Posts Tagged ‘Net Metering’

MA DPU Establishes Net Metering “Notification Date” as September 26, 2016

Posted August 3rd, 2016 by SRECTrade.

On July 29, 2016, the Massachusetts Department of Public Utilities (the “DPU”) issued its Order Announcing Notification Date and Directives to Distribution Companies in its proceeding under 16-64-D, establishing the Net Metering “Notification Date” as September 26, 2016. Pursuant to Chapter 75 of the Acts of 2016D.P.U. 16-64-C, and as confirmed by this Order, there are three strict criteria that must be met for a private net metering project to receive net metering credits under the old regime:

  1. Submission of an Application for Cap Allocation (ACA) to the Massachusetts System of Assurance of Net Metering Eligibility (System of Assurance) for a net metering cap allocation prior to the Notification Date of September 26, 2016 by 2:00pm;
  2. Receipt of confirmation from the System of Assurance Administrator that the application (ACA) is complete; and
  3. Receipt of a ACA cap allocation by January 8, 2017.

In its Order, the DPU determined that “the best option to result in a smooth transition to a stable and equitable solar net metering market” was to align the timing for transition to the new net metering credits policy with the Massachusetts Department of Energy Resources (DOER)’s SREC-II program. In selecting September 26, 2016 as the “Notification Date”, the DPU calculated the maximum amount of time that could be required to obtain a cap allocation on or before January 8, 2017, which was determined to be 70 business days. In addition, the September 26 date is exactly 60 calendar days after the Order’s announcement of the Notification Date. In consideration of these two timelines, the DPU determined that this date would provide enough time for systems to plan for, apply for, and receive a net metering cap allocation under the existing framework.

For more information on the current and new net metering regulation in the state of Massachusetts, please visit our previous blog post on the topic.

MA Department of Public Utilities Clarifies Net Metering Regulation

Posted May 25th, 2016 by SRECTrade.

Please note this blog post has been revised from the original May 24, 2016 post.

On Wednesday, May 18th, the Massachusetts Department of Energy Resources (DOER) notified the Department of Public Utilities (DPU) of its intent to file its determination that the 1,600 Megawatt (MW) threshold will be met on or about June 1, 2016 and requested that the DPU clarify whether facilities with private cap allocations on or before the “Notification Date” will receive the current net metering credits or the new Market Net Metering Credits. Under the recently enacted Chapter 75 of the Acts of 2016, this determination sets into motion DPU’s charge to establish a “Notification Date”, which will serve as a deadline for systems that are under the private net metering cap to be interconnected or allocated under the cap in order to receive the current net metering credits. Furthermore, the DOER requested that the DPU clarify its Emergency Net Metering Regulations and assure those facilities in receipt of net metering cap allocations on or before the Notification Date that their projects will receive net metering credits at current rates and will not receive Market Net Metering Credits (which are effectively equal to 60 percent of the retail rate). Prior to the DOER’s request, the uncertainty around the Notification Date deadline left private-cap projects in advanced stages of construction at risk of receiving Market Net Metering Credits if they failed to be interconnected by the Notification Date, creating project financing concerns.

In its May 19th Order Clarifying Emergency Net Metering Regulations, the DPU formally recognized that systems obtaining a private net metering cap allocation are “on the path toward interconnection”, since these allocations are assurances that a system will receive net metering services upon authorization to interconnect. In clarifying its policy on net metering credit eligibility, the DPU extended retail rate credit eligibility for projects that receive a private cap allocation by the Notification Date, even if those projects are not yet interconnected. Resultantly, for the duration of the Emergency Net Metering Regulations, Solar Net Metering Facilities that are interconnected or in receipt of a private cap allocation from the System of Assurance by the Notification Date shall receive retail rate net metering credits (that is, Net Metering Credits as defined in 220 C.M.R. § 18.04(1) and (5)).

This interpretation of eligibility will remain in effect only for the effective period of the Emergency Net Metering Regulations, and it is highly probable that the Notification Deadline will be set by the DPU for a date later than June 1, 2016. Following notice by the DOER that the 1,600 MW cap has been allocated, the DPU will solicit comments on the Emergency Net Metering Regulations and related issues, conduct a public hearing, and enact Final Net Metering Regulations effective July 29, 2016. Accordingly, it is possible that the Notification Deadline will be set as July 29, 2016 or possibly later than this date.

