Archive for the ‘Massachusetts’ Category

Massachusetts Solar Credit Clearinghouse Auction – Summer 2016

Posted July 7th, 2016 by SRECTrade.

On July 6th, the Commonwealth of Massachusetts Department of Energy Resources (DOER) announced that EnerNOC Inc. has posted the Auction Notice and Qualification Application for this year’s Solar Credit Clearinghouse Auction (SCCA) to the Solar Renewable Energy Credits (SREC-I and SREC-II) Auction Announcement Website. The SCCA serves as a price support mechanism for the Massachusetts SREC programs. In over-supplied years (when more SRECs are available than required), buyers are incentivized to purchase SRECs through the SCCA, if they believe that the SCCA price is at or below the potential future price of the SRECs. You can read more about the SCCA here. The 2016 SCCA is scheduled to begin on Friday, July 29th.

SREC Volume

This year, the DOER will conduct Solar Credit Clearinghouse Auctions for both SREC-I and SREC-II certificates. The volumes of certificates available for purchase through each auction are as follows:

MA15 SREC-I: 1,898 certificates
MA15 SREC-II: 66,440 certificates

Multi-tiered Auction

The auction will be divided into two tiers of bidders. The Tier I bidders will consist solely of Retail Electric Suppliers with Renewable Portfolio Standard (RPS) compliance obligations. Up to fifty percent (50%) of the total auction volume will be reserved for Tier I bidders. If bid demand exceeds fifty percent (50%) of the total auction quantity, awards will be made on a pro-rata basis. If there is insufficient demand, each bid received will be awarded and the remaining quantity of SREC-I and SREC-IIs will be made available to Tier II bidders. Tier II bidders consist of all entities, including any Tier I bidders with unfulfilled bids from Tier I. The remaining auction quantity after the Tier I awards have been made will be allocated on a pro rata basis to all Tier II Bidders, as has been done in all prior auctions.

Minimum and Maximum Financial Security Requirements

The separation of Retail Electric Suppliers from Non-Retail Suppliers also stands in the auction’s Minimum and Maximum Financial Security Requirements. For only the SREC-II Auction, all Non-Retail Electric Suppliers without RPS compliance obligations must post at least $10,000 in financial security to participate in the SREC-II Auction. For both the SREC-I and SREC-II Auctions, Retail Electric Suppliers with RPS compliance obligations will be credited an amount of security commensurate with the volume of electric load that they served in 2015. Both Retail Electric Suppliers posting above their credited security and Non-Retail Electric Suppliers without RPS compliance obligations can post an amount no greater than the amount required to purchase ten percent (10%) of the total auction volume. Non-Retail Electric Suppliers in the Commonwealth of Massachusetts without RPS compliance obligations cannot bid on and will not be awarded SREC-I or SREC-IIs in excess of ten percent (10%) of the total auction volume.

Key Dates & Bidder Webinar Registration

Friday, July 8, 2016 – Bidder webinar to review auction process and the Qualification Application
To register for the webinar, click here.
Wednesday July 13, 2016 – Bidder Qualification Application due
Friday, July 29, 2016 – First auction takes place

Questions regarding the SCCA can be directed to the Auction Manager email account at: masrecauctionmanager@enernoc.com.

Tags: Clearinghouse Auction, DOER, SCCA
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Massachusetts SREC-II Emergency Regulation Promulgated

Posted July 5th, 2016 by SRECTrade.

On April 8th, the Massachusetts Department of Energy Resources (DOER) filed an Emergency Regulation with the Secretary of the Commonwealth to extend the SREC-II program listed under 225 CMR 14.00. Following this announcement, a public hearing was held to welcome comments on the proposed changes to SREC-II. After reviewing all submitted written comments and oral testimony, the DOER made the following modifications to the Emergency Regulation and filed the final version with the Secretary of the Commonwealth on June 17th. As of July 1st, 2016, the final version of the regulation is officially promulgated and in effect.

Below is a summary of changes made in the final Emergency Regulation:

1. Extension beyond January 8, 2017.

The first change is an extension beyond January 8, 2017 for projects that can demonstrate 50% of their construction costs have been spent by that date. The extension is similar to a regulatory provision that was part of the transition between SREC-I and SREC-II. In response to comments requesting an extension, the DOER made changes to the regulation that will allow for all projects that can demonstrate 50% of construction costs have been expended by January 8, 2017, to receive a four month extension to their construction deadline through May 8, 2017. A Guideline clarifying the process by which projects will be required to document these expenditures will be issued by DOER later this year.

