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Posts Tagged ‘Mass SRECs’

MA DOER Seeks to Set Fixed SACP Schedule

Posted August 3rd, 2011 by SRECTrade.

On August 2, 2011, the Massachusetts Department of Energy Resources (DOER) proposed an amendment to the Solar Alternative Compliance Payment (SACP) schedule for the MA SREC program. Feedback from market participants including project developers, financing parties, and retail electricity suppliers indicated the current SACP structure creates uncertainty around future SREC valuation. Under the existing structure, the DOER has the ability to reduce the SACP on a yearly basis by up to 10% of the current value. The amended schedule seeks to provide more certainty for expected future prices while assisting project financing and negotiations for long-term SREC contracts.

The proposal establishes a 10-year schedule for the SACP that would maintain the current rate of $550/SREC through compliance year 2013, then decrease 5% each following year. The proposal also requires the schedule to be updated on a yearly basis to include a price for the 10th year of the schedule. For example, the 2022 price will be added to the schedule no later than January 31, 2012. The table below demonstrates the proposed schedule.

MA SACP Schedule 8_2_11

Prior to implementation, the proposed schedule is to go through a comment process. The comment period is currently open through August 15, 2011. Once all comments are collected, the DOER will review and begin the necessary process to amend the existing Solar Carve-Out provisions.

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Posted in Massachusetts, SREC Markets | 1 Comment »

Mass DOER releases July statistics, SRECTrade continues to lead in Mass SREC market

Posted July 20th, 2011 by SRECTrade.

With the August SREC auction coming next Friday, July 29th, SRECTrade will post the first sale for 2011 SRECs in Massachusetts. Last week, the DOER released the most recently updated list of qualified and installed solar projects (excel download) in the state that are eligible for the solar carve-out. This gives us a unique opportunity to look behind the curtains and see what is going on in the SREC market.

Of the 649 projects that are operational, SRECTrade’s aggregation is by far the largest in the state, representing 36% of all facilities that are operational in Massachusetts. In terms of installed capacity, with nearly 3 MW of 19 MW installed as of July 11, the 16% share of capacity is second only to the state’s largest utility, National Grid who has installed 4 projects totaling 3.4 MW which represents 18% of the solar capacity in the market. That said, 16% understates SRECTrade’s presence in the Massachusetts since signing up for SRECTrade’s aggregation service is not a pre-requisite for selling through the platform.

Largest SREC Aggregations in Massachusetts

% of
Capacity

Capacity Rank

% of
Facilities

Facility Rank

National Grid

17.7%

#1

0.6%

#16

SRECTrade

15.8%

#2

36.1%

#1

Totals: 649 Facilities / 19.0 MW

Although key features like transparent, competitive market pricing, low fees, no contracts to sign and online access to the SRECs that are not lumped together with other facilities have made SRECTrade an attractive option to solar owners, the success of the platform can ultimately be attributed to the network of installers that recommend it to their customers. According to the DOER’s report, 42 of the 111 installers with facilities in the ground have customers with SRECTrade, including 8 of the top 10 installers by volume.

Top Installers In SRECTrade’s Network as of July 11, 2011 (as published by DOER)
– My Generation Energy, Inc., Brewster, MA
– SunBug Solar, Somerville, MA
– Sunlight Solar Energy, Waltham, MA
– E2 Solar Inc., Hyannis, MA
– Alteris Renewables Inc., Natick, MA
– NorthEast Solar Design Associates, West Hatfield, MA
– South Mountain Company, Inc., West Tisbury, MA
– SolarFlair Energy, Inc., Framingham, MA

The SRECTrade aggregation is not a prerequisite to participate in the SRECTrade market. The platform is open to anyone in the market looking to sell SRECs. The improved fee structure makes SRECTrade a simple and inexpensive option for aggregations with SRECs to sell. The combination of an open platform and guaranteed volume coming from the state’s largest aggregation makes SRECTrade the top destination in Massachusetts for entities with compliance obligations.

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Posted in Massachusetts | Comments Off on Mass DOER releases July statistics, SRECTrade continues to lead in Mass SREC market

First Massachusetts SRECs created!