In accordance with the Order, facilities under the private net metering cap that fail to meet the Notification Date deadline will receive Market Net Metering Credits. Residential projects 10 kW and smaller on single-phase circuits, or systems under 25 kW on 3-phase circuits, will be exempt from the new rate structure under Sections 7 and 8 of the Act and are guaranteed retail remuneration rates. To be clear, facilities under the public net metering cap will continue to receive net metering credits at the current rates and will not be impacted by this Notification Deadline. For more information on current net metering and other solar legislation in Massachusetts, please visit our previous blog post on the topic here.

Massachusetts Raises Caps; Passes Net Energy Metering Bill

Posted April 17th, 2016 by SRECTrade.

On April 11, Governor Baker signed into law Chapter 75 of the Acts of 2016. The law, which was passed with an emergency preamble to have immediate effect, raises the net metering cap by 3% for private and public solar projects and will reduce the current retail remuneration rate to the wholesale rate for commercial and community solar projects once the state hits its 1600 MW solar target. Residential projects 10 kW and smaller on single-phase circuits, or systems under 25 kW on 3-phase circuits, will be exempt from the new rates under Sections 7 and 8 of the Act. Finally, the Act will permit utilities to charge solar project owners a minimum bill to cover their fixed costs.

The immediate effect of the Act will enable the stalled solar industry in Massachusetts to restart in the short term, but the Act is far from a comprehensive solution to establishing long-term, sustainable policies for solar in the Commonwealth. With the new cap estimated to be reached in some territories within a few weeks, the pressure remains on the Legislature to continue discussions on the future of solar in the state.

The Act is the result of compromise between and among the Senate, the House of Representatives, and Governor Baker. Following an impasse of the chambers’ and Governor’s respective bills last summer and into the fall, the Legislature was able to reconcile H.4173 and S.1979, passing the bill in each chamber with nearly unanimous approval. The lone “Nay” was asserted by Rep. Jonathan Hecht (D), who voiced his worry that devaluing net metering credits was a step in the wrong direction for the Commonwealth. “I’m afraid if we do lower net metering rates by that large amount, it means many solar projects simply will not get built[]”, Hecht said.

With the devaluation of net metering rates, stakeholders will expect the value to be made up elsewhere to ensure the financial viability of solar projects. Following the SREC-II Emergency Regulations issued by the DOER last week, it is clear that the DOER is working on the next phase of the state’s solar incentive program to fulfill their obligations under Section 11 of the Act. Sustainable Energy Advantage, LLC (SEA) has been engaged to assist in conducting analysis in evaluation of the next program, and stakeholders will have the opportunity to participate in the design and implementation of the next phase of the program.

Thanks in large part to the state’s net metering policies, former Governor Patrick setting the state’s 1,600 MW target, and the successful SREC-I and SREC-II programs, the robust Massachusetts solar industry now employs more than 15,100 people. Today, the state ranks sixth in installed solar capacity, with more than 1,020 MW of solar installed.

 

MA Solar Development Slow Down Likely as Net Metering Caps are Hit

Posted March 22nd, 2015 by SRECTrade.

This blog post is based on the post available at www.solarisworking.org.

In mid-March 2015, the net metering cap for public projects was hit in the National Grid territory (see red box in chart below). The Commonwealth’s legislatively-mandated net metering caps are based on each utility’s historical peak megawatt energy demand. Effective November 4, 2014  net metering caps were set at 4% for “private” projects and 5% for “public” projects of each utility’s historical peak demand, out of line with the state’s 1600 MW solar target. Representing 45% of total net metering capacity in Massachusetts, National Grid also services a region of Massachusetts where it is easier and less expensive for developers to find suitable sites for solar, but Unitil and NGrid-Nantucket are not far behind in hitting the caps in either the private or public sector. The outlier is the NStar (now EverSource) territory, where it is more difficult and more expensive to find suitable sites for solar.

As the caps across the state’s utilities are hit, new solar projects will no longer be eligible to earn retail credit for the excess power returned to the grid. Instead, they will be credited for any excess power at roughly a third of the retail rate. This decreased benefit would render many solar projects financially unviable. Although residential systems 10 kW or less and many commercial systems 25 kW or less are exempt from net metering caps, community shared solar and larger solar projects are not. As a result, development activity for these projects is expected to come to a halt unless the legislature raises the caps. Several bills have been filed this year to address the need to raise net metering caps in order to meet the Commonwealth’s 1600 MW solar target, and the future of the Commonwealth’s solar industry hangs in the balance as the Legislature reviews the bills on its table.