2. Reducing SREC Factors.

The second modification to SREC-II consists of reducing SREC Factors for any projects qualified under an extension to the program. In an effort to reduce the cost impact of any further expansion, the DOER made changes to the regulation such that all systems with a “nameplate capacity equal to or less than 25 kW and receives an authorization to interconnect after January 8, 2017 or that qualifies for an extension under 225 CMR 14.05(9)(s)4.a will receive a lower SREC Factor…”. The DOER will revise the SREC Factor Guideline to reduce SREC Factors for these projects on or before August 31, 2016.

3. Technical Edits and Clarifications.

The final change to SREC-II includes technical edits and clarifications. The DOER made several changes correcting minor technical errors and language inconsistencies in the regulation.

In the same announcement, the DOER reported that it will be conducting Solar Credit Clearinghouse Auctions for both the SREC-I and SREC-II programs this summer. The DOER will make a separate announcement with more details and details regarding the volume of certificates deposited into each auction account sometime this week.

To view the original email from the MA DOER, click here.

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MA Department of Public Utilities Clarifies Net Metering Regulation

Posted May 25th, 2016 by SRECTrade.

Please note this blog post has been revised from the original May 24, 2016 post.

On Wednesday, May 18th, the Massachusetts Department of Energy Resources (DOER) notified the Department of Public Utilities (DPU) of its intent to file its determination that the 1,600 Megawatt (MW) threshold will be met on or about June 1, 2016 and requested that the DPU clarify whether facilities with private cap allocations on or before the “Notification Date” will receive the current net metering credits or the new Market Net Metering Credits. Under the recently enacted Chapter 75 of the Acts of 2016, this determination sets into motion DPU’s charge to establish a “Notification Date”, which will serve as a deadline for systems that are under the private net metering cap to be interconnected or allocated under the cap in order to receive the current net metering credits. Furthermore, the DOER requested that the DPU clarify its Emergency Net Metering Regulations and assure those facilities in receipt of net metering cap allocations on or before the Notification Date that their projects will receive net metering credits at current rates and will not receive Market Net Metering Credits (which are effectively equal to 60 percent of the retail rate). Prior to the DOER’s request, the uncertainty around the Notification Date deadline left private-cap projects in advanced stages of construction at risk of receiving Market Net Metering Credits if they failed to be interconnected by the Notification Date, creating project financing concerns.

In its May 19th Order Clarifying Emergency Net Metering Regulations, the DPU formally recognized that systems obtaining a private net metering cap allocation are “on the path toward interconnection”, since these allocations are assurances that a system will receive net metering services upon authorization to interconnect. In clarifying its policy on net metering credit eligibility, the DPU extended retail rate credit eligibility for projects that receive a private cap allocation by the Notification Date, even if those projects are not yet interconnected. Resultantly, for the duration of the Emergency Net Metering Regulations, Solar Net Metering Facilities that are interconnected or in receipt of a private cap allocation from the System of Assurance by the Notification Date shall receive retail rate net metering credits (that is, Net Metering Credits as defined in 220 C.M.R. § 18.04(1) and (5)).

This interpretation of eligibility will remain in effect only for the effective period of the Emergency Net Metering Regulations, and it is highly probable that the Notification Deadline will be set by the DPU for a date later than June 1, 2016. Following notice by the DOER that the 1,600 MW cap has been allocated, the DPU will solicit comments on the Emergency Net Metering Regulations and related issues, conduct a public hearing, and enact Final Net Metering Regulations effective July 29, 2016. Accordingly, it is possible that the Notification Deadline will be set as July 29, 2016 or possibly later than this date.

In accordance with the Order, facilities under the private net metering cap that fail to meet the Notification Date deadline will receive Market Net Metering Credits. Residential projects 10 kW and smaller on single-phase circuits, or systems under 25 kW on 3-phase circuits, will be exempt from the new rate structure under Sections 7 and 8 of the Act and are guaranteed retail remuneration rates. To be clear, facilities under the public net metering cap will continue to receive net metering credits at the current rates and will not be impacted by this Notification Deadline. For more information on current net metering and other solar legislation in Massachusetts, please visit our previous blog post on the topic here.

Tags: DOER, DPU, MA, Massachusetts, Net Metering
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Massachusetts Raises Caps; Passes Net Energy Metering Bill

Posted April 17th, 2016 by SRECTrade.

On April 11, Governor Baker signed into law Chapter 75 of the Acts of 2016. The law, which was passed with an emergency preamble to have immediate effect, raises the net metering cap by 3% for private and public solar projects and will reduce the current retail remuneration rate to the wholesale rate for commercial and community solar projects once the state hits its 1600 MW solar target. Residential projects 10 kW and smaller on single-phase circuits, or systems under 25 kW on 3-phase circuits, will be exempt from the new rates under Sections 7 and 8 of the Act. Finally, the Act will permit utilities to charge solar project owners a minimum bill to cover their fixed costs.

