The deadline to transfer MA SRECs to the DOER’s NEPOOL-GIS auction account is Saturday, June 15th. If not deposited by June 15, Massachusetts 2012 vintage SRECs will lose their compliance eligibility and cannot be purchased in the upcoming DOER Solar Credit Clearinghouse Auction. SRECTrade has transferred any unsold SRECs for clients that utilize its EasyREC asset management service. No action is required by SRECTrade’s EasyREC clients. NEPOOL-GIS account holders not utilizing SRECTrade’s EasyREC service may follow the SREC transfer instructions outlined here. SRECTrade anticipates that approximately 45,000 SRECs will be deposited in the DOER auction.
What this means for Massachusetts sellers
Massachusetts 2012 SREC transactions are effectively on hold until the start of the DOER Solar Credit Clearinghouse Auction at the end of July. The DOER auction could may include as many as three separate auction events. The results of the auction will likely be known by early August. All unsold SRECs placed in the DOER’s auction account will be offered for sale at a fixed price of $300/SREC. The DOER will administer a $15/SREC fee for managing the auction. Sellers will receive $285/SREC (less any SRECTrade fees, if applicable).
In the meantime, the first MA2013 SRECs from Q1 2013 production will be minted on July 15th, ahead of the DOER auction for MA2012 SRECs.
What is the DOER Solar Credit Clearinghouse Auction?
The DOER’s Solar Credit Clearinghouse Auction is a price support mechanism for the Massachusetts SREC market. The 2013 compliance goal is approximately 185,000 SRECs, but the market has already installed capacity eligible to produce more than this requirement. For an update on MA Solar capacity see this link. SRECs not purchased in this summer’s DOER auction will be placed back in sellers’ accounts and given an extended life of three years. These extended life SRECs will not eligible for future DOER auctions. Read here for more information from SRECTrade on the DOER auction and here for more information from the DOER’s website.
Why is the DOER auction for 2012 SRECs being held in July 2013?
Massachusetts SRECs are minted on a quarterly basis (4 times a year) with a 3.5 month delay. The last MA2012 SRECs were minted on April 15, 2013 and the first MA2013 SRECs will be minted on July 15, 2013. Compliance buyers (electricity suppliers) in the meantime must have purchased all of the 2012 SRECs they need before June 15, 2013 to meet their renewable energy requirements for the 2012 compliance year.
Why is the Massachusetts DOER auction only for MA2012 SRECs
The DOER auction is held to act as a price support mechanism in years where more SRECs are produced than compliance buyers need to purchase. For this reason the auction is held only after the Massachusetts electricity suppliers finalize their compliance filings and purchased all of the SRECs they need for the current compliance year. The excess, unsold, SRECs go in to the DOER auction and can be purchased to satisfy future compliance requirements. This is the first year the MA DOER Solar Credit Clearinghouse auction will be held. Previous compliance years were under-supplied, so no excess SRECs were available for the DOER auction.