP – or approximately $5.3 trillion – will subsidize fossil fuel use. Hopefully that will put the solar-haters to rest.
- Got a project in PJM territory that wouldn’t mind a little cash flow boost? Sol Systems is offering compelling SREC contract to projects in PJM territory; some North Carolina, Illinois, Indiana, and even Virginia projects are eligible. Contact firstname.lastname@example.org for more information.
ABOUT SOL SYSTEMS
Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for 200MW solar projects on behalf of Fortune 100 corporations, insurance companies, utilities, banks, family offices, and individuals. Sol Systems provides secure, sustainable investment opportunities to investor clients, and sophisticated project financing solutions to developers. The company’s tailored financial services range from tax structured investments and project acquisition, to debt financing and SREC portfolio management. Inc. Magazine named Sol Systems on its annual Inc. 500 list of the nation’s fastest-growing private companies for a second consecutive year, ranking it No. 6 in the nation’s top solar companies in 2014. For more information, please visit www.solsystems.com.
This year’s Delaware Solar Renewable Energy Credit (SREC) Procurement Program solicitation bid window opened on Monday, April 13th, 2015, and will remain open until Friday, April 24th at 5:00 pm. The Procurement Program gives new and existing Delaware-sited solar systems an opportunity to bid into a 20-year contract for their SRECs.
Winning bidders in each tier receive their competitive bid price (not a clearing price for the whole auction) for the first 10 years of the contract, and $35/SREC for the last 10 years. This 20-year fixed price contract offers an attractive alternative to selling credits on the sometimes unstable SREC market.
The goals of this year’s Procurement Program are consistent with the goals of past procurements: provide SREC price stability in the state, allow Delmarva another avenue by which to meet their long-term SREC compliance requirements, and encourage solar development in Delaware.
History of Delaware Procurement
The Delaware SREC Procurement Program first began in 2012 through a pilot meant to address the volatility of SREC markets. Systems applied in different tiers based on system size, and winning contracts were granted accordingly. Pricing was administratively set price for smaller systems, or, for larger systems, at the price they bid upon. The 2012 Pilot Program encouraged Delaware solar development by granting 10% SREC price bonus for systems that used Delaware parts or Delaware labor (or double if a system used both). Two mechanisms, tiered structuring by system size and the in-state bonus, have remained constant in all iterations of procurements. By distinguishing between different sized residential or commercial solar systems in terms of bidding tiers, this program model seeks to promote solar development regardless of market sector. The Delaware parts and labor bonus has continued to endorse solar companies working within the state (although solar modules are no longer manufactured in the state).
The 2013 Program and 2014 Program included several key distinctions from the Pilot Program. First, the tiered structuring began develop further by placing new systems and existing systems into separate bidding tiers. This change from the Pilot Program had the marked purpose of encouraging new solar systems to participate, without excluding existing systems that had not yet locked into long-term SREC contracts. Second, a competitive bidding process was implemented for all tiers. This improved upon the Pilot Program’s prior model of administratively setting prices for smaller systems because it offered ratepayers price protection without the need to change the state’s renewable portfolio standard (RPS). With a competitive bidding process, the lowest bids prices win contracts in each tier.
Administratively set pricing and/or winning bids have varied throughout the three year history of procurements. For new residential sized systems, winning bidders in the 2012 Pilot Program were rewarded with a substantial contract: $260/SREC for 10 years, and then $50/SREC after that. The competitive bidding process resulted in substantially lower weighted average prices for new residential sized systems, $46.48/SREC in 2013, and $53.44/SREC in 2014 for the first 7 years of a contract, with administratively set prices for the last 13 years. The full results of previous auctions, divided by tier, are posted on our blog.
First Half of Contract
Second Half of Contract
2012 Pilot Program
$260/SREC* for 10 years
$50/SREC for 10 years
2013 DE Procurement
$46.48/SREC* for 7 years
$50/SREC for 13 years
2014 DE Procurement
$53.44/SREC* for 7 years
$35/SREC for 13 years
2015 DE Procurement
?/SREC for 10 years
$35/SREC for 10 years
*Weighted average winning bid
This Year’s Program
Each year’s procurement continues to evolve from the last, and this year is no exception. While contracts in the 2015 Procurement will continue have 20 year terms, winning bidders will now receive their bid price for the first 10 years of the contract, and $35/SREC for the remaining 10 years, rather than the 7-year/13-year split from the 2013 and 2014 procurements. The 2015 Program continues to have tiers based on existing/new systems and system size, with a set number of SRECs to win bids in each. However, this year, after 9,000 SRECs have been acquired from the five tiers, Delmarva will be able to acquire up to 3,000 additional SRECs from any tier by choosing from the least expensive bids overall. Additionally no bids over $400/SREC will be accepted, in line with the Delaware Solar Alternative Compliance Payment of $400/MWh that Delmarva must pay if it is unable to meet compliance goals.
