For anyone interested in the solar energy industry, lately Massachusetts is synonymous with hitting solar energy caps. We have discussed the Commonwealth’s net metering caps at length, and have reported as the cap for the Solar Carve-Out II Program (SREC II) has neared. With another update from the Massachusetts Department of Energy Resources (DOER) last week, here’s the latest on the SREC II program.
Still Space for Systems under 25kW
First and foremost, some good news. According to an email update from the Massachusetts Department of Energy Resources (DOER) on Thursday, February 18th, 67MW still remains under the program cap for projects under 25kW. So, if you are planning to install a project under 25kW, there is indeed still space for your project, and DOER has posted clarification for procedures and required documentation needed for projects to obtain an Assurance of Qualification. Keep in mind, the remaining 67MW* of available capacity under the program cap may run out quickly; we recommend applying as soon as you’re able.
Remember: if you partner with Sol Systems, we will complete the SREC certification process on behalf of your customers. Contact firstname.lastname@example.org so we can help.
What about Systems over 25kW? Hasn’t the Cap Already Been Hit?
The second part of DOER’s announcement dealt with projects over 25kW. As we have already reported, the cap was met nearly two weeks ago, but not all of the applications submitted may be real contenders. The most recent update by DOER also hints to this possibility.
As it stands, the initial review of applications larger than 25kW is still ongoing. However, an initial review of a significant number of applications has been completed. All incomplete applications have been returned with a description of what needs to be done to fix the issues discovered in the initial review. These developers have until Thursday, February 25th, to resubmit applications for their projects, and if the applications still are not complete then, they will be rejected. For anyone on the waiting list who has been nervously biting their nails and sitting on the edge of their seatwaiting to see if they will have a chance to be considered, Thursday marks the first chance for moving off or up the list. After Thursday, the DOER will review all resubmitted applications and then provide an update regarding the SREC II Program’s Cap. Stay tuned to our blog for updates.
What Does It All Mean?
In early February, we predicted this “Churn #1” of incomplete applications that were rushed through, but would soon be eliminated. While the exact numbers of this churn will come in after this Thursday, we expect the number of rejected applications to bring the program from drastically “oversubscribed” to nearly “fully subscribed.”
After that first churn, there is potential for a second churn to come in the form of unfinished projects currently holding an Assurance of Qualification under the “pending” category. This means that although they have received an Assurance of Qualification, they may not yet be operating and generating SRECs, so they have not received a State of Qualification. These projects are under a 9-month deadline to reach mechanical completion, and there is a chance not all of them will make it.
In sum, there is still a glimmer of hope for installers and developers:
- Sitting on the >25kW waiting list with a complete application
- Installing solar projects under 25kW or less… What are you waiting for? There are still 67MW that are yours for the taking.
Sol Systems will continue to follow SREC II developments on our blog. Stay tuned for our next write-up, which we’ll put out shortly after DOER’s next announcement.
*Note: Since the publication of this article, 15MW remain for solar projects under 25kW
ABOUT SOL SYSTEMS
Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for over 400MW of 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, project acquisition 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.