SRECTrade
Home My Account Long-Term Contracts Our Service About Us Blog Contact Us Find Installers

Archive for the ‘Massachusetts’ Category

Massachusetts Solar Credit Clearinghouse Auction Explained

Monday, July 26th, 2010

MA Energy Year: January 1st – December 31st.

SREC Life: Two years. So an SREC produced in 2010 can be counted towards the 2010 or 2011 Solar Carve-Out.

When is the last SRECTrade Auction of each Energy Year?

The final SRECTrade auctions will occur in May and June of the following year, immediately before the DOER Solar Credit Clearinghouse last chance auction which closes on June 15th of each year. SRECs are generated quarterly in Massachusetts on a 4-month delay.  SRECs for Q1 (January-March) are available on July 15th and can be sold in auction at the beginning of August. Q2 SRECs are available on October 15th and can be sold in the November auction, Q3 SRECs are available on January 15th and sold in the February auction and Q4 SRECs are available on April 15th and can be sold in the May auction. Any SRECs remaining after the final SRECTrade auction can be entered into the DOER auction.

What happens if at the end of the year I still haven’t sold my SREC(s)?

If you have an SREC or multiple SRECs that were not sold in the SRECTrade auctions during the year you can opt-in to the DOER Solar Credit Clearinghouse auction.  SRECs entered into the auction are “Re-Minted” meaning the eligibility of the SREC is adjusted. For example, a 2010 SREC is originally eligible for compliance in 2010 and 2011. If it enters into the DOER auction, the SREC is Re-Minted to be eligible for compliance in 2011 and 2012. It is no longer eligible for compliance in 2010. Buyers may then bid to purchase the SREC to get a start on meeting their requirements for 2011. The DOER auction will be open May 16th to June 15th each year.  SRECs will be sold at a gross fixed price of $300 less a 5% fee resulting in a net price of $285 to any sellers.

Am I guaranteed to sell my SRECs in the DOER Solar Credit Clearinghouse auction?

No, you are not guaranteed to sell your SRECs in the DOER auction. However, it is unlikely that the SRECs don’t sell. If there is an oversupply of SRECs in the DOER auction, the SRECs will all be granted a third year of eligibility and a second auction will be held. So, in our example, the 2010 SREC will now be eligible in 2011, 2012 and 2013. If there still aren’t enough bids to clear all of the SRECs, DOER will increase the requirements to the buyers by the number of SRECs that are available. The buyers bidding in the auction will now be required to purchase more SRECs in 2011. If after this third attempt, there still aren’t enough bids, the SRECs are returned to the owner as Re-Minted SRECs. These SRECs will be more valuable in the open market than any new SRECs that are created. Going back to our example, the original SREC was a 2010 SREC, eligible in 2010 and 2011 before the auction. Once it was entered in the DOER auction, it became eligible in 2011 and 2012. After an unsuccessful DOER auction it was released back to the owner as an SREC eligible in 2011, 2012 and 2013. This SREC now has a 3-year useful life, making it more valuable to a buyer than the new SRECs created in 2011 which only have a 2-year useful life.

If I’m unsuccessful in the DOER auction, how can I be assured that my SREC will still sell above $300?

Following the DOER last chance auction, SRECTrade will resume its monthly competitive auctions. If there was a surplus of SRECs in the DOER auction, they can be immediately listed in the SRECTrade auction the following month and made available to buyers who are now looking to meet their requirements – which have now been increased by the DOER. At this point, buyers will likely resume buying SRECs in the competitive market in order to ensure that they are able to meet their new requirement and avoid the $600 SACP. SREC prices should stay above $300 in the SRECTrade auctions since the DOER auction at the end of the year will guarantee that price.

Why would a buyer of SRECs ever pay more than $300 when they could just wait to buy their SRECs in the Solar Credit Clearinghouse?

Buyers cannot wait for the DOER auction to buy their SRECs for 2010. When an SREC enters the DOER auction, it is stripped of its 2010 eligibility and cannot be used to meet the requirement for the year in which it was generated. The 2010 SRECs placed in the DOER auction can therefore only be used to meet the 2011 or 2012 requirements. Meanwhile, buyers will want to purchase their 2010 SRECs in the competitive market prior to the DOER auction – otherwise they face the $600 fine.

Share||Subscribe

Tags: , , , , , ,
Posted in Massachusetts | No Comments »

First Massachusetts SRECs created!

Wednesday, July 21st, 2010

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.

