Archive for the ‘SREC Markets’ Category

DOER Commissioner Mark Sylvia’s SREC-II Preview

Posted December 20th, 2013 by SRECTrade.

The Massachusetts SREC market is in the process of switching from the existing SREC-I program to a yet to be officially proposed SREC-II program. At a meeting held on Friday, 12/13/2013, Mark Sylvia, the Commissioner of the Massachusetts Department of Energy Resources (DOER), presented a preview of some items we should expect to find in the DOER’s official SREC-II proposal.

In August 2013, the DOER presented a draft proposal for the SREC-II program with the intention to incorporate feedback from stakeholder groups before presenting a final proposal sometime by the end of 2013. Now that 2013 is nearly done, it’s likely that the formal proposal will not emerge until early January 2014. Once the SREC-II proposal is issued there are several regulatory hoops that the proposal must go through before the program can be put in place. We blogged about the SREC-II implementation timeline in a previous post here and expect the process to take 100 days or more.

Key items learned from Mark Sylvia’s presentation

Items that have not changed from the draft proposal

1) SREC factors and Market Sectors – Depending on project size and other considerations projects will be able to produce SRECs at different rates. Smaller projects receive more SRECs on a per MW-hr basis than larger projects. For example, a residential project will receive 1 SREC for every MW-hr produced, whereas a landfill sited project might receive 0.8 SRECs per MW-hr. SREC factor will be determined by Market Sectors as described below.

2) Declining Solar Credit Clearinghouse Auction (SCCA) pricing and Alternative Compliance Payment (ACP) rates – The SCCA is the MA market’s price floor mechanism. In SREC-I the SCCA is fixed at a price of $300/SREC, but the SCCA will drop from $300 to $285 starting in 2017 and then drop again on a yearly basis with SREC-II. The SREC-II ACP rate will start at $375 in 2014 and 2015 and decline, beginning in 2016, as shown in the table below.

Items that HAVE changed from the draft proposal

1) No Forward SREC Minting

Originally the DOER proposed that residential projects should be eligible to create 10 years worth of SRECs at the onset of a project. This provision was removed, presumably amid concerns about how to properly track and incentivize SREC production after the upfront issuance and payment is made.

2) No Competitive SREC Factor

All projects are to be assigned fixed SREC factors determined by Market Sector. In the DOER’s draft proposal, projects under the Managed Growth Market Sector (>500 kW and less than 67% on site electricity usage) would competitively offer for a spot to be eligible for the SREC-II program by adjusting the SREC factor. Projects with the lowest SREC factors would be given a spot in the eligible projects queue. This is no longer the case.

3) New Grant Program for Directly Owned Residential Facilities

The Commonwealth Solar II grant program will stay in place until another $30 million program can be implemented using Alternative Compliance Payment (ACP) funds to support direct ownership. Presumably 3rd party leasing / PPA entities will not be able utilize the funds. It was previously expected that the current grant program would end with the sunset of SREC-I.

How Much Longer?

In-line with our expectations, the presentation announced the RPS revisions for SREC-II should be filed any day. A public hearing and comment period will follow as well as committee review processes. The DOER projects that the rules will become effective by the end of Q1 2014. We will continue to keep a close eye on the rule making process and provide updates as they are available.

Tags: Mark Sylvia, SREC II
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MA DOER Posts SREC-I Project Extension Guidelines

Posted November 15th, 2013 by SRECTrade.

On November 14, 2013, the Massachusetts Department of Energy Resources (DOER) posted the official, final project eligibility extension guidelines for SREC-I (current SREC program) qualified projects >100 kW in size.*

The official extension guidelines can be found here and the DOER’s email announcing the guidelines can be found here. Without an extension, the deadline for installing SREC-I eligible projects >100 kW is December 31, 2013. Projects are eligible for an extension if they can prove they have incurred 50% of the cost to construct by 12/31/2013. Extension forms must be filed with the DOER no later than January 13, 2014.

*Projects less than or equal to 100 kW DC in capacity do not need to file for an extension. These projects are eligible for SREC-I provided that they can prove interconnection and have submitted complete program Statement of Qualification Applications (SQA) by the day before the effective date of the start of the SREC-II program. It is expected that the effective date of SREC-II will likely occur sometime on or before the end of Q1 2014.

Tags: DOER, SREC extension
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Massachusetts Webinar Recording – Presented by SRECTrade and Mike Judge of DOER

Posted November 14th, 2013 by SRECTrade.

