Posts Tagged ‘PA’

PA PUC Enters Final Implementation Order of Act 40

Posted May 10th, 2018 by SRECTrade.

On Thursday, May 3rd, the Pennsylvania Public Utilities Commission (PUC) entered its Final Implementation Order of Act 40 of 2017, clarifying some questions that remained from its adoption of the Final Implementation Order. Notably, the entry confirmed that PA-certified but out-of-state facilities would not be grandfathered with solar renewable energy credit (SREC) eligibility (i.e. Tier I solar), since the PUC found that grandfathering these facilities would result in minimal improvement for state SREC prices and fail to effectuate the intentions of the PA General Assembly.

The entry also clarified that PA SRECs associated with energy generated after October 30, 2017 would be re-certified to non-solar RECs (i.e. Tier I non-solar). The PA REC Program Administrator and PJM GATS have already worked together to modify the Tier I certification numbers attributed to all out-of-state facilities and SRECs that no longer qualify for Tier I solar eligibility. This means that SRECs with a Month of Generation of November 2017 and later have now been re-certified as Tier I non-solar RECs.

Some facilities that were re-certified with Tier I non-solar eligibility will be permitted to temporarily maintain SREC certification if under an SREC contract with an electric distribution company (EDC) or electric generation supplier (EGS) serving PA customers. EDCs and EGSs seeking to qualify contracted RECs as Tier I solar-eligible under the Final Implementation Order’s ruling must file a petition within 60 days of the entry date of the Order (May 3rd). Please note that such facilities will only be permitted to maintain certification until the expiration of the SREC contract.

Moving forward, it appears that the PA REC Program Administrator will be responsible for working with PJM GATS to re-certify SREC-contracted facilities for Tier I non-solar REC generation once their contract term expires.

Additionally, the entry clarified that:

  • Solar facilities interconnected in PJM service territory are permitted to continue generating RECs eligible to be used toward Tier I non-solar requirements in the AEPS.
  • Out-of-state grid-supply solar facilities must be serving end-use electricity load in PA to continue to generate energy and SRECs eligible for compliance under the Tier I solar requirement. Specifically, solar facilities must meet one of the following criteria:
    • Physical connection to a PA EDC customer’s internal electrical system
    • Physical interconnection to an EDC’s distribution system
    • Physical connection to a PA electric cooperative’s or municipal electric system’s distribution network
    • Physical connection to any PA-located transmission system, including utility-scale solar facilities that are within a PA EDC’s service territory and operating under PJM wholesale generator rules
  • SRECs generated by out-of-state facilities prior to October 30, 2017 will maintain their Tier I solar certification

PA PUC Adopts Final Implementation Order of Act 40 – Impacts Out-of-State PA-Certified Solar Projects

Posted April 19th, 2018 by SRECTrade.

On Thursday, April 19th, the Pennsylvania Public Utilities Commission (PUC) adopted its Final Implementation Order of Act 40 of 2017. The Order amends the qualifications to certify Tier I solar photovoltaic facilities under Pennsylvania’s Alternative Energy Portfolio Standards (AEPS) Act. As summarized in our previous blog post, ambiguous language in Section 2804(2)(i) and Section 2804(2)(ii) of Act 40 made it unclear whether certified but out-of-state facilities would retain their certifications under the AEPS. The Order clarified the PUC’s interpretations of Section 2804(2)(i) and Section 2804(2)(ii) which are as follows:

  • Section 2804(2)(i) – “[a] certification originating within the geographical boundaries of this Commonwealth…” shall mean a facility located within PA having received an AEPS Tier I solar photovoltaic certification.
  • Section 2804(2)(ii) – shall only permit out-of-state facilities that are 1) already certified as AEPS Tier I Solar Photovoltaic and 2) entered into an SREC contract with a PA electric distribution company (EDC) or electric generation supplier (EGS) serving PA customers to maintain certification until the expiration of the contract.

Solar facilities that meet the two Section 2804(2)(ii) criteria listed above are limited to maintaining certification only for the applicable amount of Solar Renewable Energy Credits (SRECs) contractually committed to an EDC or EGS. EDCs and EGSs seeking to qualify SRECs under this interpretation must file a Petition with 60 days of the entry date of the Order.

In addition, the Order clarified that SRECs generated by certified but out-of-state facilities prior to October 30, 2017 will retain their Tier I solar qualification for their standard banking lifetime (current reporting year and following two). The Order did not clarify whether SRECs generated by such facilities after October 30, 2017 will also be able to retain their Tier I solar qualification.

At this time, it is unclear how implementation of these interpretations will be administered. SRECTrade will continue to monitor the proceedings and provide updates as they become available.

Pennsylvania Legislative Update

Posted November 14th, 2012 by SRECTrade.