Share||Subscribe

Tags: , , , , ,
Posted in Massachusetts | No Comments »

Massachusetts DOER Raises Solar Requirement for 2011

Thursday, June 17th, 2010

The Massachusetts DOER made its final changes pertaining to the implementation of the solar carve-out program in the state’s RPS class I revised regulation. Most noteworthy of the changes, the DOER increased the solar requirement for the 2011 energy year to 69MW, or a total of 78,577 MWh. The increase in the solar requirement is a welcome development for SREC markets in Massachusetts, coming on the heels of the TransCanada legislation, which reduced the solar requirement for Massachusetts (more information on the TransCanada legislation here). This is a good indication that the state has levers it can pull to ensure the state supports a thriving SREC market, providing the market with some stability.

This should serve to counterbalance the change prompted by the TransCanada settlement that exempts certain buyers from the solar carve-out.

To see the all the changes made to the legislation see the RPS Class I Revised Regulation with Tracked Changes.

Share||Subscribe


Tags: , , , , , ,
Posted in Massachusetts | 1 Comment »

Impact of TransCanada Settlement on Mass SREC Market

Wednesday, June 9th, 2010

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.

Share||Subscribe


Tags: , , , , , , ,
Posted in Massachusetts | 1 Comment »

Massachusetts SRECs 101

Tuesday, June 8th, 2010

What is an SREC? Solar Renewable Energy Certificates (SRECs) are created for every megawatt hour of electricity produced by solar generators. A 10 kW system produces about 12 SRECs a year. SRECS are sold separately from electricity, and the solar power generated does not need to be used for the SREC to be created.

Who buys SRECs? Electricity suppliers must buy SRECs to meet the Massachusetts RPS requirement. Threatened by a Solar Alternative Compliance Payment (SACP) of $600 per megawatt hour if they do not comply, these companies will pay up to this price for SRECs.

How do I sell SRECs? Since individual solar owners do not produce enough SRECs to sell direct to buyers, an intermediary mechanism must exist. SRECTrade created the SREC auctions to connect sellers directly to the buyers in the market in a simple, efficient and effective way. The closing price of each auction represents the fair market price based on supply and demand.

Massachusetts SREC Pricing: State has set up a controlled market for SRECs that creates a price range of $300-$600 per SREC. There are several levers available to the state to ensure that pricing stays within this range.  First, the electricity suppliers who fall short of their SREC requirements must pay a fine of $600 per SREC. This sets a ceiling price of $600. In years where there is an SREC shortage, pricing will be close to $600. If there is an oversupply of SRECs, then market prices will be at or near $300. The state ensures this floor price by having a last chance fixed-price auction at the end of the year. Buyers can bid to purchase the SRECs that are available at $300 per SREC. If there are still unsold SRECs remaining after this auction, the state will adjust the capacity requirements for the following year to compensate for this surplus and allow increase the life of the unsold SRECs from 2-years to 3-years. This will ensure a stable SREC price and give solar owners an assurance that prices will be above $300.

Massachusetts Solar Requirement: The state has set the requirement for the SREC program at 30 megawatts of solar in 2010. That is the equivalent of approximately 36,000 SRECs that need to be produced and purchased by suppliers in 2010.

Massachusetts SREC Program Logistics

  1. SRECTrade will submit PV project application to the DOER. Once this application is approved, their solar facility will be added to the NEPOOL GIS tracking platform, where SRECs will be created and transacted.
  2. Solar electricity generation is reported to the Production Tracking System (PTS).
  3. SRECs are generated quarterly in NE-GIS and are then posted in the SREC auctions.
  4. The state has committed to the program for 10 years. Each SREC is valid for 2 years, so an SREC created in 2010 can also be sold in 2011.

SRECTrade Aggregation Logistics

  1. Fill out the forms to enroll in EasyREC
  2. SRECTrade will submit your application to the DOER for approval and set up your SREC account – this takes a few weeks
  3. Once set up, SRECTrade will collect your readings at the beginning of each month using an online form or internet-enabled inverter
  4. SRECs are generated quarterly by NE-GIS
  5. SRECTrade hosts monthly auctions on the first Friday of each month. You will be notified of the result after each auction. Possible results include:
    1. Successful: X SRECs sold at Y Price
    2. Unsuccessful: Y Price was below minimum, X SRECs not sold
    3. No SRECs: None were available in this auction
  6. If successful, payments will be delivered by the end of the month via direct deposit or mailed check. If unsuccessful SRECs are carried forward to next auction

EasyREC customers own their SRECs until sold in auction or contracted in the Forwards Exchange.

