It’s the moment we’ve all been waiting for. Well, at least for Massachusetts SREC customers. On July 29th, all 2015 Compliance Year SRECs that were deposited into the Massachusetts Department of Energy Resources (DOER) Auction Account on New England Power Pool (NEPOOL) cleared in the first round of the Clearinghouse Auction.
Massachusetts is the only SREC market with an annual price floor. The auction was created by the DOER to support pricing for the SREC markets, and avoid volatility seen in other markets such as New Jersey, Pennsylvania, Ohio, and now, Maryland. All SRECs deposited into the auction must be sold at the pre-determined rate for the year. Bidders are encouraged to buy the SRECs from the auction if they believe that Clearinghouse price is at or below future SREC prices.
During the 2015 Compliance Year Auction on the 29th, SREC I customers (solar energy consumers with systems certified before April 25, 2014) and SREC II customers (solar energy consumers with systems certified after April 25, 2014) could sell their SRECs at a fixed price of $285/SREC. For reference, current spot market rates are $440 for SREC I and $275 for SREC II. Fixed price rates for future auctions are listed below.
Future SREC I and II Auction Rates
So how does it all work?
Each annual auction may have up to three rounds, if necessary. The steps for the process are outlined below:
SRECs for Sol Systems customers who elected the bucket I or II selling option under their Brokerage contract were deposited into the auction account if those SRECs were not sold at a higher value earlier in the year. Now that the auction is over, Sol Systems is awaiting payment from DOER. Eligible Massachusetts customers may expect payment at the end of August.
For more information on SREC market dynamics in Massachusetts and other states, please contact our team at email@example.com. We’d be happy to speak with you.
ABOUT SOL SYSTEMS
Sol Systems is a leading solar energy investment and development firm with an established reputation for integrity and reliability. The company has financed approximately 450MW of solar projects, and manages over $500 million in assets on behalf of insurance companies, utilities, banks, and Fortune 500 companies.
Sol Systems works with its corporate and institutional clients to develop customized energy procurement solutions, and to architect and deploy structured investments in the solar asset class with a dedicated team of investment professionals, lawyers, accountants, engineers, and project finance analysts.