The immediate effect of the Act will enable the stalled solar industry in Massachusetts to restart in the short term, but the Act is far from a comprehensive solution to establishing long-term, sustainable policies for solar in the Commonwealth. With the new cap estimated to be reached in some territories within a few weeks, the pressure remains on the Legislature to continue discussions on the future of solar in the state.

The Act is the result of compromise between and among the Senate, the House of Representatives, and Governor Baker. Following an impasse of the chambers’ and Governor’s respective bills last summer and into the fall, the Legislature was able to reconcile H.4173 and S.1979, passing the bill in each chamber with nearly unanimous approval. The lone “Nay” was asserted by Rep. Jonathan Hecht (D), who voiced his worry that devaluing net metering credits was a step in the wrong direction for the Commonwealth. “I’m afraid if we do lower net metering rates by that large amount, it means many solar projects simply will not get built[]”, Hecht said.

With the devaluation of net metering rates, stakeholders will expect the value to be made up elsewhere to ensure the financial viability of solar projects. Following the SREC-II Emergency Regulations issued by the DOER last week, it is clear that the DOER is working on the next phase of the state’s solar incentive program to fulfill their obligations under Section 11 of the Act. Sustainable Energy Advantage, LLC (SEA) has been engaged to assist in conducting analysis in evaluation of the next program, and stakeholders will have the opportunity to participate in the design and implementation of the next phase of the program.

Thanks in large part to the state’s net metering policies, former Governor Patrick setting the state’s 1,600 MW target, and the successful SREC-I and SREC-II programs, the robust Massachusetts solar industry now employs more than 15,100 people. Today, the state ranks sixth in installed solar capacity, with more than 1,020 MW of solar installed.

Tags: Massachusetts, Net Metering, net metering cap
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Massachusetts SREC-II Emergency Regulation Filed: April 8, 2016

Posted April 11th, 2016 by SRECTrade.

On Friday, April 8, 2016 (the effective date), the Massachusetts Department of Energy Resources (MA DOER) announced it filed emergency regulation with the Secretary of State’s office. The regulation was submitted to address the current uncertainty in the solar industry and facilitate a smooth transition from SREC-II to the next incentive program. Although this emergency regulation is effective immediately, it can only remain in effect for 90 days pending a full DOER rule-making proceeding. Information on next steps in the emergency regulation process is still forthcoming, including public hearings and public comment submission deadlines.

Notably, the emergency regulation implements the following:

Extends SREC-II eligibility to all systems greater than 25 kW constructed by January 8, 2017; 9 months from the effective date
Extends SREC-II eligibility to all systems less than or equal to 25 kW interconnected by the start of the next incentive program
Implements compliance exemption for all electricity supply contracts signed within 30 days of the effective date
Ensures SREC-II will run through 2027

In regard to systems greater than 25 kW, the emergency regulation grants Statements of Qualification dated April 8, 2016, to all systems that have an existing Assurance of Qualification or that have submitted an application. The retention of granted Statements of Qualification is dependent on systems demonstrating (1) authorization to interconnect or (2) proof of construction to the DOER by January 8, 2017.

Reiterating the note above, in regard to systems less than or equal to 25 kW, all applications that demonstrate authorization to interconnect by the start of the next incentive program will be qualified under the SREC-II program.

In close, the DOER noted that development of the Commonwealth’s next solar energy incentive program is underway. Sustainable Energy Advantage, LLC (SEA) has been engaged to assist in conducting analysis in evaluation of the next program. Additionally, the DOER will work with market participants to solicit feedback as the program is designed and implemented.

SRECTrade will continue to monitor the status of the emergency regulation and provide updates regarding the future of Massachusetts’s next solar incentive program. We look forward to watching the state continue to structure competitive market based solutions, similar to those previously utilized, to continue its position as a national leader of deploying distributed solar technologies.

Tags: Capacity, MA, Massachusetts, SREC II
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End of the line in sight for Massachusetts 2015

Posted March 21st, 2016 by SRECTrade.

On April 15, 2016 the last SRECs of Calendar Year 2015 will be issued for Massachusetts. With the policy climate in flux, it’s important to recall where the market stands for 2015. In short: SREC-I may be slightly oversupplied at ~4.4% to under supplied by ~24.9%. SREC-II is oversupplied by ~65.8%.

