Posts Tagged ‘DC SREC’

Market Implications of Recent D.C. RPS Bill

Posted June 9th, 2017 by SRECTrade.

SREC market structure is primarily determined by two major policy levers: Renewable Portfolio Standards (RPS) and the Alternative Compliance Payment (ACP). RPS schedules determine the amount of energy coming from various renewable generation sources, solar included. ACP schedules set the maximum possible price that credits such as SRECs can reach in the market. When a state adjusts the RPS or ACP, market participants on both the demand and supply sides of the SREC market need to adapt to the new environment defined by these two factors. This transition often takes time to complete and can create market instability and uncertainty in the interim.

The Washington, DC market is currently in the midst of such a transition. The Renewable Portfolio Standard Expansion Act of 2016 (B21-0650), signed last July and put into effect on Oct 8th, 2016, has already made waves in the Washington D.C. SREC market. As stipulated in the legislation, state renewable generation and solar carve-out targets have increased to 50% and 5% respectively by 2032. The bill complements this RPS expansion with an increase in the ACP or the financial penalty for non-compliance by electricity suppliers. The side-by-side comparison of the ACP schedule before and after the recent policy shift is as follows:

dc-acp-schedules

While in theory this ACP increase bodes well for owners of photovoltaic systems selling SRECs into the market, we have seen a slower demand adjustment from the utilities and power providers, the DC market’s natural compliance buyers. As a result, sellers have experienced a lack of liquidity for their SRECs during a time of seemingly favorable market conditions. The lack of demand for SRECs at the current spot market price can be partially attributed to a clause in B21-0650 which states that the new ACP schedule does not apply to any utility load contract entered into before October 8th, 2016. This grandfathering of competitive electricity supply contracts means utilities and load serving entities (LSEs) have two different RPS programs they are simultaneously subject to, as some of their contracts are subject to the old $350 ACP and some subject to the new $500 ACP. In effect, SREC demand is split between the old and new program.

Reflective of the $150 difference between the previous program’s and current program’s ACP for calendar year 2017, the price of DC17 SRECs increased from $320 to $480 from October 2016 to February of 2017. However, due to compliance buyers balancing their purchases between the $350 and $500 obligation levels, the market has settled to levels that reflect a balance between the two separate ACP levels for calendar year 2017.

While prices may continue to decrease slightly as compliance buyers better understand their future SREC needs, we expect that over the coming months the market will begin to stabilize and recover. Buyers will inevitably adapt to the policy changes and assess their positions with regards to the two RPS obligations. The brokerage desk at SRECTrade has been working closely with buyers to better understand their obligations and ensure that the market remains liquid and accessible to all sellers.

As always, please feel free to reach out to the SRECTrade client services team, or your brokerage desk contact, to further discuss the current status of the market and our outlook on SREC pricing.

Disclaimer. This document, data, and/or any of its components (collectively, the “Materials”) are for informational purposes only. The Materials are not intended as investment, tax, legal, or financial advice, or as an offer or solicitation for the purpose or sale of any financial instrument. SRECTrade, Inc. does not warranty or guarantee the market data or other information included herein, as to its completeness, accuracy, or fitness for a particular purpose, express or implied, and such market data and information are subject to change without notice. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Any comments or statements made herein do not necessarily reflect those of SRECTrade, Inc. SRECTrade, Inc. may have issued, and may in the future issue, other communications, data, or reports that are inconsistent with, and reach different conclusions from, the information presented herein.

Copyright. This document is protected by copyright laws and contains material proprietary to SRECTrade, Inc. This document, data, and/or any of its components (collectively, the “Materials”) may not be reproduced, republished, distributed, transmitted, displayed, broadcasted or otherwise disseminated or exploited in any manner without the express prior written permission of SRECTrade, Inc. The receipt or possession of the Materials 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 the Materials is granted, reference and sourcing must be attributed to the Materials and to SRECTrade, Inc. If you have questions about the use or reproduction of the Materials, please contact SRECTrade, Inc.

Tags: DC SREC, DC SRECs, legislation, RPS
Posted in SREC Markets, State RPS, Washington, DC | Comments Off on Market Implications of Recent D.C. RPS Bill

Mayor Bowser Signs D.C. RPS Bill

Posted July 26th, 2016 by SRECTrade.

