NJ BPU Issues Order Effecting 10-Year SREC Eligibility

Posted October 29th, 2018 by SRECTrade.

Earlier today, the New Jersey Board of Public Utilities (BPU) issued an order to clarify that all SREC applications submitted after October 29, 2018 will only receive 10 years of SREC eligibility.

This order means that all New Jersey Office of Clean Energy SREC Registration Program (SRP) applications submitted after 11:59pm ET today will be subject to 10 years of SREC eligibility instead of 15 years.

Please also note that applications received by the BPU for conditional certification pursuant to Subsection T prior to today’s deadline that fulfill all conditions established by the BPU shall receive 15-year SREC eligibility.

Since the May 23rd passage of Assembly Bill 3723 (AB-3723) and Senate Bill 2314 (SB-2314) to increase the state’s Renewable Portfolio Standard (RPS) requirements, there had been some confusion regarding when the effective date took place for the new 10-year eligibility period. Today’s NJ BPU order clarifies that confusion.

Tags: Board of Public Utilities, BPU, New Jersey, NJ
Posted in New Jersey, SREC Markets |

Illinois Adjustable Block Program Update

Posted October 22nd, 2018 by SRECTrade.

SRECTrade has been closely monitoring the development of the Illinois Adjustable Block Program (ABP) since the release of the draft Long-Term Renewable Resources Procurement Plan (LTRRPP). SRECTrade will be applying for the Approved Vendor role in the ABP on November 1st.

Below is a summary presentation of many high-level ABP parameters. Please note that many of the parameters described within are still subject to change and are in the process of being finalized.

Adjustable Block Program Overview – October 18, 2018

Please also see the table below for the final ABP REC prices that were released in the June 4, 2018 Appendix D ‐ REC Pricing Model Description.

SRECTrade will provide updates on additional ABP developments as the ABP parameters and on-boarding processes are finalized.

Tags: ABP, Adjustable Block Program, IL, Illinois
Posted in Illinois, SREC Markets |

Massachusetts DOER Announces SMART Program Effective Date

Posted October 12th, 2018 by SRECTrade.

November 30, 2018 Update: Due to this email from the Massachusetts Department of Energy Resources (DOER) on October 12, 2018, SRECTrade had been operating under the premise that facilities larger than 25 kW DC could submit their SQA and mechanically complete documentation “by no later than December 10, 2018”. It has been brought to our attention that the mechanically complete extension applications for facilities larger than 25 kW DC had to have submitted an SQA application by November 26, 2018.

The December 10th deadline is for the mechanically complete document to be added to the existing SQA.

SRECTrade recommends that all affected facilities submit their SMART Initial Application Period applications by 11:59pm ET tonight, November 30th.

On Friday, October 12th, the Massachusetts Department of Energy Resources (DOER) announced that the Solar Massachusetts Renewable Target (SMART) Program effective date is November 26, 2018. November 26th is now the deadline for facilities larger than 25 kW DC to become mechanically complete and for facilities smaller than or equal to 25 kW DC to receive their Permission to Operate (PTO). On November 26th, at 12:00pm ET, the SMART Statement of Qualification application portal will open to begin accepting Statement of Qualification Applications for prospective Solar Tariff Generation Units (“STGU”) seeking to qualify under SMART.

Facilities larger than 25 kW DC will have until December 10, 2018 to submit their documentation demonstrating mechanical completion. Once granted, mechanically complete extensions are indefinite; facilities should simply submit their Permission to Operate (PTO) documents once received to complete their statement of qualification application. As a reminder, facilities can demonstrate mechanical completion by submitting one of the following documents:

Certificate of Completion
Proof that a wiring inspection has been scheduled by a date shortly after November 26, 2018
Affidavit signed by engineer of record stating that project is “mechanically complete”
Other documentation deemed satisfactory by DOER

Facilities smaller than or equal to 25 kW DC will have until February 15, 2019 to submit an application demonstrating authorization to interconnect. In other words, the PTO must be dated on or before November 26, 2018, but the DOER application can be submitted up through February 15, 2019.

Please note that SRECTrade typically asks for complete applications to be received five (5) business days in advance in order to guarantee submission by the DOER deadline.

Tags: DOER, Effective Date, MA, Massachusetts, SMART, SREC II
Posted in Massachusetts, SREC Markets |

SRECTrade to speak at REM 2018 – October 10, 2018

Posted October 8th, 2018 by SRECTrade.

SRECTrade’s CEO, Steven Eisenberg, will be moderating a panel at the Renewable Energy Markets (REM) conference on Wednesday, October 10th in Houston, TX. The panel, Scaling Up Solar, will be from 10:45 a.m. – 11:45 a.m. (CT). Solar veterans will discuss their recent experiences navigating the solar market and what is in store in the near future as solar establishes itself as a mainstay in the energy markets.

