DOER Announces Final SREC-II Factor Guidelines

Posted March 27th, 2017 by SRECTrade.

On Thursday, March 23rd the DOER provided an update on the finalized SREC-II program SREC Factors for projects over 25 kW that have not previously qualified for an SREC-II extension.

All SREC-II facilities that have a Statement of Qualification (SQA), but have not yet received an extension, will have their SQAs rejected. New applications may be submitted for these facilities, however, to seek an extension under these new guidelines. Any extension granted will be effective until March 31, 2018 at the following factors:

new-market-factors

Please note that SREC-II systems with a capacity equal to or less than 25 kW will still receive an SREC Factor of 0.8, so long as they receive their authorization to interconnect before the effective date of the SMART program.

Facilities eligible for the extension are those that have not already received either a mechanically complete or 50% construction cost extension; facilities that can demonstrate that they are mechanically complete or commercially operational by March 31, 2018 will receive their respective SREC Factor listed above.

PJM GATS Solar – Registered Capacity Update as of March 2017

Posted March 15th, 2017 by SRECTrade.

The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the PJM GATS solar REC markets that SRECTrade serves. All data is based on the information available in PJM GATS as of the date noted.

2017_03_14_pjm-capacity-update

The chart above compares the megawatts (MWs) registered in PJM GATS as of March 14, 2017 (the blue bar) to the estimated RPS solar MWs needed to be operational, through the duration of the current reporting year, to meet each market’s RPS targets (the green bar). Note that the Estimated RPS MWs quantity does not take into consideration SRECs eligible from previous reporting years and is only used as an estimate relative to the current MWs registered in PJM GATS. All actual RPS requirements are represented in megawatt hours (i.e. SRECs) required per year. The installed capacity operational over that time will produce SRECs, in addition to any eligible SRECs from previous periods, to end up with the final supply relative to that reporting year’s demand. For estimates on required number of SRECs per reporting year across the SREC markets SRECTrade covers, please visit our state market summary pages.

As of February 28th, 2017, New Jersey had installed a cumulative total of 2,062.5MW of nameplate capacity.  Their Solar Installation Report and Solar Pipeline Report can be found online here on the New Jersey Office of Clean Energy website.

Additionally, please note the following in the figures presented above:

OH2017: Represents all OH eligible solar facilities and includes some facilities that are cross-registered in PA. If any systems were eligible in higher priced markets, such as DC, the capacity was excluded from OH eligibility as it could be sold at a higher price in DC.

DE2016: Represents all solar facilities eligible for the DE solar RPS requirement. Some facilities registered in DE are also eligible in PA and could impact that market’s supply.

DC2017: Includes all systems eligible for the DC SREC market. If a system was eligible in another market, it was not included there given the current pricing for DC SRECs.

PA2017: Represents all solar facilities eligible for the PA SREC market. Some systems are cross-registered in OH as well. If a system was eligible in any higher priced markets (i.e. NJ or MD sited systems that cross-registered in PA) they were not included in the total MW balance displayed above.

MD2017: Includes all MD eligible solar capacity registered in PJM GATS as of the date noted. If projects were cross-registered in Washington D.C., the capacity was not allocated to Maryland’s eligible MW total.

NJ2017: The balance noted above represents the 2/28/17 Solar Installation Report reported by Applied Energy Group.

PJM GATS Registered Solar Projects Summary

There are 129,300 facilities across 4,550MW registered in PJM GATS as of 3/14/2017.

471 projects are 1MW or larger in capacity, representing 2,223.7MW or 48.9% of the qualified capacity. There are 124 projects that are 5MW or larger, representing 1,547MW or 34% of all qualified capacity.

Note: SREC requirements for markets without fixed SREC targets have been forecast based on the EIA Report “Retail Sales of Electricity by State by Provider”. Projected SRECs required utilizes the most recent EIA electricity data applying an average 1.0% 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 1,200MWh, in PJM GATS states, generated per MW of installed capacity per year.

 

 

IL 2017 DG Procurement Round One – Webinar

Posted March 8th, 2017 by SRECTrade.

Earlier today, SRECTrade hosted a webinar covering the upcoming IL 2017 DG Procurement Round One, including requirements for applying facilities, IPA and SRECTrade fees, bidding and block grouping mechanics, and the SRECTrade application process.