Five Tiers in the 2015 Solicitation
(systems with final interconnection approval after May 5th, 2014)
|Tier||Nameplate Rating - (DC at STC)||SRECs in Tier|
|N-1||Less than or equal to 30 kW||4,400*|
|N-2||Greater than 30 kW but less than or equal to 200 kW||2,300|
|N-3||Greater than 200 kW but less than or equal to 2 MW||2,300|
(systems with final interconnection approval before May 5th, 2014)
|Tier||Nameplate Rating - (DC at STC)||SRECs in Tier|
|E-1||Less than or equal to 30 kW||4,400 Pool*|
|E-2||Greater than 30 kW but less than or equal to 2 MW||4,400 Pool*|
Eligibility for this year is mostly consistent with past procurements. Any new or existing system with a Delaware certification number (or bid deposit) is eligible. Winning systems must have a revenue grade meter installed to qualify. Systems with SRECs currently under long-term contracts, including participants of the SEU SREC Upfront Purchase Program or systems that have achieved a successful bid in a previous procurement are ineligible to bid in this year’s procurement. For more information, or to apply, please visit SRECDelaware. Final Results of this year’s Program will be announced on April 29th. Sol Systems will continue to monitor developments with regard to the Delaware SREC Procurement Program and in other SREC market nationwide.
ABOUT SOL SYSTEMS
Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for 180MW solar projects on behalf of Fortune 100 corporations, insurance companies, utilities, banks, family offices, and individuals. Sol Systems provides secure, sustainable investment opportunities to investor clients, and sophisticated project financing solutions to developers. The company’s tailored financial services range from tax structured investments and project acquisition, to debt financing and SREC portfolio management. Inc. Magazine named Sol Systems on its annual Inc. 500 list of the nation’s fastest-growing private companies for a second consecutive year, ranking it No. 6 in the nation’s top solar companies in 2014. For more information, please visit www.solsystems.com.
As we wait for the final 2014 Solar Renewable Energy Credits (SRECs) to mint for the state of Maryland, chances are high that the market will be the closest to equilibrium that it has been in 3 years. Uncertainty around this news centers on how many SRECs the state supported Mt. St. Mary’s solar project has generated since its installation in July 2012. By standard estimates, these SRECs currently represent approximately 20% of all SRECs technically eligible for compliance in Maryland’s Renewable Portfolio Standard (RPS) for 2014.
The Maryland Energy Administration (MEA), which owns two thirds of the system’s SRECs, has stated publicly that its SRECs will be offered for sale at 90% of the Alternative Compliance Payment (ACP) as a ‘last resort’ in the case of an undersupplied market. For the 2014 compliance year this offer equates to a price of $360. The University System of Maryland has expressed publicly that it will not sell its one third portion of system production, either.
For more detail on the results presented above, please contact the SREC desk by email.
About Sol Systems
Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for 180MW solar projects on behalf of Fortune 100 corporations, insurance companies, utilities, banks, family offices, and individuals. Sol Systems provides secure, sustainable investment opportunities to investor clients, and sophisticated project financing solutions to developers. The company’s tailored financial services range from tax structured investments and project acquisition, to debt financing and SREC portfolio management. Inc. Magazine named Sol Systems on its annual Inc. 500 list of the nation’s fastest-growing private companies for a second consecutive year, ranking it No. 6 in the nation’s top solar companies in 2014. For more information, please visit www.solsystemscompany.com
The Illinois solar market is marching ahead to an eventful 2015. Recent action on the Supplemental Procurement Plan means solar energy system owners should look for the Illinois SREC market to come to fruition very soon.
Earlier this month, the Illinois Commerce Commission released a draft Proposed Order on the Illinois Power Agency’s (IPA) Supplemental Procurement Plan. In the draft Proposed Order, the Commission reviews objections and comments submitted to them regarding the IPA’s plan and makes rulings on each issue. Many of the rulings solidified changes we examined in past articles on the Illinois solar market[s1] . The following conclusions are particularly noteworthy for current or prospective solar system owners in Illinois:
While residential solar installers battle for market share and YieldCos gobble up utility scale projects, the commercial and industrial (C&I) solar space has been relatively quiet. Broadly defined as behind-the-meter projects between 50kW and 5MW, the middle market remains untapped due to market fragmentation and complexity associated with relatively smaller deal sizes. In fact, the number of middle market solar projects interconnected in Q1, 2014 was down 12% from the same quarter in 2013, according to Greentech Media (GTM) and SEIA’s Solar Market Insight Report. Additionally, Q1, 2014 marked the first quarter that residential solar MW installed exceeded those installed in the C&I niche since 2002.