SRECTrade and Mike Judge of the DOER present the current status of the Massachusetts SREC-I program. Additionally the webinar covers the regulatory process that the SREC-II program proposal must udergo before the SREC-II program may start. The webinar recording can be watched by clicking the image below.

Tags: Mike Judge, SREC II, SREC-I
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Massachusetts SREC-I and SREC-II program updates

Posted November 5th, 2013 by SRECTrade.

The eagerly awaited MA SREC-II program promises to keep the MA solar industry in over-drive, but when will it start and what happens between now and then? We’ve previously noted in our blog and bulletin emails sent to installers that moving forward SREC-I is separated into two applicant categories. There is still uncertainty about the SREC-II program design and timeline for its implementation, but we know that it may be implemented as early as Q1 2014.

SREC-I Projects 100 kW and Smaller

Projects 100 kW and smaller are eligible for the SREC-I program provided that they are installed and officially interconnected (permission to operate in hand) before the effective date of SREC-II. Our current understanding is that the effective date of SREC-II will likely be sometime after January 2014.

SREC-I Projects Larger than 100 kW

Projects eligible for SREC-I that are not fully interconnected by 12/31/13 must apply for an eligibility extension. Projects are eligible for extensions if they have spent at least 50% of the estimated project construction cost by 12/31/13.

SREC – I extension documents can be found here. Projects registered with SRECTrade should return these documents to us no later than Friday, 12/13/13 to guarantee that SRECTrade can send them to the DOER and confirm their acceptance.

SREC-II Is Still Not Official

We expect the DOER to formally propose the SREC-II program in early November 2013. Once this is done the proposal must undergo several formal review steps including a public comment period and legislative review period. Given these steps we anticipate that the review process will take 100 days or more. Assuming this timeline, the SREC-II program would be effective in February 2014.

Also, be aware that the formal proposal will likely include deviations from the DOER’s initial draft proposal that was submitted in August.

Here are the steps required prior to implementation of the SREC-II program.

Step #1 – File formal SREC-2 proposal with the MA Sec. of State

Step #2 – Hold Stakeholder Meeting in Boston (within 21 days of formal filing)

Step #3 – Assess public comments and post comments on DOER website

Step #4 – Submit Proposal to the Joint Committee on Telecommunications, Utilities, and Energy

Step #5 – Post to DOER website Joint Committee comments (30 days required)

Step #6 – Submit final draft to MA Sec. of State

Step #7- SREC-2 Program effective start (likely 14+ days after final submission to Sec. of State)

Tags: SREC II, SREC-I
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Massachusetts SREC Webinar, Thursday, 11/14 at 2 pm EST.

Posted November 5th, 2013 by SRECTrade.

SRECTrade will host a webinar covering the Massachusetts SREC market on Thursday, 11/14/2013 at 2 pm EST. Sign up for the webinar by clicking here or the image below.

What the Massachusetts SREC webinar will cover:

The close out of the SREC-I program
New SREC-II program rules and steps required for SREC-II to be implemented*
Current Massachusetts SREC supply analysis
Current Massachusetts SREC pricing

*UPDATE- November 12, 2013: It is unlikely that the DOER will formally propose SREC-II in time for Thursday’s webinar. The DOER is now targeting the end November to formally post the SREC-II proposal. We will still cover the timeline for implementing SREC-II once it is formally proposed.

Tags: SREC II, SREC-I
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Washington, DC Update: Community Net Metering Bill Passed by DC Council

Posted October 11th, 2013 by SRECTrade.

The D.C. Council voted to pass Community Solar legislation on October 1, 2013. First introduced on January 8, 2013 the Community Renewable Energy Act of 2013 (CREA), promises to lower the barrier for going solar and diversify solar market participants by allowing DC ratepayers to subscribe to power from solar facilities that are not located on their property using Virtual Net Metering. Similar legislation has been passed in states like Maine, California, Massachusetts, Vermont, and Colorado. The bill is expected to be signed by the Mayor later this month and will become effective sometime thereafter.

How this might impact Washington, DC SRECs

DC is currently the only under-supplied SREC market. Approximately 288 MW of solar capacity is required by 2023. The 2013 RPS requirement is approximately 49 MW of which only 28 MW have been registered to date in GATS. Currently DC SREC prices are the highest of any SREC market at $480/SREC in recent transactions. And yet, despite the very rich SREC incentive in the District, build rates have been subdued. By opening up the market to more participants it’s possible that build rates and SREC availability will increase at a faster rate, impacting SREC pricing.