03202015 caps

Source: Massachusetts System of Assurance of Net Metering Eligibility. The data provided below reflects the best available estimate at the time of access of capacity (kW) interconnected, reserved, and pending that is receiving, or eligible to receive, net metering services. The accuracy of this data set is limited as adjustments to outstanding Applications for Cap Allocation may occur at any time. Data and aggregate figures included in this report should be used for informative purposes only. Verified updates provided in the Application Activity and Remaining Capacity Report will continue to be available on a weekly basis, each Wednesday. Posted 3/20/2014.

 

If you want to voice your support to raise the net metering caps, here’s what you can do:

  • Tell Governor Baker to support solar in Massachusetts.
  • E-mail or call your state legislators and ask them to raise net metering caps and to support the continuation of the successful SREC program in Massachusetts.
  • Find out who your elected officials are here.
  • Look up and track legislation here.

 

Visit The Official Website of the Executive Office of Energy and Environmental Affairs to learn more about net metering.

 

Massachusetts DOER Announces Net Metering and Solar Task Force

Posted November 6th, 2014 by SRECTrade.

On November 6, the DOER announced the establishment of the Net Metering and Solar Task Force, pursuant to Ch. 251 of the Acts of 2014, Section 7. Information on Task Force members, meetings, and materials are available on the official website of the Executive Office of Energy and Environmental Affairs (EEA) here.

The first Task Force meeting will take place on Thursday, November 13th from 2:00 to 5:00 p.m. ET, at the Massachusetts Department of Environmental Protection office in Boston.

Task Force meetings are open to the public, but the DOER has requested that attendees RSVP to Marissa.Fimiani@state.ma.us, as space is limited. Although the meetings are open to the public, the DOER encourages stakeholders to work through Task Force members to provide input. In addition to the regular Task Force meetings, two Stakeholder meetings will be held to allow for public input.

There will be a call-in number for those who are not able to travel to Boston, which will likely be posted on the EEA site referenced above.

The Task Force members are:

Member
Meg Lusardi, DOER Commissioner; Task Force Co-Chair
Kate McKeever, DPU Commissioner; Task Force Co-Chair
Benjamin B. Downing, Senator
Brian S. Dempsey, Representative
To Be Appointed By Senator Bruce E. Tarr
To Be Appointed By Representative Bradley H. Jones
Paul Brennan, Attorney General’s Office
David Colton, Easton Town Administrator
Robert Rio, Associated Industries of Massachusetts
Charles Harak, National Consumer Law Center
William Stillinger, PV Squared
Fred Zalcman, SunEdison
Janet Besser, New England Clean Energy Council
Geoff Chapin, Next Step Living
Lisa Podgurski, International Brotherhood of Electrical Workers Local 103
Camilo Serna, Northeast Utilities
Amy Rabinowitz, National Grid

 

August 21, 2014 Massachusetts SREC Market Update Webinar Slides and Recording Available

Posted August 22nd, 2014 by SRECTrade.

On August 21, 2014, SRECTrade hosted a webinar on the MA SREC market. For access to the slides please click here: SRECTrade 8/21/14 MA SREC Update. For access to a video recording of the webinar, click the image below.

Note: For access to the latest net metering information, slide 15 was updated to include a link to the Mass ACA website.

2014_08_21_MA Webinar_thumbnail

Massachusetts Governor Deval Patrick Signed Net Metering Legislation on August 6, 2014

Posted August 8th, 2014 by SRECTrade.

S.2214, Massachusetts’ latest net metering legislation  was signed in to law by Governor Deval Patrick on August 6, 2014. The bill history is available here. The legislation raises the existing Massachusetts net metering capacity limits from 3% to 5 % of total load for public projects and 3% to 4% for private projects. Additionally, the legislation creates a new 17 member task force to review the long-term viability of net metering in the Commonwealth and develop recommendations on incentives and programs that will support the deployment of solar moving forward. The task force must first convene on or before October 1, 2014.

DC Council to Review Community Net Metering Bill

Posted July 9th, 2013 by SRECTrade.

On Wednesday July 10th, the Committee of the Whole (COW) will vote on DC’s Community Renewable Act of 2013 (CREA). In the District of Columbia all bills must be authorized by the COW as legal and financially sound before they can go up for a final DC Council vote. The COW, which actually consists of all 13 members of the DC Council is a required intermediary step for any bill before it can go up for official Council vote. In the District of Columbia legislation is proposed by the DC Council and signed  off by the mayor.

For more specifics about the Community Renewable Act visit our February blog post which outlines the details of the bill.