Posted July 21st, 2010 by SRECTrade.

The first set of SRECs eligible for the Massachusetts solar carve-out were created in the SRECTrade aggregation on July 15, 2010. These SRECs represent Q1 2010 generation and over 50% of the total share of SRECs created in NEPOOL GIS for Q1 2010 can be attributed to customers of SRECTrade.  With partners like SunBug Solar, Alteris Renewables, Sunlight Solar, My Generation Energy and more, the SRECTrade marketplace is quickly becoming the platform of  choice for installers searching for an efficient, transparent and cost-effective way to serve the SREC needs of their clients.

One key benefit of SRECTrade’s aggregation is that the customer owns and controls their SRECs until sold to a buyer in the auctions or the forwards market.  Each SREC created in the SRECTrade aggregation is attributed to a single facility. Other aggregations may require a contract that does not allow for flexibility because the generation from multiple facilities is lumped together to create a single SREC.  You don’t have your own SRECs, but your electricity gets counted toward a portion of the aggregate’s SRECs.  With SRECTrade’s aggregation, you own your SRECs until you tell us what to do with them. Our goal is to provide the most effective platform in Massachusetts along with the best customer service in the business.

Now that Q1 2010 SRECs are created, SRECTrade will close the first MA SREC auction on August 6, 2010. Auctions will be available monthly, but since SRECs are generated quarterly, the first auction after quarter-end will always have the most volume.  Q2 2010 SRECs will be available on October 15, 2010 and available starting with the November auction.

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Posted in Massachusetts | Comments Off on First Massachusetts SRECs created!

Impact of TransCanada Settlement on Mass SREC Market

Posted June 9th, 2010 by SRECTrade.

Statement from the Massachusetts DOER

While DOER realizes as a practical matter that providing a reduced ACP Rate for pre-existing contracts will result in a reduction in the demand for SRECs in the early years of the program, that exact percentage is unknown at this time.  The demand will be a direct reflection on that percentage of load that was contracted for prior to January 1, 2010 which is data that DOER does not generally collect.  DOER did discuss this issue with a handful of competitive retail suppliers, and under a confidentiality agreement, obtained contract information from 8 suppliers serving about 1500 GWh in 2009.  DOER provides the following information with no warranty of its accuracy beyond the above stated parameters.

Approximately 50% of the retail load in Massachusetts is served by competitive suppliers, and of that portion, DOER estimates that about 70-90% of that load will be served in 2010 under a pre-2010 contract.  This percentage decreases dramatically in the following years as contracts expire or are renewed, such that in 2011 only 40% of the competitive supply load will be served by pre-2010 contracts.  This trend continues with 20% in 2012, 10% in 2013, and under 5% in 2014.

It is important to remember that combined with the growth in the Minimum Standard each year, the overall percent of applicable load relative to the Standard diminishes even more substantially.

While DOER hopes this very limited analysis provides some information to the solar development community but will not assure its accuracy beyond the given parameters or be responsible for any further conclusions drawn by any market participant.  DOER will receive additional information on load under contracts by retail suppliers as part of the 2009 Annual Compliance Filing and will report that information, in the aggregate, as soon as it is available.

SRECTrade Comment

Essentially what this is saying is that the settlement exempts suppliers under previous supply contracts from the SREC requirement.  This will impact 35-45% of the demand in the Massachusetts SREC market.  This means that if the requirement in 2010 was 30 MW of solar to meet the RPS, with these exemptions, the actual requirement will be 17-20 MW of solar.  In the following 3 years the impact is reduced to 20% of the total demand, 10% and 5%, respectively.  Fortunately, DOER has several levers it can pull to ensure that pricing of SRECs stays within the $300-$600 range. For example, if there is a surplus in 2010, the requirement for 2011 will likely be increased to adjust for the surplus. This should mitigate the impact of this settlement. Finally, even with the reduced demand, the state needs to get to an average solar capacity of 17-20MW in 2010.  This is no small task.

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Posted in Massachusetts | 3 Comments »

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