Panelists include:
Tom Hunt, Clean Energy Collective
Wade Hughes, Sacramento Municipal Utility District (SMUD)
Eva Molnar, Southern California Edison (SCE)
Matt Beasley, Silicon Ranch

A full conference agenda can be found here.

Posted in SREC Markets |

Massachusetts DOER Schedules SMART Information Sessions and Clarifies SREC-II Transition Status

Posted October 1st, 2018 by SRECTrade.

On September 26th, the Massachusetts Department of Public Utilities (DPU) issued an order approving the model Solar Massachusetts Renewable Target (SMART) Program. This action is the final regulatory step in launching the program and initiates the transition from the Solar Carve-Out II (SREC-II) Program to SMART.

Notably, on October 1st, the Massachusetts Department of Energy Resources (DOER) clarified that the SMART Program Effective Date remains to be determined and that the SREC-II application window is still open. The DOER also announced a series of stakeholder meetings later this month to provide additional information on SMART requirements and the program transition process.

SRECTrade strongly encourages stakeholders seeking to enroll their solar projects in SREC-II to obtain Permission to Operate or mechanical completion for their projects as soon as possible. As a reminder, the SMART Program Effective Date will be the deadline for projects smaller than or equal to 25 kW DC to obtain Permission to Operate and the deadline for projects larger than 25 kW DC to achieve mechanical completion. SRECTrade will continue to provide significant updates as they become available.

Tags: MA, Massachusetts, SMART, Solar carve-out II, SREC II
Posted in Massachusetts, SREC Markets |

New Jersey SREC Market Update

Posted September 27th, 2018 by SRECTrade.

In May 2018, New Jersey Governor Phil Murphy signed Assembly Bill 3723 (AB-3723) and Senate Bill 2314 (SB-2314). The bill increased the state’s overall RPS requirements to 50% by 2030. Specific to the solar carve-out, the legislation increased NJ’s solar requirements to 5.1% by energy year 2021 and decreased the Solar Alternative Compliance (SACP). Pursuant to the bill, the Board of Public Utilities is currently working to adopt rules to close the market to new applications upon the attainment of the revised 5.1% requirement (i.e. the reporting year 2021, 2022, and 2023 requirement which declines thereafter beginning in 2024). Additionally, the board is working to complete a study to evaluate the implementation of the state’s next solar incentive program.

Solar build rates have remained steady over the last twelve months (LTM). Average LTM monthly build rates increased from 26.9 MW/month in April 2018 to 27.2 MW/month in August 2018. Installed solar over the last six months (LSM) declined 5.5% as compared to the last twelve month average build rate, shown in our analysis. While the total build in the last three months ending in July 2018 did increase by 46.9% compared to the three months ending in April 2018, much of this can be contributed to seasonality. The last three month build rate ending in July 2018 only increased by 3.4% as compared to the same three months in 2017.

For full market update presentation click here.

Using reporting year 2017 retail sales of 75,031,955 MWh and an LTM build rate of 27.2 MW/month, we anticipate a relatively balanced market in NJ2019 with a marginal oversupply of approximately 4.0%. This includes an estimated banked SREC volume of 294,734 after NJ2018 compliance filings are completed (NJ2018 compliance filings are just about to be finalized). These figures are based on the new solar RPS requirements as passed.

Projecting out further under three build rate scenarios, 75%, 100%, and 150% of LTM average build rates, we see the market relatively well balanced in NJ2019 and under-supplied in NJ2020, barring any substantial increase in sustained monthly build. In NJ2021, the market will remain under-supplied to balanced in our first 2 scenarios and oversupplied in our 3rd build scenario (i.e. 40.9 MW/month).

Recent pricing in the spot market for NJ2019 SRECs has remained strong, with bids ranging between $210 and $225 throughout Q3 2018. Additionally, bids for the NJ2020 and NJ2021 vintages have been indicatively $205 and $170, respectively, as of late.

Please feel free to contact us with any questions or if we can be of assistance with any SREC management and transaction services.

Posted in New Jersey, SREC Markets |

SRECTrade to present at Solar Power International 2018

Posted September 21st, 2018 by SRECTrade.

Heading to Solar Power International (SPI) 2018 this year? Come visit the SRECTrade team! SRECTrade’s CEO, Steven Eisenberg, and CTO, Lewis Wagner, were selected to present at this year’s poster reception. The reception will be held on Tuesday, September 25th from 5-6 p.m. on the trade show floor.

Steven and Lewis will be presenting a poster entitled “Scaling up the Incentive Markets to Unlock Innovation and Value”.