D.C. Mayor Muriel E. Bowser hosted a press conference yesterday to sign the Renewable Portfolio Standard Expansion Act of 2016. As enacted, B21-0560 raises the renewable portfolio and solar requirements to 50% and 5% by the year 2032, respectively, and adds waste heat from combined and sanitary sewage systems and effluence from wastewater treatment to the list of Tier 1 renewable sources. In addition, the bill increases financial penalties for electricity suppliers who fail to comply with the annual renewable energy portfolio standard requirements. This financial penalty is known as the Alternative Compliance Payment, or ACP. Finally, the bill establishes a program within the Department of Energy and the Environment to assist low-income homeowners with installing solar systems on their homes.

Councilmember Cheh introduced the bill earlier this year, and the Council unanimously passed the bill in late June. The expanded RPS not only increases access to clean energy for D.C. residents, but establishes a long-term pipeline for green jobs and businesses by raising demand for Tier 1 RECs and SRECs. The increased demand will incentivize the continued growth of D.C.’s solar industry, which has grown by 170% over the last year. The chart below summarizes the new RPS and Solar Carve-out schedule by requirement year.
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The total RPS requirement must be met by Tier 1 Renewable Sources, which includes the new sources added by the Expansion Act. In 2032 and thereafter, the District’s RPS will be set at 50% with a 5% solar carve-out. Please note that, although the SACP Schedule is changing for the 2017+ years from the current schedule, the RPS schedule for years 2017-2023 is unchanged under the Expansion Act. It is not until years 2024 and onward that the RPS requirements are changed by this new law.

Mayor Bowser is confident that the RPS Expansion Act will enable the District’s diverse populations to benefit from solar in a meaningful way. Speaking at her press conference, she said that the District “…will serve 100,000 low-income households by 2032—that’s more than 6,000 homes per year, and we’ll reduce their electricity bills by 50%, as a result. We’ll be creating at least 100 green jobs in the first year with that number growing every year through 2032. That means reducing carbon emissions, lowering residents’ energy bills, and providing pathways to the middle class through the burgeoning marketplace of clean energy – all at the same time.”

The newly signed legislation is slated to become effective after the Congressional review period.

Tags: DC Renewable Portfolio Standard, DC RPS, DC SREC
Posted in Washington, DC | Comments Off on Mayor Bowser Signs D.C. RPS Bill

D.C. RPS Bill Passes in First Reading before the Council

Posted June 7th, 2016 by SRECTrade.

Today, the D.C. Council held its first hearing on B21-0650, the Renewable Portfolio Standard Expansion Amendment Act of 2016. The bill, which was introduced earlier this year, passed unanimously in the first hearing, but must still pass a second hearing in July, and a Council vote as early as mid-July, before it passes to the Mayor for signature.

The RPS Expansion Amendment Act of 2016 will increase the RPS and solar carve-out requirements to 50 percent and 5 percent by the year 2032, respectively, and increase alternative compliance payments (financial penalties) for electricity suppliers who fail to comply with RPS requirements.

You can read our prior post on the RPS bill here, and subscribe to our blog to stay up to date on the bill’s progress with the Council and Mayor.

Tags: DC Renewable Portfolio Standard, DC RPS, DC SREC, Washington D.C.
Posted in Washington, DC | Comments Off on D.C. RPS Bill Passes in First Reading before the Council

District of Columbia RPS Bill under review by D.C. Council Committee

Posted March 23rd, 2016 by SRECTrade.

On March 1st, 2016, D.C. Councilmember Cheh introduced the Renewable Portfolio Standard Expansion Amendment Act of 2016 (B21-0650) for legislative consideration before the Council of the District of Columbia. On this date, the Renewable Portfolio Standard (RPS) bill was referred to the Committee on Transportation and the Environment, where it remains under review to date. As introduced by Councilmember Cheh, this bill would serve to accomplish four goals:

Expand the list of Tier 1 renewable energy sources by incorporating (1) waste heat from combined and sanitary sewage systems and (2) effluence from wastewater treatment;
Increase the RPS and solar carve-out requirements to 50 percent and 5 percent by the year 2032, respectively;
Increase alternative compliance payments (financial penalties) for electricity suppliers who fail to comply with RPS requirements; and
Establish a Department of Energy and the Environment program to help low-income homeowners install solar systems on their homes.