SRECTrade’s application window for Round One is open from Monday, March 20th to Monday, April 3rd.

Please feel free to reference the IL DG Procurement Spring 2017 Application Instructions HERE.

For access to the presentation slides, please click HERE. To view 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.

IL 2017 DG Procurement Round One Webinar

Posted March 3rd, 2017 by SRECTrade.

SRECTrade, Inc. will be hosting a webinar covering the upcoming IL 2017 DG Procurement Round One on Wednesday, March 8th, at 1:00pm CST. The April procurement round is the first of two rounds scheduled for 2017.

To register for the webinar, please click HERE.

SRECTrade will be participating in both procurement rounds in 2017. Our application window for Round One is open from Monday, March 20th to Monday, April 3rd.

For more information on the upcoming procurement rounds beforehand, please visit our blog post on the topic here.

Maryland Senate overrides Governor Hogan’s veto of the Clean Energy Jobs Act

Posted February 2nd, 2017 by SRECTrade.

Earlier today, the Maryland Senate voted 32-13 in favor of the Clean Energy Jobs Act (SB 921). In conjunction with the similar outcome in the House, this vote overrides Governor Hogan’s veto from last year and increases the Renewable Portfolio Standard (RPS) for the state.

Maryland Carve-Out

Massachusetts DOER Announces Final Program Design for successor to SREC-II

Posted February 1st, 2017 by SRECTrade.

On January 31, 2017 the Massachusetts Department of Energy Resources (DOER) unveiled their final program design for a new solar incentive mechanism following the very successful SREC-II program. The forty-seven slides linked above provide a highly-detailed review. Below, please find a brief summary of pertinent issues. Please keep in mind this information is proposed by DOER. Stakeholders are encouraged to submit comments to DOER.SREC@state.ma.us by February 17.

SREC-II
SREC-II will continue until the new scheme is implemented with reduced SREC-factors (30% of original). Expected fuse left on SREC-II development: through 2017

new_srec-ii_factors
Projects that did not qualify in time for the January 8th deadline will lose their Assurance of Qualification and have to re-apply. New projects may also apply for SREC-II qualification.

Please note that projects 25kW or less will continue to be approved at the 0.8 SREC Factor until the next program begins. The 0.7 SREC Factor for the extension only applies to those projects in market sector A that are over 25kW.

New Program (SMART)
Goal: 1600MW of new solar

Incentive mechanism: Declining Block with payment in the form of Net-metering credits or on-bill credits. Additionally, a buy-all, sell-all rate will be available.

Incentive level: set once through a procurement of 100MW of large (> 1MW) projects. Such large projects will offer into the procurement and the marginal project will set the price for all winning projects. Large projects will have a 20-year payment term. Smaller projects will have their incentive level set by an index relative to the level determined by the competitive procurement described above. Small projects will have a ten-year payment term.

Incentive adders: Depending on location, type of off-taker and the addition of storage to a solar array, a project may earn a higher rate of incentive.

Both the base incentive level and incentive adders will decline 4% per block.

Process: DOER will file an Emergency Regulation which will trigger a 90-day regulatory process including hearings and written comments. Following the Emergency Regulations being implemented, three additional processes will occur: 1) RFP for Administrator of this program 2) RFP for 100MW of new PV (> 1MW only), 3) EDCs jointly file at DPU for cost recovery and approval.

 

Maryland House Overrides Veto of Clean Energy Jobs Act

Posted January 31st, 2017 by SRECTrade.

Today, the Maryland House voted 88-51 to override Governor Hogan’s veto of HB1106, the Clean Energy Jobs Act, which amends the state’s RPS to 25% by 2020. Governor Hogan vetoed the Clean Energy Jobs – Renewable Energy Portfolio Standard Revisions Act (SB0921/HB1106) in May 2016, citing concerns about the costs of expanding the program. However, the expanded RPS will allow for the continued growth and success of the state’s renewable energy economy by increasing supply demands and creating new clean energy job opportunities. To address program costs, HB1106 reduces the SACP levels beginning in 2017.

