Archive for the ‘Delaware’ Category
Wednesday, April 18th, 2012
On Wednesday, April 18th, SRECTrade announced Tier 1 and 2a results for the Delaware Pilot Procurement Program. The results can be found here on the Program site. Results for Tier 2b and 3 (systems between 250 and 2,000 kW) are not yet finalized.
For Tier 1 and 2a, during the random selection process, applications that represented PV systems with both Delaware parts and labor were automatically sorted above applications with just Delaware parts or just labor. Applications that did not qualify for either Delaware parts or labor were sorted last.
A fixed amount of SRECs were required to be purchased within each Tier. For example, Tier 1 required 2,972 SRECs per year. After sorting the systems, their cumulative SREC production was calculated. Applications were accepted down the sorted list until the 2,972nd SREC requirement was met. All other systems were not accepted into the Program. Overall the Pilot solicitation attracted the equivalent of 6,610 SRECs from Tier 1 qualified systems. As such, there were enough systems with Delaware parts and labor alone to meet the 2,972 SREC requirement for the Tier 1 solicitation.
The Delaware Pilot SREC Procurement Program is a partnership between Delmarva, the largest retail utility in Delaware and the Delaware Sustainable Energy Utility. The Program is designed to source all of Delmarva’s SRECs while guaranteeing eligible PV system owners a 20-year fixed price contracts for their SRECs.
Tags: DE Pilot Program, Long-term, Long-term contract, long-term srecs, Pilot, solicitation, SRECs
Posted in Delaware, SREC Markets | No Comments »
Friday, April 6th, 2012
The Delaware SREC Pilot Procurement Program reached a milestone today. The solicitation period (window for submitting applications) closed today at 5 pm Eastern Standard Time for Tier 1 and 2 photovoltaic systems (PV systems <250 kW DC). SRECTrade is contracted by the Delaware SEU to run the Pilot Procurement solicitation. Successful applicants will be guaranteed 20-year contracts for their SRECs, but not all applicants will be successful because of capacity limitations set in place by the state. The application rules and contract values vary depending on system size. The application form and guidelines are provided on the SRECDelaware website.
Tiers 2B and 3 are still open until 5:00 EST on Friday, April 13th. Any facilities that did not bid in Tier 1 or 2A may still bid in Tier 2B regardless of size, however they have to meet the requirements of a Tier 2B system and must submit a bid price. Any system that bid in Tier 1 or 2A may not bid in Tier 2B and any systems that do so will have both bids disqualified.
All applications for Tier 1 and 2A must have been received by 5:00 pm Eastern Standard Time on Friday and all bid deposits must have been initiated prior to that time. SRECTrade will continue to update the status of individual applications status as bid deposits are received on Monday. We will contact any facilities requiring minor corrections during the week of April 9-13.
Tags: Contracts, Long-term, long-term srecs, SREC Procurement Pilot Program, SRECs
Posted in Delaware, SREC Markets | 1 Comment »
Friday, March 30th, 2012
SRECTrade was recently awarded the contract to administer the Delaware Pilot SREC Procurement Program on behalf of the Delaware Sustainable Energy Utility (SEU) and Delmarva Power. Since receiving the contract we’ve put up a website to answer questions about the program and to accept applications for the solicitation. An overview powerpoint and webinar recording can be viewed by clicking here.
This is the first essentially state-wide SREC program to take such a long-term approach to SREC contracts. Regulators and industry observers are eager to see how this “pilot” solicitation is reviewed. Should the “pilot” be deemed successful it is likely that the SEU will hold yearly solicitations for SREC contracts.
With the Pilot SREC Procurement Program, the SEU and Delmarva have formed a partnership to provide stable, long-term pricing (20-year contracts) for a finite amount of SRECs from systems that are accepted into the program. Among the eligible systems for the program, preferential selection and pricing is given to systems installed with Delaware parts and/or labor. Systems under 250 kW (DC) nameplate capacity apply into a lottery solicitation, whereas systems that are greater than 250 kW (DC) must apply through a competitive bid process. The solicitation will likely be over-subscribed with applications from among the many eligible, in-state systems. Solar systems that are not successful in the solicitation will still be able to transact SRECs outside of the Delmarva program, and could remain eligible for future solicitations or this program.
Key items
DE-sited solar systems interconnected on or after 12/1/2010 are eligible.
Systems must have online monitoring.
Systems that received funding from a public source other than the Federal Investment Tax Credit and DE Green Energy Program are ineligible.
4/2/2012 – Solicitation opens.