Should the bill be enacted, the combination of increasing the overall RPS and solar carve-out requirements and raising the alternative compliance payments (ACPs) will increase market demand for D.C. solar renewable energy credits (SRECs). Increased demand for SRECs will provide price support for SREC values in the District and will encourage additional growth and adoption of solar in the nation’s capital.

For more information on the District of Columbia SREC market, please visit our D.C. market page.

SRECTrade will continue to provide updates on the status of the D.C. RPS bill as it progresses with the Council.

Tags: DC Renewable Portfolio Standard, DC RPS, DC SREC, DC SRECs, Washington D.C.
Posted in SREC Markets, State RPS, Washington, DC | Comments Off on District of Columbia RPS Bill under review by D.C. Council Committee

DC SREC Market Amendment – Update

Posted June 15th, 2011 by SRECTrade.

On June 7, 2011, the Council of the District of Columbia read and reviewed the latest draft of Bill 19-10, also known as the Distributed Generation Amendment Act of 2011. For the details of the pending amendment please click here. The amendment received a substantial support from the local legislators as well as the DC solar community. The final vote after the first reading was 14-0, unanimously in favor of putting the amendment into effect.

As it currently stands, below are the key points of the amendment under consideration:

– Solar thermal system eligibility to participate in the SREC market. For more info see this post.

– Implementation of new solar capacity requirements and a new solar alternative compliance payment (SACP) schedule:

Year	Current RPS Solar Requirement	Proposed RPS Solar Requirement Jan-11	Proposed RPS Solar Requirement June-11	Current SACP	Proposed SACP June-11
2011	0.04%	0.25%	0.40%	$500	$500
2012	0.07%	0.50%	0.50%	$500	$500
2013	0.10%	0.75%	0.50%	$500	$500
2014	0.13%	1.00%	0.60%	$500	$500
2015	0.17%	1.25%	0.70%	$500	$500
2016	0.21%	1.50%	0.825%	$500	$500
2017	0.25%	1.75%	0.98%	$500	$350
2018	0.30%	2.00%	1.15%	$500	$300
2019	0.35%	2.25%	1.35%	$500	$200
2020	0.40%	2.50%	1.58%	$500	$200
2021	—	—	1.85%	—	$150
2022	—	—	2.175%	—	$150
2023	—	—	2.50%	—	$50

The amendment puts it place a system size cap, stating that all solar requirements be met by acquiring SRECs from systems no larger than 5 MW. Additionally, the amendment requires systems to be sited within the District. For systems located outside of the District, the amendment plans to grandfather systems smaller than 5 MW in capacity that were registered as a renewable resource with the District prior to January 31, 2011.

As mentioned in our previous blog post on this potential change to the District’s existing RPS law, this bill will take very important, concrete steps to addressing the current oversupply in the DC market.

It is still unclear how the grandfather date of 1/31/2011 will affect facilities outside the district that have been registered by the DC Public Services Commission and issued SRECs since then.

As the District is still operating under the current RPS law, out-of-state systems are still eligible to be certified for SREC generation, but it is unknown if the registration will hold value considering the implications of the amendment. The DC Council website does not currently indicate the next date for further consideration, but SRECTrade will continue to provide additional information as it becomes available.

Tags: B19-0010, DC SREC, DC SRECs, Distributed Generation Amendment, Solar Carve-Out, SREC, Washington D.C., Washington D.C. SRECs, Washington DC Solar Changes
Posted in SREC Markets, Washington, DC | 4 Comments »

Solar Capacity in the SREC States – February 2011

Posted March 2nd, 2011 by SRECTrade.

SRECTrade SREC Markets Report: February 2011

The following post outlines the megawatts of solar capacity certified and/or registered to create SRECs in the SREC markets SRECTrade currently serves.

Blog Table Image JPG more pixels

PJM Eligible Systems

As of the end of February, there were 12,995 solar PV (12,747) and solar thermal (248) systems registered and eligible to create SRECs in the PJM Generation Attribute Tracking System registry. Of these eligible systems, 43 (0.33%) have a nameplate capacity of 1 megawatt or greater, of which only 3 systems are greater than 5 MW. The largest system, currently located in Ohio, is 12 MW, and the second largest, located in Chicago and eligible for the PA, DC, and MD markets, is 10 MW. The third largest system, located in NJ, is 5.6 MW.

Massachusetts DOER Qualified Projects

As of February 18, 2011, there were 220 MA DOER qualified solar projects; 204 operational and 16 not operational. Of these qualified systems, 10 (4.5%) have a nameplate capacity of 1 megawatt or greater, of which only 3 are between 1.5 and 2 MW. Only one of the projects greater than 1 MW is currently operational.

