Archive for the ‘Massachusetts’ Category

H1 2017 SREC Pricing, Presented by Market Insights

Posted July 5th, 2017 by SRECTrade.

The first-half of 2017 was a dynamic period in the SREC markets. SREC prices experienced highs and lows. In order to understand and clearly present pricing data, SRECTrade offers a subscription product – Market Insights. Login to your SRECTrade account and get started for free.

Please see the Year in Review video here:


Massachusetts Solar Credit Clearinghouse Auction Announcement – Summer 2017

Posted June 21st, 2017 by SRECTrade.

On June 16th, the DOER formally announced that they would conduct Solar Credit Clearinghouse Auctions (SCCA) for both the SREC-I and SREC-II programs.

EnerNOC Inc. posted the Auction Notice and Qualification Application for this year’s SCCA to the Auction Announcement Website. The SCCA is a market mechanism that allows for any leftover SREC supply from the previous compliance year to be sold to buyers. In years of oversupply, the DOER will consider the total volume of SRECs submitted to the SCCA, as well as the success of the auction in clearing those volumes, in their decision to increase the RPS demand for future compliance years.  Since there will be a SCCA for compliance year 2016, we know that the 2018 obligation will be adjusted higher.


This year’s fixed price for buyers is set at $300 for both SREC-I and SREC-II. After the DOER administration fee, sellers will receive a net amount of $285 per SREC. Beginning next year, the SREC II SCCA price will begin to decrease while the SREC I price will remain at $300.


The volumes of certificates available for purchase through each auction are as follows:
MA16 SREC I: 14,405 certificates
MA16 SREC II: 234,057 certificates


The auction will consist of two tiers:

The first tier (Tier I) includes all natural compliance buyers. Up to 50% of the total auction volume will be reserved for Tier I bidders. If demand exceeds the 50% benchmark, awards will be made on a pro-rata basis. If there is insufficient demand from Tier I bidders, the remaining SRECs will be made available to Tier II bidders.

The second tier (Tier II) of bidders include all other entities, including Tier I entities with unfulfilled bids from Tier I. After Tier I awards have been given, the remaining SRECs will be allocated to Tier II bidders on a pro-rata basis.

Key Dates & Bidder Webinar Registration

  • Wednesday, June 21, 2017 – Bidder webinar to review auction process and the Qualification Application
    • To register for the webinar please follow this link
  • Wednesday June 28, 2017 – Bidder Qualification Application due
  • Monday, July 24, 2017 – First auction takes place

We will keep you posted with any new updates ahead of the auction, and the results of the auction as soon as they are made publicly available.  Feel free to reach out to your coverage on the SRECTrade brokerage desk to discuss any questions you may have about the upcoming auction.


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.

DOER Files SMART Program Emergency Regulation

Posted June 5th, 2017 by SRECTrade.

On Monday, June 5th, the MA Department of Energy Resources (DOER) filed an emergency regulation to implement the Solar Massachusetts Renewable Target (SMART) Program. The regulation is directed toward supporting the development of an additional 1,600 MW of solar energy generating facilities via a declining block program.

Although the emergency regulation takes effect immediately, it can only remain in effect for three months. The emergency regulation is a placeholder, pending a full rulemaking proceeding conducted by DOER, at which time the final program rules will be established. Following the conclusion of the DOER’s rulemaking process, the Department of Public Utilities (DPU) will need to conduct a proceeding for the DPU’s approval of the tariffs filed by the Electric Distribution Companies. Only after this rulemaking and proceeding take place will the SMART program be in effect. Accordingly, the SREC-II program remains in effect for all eligible solar facilities.

As a result of this implementation schedule, it is expected that solar facilities will be eligible to qualify for the SREC-II program through the end of Quarter 1, 2018.

For more information on the SMART program, please feel free to reference our last blog post on the topic here. The DOER’s official notice regarding this emergency regulation is available here.

Massachusetts SREC-II Update – April 2017

Posted April 21st, 2017 by SRECTrade.

In the last month we have two new and important pieces of information. On March 13, the Department of Energy Resources (DOER) updated the list of projects with a Statement of Qualification (SQA) and NEPOOL-GIS published the 2016 year-end SREC supply figures. Since our last update in SREC-II, the DOER announced that projects lacking an extension from DOER would lose their SQA. However, such projects are allowed to re-apply for an SQA with the understanding of the lower SREC factors. Please see the full presentation of data and analysis here.