Here’s what’s in the Community Renewable Energy Act of 2013

Community Energy Generating Facilities cannot be larger than 5 MW in capacity
There can be as few as 2 subscribers to the power produced from eligible facilities
Subscriptions cannot be for more than 120% of the subscriber’s 12 month electricity usage
Subscriber accounts can only be adjusted once a month
Utilities (Pepco) may be able to require all subscribers to be on the same billing cycle
The owner(s) of the Community Energy Generating Facility owns the rights to SRECs produced from the power
Power production will be tracked by a production meter installed by the Community Energy Generating Facility owner
In months where subscribers receive credit for more power than they consume the excess power will be credited towards the next month’s electric bill
Excess power credits at the end of the annual cycle (ends in April of each year) will be lost and reallocated to rate payers eligible for the District’s Low Income Housing Energy Assistance Program (LIHEAP)
Requires adoption of the Interstate Renewable Energy Council (IREC) interconnection standards within 6 months of the bill’s passage.
The District Department of Energy and the District Sustainable Energy Utility are required to develop a proposal within 6 months for an equitable and creative program for financing community net metering projects.

Tags: community net metering, Community Renewable Energy Act of 2013, CREA. virtual net metering
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MA Department of Energy Resources Update 9/27/13

Posted October 7th, 2013 by SRECTrade.

The Massachusetts Department of Energy Resources (DOER) sent out an email update on Friday, 9/27/13, covering the management of the SREC I program and the status of the DOER proprosal for an SREC II program. The email can be found here.

SREC I Project Deadline Extension Guidelines Drafted

Less than or Equal to 100 KW

Facilities 100 kW or smaller that have submitted a Statement of Qualification application must receive authorization to interconnect by the “effective date of a new solar carve-out program established by the Department, or by June 30, 2014, whichever is earlier.”*

*We had previously stated that systems 100 kW and smaller must be fully interconnected by December 31, 2013 in order to participate in the SREC I program.

Greater than 100 kW

Facilities greater than 100 kW may be installed no later than June 30, 2014 as long as they are demonstrably 50% complete by December 31, 2013.

The DOER is accepting comments on the draft guidelines through Monday, 10/7/2013. Comments may be sent to doer.srec@state.ma.us with the “Solar Construction Guideline Comments” in the Subject field. The DOER’s draft guidelines can be found here.

SREC II Technical Session

The DOER will hold a technical session on Monday, 10/7/2013 to discuss the SREC II proposal with a team of consultants that the DOER has employed to “conduct studies in support of the SREC II program design.” This team of consultants is charged with creating five reports in support of an SREC II program. Two of the five reports are published and available here.

Technical Session Details:

Monday, 10/7/2013 from 1-3 pm

Gardner Auditorium, Massachusetts State House

Boston, MA

2012 Solar Credit Clearinghouse “Last Chance Auction” SREC Purchase Results

Only three SRECs of the 38,863 SRECs deposited in the 2012 Solar Credit Clearinghouse Auction (SCCA) were purchased during the auction. Following the auction the DOER offered to purchase all available 2012 vintage SRECs for $285/SREC. The DOER announced that they purchased 36,437 SRECs, leaving 2,426 MA2012 SRECs in the market.

Tags: DOER, MA SRECs, Massachusetts Solar Credit Clearinghouse Auction, SCCA, SREC 1, SREC II
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SRECTrade Markets Report: August 2013

Posted September 13th, 2013 by SRECTrade.

SRECTrade SREC Markets Report: August 2013

The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the Solar REC markets 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.

Overview of PJM Eligible Systems

As of September 9, 2013 there were 37,481 solar PV and 775 solar thermal systems registered and eligible to create SRECs in the PJM Generation Attribute Tracking System (GATS). Of these, 252 (0.66%) have a nameplate capacity of 1 megawatt or greater. Twenty-seven of these projects have a nameplate capacity of 5 MW or greater (unchanged from the last few months). New Jersey continues to host most of the larger scale facilities, claiming home to 63.0% of the projects and 17 of the 27 facilities, that are equal to or greater than 5 MW. Also unchanged for several months the three largest projects are a 29.1 MW FirstSolar project in MD, a 25.1 MW PSE&G utility pole mount project located in NJ, and the 16.1 MW Mount St. Mary’s project in MD.

NJ Office of Clean Energy Estimated Installed Capacity Through 8/31/13: On September 8, 2013, the New Jersey Office of Clean Energy announced total installed solar capacity reached 1,114.3 MW; an increase of approximately 8.4 MW over June’s total capacity.