Massachusetts solar developers breathed a sigh of relief after last week’s announcement.
After the initial August 26th announcement that the 2016 Managed Growth Capacity Block would be 0MW, the Massachusetts Department of Energy Resources (DOER) opened a public comment period. As expected, solar stakeholders expressed their concern over the 2016 allocation, citing that the DOER had projected overly ambitious growth in Market Sectors A-C. In response to these comments, DOER adjusted the 2016 Managed Growth Capacity Block allocation from 0MW to 20MW .
What is Managed Growth in Massachusetts?
The Massachusetts SREC-II Program, initiated in April, creates differentiated financial incentives for each market sector (“SREC Factor”) to level the playing field. This program makes smaller solar projects more competitive compared to larger ones by ideally giving financial preference to residential and rooftop projects (a higher SREC Factor close to 1.0) and providing less support for larger projects (ground mount, landfill or brownfield projects less than 650kW.) Previously, this program allocated 26MW and 81MW for the Managed Growth sector in 2014 and 2015 respectively. As the legislation mandates, the reconsideration and final decision of the 2016 Managed Growth Capacity Block came from the following formula:
Sol Systems Tops 360 Teams to Win 200 Mile Relay Race
On September 12-13, nine members of the Sol Systems team ran a 200 mile relay race stretching from Cumberland, MD to Washington, DC. Winding through hills and valleys, day and night, the team steadily made its way to the finish line, beating over 360 teams to take the first place title. With a final time of 25 hours and 35 minutes, the Sol Systems team finished a full hour faster than the second placed finishers.
The Ragnar Relay consists of 36 individual legs (3 per runner) ranging from 2 miles to 11.1 miles in length with varying difficulties in terrain. The logistics of the race involve two vans of six runners alternating every six legs, trading off at major exchange points at which runners can relax, meet other teams, and attempt to sleep.
The race started for the Sol Systems team (named the Fighting Gibsons after the company’s Chief Technical Officer, Mike Gibson) at 12:30 pm on Friday and continued until just after 2 pm on the following day. By the end of the race, most teammates had only slept for one or two hours.
As the final runner raced down the stretch, all 12 team members came together and crossed the finish line in unison. The team drew together in the face of the relay’s challenges, ultimately coming out stronger. See you next year, Ragnar DC.
Yesterday’s announcement from the Massachusetts Department of Energy Resources (DOER) may have taken some Massachusetts solar developers by surprise.
Immediately following the announcement of the allocations for the 2014 and 2015 Managed Growth capacity, commercial and utility scale solar developers across New England began counting down the days to when the 2016 capacity amount would be revealed. Developers had long awaiting the final figures for the DOER’s 2016 allocation, hoping they could fit their 650 kW+ solar projects into the Massachusetts solar program.
The countdown is now over, and the DOER has released their initial analysis and expectation for the Managed Growth Capacity Block for 2016. The final result is… 0 MW.
On June 13, Ohio made history by becoming the first state to “freeze” its Renewable Portfolio Standard (RPS). The passage of SB310 was a major setback for the renewable industry in Ohio, but who knew what happened in the Buckeye State could affect solar in Pennsylvania, Virginia, and even Kentucky?
Ohio’s legislative change froze not only the RPS, but the solar renewable energy credit (SREC) trading markets in the surrounding states. Because bordering states such as Indiana, West Virginia, Michigan, and Pennsylvania can sell their SRECs into the Ohio solar market, spot market SREC prices in these states have drastically declined, dropping down from $70/SREC to $30/SREC in a matter of weeks.
As Virginia solar energy system owners sell their SRECs into the Pennsylvania SREC market, the Virginia solar market has also taken a hit. This all happened just when the Pennsylvania solar market was on the rebound. Pennsylvania SREC prices were as high as $76/SREC earlier in the year, much higher than the $20/SREC we were seeing in 2012 and 2013.
Our team strongly believes that a managed SREC solution, one in which a third party such as Sol Systems executes trades in the best interest of the SREC owner, provides the customer with the highest sale price. Here’s why the managed approach works so well.
