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Archive for December, 2015

SRECTrade Markets Report: November 2015

Posted December 28th, 2015 by SRECTrade.

The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the Solar REC markets that SRECTrade serves. All PJM data is based on the information available in PJM GATS as of the date noted. All MA data is based on the information provided by the DOER as of the date noted. This analysis does not include projects that are not yet registered and certified with the entities noted herein.

A PDF copy of this table can be found here.

Capacity_November2015

There are 73,084 facilities registered in GATS as of 12/15/2015. See below for a more detailed breakdown.

STH_PV Split

There are 341 projects over 1 MW in capacity, representing 1,122.9 MW or 45.0% of the qualified capacity. The largest projects in PJM are located in NC, MD, NJ and IL. There are 61 projects that are 5 MW or larger. These make up 23.5% of all qualified capacity in PJM. The top 5 largest projects are listed below.

Top 5 Largest

 

NJ Office of Clean Energy Estimated Installed Capacity Through 11/30/15

On December 18 2015, the New Jersey Office of Clean Energy (OCE) announced total installed solar capacity reached 1,567.2 MW through 11/30/15; an increase of approximately 10.6 MW over the total capacity reported through the end of October 2015. The average last six month build rate per month, according to the OCE data, is 13.5 MW. Note that this data does not directly tie to GATS registration data because of a lag between NJ Office of Clean Energy certifications and GATS registrations.

Overview of MA DOER SREC-I and SREC-II Eligible Systems

SREC-I Program

The Massachusetts SREC-I program was capped on June 30, 2014. As of 10/14/2015 the DOER reported that 6.7 MW of solar is still listed as Qualified but not operational. In total, 653.8 MW of capacity is listed as qualified, of which 647.1 MW is operational.

SREC-II Program

The SREC-II program opened on April 25, 2014. The program is broken in to Market Sectors. For a detailed overview of the regulations regarding SREC-II please visit here. As of 12/23/2015, 545.5 MW of capacity is currently qualified under the SREC-II program, but only 300.6MW is operational.

Starting May 15, 2015 the DOER began publishing data showing generation units under review in the SREC-II Program.  Total capacity under review is 34.2 MW, of which 6.5 MW is operational.

How to Interpret The Capacity Table at the Top of this Post

The tables above demonstrate the capacity breakout by state. Note, that for all PJM GATS registered projects, each state includes all projects certified to sell into that state. State RPS programs that allow for systems sited in other states to participate have been broken up by systems sited in-state and out-of-state. Additional detail has been provided to demonstrate the total capacity of systems only certified for one specific state market versus being certified for multiple state markets. For example, PA includes projects only certified to sell into the PA SREC market, broken out by in-state and out-of-state systems, as well as projects that are also certified to sell into PA and Other State markets broken out by in state and out of state systems (i.e. OH, DC, MD, DE, NJ). PA Out-of-State includes systems sited in states with their own state SREC market (i.e. DE) as well as systems sited in states that have no SREC market (i.e. VA). Also, it is important to note that the Current Capacity represents the total megawatts eligible to produce and sell SRECs as of the noted date, while the Estimated Required Capacity – Current and Next Reporting Year represents the estimated number of MW that need to be online on average throughout the reporting period to meet the RPS requirement within each state with only that particular compliance period vintage. For example, New Jersey needed approximately 496.7 MW online for the entire 2013 reporting year to meet the RPS requirement with 2013 vintage SRECs only. SRECs still available from prior eligible periods can also impact the Solar RPS requirements. Additionally, the data presented above does not include projects that are in the pipeline or currently going through the registration process in each state program. This data represents specifically the projects that have been approved for the corresponding state SREC markets as of the dates noted.

Note: SREC requirements for markets without fixed SREC targets have been forecast based on EIA Report “Retail Sales of Electricity by State by Provider” through 2013. Projected SRECs required utilizes the most recent EIA electricity data applying an average 1.0% growth rate per forecast year. The state’s RPS Solar requirement is then multiplied by forecast total electricity sales to arrive at projected SRECs required. Projected capacity required is based on a factor of 1,200 MWh in PJM states and 1,160 MWh in MA, generated per MW of installed capacity per year.

Posted in Capacity Summary, SREC Markets | Comments Off on SRECTrade Markets Report: November 2015

2015 SREC Pricing – Year in Review

Posted December 24th, 2015 by SRECTrade.

2015 was a dynamic year in the SREC markets. SREC prices experienced highs and lows. In order to understand and clearly present pricing data, SRECTrade offers a subscription product – Market Insights. Login to your SRECTrade account and get started for free.

Please see the Year in Review video here:

Posted in Maryland, Massachusetts, New Jersey, SREC Markets, SREC Pricing | Comments Off on 2015 SREC Pricing – Year in Review

Congress Passes Extension of Investment Tax Credit (ITC) for Solar

Posted December 18th, 2015 by SRECTrade.