Capacity Summary By State

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. For example, New Jersey needs approximately 255 MW online for the entire 2011 reporting year to meet the RPS requirement. 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 date noted.

Tags: DC SREC, de srec, East Coast Solar Capacity, GATS, MA SREC, MA SRECs, Massachusetts Solar, Massachusetts SREC, MD SREC, NJ SREC, OH SREC, Ohio SREC, PA SREC, renewable portfolio standard, RPS, selling SRECs, Solar Capacity, Solar Carve-Out, Solar Renewable Energy Certificates, SREC, SREC Programs, SRECs
Posted in Capacity Summary, SREC Markets | Comments Off on Solar Capacity in the SREC States – February 2011

Solar Capacity in the SREC States – January 2011

Posted February 2nd, 2011 by SRECTrade.

SRECTrade SREC Markets Report: January 2011

The following post outlines the megawatts of solar capacity certified and/or registered to create SRECs in the SREC markets SRECTrade currently serves.

SREC Supply January 2011

PJM Eligible Systems

As of the end of January, there were 12,240 solar PV (12,001) and solar thermal (239) systems registered and eligible to create SRECs in the PJM Generation Attribute Tracking System registry. Of these eligible systems, 38 (0.3%) have a nameplate capacity of 1 megawatt or greater, of which only 3 systems are greater than 5 MW. The largest system, currently located in Ohio, is 12 MW, and the second largest, located in Chicago and eligible for the PA, DC, and MD markets, is 10 MW. The third largest system, located in NJ, is 5.6 MW.

Massachusetts DOER Qualified Projects

As of January 10, 2011, there were 206 MA DOER qualified solar projects; 183 operational and 23 not operational. Of these qualified systems, 9 (4.4%) have a nameplate capacity of 1 megawatt or greater, of which only 2 are between 1.5 and 2 MW. None of the projects greater than 1 MW are currently operational.

Capacity Summary By State

Tags: DC SREC, de srec, GATS, MA SREC, MA SRECs, Maryland, Massachusetts Solar RPS, Massachusetts SREC, MD SREC, NJ SREC, OH SREC, Ohio SREC, PA SREC, selling SRECs, Solar Carve-Out, SREC, SREC Programs
Posted in Capacity Summary, SREC Markets | 1 Comment »

Additional Info for DC SREC registrations

Posted May 10th, 2010 by SRECTrade.

DC Eligibility
For customers looking to register systems in the DC SREC market, as we have previously stated, DC will accept applications from customers sited in the PJM regions and states adjacent to the PJM region where electricity is eligible to be transmitted into the PJM region. SRECTRADE will manage the application process for our EasyREC customers to ensure the system is approved.

DC Facility Rejections
We previously reported that a facility was rejected out of New York state and have learned that the application provided that the electricity was not capable of being transmitted into the PJM region. The DC PSC was subsequently unable to get clarification in order to approve the facility.

A second facility in New York has also been rejected because there was “no basis to conclude that the facility generates electricity consumed within the PJM Interconnection region.” We are currently seeking clarity on how these determinations are made and will post them when we have more information. In the meantime, here are some details:

DC rule 945-E-1764 (http://www.dcpsc.org/pdf_files/commorders/dcmr15/Chapter29.pdf) defines a renewable energy credit as “a credit representing one megawatt hour of electricity consumed within the PJM interconnection region that is derived from a tier 1 renewable source, a tier 2 renewable source, or a solar source that is located:

“In the PJM Interconnection region or in a state that is adjacent to the PJM Interconnection region.”

The same document describes New York as an “Adjacent PJM State” and the New York Independent System Operator (NYISO) as an “Adjacent Control Area”. The crux of the issue seems to be the wording “consumed within the PJM interconnection region”. Electricity flows bidirectionally between PJM and NYISO every day, the amount varying based on supply and demand in the two ISOs. An electron generated in NYISO clearly can’t be tracked (Heisenberg and all), so there is no way to know if a given electron generated by the grid-tied solar installation makes its way into PJM and is consumed. In fact there is no way to know if a given electron generated by any installation in any “Adjacent PJM State” makes its way to PJM and is consumed there, although it is possible that any electron generated in an adjacent PJM state will. Going even further, an electron generated by a system located in DC might actually be consumed outside PJM! As we see it, this leaves two choices on how to interpret the DC RPS rules. Either every grid tied generator in an “Adjacent PJM State” could be delivering their electrons to be consumed in PJM and therefore all are eligible to create DC renewable energy credits, or none can prove that their specific electrons where consumed in PJM and so none are eligible.