Massachusetts DOER Qualified Projects

As of August 21, 2013, there were 7,835 MA DOER qualified solar projects; 7,522 operational and 313 not operational. Total qualified capacity is 689.9 MW; 254.5 MW of which is operational and 435.4 MW is not operational under the current, SREC I program. Not operational, qualified projects over 100 kW in size must demonstrate at 50% completion by 12/31/2013 in order to remain qualified. Note, that these totals should adjust as projects lower than 100 kW in capacity become qualified throughout the year. Projects lower than 100 kW only need to demonstrate interconnection by 12/31/2013, whereas projects greater 100 kW in capacity must have submitted application paperwork and met certain requirements by July 5, 2013. Fore more information refer to our blog posts covering the current SREC program.

How to Interpret This Table

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” updated 10/1/12. Projected SRECs required utilizes the most recent EIA electricity data applying an average 1.5% 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 1,130 MWh in MA, generated per MW of installed capacity per year.

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September 2013 Auction Results

Posted September 13th, 2013 by SRECTrade.

SRECTrade’s September 2013 SREC Auction closed on 9/06/13. Below are the clearing prices by vintage across the markets sold in the auction.

September SREC Prices	SREC Vintage Year
State	2011	2012	2013	2014*
Delaware	–	–	$33.00	–
Maryland	$111.00	$120.01	$130.00	–
Massachusetts	–	–	$241.01	–
New Jersey	–	$125.00	$130.01	$134.01
Ohio In-State	–	–	$41.00	–
Ohio Out-of-State	–	–	–	–
Pennsylvania	–	–	$9.00	$13.26
Washington, DC	$480.00	$480.00	$480.00	–

Notes:
*Delaware, New Jersey and Pennsylvania operate on a June-May energy year. For example, current vintage “2014” SRECs are generated beginning in June of 2013.
Green text represents a price increase over the last auction clearing price for that vintage, red text represents a decrease. “-” reflects no sale, which would result if there were no SRECs available for sale in that vintage or there were no matching bids and offers to determine a clearing price.

State Market Observations:

Delaware: Current vintage DE SRECs traded at $33/SREC- up from $25 in the previous auction. The primary buyer for DE SRECs is Delmarva Power and Light (DPL) and most SRECs are sold through DPL’s SRECDelaware program which allows SREC asset owners to submit competitive applications in order to obtain 20 year SREC contracts. There continues to be limited need for SRECs outside of DPL’s program and demand outside the procurement program is expected to decrease over time.

Maryland: Just as with the August auction all eligible MD SREC vintages sold in the September auction. As SRECs age they tend to become less valuable and demand for older vintages tends to decrease. MD2011s, MD2012s and MD2013s transacted at $111.00, $120.01, and $130.00/SREC in the September auction.

Massachusetts: The September SRECTrade auction cleared 2013 vintage SRECs at $241.01. For the latest info on the MA market read our MA blog posts.

New Jersey: NJ2012, NJ2013, and NJ2014 SRECs traded up to $125.00, $130.01, and $134.01/SREC, respectively. These prices are slightly higher than last month’s auction. While the NJ SREC market remains fundamentally over-supplied build rates have decreased. For a more detailed overview on pricing and supply and demand dynamics, please see our recent webinar.

Ohio: No SRECs transacted in the OH Adjacent market, although pricing tends to mimic the PA SREC market when transactions do occur. Both markets are severely over-supplied. OH2013 sited SRECs traded at $41, a price in line with previous auctions.

Pennsylvania: PA2011s and PA2012s did not transact in the September auction. PA2013s and PA2014s traded at $9.00 and $13.26/SREC respectively. Severe SREC oversupply keeps pricing low and reduces buyer incentive to purchase older vintage SRECs.

Washington, DC: DC SREC pricing continues to experience high transaction values relative to the $500 SACP. DC2011, DC2012, and 2013 vintage SRECs traded at $480.00/SREC- the same as with the August auction. It is expected the market will continue to experience under supply into the 2013 trading year.

For historical auction pricing please see this link. The next SRECTrade auction for all SREC markets closes on Tuesday, October 15th at 5 p.m. ET.

Posted in SREC Markets, SREC Pricing | Comments Off on September 2013 Auction Results

NJ Market Update recording posted

Posted September 12th, 2013 by SRECTrade.

SRECTrade recorded a NJ Market Update webinar on September 12, 2013. To watch the webinar click on the image below.

Tags: NJ SRECs, webinar
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