Aggregation is important because larger volume SREC transactions often result in higher prices. For example, it’s very difficult to sell 12 SRECs on any given day. However, many SREC buyers would be very interested in purchasing 1200 SRECs. The higher volume that a managed SREC solution allows improves liquidity, and results in higher pricing. Sol Systems has always passed down this higher pricing to SREC owners.
Massachusetts SREC-I Auction Throws a Curveball to the Markets: Here’s how this will impact SREC-II projects.
Round II of the Massachusetts SREC-I clearinghouse auction failed to clear yesterday, July 30. A third round will be held on Friday, August 1st, 2014. As we described earlier in an explanation of the Massachusetts SREC-I auction, This annual auction, which is based on the volume demanded, allows SREC sellers the opportunity to auction their SRECs at the end of each summer for a fixed price of $300/SREC, minus an auction fee (most customers will net $285)
Implications of the Massachusetts SREC-I Clearinghouse Round II
An Auction failing to clear Round II automatically increases the Renewable Portfolio Standard (RPS) obligation by 142,504 to 1,054,933 SRECs for compliance year (CY) 2015. An increase in demand generally pushes prices higher, which is what Sol Systems’ SREC trading team saw yesterday. Massachusetts SRECs with a 2015 vintage stamp increased $35 per SREC to $320 from $285. Since a partial clearance of the Auction is allowed in Round III, compliance entities and SREC investors are likely to bank some SRECs in expectance of this increase in CY 2015 RPS obligation. All unsold auction SRECs will be returned to the owners (with extended life of three years) in proportion to the clearance volume in Round III and will have to be sold on the spot market.
The Massachusetts solar renewable energy credit (SREC) market is undoubtedly the most complex incentive program among its peers. Among its complexities is the annual clearinghouse auction mechanism, which allows SREC sellers the opportunity to auction their SRECs at the end of each summer for a fixed price of $300/SREC, minus any auction and aggregation fees (most customers will net around $271). Sol Systems can provide you with fixed forward pricing. Having a fixed forward price eliminates the need to enter the auction and deal with reminted SRECs. Right now, our 4-year pricing for SREC-I is $270. We offer 3-year, 4-year, 5-year and 10-year pricing for SREC-I and SREC-II. Sol Systems takes care of customer accounts throughout this process, thus allowing our customers to pursue their core business. For more information, email us today at email@example.com.
The first round of the SREC clearinghouse auction took place today and did not clear; 141,504 SRECs were deposited. Anxious SREC sellers are hopeful all SRECs will be cleared by the end of round two, which is to be held tomorrow, 30th July, 2014. It makes sense for auctions to enter Round II as an increase in the shelf life of SRECs is beneficial for both, compliance entities and SREC owners.
On May 28, 2014, the results for the 2014 SRECDelaware Procurement Program were announced. This is the second year that the newly structured program has been in place; the Delaware Public Service Commission approved the new structure of the program in 2013, which implemented a competitive bid process for all tiers for the first 7 years of the contract and a set price of $50/SREC for the remaining 13 years of the contract. However, with the 2014 program, the set price for the remaining 13 years of the contract has decreased to $35/SREC. The 2012 Pilot Program that preceded the current Procurement Program differed in structure, with administratively set prices at $260/SREC for years 1-10 and $50/SREC for years 11-20 for projects under 250 kW and a competitive bidding process for anything larger. In 2013, the competitive Procurement Program resulted in lower SREC prices for successful bidders, as compared to the administratively set Pilot Program. In 2013, SRECDelaware also held a Spot Market Auction for owners of existing SREC’s generated since July 2009, which additionally produced low SREC prices.
With the signing of Senate Bill 310 (SB 310), Ohio has become the first state to “freeze” its Renewable Portfolio Standard (RPS). Ohio Governor John Kasich signed the bill into law on June 13th, effectively halting the state’s mandates for efficiency and renewables until 2017. Come 2017, these mandates will pick up where they left off when the freeze occurred, as opposed to the annual increases in renewable energy and efficiency measures that would have occurred with the RPS.
SB310 will significantly harm Ohio’s solar industry by driving SREC prices down in both the Buckeye state as well as the surrounding states such as Kentucky, Pennsylvania, West Virginia, Indiana, and Michigan that sell their SRECs into Ohio. The bill faced tremendous opposition from health and environmental coalitions, as well as a group of 70 businesses and organizations, including Honda and Whirlpool, who urged Governor Kasich not to sign the bill.