How far back will DC accept SREC generation?
We also get questions about systems that were installed prior to the application date in DC. Customers and installers will ask how far back DC will count solar generation for SRECs. DC will only count SRECs created in the current energy year (same as calendar year) as long as generation is inputted before the last business day in January. This means that, as of this blog post, any generation for a facility in 2009 will not count. Only generation from January 2010 onwards will be eligible for the creation of SRECs.

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Tags: DC SREC, DC SRECs, New York Solar Renewable Energy Credits, New York SREC, New York SRECs, NY Solar Renewable Energy Credits, NY SREC, NY SRECs
Posted in Delaware, Illinois, Indiana, Kentucky, Michigan, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, Washington, DC, West Virginia, Wisconsin | Comments Off on Additional Info for DC SREC registrations

DC State Eligibility Criteria

Posted January 25th, 2010 by SRECTrade.

The District of Columbia is one of the states that will allow its electricity suppliers to procure SRECs from out-of-state solar generating facilities. There are no defined boundaries for what states may qualify for certification in the DC SREC market. According to information received by SRECTrade, the DC PSC will approve SRECs for states in the PJM region and states adjacent per the following guidelines:

The DC Public Service Commission is responsible for approving applications to the DC SREC market. Their rule of thumb is that if your state has an RPS similar to DC you are guaranteed certification in DC. Currently those states include Maryland, Pennsylvania, Delaware, New Jersey and Ohio.

Solar facilities built in all other PJM area states AND adjacent states are reviewed closely and the DC PSC will determine if they can be granted certification. Currently, they have not declined a registration from any of those states because of location. Based on the map of the PJM region, these states include: Indiana, Illinois, Kentucky, Michigan, Tennessee, Virginia, West Virginia and Wisconsin.

Here is a link to get you started:

DC Certification Instructions

Tags: DC SREC, Michigan, New York, SREC, SRECs, Tennessee, Wisconsin
Posted in Illinois, Indiana, Kentucky, Michigan, New York, North Carolina, Ohio, Tennessee, Virginia, Washington, DC, West Virginia, Wisconsin | 2 Comments »

SRECTrade in Washington D.C.

Posted June 18th, 2009 by SRECTrade.

The District of Colombia’s Renewable Energy Portfolio Standard (RPS) requires that 11 percent of the energy sold in the District must come from renewable sources by 2022. This standard includes a solar set-aside, requiring .4 percent of electricity to come from solar by 2020. Much like other states, electricity suppliers must make an alternative compliance payment (ACP) should they not meet each yearly requirement. In D.C., the ACP goes to the District’s Renewable Energy Development Fund.

Due to the area’s small size, the government has imposed fairly modest requirements for renewable energy provided by electricity suppliers, compared to those of neighboring states. However on a per capita basis, owners of photovoltaic solar systems in the D.C. area are equally well positioned to benefit from RPS requirements through federal incentives and the ability to sell self-generated SRECs. The government offers grants for installation of solar systems based on the size and capacity of the system, with a maximum receivable amount of $33,000. Once the system is installed and registered, owners can sell their SRECs to electricity suppliers in D.C., namely PEPCO, relative to the price dictated through supply and demand in the area. SRECTrade hopes to be an integral part of matching that supply with demand through facilitating the sale of credits generated in D.C. with electricity suppliers in both D.C. as well as neighboring states.

Getting Started in D.C.

If you wish to generate and sell SRECs in D.C., you must first apply for certification as a Solar Renewable Energy Facility through the Washington D.C. Public Service Commission. Once your system is certified, you must register with the PJM-EIS Generation Attribute Tracking System (PJM-GATS), which serves as the renewable energy generation tracking system for Washington D.C. and several surrounding states. Generators interested in having SRECTrade manage their SRECs can simply sign up for our EasyBid service and send the forms to us. We’ll handle the rest. Find out more on our EasyBid page.

Tags: DC SREC, selling SRECs
Posted in SREC Markets, Washington, DC | Comments Off on SRECTrade in Washington D.C.