Oversupplied or under supplied for MA15 SREC-I?

It is possible the market could be slightly oversupplied. This would be the case if all 2015 issued, 2014 banked, 2014 Solar Credit Clearinghouse Auction (SCCA) re-minted, and 2013 SCCA re-minted SRECs were used towards 2015 compliance. Additionally, compliance entities would have to forgo banking any 2015 vintage SRECs for use in 2016 (i.e. up to 10% of the compliance obligation can be banked for future use).

It is possible the market could be under supplied. This would be the case if not all of the 2014 banked, 2014 SCCA re-minted, and 2013 SCCA re-minted SRECs were used towards 2015 compliance, but some were carried forward for 2016 compliance. This is certainly a possibility as many compliance entities may have purchased 2013 and/or 2014 SCCA SRECs with the intention of using them towards compliance in 2015 and/or 2016. Since the SCCA SRECs could be purchased at a fixed priced of $300, it would have been advantageous for a compliance buyer to buy the less expensive SRECs in the SCCA versus paying 2015 or 2016 market prices.

Why is MA15 SREC-II more straightforward?

The last compliance year, 2014, for MA SREC-II was the first year of the SREC-II program. The compliance period was under supplied and as a result no SRECs were deposited into the SCCA. This is why no volumes from prior periods are impacting the SREC-II estimated oversupply.

Current Pricing

As of late, the MA SREC market has experienced less demand for MA2015 SREC-Is and IIs as many compliance buyers have finalized their needs for the year. Note, all SREC retirements need to be made by June 15, 2016. As a result, bid activity has been less frequent and pricing has fallen with MA15 SREC-Is most recently bid $460 and MA15 SREC-IIs most recently bid $262.50.

*Source: NEPOOL GIS. Q4 2015 SRECs issued based on MA DOER installed capacity information and SRECTrade estimates.

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Massachusetts SREC-II Solar Capacity Update: March 14, 2016

Posted March 14th, 2016 by SRECTrade.

On Monday, March 14th, the Massachusetts Department of Energy Resources (DOER) provided another update to the list of SREC-II Qualified Generation Units. Notably, the DOER announced that 15.6 Megawatts (MW) of capacity remains available under the SREC-II program for systems equal to or less than 25 kW DC.

SRECTrade will continue to monitor the current status of the program and provide updates on applications as they become available. As previously announced, on February 5, 2016, the SREC-II program reached its cap for projects greater than 25 kW.

A summary of the current status report can be found below:

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Massachusetts SREC-II Update: March 3, 2016

Posted March 3rd, 2016 by SRECTrade.

On March 3, 2016, SRECTrade hosted a webinar on MA SREC-II. The Webinar included an update on the following:

Program Overview
Current Status of SREC-II
Application Process Review
Program Outlook

For access to the slides, please click HERE.

For access to a video recording of the webinar, please click the image below:

This document and recording is protected by copyright laws and contains material proprietary to SRECTrade, Inc. It or any components may not be reproduced, republished, distributed, transmitted, displayed, broadcast or otherwise exploited in any manner without the express prior written permission of SRECTrade, Inc. The receipt or possession of this document does not convey any rights to reproduce, disclose, or distribute its contents, or to manufacture, use, or sell anything that it may describe, in whole or in part. If consent to use these materials is granted, a link to the current version of this document on the SRECTrade website must be included for reference.

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Massachusetts Net-metering & SREC Policy discussion with UBS Analyst, Julien Dumoulin-Smith

Posted March 1st, 2016 by SRECTrade.

On Friday, February 26, 2016 UBS Analyst Julien Dumoulin-Smith hosted Allyson Browne and Alex Sheets for a discussion on the current state of affairs in Massachusetts regarding solar policy. The slides are available here. The recording is below:

UPDATE: UBS published a transcript of the call.

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MA SREC-II Update Webinar

Posted March 1st, 2016 by SRECTrade.

SRECTrade will be hosting a webinar this Thursday, March 3rd, at 1:00PM EST. The webinar will cover the current state of the Massachusetts SREC-II program, guidelines for qualifying systems under SREC-II, and general market information.

To attend the webinar click HERE to register. A recording will be made available on our blog for those unable to attend.

Please note, we are currently accepting SREC-II online applications on SRECTrade.com and will continue submitting them to the Massachusetts Department of Energy Resources (DOER) in the order they are received. SRECTrade encourages you to submit complete applications for your system as soon as possible, for the best chance of getting enrolled in the remaining SREC-II capacity. Applications submitted to SRECTrade are not guaranteed to be qualified under the SREC-II program due to the rapidly diminishing capacity remaining in the program.

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