Posted in SREC Markets |

Massachusetts DOER Announces Final 2019 SREC Minimum Standards

Posted August 31st, 2018 by SRECTrade.

Update: On Wednesday, September 5th, the MA Department of Energy Resources (DOER) made some small corrections to the previously announced final 2019 Solar Carve-out (SREC-I) and Solar Carve-out II (SREC-II) Compliance Obligations and Minimum Standards. The corrections were made to also include a small number of SRECs that the DOER approved to be transferred into the SREC-I and SREC-II auction accounts between the DOER’s preliminary minimum standard announcement in July and its final minimum standard announcement in August. The original post has been edited to reflect the corrections.

On Thursday, August 30th, the DOER announced the final 2019 SREC-I and SREC-II Compliance Obligations and Minimum Standards. This announcement follows the results of the SREC-I and SREC-II Solar Credit Clearinghouse Auctions. The final announcement differs only slightly from the preliminary announcement in July.

Solar Carve-out (SREC-I)

The DOER has determined that the 2019 Compliance Obligation for the SREC-I program will be 797,674 MWh and that the Minimum Standard will be 1.7446%. The 2019 Minimum Standard for load under contracts signed before June 28, 2013 will be 1.0967%. The Determination of the CY 2019 Total Compliance Obligation and Minimum Standard, published by the DOER, outlines how this Minimum Standard was calculated.

Solar Carve-out II (SREC-II)

The DOER has also calculated the 2019 Compliance Obligation and Minimum Standard for the SREC-II program, which are 1,060,524 MWh and 2.3195%, respectively.

In addition, the DOER calculated the 2019 SREC-II Compliance Obligation and Minimum Standard for load under contracts signed after May 8, 2016 as 1,789,567 MWh and 3.9139%, respectively. The final SREC-II baseline Compliance Obligation and Minimum Standard are slightly lower than their preliminary counterparts, primarily due to two reasons:

A reduction in the average capacity factor applied to estimated generation from 13.64% to 13.35% (using eight years of Massachusetts Production Tracking System production data)
An improvement to the SREC-II production estimation formula to account for the loss of partial MWhs left over after a reporting period, since these partial MWhs do not result in the creation of partial SREC-IIs

The adjustment to the SREC-II production estimation formula decreased the projected number of SREC-IIs to be generated by over 36,000 MWh.

Tags: Compliance Obligation, Department of Energy Resources, DOER, MA, Massachusetts, minimum standard
Posted in Massachusetts, SREC Markets |

MA 2017 Solar Credit Clearinghouse Auction Result Announcement

Posted July 26th, 2018 by SRECTrade.

On July 26, 2018, the Massachusetts Department of Energy Resources (DOER) announced that all of the MA2017 SREC Is and SREC IIs submitted to the auction account were transacted in the first round of the Solar Credit Clearinghouse Auction (SCCA).

A total volume of 16,812 SREC Is were bid on across 21 unique bidders, creating more than sufficient demand to clear the available auction volume of 1,520 SREC Is.

A total volume of 74,813 SREC IIs were bid on across 16 unique bidders, creating more than sufficient demand to clear the available auction volume of 12,071 SREC IIs.

DOER and EnerNOC are in the process of certifying and finalizing the auction results. More information will be made available on the SCCA auction page in the coming weeks.

If SRECTrade submitted SRECs to the SCCA on your behalf, we will provide further notice on the status of your transaction once the DOER and EnerNOC provide us with finalized auction results.

Posted in Massachusetts, SREC Markets |

Massachusetts DOER Announces Revised 2018 and Preliminary 2019 SREC Minimum Standards

Posted July 10th, 2018 by SRECTrade.

On July 10, 2018, the Massachusetts Department of Energy Resources (DOER) announced both preliminary 2019 SREC I and SREC II Minimum Standards and a revised version of the original 2018 SREC II Minimum Standard calculation. The 2018 SREC II Minimum Standards were reduced from 2.7802% to 2.6823% for load executed under contract between April 25, 2014 and May 8, 2016 and from 4.1661% to 4.0683% for contracts executed after May 8, 2016.

The DOER estimates a 2019 SREC I Minimum Standard of 1.1189% for load executed under contract prior to June 28, 2013 and, if the auction clears in the first or second round, 1.7809% for load executed under contract on or after June 28, 2013.

The DOER estimates a 2019 SREC II Minimum Standard of 2.3680% for load executed under contract between April 25, 2014 and May 8, 2016, and 3.9697% for load executed under contract on or after May 8, 2016. This also only applies if the auction clears the first or second round.

Details regarding this announcement can be found here. SRECTrade will be assessing the implications of this adjustment and informing our constituents accordingly.

Tags: MA, Massachusetts
Posted in Massachusetts, SREC Markets |