Sol Systems is pleased to be the first to close a transaction in solar renewable energy credit (SREC) II, the newest iteration of the Massachusetts solar market. Under this agreement, Sol Systems will provide solar project financing via a prepaid SREC contract to EthoSolar, an Ontario-based solar power provider with over 600 systems installed in North America, for a 150 kilowatt (kW) solar energy project.
This landmark deal is the first prepaid SREC contract in the nascent Massachusetts SREC-II market, which will be promulgated on April 25. Sol Systems provided a Sol Upfront contract, issuing pre-payment to EthoSolar’s client for generation of SRECs in 2014 and 2015; this capital was key in pushing the project over the finish line in light of a tight deadline.
“Combining an upfront sale of a percentage of SRECS with other traditional and nontraditional solutions allowed us to negotiate an attractive financing solution from a local bank that has our client in the black from day one on this project. Sol Systems brought creativity and value that was outside the box,” said Ethan DeSota of EthoSolar.
- SREC II’s regulatory framework and how it differs from SREC I, particularly in regards to the new SREC factor and Clearinghouse auction
- The fate of Massachusetts SREC I subscribers, including those who have not yet been accepted into the program
- Supply and demand dynamics in the MA SREC I & SREC II programs
- Spot market prices and the availability of fixed price contracts, including advisable SREC strategies for both residential and commercial systems
- How to finance commercial projects in Massachusetts, including advisable PPA rates and the availability of SREC strips
The event will be taking place on April 23rd, 2014. Register today.
The Public Service Electric and Gas Company of New Jersey (PSE&G) will begin accepting applications in less than a month, on February 25, for its Solar Loan program. While no major changes have occurred since the first solicitation late last year, data is now available on pricing from the first round of applications and awards.
The first solicitation of New Jersey’s PSE&G Solar Loan III program began last year and closed the period on November 12th, 2013. The program provides loans that make up significant portions of project construction costs (see an example here). The loans can be repaid through SRECs, with payment plans set at the closing of the loan. Cash can also be used to pay in case of low production. Once the loan has been paid in full, any SRECs produced thereafter belong to the owner of the system. The following capacities are available per each program segment:
Below, we have included excerpts from Sol Systems’ January 2014 Project Finance Journal, which is a monthly email newsletter that our project finance team distributes to our network of clients and solar stakeholders. Our newsletter contains solar statistics from current real-life solar projects, trends and observations gained through monthly interviews with our solar project finance team, and it incorporates news from a variety of solar industry resources.
If you would like to receive our Solar Project Finance Journal via email every month, please email firstname.lastname@example.org with a request to be added to our Project Finance Journal distribution list.
On January 3, 2014, the Massachusetts Department of Energy Resources (DOER) announced that they filed revisions to the Renewable Portfolio Standard (RPS) Class I regulation, thus beginning the formal rulemaking process for establishing a framework for the SREC-II program. The official version of the draft regulation will be published in the Massachusetts Register on January 17, 2014, but in the meantime, the DOER has provided an unofficial version on their website.
Timeline for the Formal Rulemaking Process
The formal rulemaking process begins with a public comment period which includes holding a public hearing. Written public comments will be accepted from January 3 through 5:00pm on January 29, 2014 and the public hearing will be held on January 24, 2014 from 1:00 to 3:00 pm in the Gardner Auditorium of the Massachusetts State House in Boston. Following the public comment period, the DOER will submit this proposed final regulation to the Joint Committee on Telecommunications, Utilities and Energy and will incorporate any changes deemed prudent from the public comments. Within the following 30 days, the Joint Committee will review and submit comments on the regulation back to the DOER. To conclude, the DOER must consider the Joint Committee’s comments for a period of not less than 30 days, and thereafter, the final regulation will be promulgated as soon as possible. Based on the estimated outline in the table below, the SREC-II program should become effective in April 2014.
Massachusetts Department of Energy Resources (DOER) Commissioner Mark Sylvia recently shared the DOER’s most recent developments regarding its SREC II program with a packed house at the recent Electricity Restructuring Roundtable on Solar in New England and California. The official draft has not been published for the public, but is expected to be filed any day now. Here’s what you need to know.
- SREC-II Policy Objectives: Unchanged
The overall policy objectives remained unchanged under this most recent draft. The DOER’s main goals are still to provide sufficient economic support, control ratepayer costs, and create competitive, robust, and progressive market conditions that will maintain and expand PV installations in Massachusetts to reach Governor Deval Patrick’s 1600 MW goal by 2020. The most significant updates and changes to the original SREC-II draft regulations came instead in the announcement of the key design features, which will drive the structure of the SREC-II Program.