The Senate is scheduled to vote on the override on Thursday, February 2nd. You can support the override efforts by urging the Maryland Senate to override the Governor’s veto and protect the Maryland solar industry. Sign MDV-SEIA’s Override Letter here today. In addition, we encourage Maryland residents and businesses to contact their State Senators in support of SB0921/HB1106. You can find your State Senator here.

SRECTrade will continue to provide updates on the status of the Maryland RPS as we acquire new information. For more information about the Maryland SREC market, please visit our Maryland Market page here. For our latest MD SREC market analysis, see our post here.

DOER Announces Status of Next Generation Incentive Program and SREC-II Bridge

Posted January 24th, 2017 by SRECTrade.

This morning, the DOER provided an update on both the Next Generation Incentive Program and the transition between SREC-II and the new program.

Next Generation Incentive Program

The DOER  will present the final proposal for the design of the Next Generation Incentive Program at a public briefing on January 31, 2017. Per the DOER’s update, the “proposal will be used by DOER as the framework for the regulation to implement the program, which DOER plans to file in the coming weeks.”

SREC-II Transition

Due to the expected timeframe for the implementation of the Next Generation Incentive Program, the DOER is in the process of implementing interim measures to bridge the gap and ensure a smooth transition between SREC-II and the new program. The DOER will provide additional details regarding these interim measures in the January 31st meeting.

Information for the meeting is as follows:

Date: January 31, 2017
Time: 1:00-4:00PM
Location: Federal Reserve Building
Morris Auditorium
600 Atlantic Avenue

Boston, MA 02210

The Federal Reserve Building requires a list of all attendees in advance of the meeting. If you plan to attend the meeting, the DOER requests that you please fill out this form to RSVP by 5:00PM this Friday, January 27, 2017.

Massachusetts SREC-II Update – January 2017

Posted January 23rd, 2017 by SRECTrade.

Over the last month the market received both a new list of SREC-II qualified projects as well as more precise information on Q3 SREC generation. As such, we have updated our capacity models to reflect the new information.

Please find our updated capacity presentation here.

The Massachusetts Department of Energy Resources (DOER) recently published their periodic update on registered SREC-II capacity on December 12, 2016, and Q3 2016 SRECs were issued on January 15th, 2017.  These data points provide more precise information around the current build rates and the exact amount of SRECs currently available for sale, but the data simply confirms the widely known fact that MA16 SREC-II is indeed heavily oversupplied.

Given an oversupply from 2015 of 66,372 SRECs, plus the 441,890 SRECs issued in Q1, Q2 and Q3 of 2016 (Q3 generation was 190,526), we are left with a total of 508,262 SRECs already created.  That alone leaved the market 49% over the exempt-load obligation for 2016.  Using the trailing twelve month average for new capacity added per month, we add another 143,887 SRECs as an estimate of Q4 production to bring us to a grand total of 652,149 SRECs created in 2016.  This represents a 312,069 SREC oversupply, or approximately 92% of the 2016 compliance obligation.

ma16-srec-ii-sd

We expect the DOER to publish an updated qualified project list in the near future.  Additionally, we expect more information in the coming weeks on the status of the SREC-II extension program.  As either of those updates come available we will be sure to pass on all relevant information.  As always, feel free to reach out to your SRECTrade sales coverage for any questions or comments.

 

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.

Urge Maryland Legislature to Override Gov. Hogan’s Veto on RPS Bill HB1106

Posted January 17th, 2017 by SRECTrade.

In May 2016, Maryland Governor Hogan vetoed the Clean Energy Jobs – Renewable Energy Portfolio Standard Revisions bill (SB0921/HB1106). This month, the Maryland State Legislature will commence its discussion on overriding Gov. Hogan’s veto and passing into law legislation that would increase the state’s RPS to 25% by 2020. The expanded RPS will allow for the continued growth and success of the state’s renewable energy economy by increasing supply demands and creating new clean energy job opportunities. To address program costs, HB1106 reduces the SACP levels beginning in 2017 as shown below.

 

You can support the override efforts by urging the Maryland State Legislature to override the Governor’s veto and protect the Maryland solar industry. Sign MDV-SEIA’s Override Letter here today. In addition, we encourage Maryland residents and businesses to contact their local representatives in support of HB1106. You can find your local representative here.