Based on the latest information, we see the total installed & operational capacity in SREC-II is 812 MW, with an additional 1,076 MW qualified but not yet operational:

MA SREC-II qualified-capacity-over-time

With the year-end figures on SREC-II supply coming in at 556,510 we can better estimate the extent of over-supply for the year. Note that while the supply figures are out for the year, we won’t see the aggregate demand figures for a few weeks still. Using 2015 figures as a proxy, we estimate an oversupply of 282,802 MA16 SREC-IIs:

MA16 SREC-II srec-oversupply

With such a large surplus of SRECs, we’re certain to see a Solar Credit Clearinghouse Auction (SCCA) this summer. Recall that the DOER will accept SRECs until June 15 before initiating the Clearinghouse Auction towards the end of July. During that interval, the DOER will announce the 2018 Minimum Standard, which may increase if the SCCA does not clear by Round 2:


Source: DOER

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:


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.

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 by February 17.

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

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.


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.

MA SREC-II Extension Webinar

Posted December 13th, 2016 by SRECTrade.

Earlier today, SRECTrade hosted a webinar covering the current state of the Massachusetts SREC-II program, key deadlines for qualifying systems under SREC-II, and SRECTrade application processes.

The application window is currently open for all MA systems, regardless of size, although qualification deadlines are approaching. Please feel free to reference SREC-II Extension Application Instructions HERE.

For access to the presentation slides, please click here: MA SREC-II Extension Webinar. 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.

MA SREC-II Installer Webinar

Posted December 12th, 2016 by SRECTrade.

SRECTrade will be hosting a webinar this Tuesday, December 13th, at 2:00 PM EST. The webinar will cover the current state of the Massachusetts SREC-II program, key deadlines for qualifying systems under SREC-II, and SRECTrade application processes to consider as the program’s close approaches.

To attend the webinar click HERE to register. A recording will be made available on SRECTrade’s blog for those unable to attend.

Massachusetts DOER Updates Exempt Load Figures

Posted November 16th, 2016 by SRECTrade.

On November 14, the DOER updated the exempt load projections for both SREC-I and SREC-II, as well as provided information on the total volume of re-minted SRECs available in the market. These two data points impact the level of demand and expected supply, respectively.

Briefly on SREC-II, the exempt load numbers for 2016 and 2017 increased slightly, which will in turn lower aggregate demand. We already anticipated those markets being oversupplied and with this new data, this assumption strengthens. See our most recent analysis for a deeper dive.

As a follow-up to our recent post on the MA16 SREC-I market, we will incorporate recent data published by the Department of Energy Resources (DOER) and re-examine supply assumptions to provide another view into the recent weakness in the market.

Starting with the demand side of the market, we now project the total market demand for MA16 SREC-I in the range of 807,203 – 832,507, depending on the total amount of electricity sales. Note, the scenario on the left assumes load is down approximately 3% from 2015, while the scenario on the right keeps load flat at the estimated 2015 levels.


For a more nuanced view on the projected supply for the year, we consider using Q3 and Q4 issued SRECs from 2015 as a proxy for this year. Adding those figures to SRECs already issued in Q1 and Q2 of this year results in an estimated supply of 818,761 for MA16 SREC-I.

With the latest data from DOER, we can now add 50,499 additional SRECs to the supply side. These SRECs are re-minted volumes from past Clearinghouse Auctions that are eligible for compliance on 2016. In sum, we anticipate a total supply of 869,260.

When compared to the range of demand we anticipate the market is long by 4%-8% of demand, or 36,753-62,057 SRECs:


Factors that could swing the market one way or the other include how much electricity is sold and how much output comes from the installed capacity. Additionally, although the market is potentially oversupplied, it is possible some participants may not bring supply to the market if market prices are lower than their expectations. This could influence price upward to levels we experienced earlier in the year. On the other side, if natural buy-side demand chooses to take a wait and see approach the efficiency of the market can be impacted and influence price downward. The latter has been the case over the past months as the market has moved down on a dearth of natural buy-side demand.