4/6/2012 – Solicitation will stay open at least until this date for systems <250 kW (DC) capacity, but could stay open if not all capacity is filled.
4/13/2012- Solicitation closes for systems >250 kW (DC).
4/23/2012 – Results announced.
Tags: Contract, Contracts, Delaware, Long-term, Pilot, procurement, RPS, SRECs
Posted in Delaware, SREC Markets, State RPS | No Comments »
Tuesday, November 15th, 2011
The Delaware Public Service Commission approved the SREC Procurement Pilot Program on November 8th, 2011. This program will allow qualified solar energy system owners to sell their SRECs at a fixed price for the next 20 years.
The program will only be open to certain DE solar owners, for example, eligible facility owners must have received approval of their “Accepted Completed Solar System Interconnection Application” on or after December 1st 2010. Another requirement stipulates that the facility must not have received supplemental funding from a public source other than grants associated with the Delaware Green Energy Program “GEP”.
The number of SRECs to be procured is tiered according to the system size from which they are obtained. They will also be priced accordingly. Based on the requirements for June 2011 through May 2012, the numbers and price are
| Tier |
Size (kW) |
Number of SRECs |
Percentage of Total SRECs |
Price, 1st 10 years |
Price, next 10 years |
| 1 |
<50 |
2972 |
13.4% |
$260 base, $235 alt+ |
$50 |
| 2a |
50 – 250 |
2,000 |
9.1% |
$240 base, $175 alt+ |
$50 |
| 2b |
250 – 500 |
2,000 |
9.1% |
Lowest Bid Price* |
$50 |
| 3 |
500 – 2,000 |
4,500 |
20.4% |
Lowest Bid Price* |
$50 |
| 4 |
>2,000 |
10,600 |
48% |
Lowest Bid Price* |
$50 |
+Alternative pricing for projects that received a GEP grant before December 10 2010.
* Prices for tiers 2b, 3 and 4 will be decided by competitive bidding amongst the applicants.
In the event of oversubscription for facilities in Tier 1 and 2A, systems will be eliminated via lottery, starting with systems enrolled in the equipment or workforce bonus program.
Payments will be made quarterly for Tier 1 and monthly for Tiers 2 and 3. The energy production must be measured by at least a standard, utility grade meter and online monitoring for Tier 1 systems, and a revenue grade meter with online monitoring for Tiers 2 and 3.
Facilities are obliged to deliver the number of SRECs as estimated for their system size when they apply. The Sustainable Energy Utility is obliged to purchase up to 110% of the estimated SRECs, but may choose not to purchase any additional surplus SRECs.
This program will likely commence this winter or spring, and SRECTrade will be supporting this program for all of our installers and their customers. Look out for a future email regarding the SREC Pilot Program.
Tags: DE Pilot Program, DE PSC, DE SRECs, Delaware, Delaware PSC, Procurement Program, Renewable Energy Certificates, renewable portfolio standard, selling SRECs, Solar, Solar Renewable Energy Certificates, SREC, SREC Prices, SREC Procurement, SREC Procurement Pilot Program, SREC Programs
Posted in Delaware, SREC Markets, SREC Pricing | 2 Comments »
Tuesday, July 12th, 2011
The Council of the District of Columbia unanimously voted, today July 12th, to close the DC SREC market to out-of-state systems. The Distributed Generation Amendment Act of 2011 (Bill 19-10) increases the SREC requirement in 2011 as well as establishes an SACP schedule through 2023. Once in effect, the bill will allow out-of-state systems registered prior to 1/31/2011 to continue to sell SRECs in the DC market. The DC Public Services Commission has not provided clarification on how the bill will affect out of state systems that have already granted DC registrations after the January 31st 2011 grandfather date. For more information on the bill please refer to our previous blog postings here and here.
The bill is not yet law. It first must go through a 30-day Congressional Review process before it can go in to effect. Given these mechanistic delays we don’t expect the bill to go in to effect for at least another month.