Earlier today, Congress passed the FY 2016 Omnibus Appropriations bill, which includes tax extenders and $1.1 trillion in government funding. The spending package includes a pivotal extension of the federal investment tax credit (ITC) for solar energy. The bill is the result of a bicameral and bipartisan compromise, by which Congressional Democrats pursued the extension of this federal subsidy as partial compensation for lifting the ban on US crude oil exports. At first, Democrats believed that the bill would be a loss for the environment, but Democratic leaders urged their party members to recognize the net benefits of extending support for renewable energy development.

“May the force be with you,” quipped Senator Dianne Feinstein (D-CA), encouraging her fellow Senators to vote in favor of the package just hours after the House passed the bill. The bill passed both chambers of Congress by impressive majorities. The House approved by a 316 to 113 vote, and the Senate approved by a 65 to 33 vote.

While existing law provided the 30% solar ITC through the end of 2016, the extension guarantees 30% through 2019, declining to 26% in 2020 and 22% in 2021. After 2021, the 10% credit for Section 48 (commercial) projects will remain in place, per existing law. However, the bill includes “commence-construction” provisions that allow projects to qualify if they come on-line by the end of 2023. These extensions will help states to meet their Renewable Portfolio Standard and other renewable energy goals by helping project owners offset the cost of investing in renewable energy. The federal ITC, coupled with additional incentives, such as Solar Renewable Energy Credits (SRECs), encourages investment in renewable technologies across the country.

The ITC extension will undoubtedly have a significant impact on the solar industry. Experts project that the extension will increase solar installations by 54 percent (compared to a non-extension scenario) and create a 20 GW annual solar market through 2020. The extension is expected to impact utility-scale solar the most, where installations could increase by as much as 73% through 2020. Comparatively, residential installations are expected to experience a 35% growth, and commercial installations are expected to grow by 51%. This anticipated development will spur economic growth and an anticipated incremental investment of $40 billion in the solar industry.

After proposing an extension of the ITC in his 2016 budget earlier this year, the passage of this bill reinforces President Obama’s inaugural commitment to addressing climate change and protecting the planet for future generations. The bill also follows the historic adoption of the Paris Climate Agreement, which was made at COP21 in Paris earlier this month. Although the Agreement still needs to be adopted by the U.S. Government, the President is resolute that the Agreement will survive Republican opposition and become law. In a statement following COP21, President Obama said that “this moment can be a turning point for the world[,]” and this bill is certainly a step in the right direction for America’s commitment to the new international goal.

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Posted in Grants and Rebates, Installers, Solar Financing, SREC Markets, State RPS, Washington, DC | Comments Off on Congress Passes Extension of Investment Tax Credit (ITC) for Solar

Maryland Lawmakers Propose Increase to Renewable Portfolio Standard

Posted December 11th, 2015 by SRECTrade.

Chief policymakers in Maryland gathered on Tuesday, December 8th to publicly unveil their plan to establish the largest clean energy program in the state’s history. The proposed 2016 “Clean Jobs Act” is a $40 million plan to stimulate Maryland’s clean energy sector and to increase the state’s existing Renewable Portfolio Standard (RPS) to 25 percent by 2020, a sizable increase over the state’s current goal of 20 percent by 2022. This would increase the number of Solar Renewable Energy Credits (SRECs) needed to be purchased and retired by state electricity suppliers. Two of the plan’s major proponents, Senate Majority Leader Catherine Pugh (D-Baltimore) and Delegate Dereck Davis (D-Prince George’s), announced the plan during a press conference alongside a diverse base of supporters, including small businesses, community colleges, climate advocates, and job training leaders. Senator Pugh and Delegate Davis are also joined by bipartisan co-sponsorship from Senator Brian Feldman and Delegate Bill Frick of Montgomery County, who initiated legislation to expand Maryland’s RPS earlier this year. As 2015 comes to a close, Delegate Davis asserted that “2016 is the year to pass this ‘Clean Jobs Act’ for Maryland.”

The proposed workforce development plan within the larger RPS bill will source $40 million from unallocated contributions from Maryland’s Strategic Energy Investment Fund. If passed, the Act will create an estimated 2,000 additional clean energy jobs and further contribute to the rapidly-growing Maryland renewable energy sector. The state’s solar industry already supports over 3,000 workers, and the industry is expected to add 750 more jobs this year. Collectively, state policies addressing climate change are projected to generate 26,000 to 33,000 new jobs and increase wages by tens of billions of dollars by 2020.

In addition to addressing the state’s economic needs, the bill helps Maryland to address climate change with clean energy, while improving air quality and reducing greenhouse gas emissions. The RPS increase will create financial incentives to add approximately 1,300 Megawatts (MW) of clean energy by 2020. Decreasing solar and wind prices and the potential for utilizing untapped energy assets will help facilitate the achievement of this goal. The announcement of the plan follows a positive report from the Department of the Environment that Maryland is well on its way to meeting its existing goals, and broad support from faith, labor, social justice and environmental constituencies bolsters public support for the new plan.

“I’m proud to sponsor this legislation because addressing climate change and improving our economy go hand-in-hand,” said Sen. Feldman. “It’s time to lock in Maryland as a leader in both.”

Posted in Maryland, SREC Markets | Comments Off on Maryland Lawmakers Propose Increase to Renewable Portfolio Standard

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