For More Information: http://www.srectrade.com/massachusetts_srec.php

Share||Subscribe


Tags: , , ,
Posted in Massachusetts, SREC Markets | No Comments »

Deal reached in TransCanada lawsuit against Mass SREC Program

Tuesday, June 1st, 2010

Stakeholders in the Massachusetts solar industry can be relieved to know that a preliminary deal has been reached in TransCanada’s lawsuit against the Massachusetts SREC program.  The lawsuit asserted that the program was unconstitutional on the grounds that it violated interstate commerce laws.  It argued that the exclusion of out-of-state solar facilities from SREC eligibility discriminated against out-of-state electricity providers. In the deal reached with the Department of Energy, electricity supply contracts signed prior to the January 1, 2010 start of the SREC program will be grandfathered in and protected from the requirements.  In return, TransCanada has agreed to drop claims against the state’s solar program.

See full article at Boston.com

Share||Subscribe


Posted in Massachusetts | No Comments »

Massachusetts SREC Registration Details

Thursday, February 18th, 2010

Massachusetts DOER is recommending that solar owners utilize aggregators for managing their SRECs.  This is a smart move because it allows them to work with a small number of firms that specialize in managing SRECs rather than build the customer service capability necessary to handle all the questions that would arise if every individual solar owner in Massachusetts were to register themselves.  SRECTrade will be on of a few aggregators, however we do hope to be the best!  Here we will provide some more information on how the SREC registration process will work in Massachusetts:

1. Upon signing up for SRECTrade’s services, we will submit a PV Project Application to the DOER. You can find the most up-to-date registration forms on our EasyREC page.

2. The DOER will plan to process the applications within 30 days and issue a Statement of Qualification upon approval.

3. Once you have been issued a Statement of Qualification, SRECTrade will add your facility to the NEPOOL GIS tracking platform. This is where the SRECs will be created and transacted.

4. As soon as the DOER receives confirmation that your project has been authorized to interconnect by your utility provider, you will be able to begin reporting production data to the Massachusetts Clean Energy Center’s (CEC) Production Tracking System (PTS).  Reporting will be done on a monthly basis and the CEC will upload data to NEPOOL GIS on a quarterly basis after verifying the accuracy of the data by checking for any out of bounds data reported.  The SRECs will then be minted on the following schedule.

Quarter Generated – Date SRECs Minted
January 1st – March 31st: July 15th
April 1st – June 31st: October 15th
July 1st – September 30th: January 15th
October 1st – December 31st: April 15th

5. Since SRECs are all created once a quarter, SRECTrade will host quarterly auctions for Massachusetts SRECs.  The auctions are currently set to close on the following dates:

Tentative Massachusetts SREC Auction Dates
Q1 SRECs – August 6th, 2010
Q2 SRECs – November 5th, 2010
Q3 SRECs – February 4th, 2011
Q4 SRECs – May 6th, 2011

If you or your installer has questions about this process and how SRECTrade can help you, please feel free to give us a call at (877) 466-4606.  Click here for more information on the SREC program in Massachusetts.

Posted in Massachusetts | No Comments »

Massachusetts SREC Market

Wednesday, December 16th, 2009

The Massachusetts Department of Energy Resources (DOER) recently announced the implementation of a solar carve out as part of the state’s renewable portfolio standard.  The carve-out establishes a requirement of 25 MW of solar electricity for 2010 and a solar alternative compliance payment (SACP) of $600.  SRECTrade will begin hosting SREC auctions in Massachusetts in 2010.  Solar generators may begin registering their facilities with SRECTrade as long as they meet the criteria for eligibility in Massachusetts:

- Solar photovoltaic project located in Massachusetts
- Under 2MW in capacity
- Installed on or after January 1, 2008
- Has not received funding from Commonwealth Solar I
- Has not received substantial support from ARRA-related federal stimulus funds

Go to the Massachusetts Solar Renewable Energy Certificate (SREC) Program page for more details.

Tags: , , , , ,
Posted in Massachusetts | No Comments »

Home  |  Long-Term Contracts  |  How it Works  |  About Us  |  Solar Installers  |  Solar Incentives  |  Get Solar  |  About Us  |  Privacy Policy  |  Terms and Conditions  |  Contact
Copyright © {$copyright_year}. All Rights Reserved.

SRECTrade.com is a subsidiary of InClime, LLC, a company devoted to innovative climate solutions.