Anya Schoolman, a founder of the influential DC Solar Neighborhoods Unite (DC SUN), sent out an eblast this morning requesting that DC stakeholders email the DC Council at dccouncil@dccouncil.us to express support for the legislation.

SRECTrade will continue to track news of this legislation as information becomes available.

**Update! The Community Renewable Energy Act of 2013 passed the DC City Council’s “first reading” and received the unanimous approval of the Council. This bill will not go up for official vote until September. For a good article on the news check out Vote Solar’s post here.

Community Net Metering in DC?

Posted February 22nd, 2013 by SRECTrade.

Flag_map_of_Washington_DCOn January 8, 2013 B20-0057 , the “Community Renewable Energy Act of 2013” was introduced. The bill has 8 sponsors (Alexander, Barry, Bonds, Cheh, Graham, Grosso, McDuffie, and Wells), a majority of the 13-member DC Council. The “Community Renewable Energy Act of 2013” proposes to amend the “Retail Electric Competition and Consumer Protection Act of 1999” (which created net metering in Washington, DC) to allow rate payers  in DC to “subscribe” to electricity from solar power produced from registered “Community Energy Generating Facilities.” If passed, this bill would open up the solar electricity market in DC to the entire rate payer base (including renters and condo owners) and not just property owners.  Theoretically, legislation of this nature would also lower the investment risk of going solar in the District for “subscribers” and project developers by diversifying the required type and commitment of investors able to participate.

The bill must next progress to committee before it can be voted on by the general council. SRECTrade will track the progress of the legislation and provide updates as applicable. View the proposed bill here.

Some interesting clauses to note in the proposed bill:

– “Community Energy Generating Facilities” cannot be larger than 5 MW in capacity

– There can be as few as 2 subscribers to the power produced from eligible facilities

– Subscriptions cannot be for more than 120% of the subscriber’s 12 month electricity usage

– Subscriber accounts can only be adjusted once a month

– Utilities (Pepco) may be able to require all subscribers to be on the same billing cycle

– The owner(s) of the Community Energy Generating Facility owns the rights to SRECs produced from the power

– Power production will be tracked by a production meter installed by the Community Energy Generating Facility owner

– In months where subscribers receive credit for more power than they consume the excess power will be credited towards the next month’s electric bill

– Excess power credits at the end of the annual cycle (ends in April of each year) will be lost and reallocated to rate payers eligible for the District’s Low Income Housing Energy Assistance Program (LIHEAP)

– Requires adoption of the Interstate Renewable Energy Council (IREC) interconnection standards within 6 months of the bill’s passage.

– Most interestingly, the proposed bill requires that the District Department of Energy and the District Sustainable Energy Utility to develop a proposal within 6 months of the bill’s passage for an equitable and creative program for financing community net metering projects.

MA Gov. Deval Patrick Signs Law Adjusting Net Metering Cap

Posted August 30th, 2012 by SRECTrade.

Massachusetts Bill SB 2395, “Relative to Competitively Priced Electricity in the Commonwealth,” was signed into law on August 3, 2012 by Governor Deval Patrick.  The new legislation clarifies some issues related to meeting the Massachusetts Renewable Portfolio Standard (RPS) goal of 22.1% by 2020. Its purpose is to further bolster the existing RPS goals by:  1) increasing the net metering cap; 2) expanding requirements for the EDC long-term contract program and 3) limits entities from owning more than 25 MW of solar. *Please see note below. While this legislation does not explicitly impact the solar carve out portion of the Massachusetts RPS, it does impact net metering policy in MA, a key facet of solar project development. By raising the net metering cap, there is now more room for the development of solar projects at any scale. If development continues to exceed the yearly capacity goals set aside by the DOER, then SREC prices should remain suppressed relative to the SACP.

The legislation doubles the net metering cap to 6%, with 3% allocated for public and private projects each. As Massachusetts was already close to the 3% net metering cap, the bill was essential to ensure renewable energy project development of all types throughout the rest of the year. In addition to the increase in the cap, the bill also states that Class I facilities that are less than 10 kW (single-phase) and <25 kW (3-phase) in capacity will be exempt from the net metering cap altogether. The <10 kW/ 25 kW Class I REC exemption ensures that developers of residential and small commercial facilities will not need to take in to consideration the net metering cap. Class I RECs include RECs produced from most renewable energy technologies (solar, wind, tidal, biomass etc.) that were operational after December 31, 1997. (Source: DSIRE)

*A previous version of this post included language about a property tax exemption for qualified renewable energy facilities. The property tax exemption portion of SB 2395 was not included in the final bill.