Posts Tagged ‘NY SRECs’

SRECs coming to NY?

Posted May 23rd, 2011 by SRECTrade.

This year’s solar carve-out bill introduced in NY, S4178A-2011, is looking promising.  It was co-sponsored by 8 Republicans, and since the Republicans have only a small majority in the Senate and the Democrats have nearly a supermajority in the NY House, its a good sign, although it’s notoriously difficult to get a bill that even everyone agrees with through the NY legislature.  Gov. Cuomo ran on a strong solar platform so chances are high he will sign any bill that comes to him.  The bill itself is very promising, it starts out with a .33% requirement in 2012, which given the size of NY’s load would catapult them even with NJ in absolute terms for required solar build-out with about a 500,000 MWh requirement in 2012.  It allows the NY Public Service Commission (PSC) to set the alternate compliance (ACP) schedule, but it has a floor mechanism specified at $300 that is nearly identical to Massachusetts, so the ACP will have to be somewhat higher than that.  Overall this is a well-written bill that meets almost all the Effective SREC Market Design criteria outlined in our recent blog post.  As of May 18th it had been amended and recommitted to the Energy and Telecommunications Committee,  so there is plenty of time for those living in New York to contact their legislators regarding the bill.


Important New York SREC Update

Posted October 20th, 2010 by SRECTrade.

Good news for New York solar owners: SRECTrade was recently notified by the DC Public Service Commission that they are now accepting SRECs from facilities located in the state of New York.  We initially wrote about this several months ago and submitted applications that were subsequently rejected due to an inconsistency in the DC rules.  This inconsistency has been fixed and New York facilities can now be approved. In order to apply, your facility must be eligible to claim ownership for the SRECs that are generated (NYSERDA claims ownership of SRECs created by facilities funded by the program for a period of 3 years, after which the owner is eligible to generate and sell SRECs).

The bad news… act soon: Per the rules of the DC SREC programs, facilities are able to receive credit for generation dating back to the first month of the current energy year.  In order to receive credit for generation in 2010, all applications should be submitted to the DC Public Service Commission as quickly as possible so that the Commission has ample time to approve your facility by December 31st. Receiving approval by December 31st will allow your facility to be credited with SRECs as far back as January 1st, 2010.

Due to this time constraint, SRECTrade recommends owners submit applications directly to the DC Public Service Commission. The DC registration process requires an original and notarized application mailed directly to the DC Public Service Commission. Once approved, you can then apply for the EasyREC program.

Instructions for submitting an application to the DC SREC Program:
1. Download and complete the DC RPS Application.

2. Once you have completed the application and had the affidavit of general compliance notarized, mail the original to:

Dorothy Wideman
Commission Secretary
Public Service Commission of the District of Columbia
1333 H Street, N.W
2nd Floor West Tower
Washington, D.C. 20005

Cautionary comment on the DC SREC Market: The DC SREC market is a relatively small market.  Although SRECs are currently selling around $300, the market may soon be over-subscribed. This is due to the significant supply that can be drawn from several states across the region. In addition, DC allows solar thermal facilities to count generation towards the SREC requirement. For these reasons, buyers in the DC SREC market will eventually be able to meet their requirements with ease, which would lead to a potential significant drop in pricing.  The states eligible for the DC market include:

New Jersey
New York
North Carolina
West Virginia


NY SRECs Expected to be Eligible for DC Market

Posted September 16th, 2010 by SRECTrade.

The District of Columbia Public Services Commission has been revising the language of the state RPS, and details are expected to be released at the beginning of October.  Currently, a discrepancy in the wording of the RPS makes the eligibility of PJM-bordering states, such as New York, unclear.  This ambiguity led to the rejection of New York solar facilities earlier this year, and has effectively halted the certification of NY facilities in DC.  We expect that this revision will clarify the status of New York systems, making them eligible for the DC SREC market.  As soon as concrete details are released, SRECTrade will resume registering New York facilities in DC as a part of our EasyREC program.

Although prices in the DC market are close to $300 per SREC, the market is small.  In 2010, a total of approximately 3 megawatts must be installed in order to meet the requirement.  That number grows to 15 megawatts in 5 years.  Considering that facilities in the entire PJM region and adjacent territories are eligible for the DC market, it is quite possible that this market becomes oversubscribed in the future. We foresee the DC market as a viable option for smaller solar facilities for now, but in the long-run, it will be difficult for the solar industry in New York to rely on the DC market. The long-term solution for New York is to pass the Solar Jobs Act that is currently pending in the senate. Hopefully it will pass this fall and create one of the largest SREC markets in the nation.


NY Candidate for Governor Suggests SREC Program in Energy Plan

Posted August 12th, 2010 by SRECTrade.

Andrew Cuomo, the New York attorney general and Democratic candidate for governor, published an energy plan that suggests increased production of solar and wind energy.  The document, titled “Power NY,” suggests New York adopt an SREC program similar to those that have been so successful in other states such as New Jersey. It declares, “A programmatic commitment to solar power would go a long way toward stimulating the growing solar industry in New York.” Cuomo sites that significant economic growth experienced by California and Arizona upon making commitments to promote expansion of solar power within the states. Both states saw global solar manufacturers locate headquarters within their boarders (China’s Suntech Corp. in Arizona, and SunPower Corp. in California).

The candidate’s plan would create a system of solar renewable energy credits called NY-Sun. The Renewable Portfolio Standard of the state would include a solar carve-out, making utilities purchase SRECs to meet their solar requirement or suffer a compliance fine. He argues that the state should establish specific targets for the adoption of solar energy generation that utilities and electric service companies would have to meet, with the requirements to be suspended if solar costs do not drop to the extent expected.

Mr. Cuomo is the first candidate in the race for Governor to release an energy plan. The length and centrality of the document to the campaign indicates the importance of the worldwide energy transformation in the future of New York.

See the article on the Gubernatorial Candidate’s solar and SREC plan for more information.

Solar Bill Could Create New York SREC Market

Posted June 16th, 2010 by SRECTrade.

A strong solar bill currently moving through the state senate has the potential to make New York a national solar leader. The New York Solar Jobs Act of 2010 establishes aggressive annual solar capacity targets, reaching 2.5% of the state’s total energy–an estimated 5GW–by 2025.

The legislation would also provide a strong economic opportunity in the state. According to NREL’s Job and Economic Development model, the program will support about 22,000 jobs. On top of this, New York is expected receive a $20 billion boost to its economy. Independent energy consultants from Crossborder Energy estimated the cost of the program to be a 39 cent increase in each NY resident’s energy bill.

If this bill is passed into law, New York will be in position for a robust SREC market. SRECTrade already has a presence with many New York solar companies, and as soon as this bill is passed we will be working toward establishing a market for SRECs in the state.

For more information on the bill, find the complete article here.

Additional Info for DC SREC registrations

Posted May 10th, 2010 by SRECTrade.

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 ( 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.

Subscribe to the SREC Blog by Email