The following chart illustrates which out-of-state systems will be effected by the legislation.
| State |
Eligible Markets (after B19-10 is effective) |
| DE |
DE, PA |
| IN |
OH; PA (if in American Electric Power territory) |
| IL |
PA (if in Com Ed territory) |
| KY |
OH; PA (if in American Electric Power territory) |
| MD |
MD; PA |
| MI |
OH; PA (if in American Electric Power territory) |
| NC |
NC; PA (if in Dominion Electric Territory) |
| NJ |
NJ, PA |
| NY |
- |
| OH |
OH; PA |
| PA |
PA; OH |
| TN |
PA (if in American Electric Power territory) |
| VA |
PA |
| WV |
OH; PA |
| WI |
- |
Posted in Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvania, SREC Markets, State RPS, Tennessee, Virginia, Washington, DC, West Virginia, Wisconsin | 2 Comments »
Friday, August 6th, 2010
SB119, a bill amending the Delaware RPS, was signed into law by the Governor last week. This bill increases and extends the required minimum percentage of electricity coming from renewable sources, and will contribute to the growth and longevity of the SREC market in Delaware. The new mandate is that 25% of electricity come from renewables by 2026, up from 20% by 2021 and will begin to have an impact on the market in June of 2011. The requirement for solar has also been increased, which will trigger an increased demand for SRECs. For example, the estimated SRECs needed by electicity suppliers to meet their 2011-2012 mandate has increased from 6,137 to 25,571. These changes represent great news for solar owners and installers, as are the other provisions of the bill.
Key Changes:
1. The number of SRECs required will dramatically increase
2. The SACP which sets a ceiling price for SRECs will be raised to levels competitive with other states
3. The municipal utilities that have been exempt thus far will now be required to comply
For more information, please see our previous post on the Delaware SREC Bill or our newly updated Delaware SREC page.
Tags: Delaware renewable portfolio standard, Delaware RPS, Delaware SB119, Delaware SREC Changes, delaware srec market, SB119
Posted in Delaware | 2 Comments »
Wednesday, July 28th, 2010
SRECTrade’s State of the SREC Markets in 2010
The New Jersey, Pennsylvania and Delaware Energy Years came to a close on May 31, 2010. The following is a report of the solar capacity in megawatts (MW) certified and registered to create SRECs in all states at that time.
Solar generators by state located: This table is based solely on the location of the facility and does not include multiple state listings. All facilities must have been registered by May 31st, 2010.
As you can see New Jersey has by far the largest amount of solar installed and eligible for SRECs with 146 MW. Pennsylvania is a distant second at 17 MW. Meanwhile, Ohio and Illinois are third and fourth respectively, however of the 16 MW in Ohio, 12 come from one facility and of the 10.1 MW in Illinois, 10 come from one facility. Delaware and Maryland both have sizable markets at around 6 MW each. Volumes in other state are much smaller since there is no local SREC market.
Solar generators by size: Projects certified for SREC markets range in size from as small as 0.5 kW to as large as 12 MW, however, only 20 out of the 7,700 projects are over 1 MW. Of those 20 projects all are well below 5 MW, with the exception of a 10 MW facility in Illinois and 12 MW facility in Ohio. The lack of multi-MW facilities in the SREC markets is a function of both the complexity involved and constraints on demand. The only state SREC market today with any legitimate appetite for multi-MW facilities is New Jersey.
Solar generators by state eligibility: Because some states accept out-of-state SRECs, the in-state supply listed above differs from the total supply available to buyers in that state. For instance, Ohio’s market also includes facilities located in PA, WV, KY, IN, and MI. The table below lists the total solar capacity in megawatts eligible for each SREC market, along with the percent of the market that is sourced in-state. Note: many facilities will be counted multiple times in this table since they are eligible in several states. For example, the 10 MW facility in Illinois is eligible in both DC and PA.
In Ohio 89.6% of the market is in-state SRECs. Some of our customers have asked why in-state Ohio SRECs do not sell at a premium because of the 50% in-state requirement. The reason is that, as you can see, buyers are not having difficulty meeting the 50% requirement with the large supply of in-state SRECs. In the future as the requirements increase, in-state SRECs could be harder to come by and may indeed sell for more than out-of-state SRECs.
Interpreting the data: One important thing to notice is that the 2010 Capacity Requirement column details the capacity required to be sustained throughout the entire energy year. The Volume column shows the capacity registered through May 2010. For example, New Jersey needed approximately 160 MW of capacity running on average from June 2009 through May 2010 in order to meet the 2010 SREC requirement. The state is actually farther away from the 160 MW capacity mark than the 145.69 MW volume would suggest. Capacity in New Jersey grew approximately 65 MW over the course of the year and so there were probably only enough SRECs created to meet approximately 110-115 MW of the 160 MW requirement. That requirement increases in the 2011 Energy Year to approximately 260 MW. For more information on the growth of the New Jersey market and any other state market, please visit our page devoted to State SREC Markets.
Assumptions used in calculations: Solar capacity required is based on 2007 Department of Energy electricity sales figures, assuming a 1.5% growth rate. The resulting solar megawatt-hours required (i.e. SRECs) are converted to megawatt capacity requirement at a rate of 1200 MWhs per MW.
Tags: dc srec market, delaware srec market, maryland srec market, new jersey srec market, new jersey srec shortage, ohio srec market, pennsylvania srec market, Solar Carve-Out, srec market capacity, srec market data, srec production, srec requirements, srec sales figures, srec targets, state srec capacity, state srec sales
Posted in Delaware, Maryland, New Jersey, Ohio, Pennsylvania, SREC Markets, Washington, DC | No Comments »
Thursday, July 15th, 2010
New legislation which would modify Delaware’s Renewable Portfolio Standard (RPS) has passed in both of Delaware’s legislative bodies and is awaiting the Governor’s signature. This bill, titled SS1 for SB119, will change the RPS by increasing and extending the required minimum percentage of renewable energy supply and contribute to the growth and longevity of the SREC market in Delaware. The RPS currently requires that 20% of energy come from renewable sources. The new legislation will expand this requirement to 25% by 2025 and will also increase the proportion of renewable energy which must come from solar generation each year. For example, for the 2011 compliance year the solar requirement will change from .048% of the renewable energy mandate to .2%.
Key Changes:
1. The number of SRECs required will dramatically increase
2. The SACP which sets a ceiling price for SRECs will be raised to levels competitive with other states
3. The municipal utilities that have been exempt thus far will now be required to comply
The alternative compliance payment (ACP) an energy supplier must pay if failing to meet the solar requirement will also increase following this bill being signed into law. The solar ACP will strengthen from $250 to $400 per missed SREC, with this payment increasing to $450 if an ACP were paid in the previous year and to $500 if non-compliance continued for a third year. This will effectively raise the ceiling on SREC prices in Delaware to $400+.
The legislation also adds a premium to SRECs produced by systems created by in-state resources. An additional 10% credit toward meeting RPS requirements is granted for any SREC obtained from a facility constructed or installed with at least a 75% in-state workforce. The same credit is granted for systems with at least 50% of their components manufactured in Delaware. These provisions together will likely lead to a premium on SRECs from in-state solar systems.
Though well-intentioned, it is unclear how the state will track this premium given that it essentially will result in two markets for SRECs… one for normal SRECs and one for the special “Made by Delaware Labor” SRECs. Other states have tried to implement various types of multipliers with limited success and more likely resulting in more trouble than their worth. However, it could be particularly useful in giving an advantage to local Delaware companies on the larger projects that face tough competition from well-capitalized out-of-state developers.
Nonetheless, the intent is clear: Delaware wants to develop a strong solar industry in-state. This is a positive sign for the solar market there and in some ways a contrast to other states. SREC markets have a variety of benefits to a state. Besides a move to renewable energy, a properly setup program will also encourage the development of a commercial and residential solar industry. In some cases, like New Hampshire and North Carolina, the state will benefit from the former, but it doesn’t necessarily mean a boost to the latter.
Overall this is a huge win for the Delaware solar industry. Today, most of our customer base from Delaware sells their SRECs in the PA or DC markets. It will be great for them to know that their future SRECs will likely be sold in their home state! Delaware now joins Maryland and New Jersey who have also passed recent legislation directed at strengthening their respective SREC markets.
The full text of SS1 for SB119 can be found here.
Details can be found here: Delaware SREC Program
Chart numbers are based on 2007 electricity sales into Delaware assuming a 1.5% annual growth rate
Tags: de srec, DE SRECs, Delaware renewable legislation, Delaware renewable portfolio standard, Delaware RPS, Delaware solar legislation, Delaware solar owners, Delaware SREC, Delaware SRECs
Posted in Delaware | 1 Comment »
Friday, June 11th, 2010
SREC auctions in Delaware have been closing at a price of $300. This is higher than Delaware’s solar ACP, which begins at $250 per MWh. This discrepancy is caused by increases in the penalty for electricity suppliers after the first time they fall short of their solar requirement. The solar ACP increases to $300 after the first time an electricity supplier falls short, and then increases to $350 for any subsequent penalties.
So in summary, the reason you might see prices higher than $250 is because buyers are forced to pay a higher fine if they have previously fallen short on their requirement.
Tags: de srec, DE SRECs, Delaware SREC, Delaware SRECs
Posted in Delaware, SREC Markets | 1 Comment »
Monday, May 10th, 2010
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 | No Comments »