In July 2012 Pennsylvania State Senator Dave Argall (R-29th District) introduced PA Senate Bill (SB) 1350 with 18 co-sponsors. The bill was then submitted to the Pennsylvania Consumer Protection and Licensure Committee in August. The earliest the Bill could be reviewed is in the 2013 legislative session, so there is little to report right now.

Senator Argall’s website describes SB 1350 as an updated adoption of Representative Chris Ross’ (R-Chester) failed House Bill 1580 which we described in these previous blog posts.

Key points proposed in SB 1350 are:

  • Accelerates the existing Pennsylvania Renewable Portfolio Standard (RPS) over 3 years, starting with RY 2013.
  • Establishes a cap on the SREC prices through a set Alternative Compliance Payment (ACP) of $285 per SREC out to 2019 (currently PA does not have an ACP), followed by a decline of 2% per year.
  • Allows for solar thermal facilities to qualify for SRECs along with solar photovoltaic systems.
  • Adds consumer protection language for educating stakeholders about SREC prices.
  • Does not include a clause to prevent qualified out of state photovoltaic facilities from selling SRECs in the Pennsylvania market.

PSEIA: HB1580 creates thousands of jobs for less than half a penny a day

Posted November 23rd, 2011 by SRECTrade.

On November 16th, 2011, the Pennsylvania Solar Energy Industries Association (PASEIA) released its Ratepayer Cost Analysis regarding PA House Bill #1580. HB1580 was introduced on October 3rd, 2011 by Rep. Chris Ross, and includes 109 co-sponsors as of November 10th, 2011.

The Bill was introduced to address the recent collapse of the PA SREC market by accelerating the solar share requirement from 2012 through 2015. While the solar share requirements from 2012 through 2015 have been accelerated, the solar share requirements in 2016 through 2018 remains the same as SREC prices are expected to have stabilized by then regardless of the present situation. HB1580 will also close the solar market in Pennsylvania to out-of-state systems, thus limiting the supply of SRECs available which will drive up their value. While undoubtedly a blessing for the solar industry within Pennsylvania, some concerns have been raised regarding the impact this program will have on ratepayers. The Ratepayer Cost Analysis aims to address these issues.

Here is the breakdown of HB1580, using figures derived from the Cost Impact Report. The introduction of HB1580 imposes an additional $113,315,417 distributed amongst all residential and commercial power users in Pennsylvania.

Current Scenario

Reporting Year Solar Share SRECs SREC Price* Cost
2012 – 2013 0.0510% 75,189 $50 $3,759,453
2013 – 2014 0.0840% 123,012 $50 $6,250,621
2014 – 2015 0.1440% 216,338 $50 $10,816,879
2015 – 2016 0.2500% 379,150 $70 $26,540,513
2016 – 2017 0.2933% 449,047 $80 $35,923,723
2017 – 2018 0.3400% 525,500 $85 $44,667,471
Total 1,770,235 $127,958,661

Proposed Scenario (HB1850)

Reporting Year Solar Share SRECs SREC Price* Cost Increment
2012 – 2013 0.1500% 221,144 $190 $42,017,420 $38,257,967
2013 – 2014 0.1700% 253,001 $150 $37,950,200 $31,699,579
2014 – 2015 0.2040% 306,478 $125 $38,309,780 $27,492,901
2015 – 2016 0.2500% 379,150 $100 $37,915,019 $11,374,506
2016 – 2017 0.2933% 449,047 $90 $40,414,188 $4,490,465
2017 – 2018 0.3400% 525,500 $85 $44,667,471 $0
Total 2,134,320 $241,274,078 $113,315,417

* SREC price is based on aggregator feedback, as well as average weighted PA SREC prices in GATS

The cost imposed on each ratepayer is than calculated based on an estimated use of 10,716kWh/yr for residential and 150,000kWh/yr for commercial usage.

Reporting Year Estimated Elect Sales Estimated Increased Cost

Cost Increase per kWh

Estimated Increased Residential Cost Estimated Increased Commercial Cost
Annual Monthly Annual Monthly
2013 147,429,544 $38,257,967 $0.0002595 $2.78 $0.23 $38.93 $3.24
2014 148,824,315 $31,699,579 $0.0002130 $2.28 $0.19 $31.95 $2.66
2015 150,234,430 $27,492,901 $0.0001830 $1.96 $0.16 $27.45 $2.29
2016 151,660,076 $11,374,506 $0.0000750 $0.80 $0.07 $11.25 $0.94
2017 153,101,443 $4,490,465 $0.0000293 $0.31 $0.03 $4.40 $0.37
2018 154,558,725 $0 $0
Total $113,315,417 $8.14 $0.68 $113.97 $9.50
Average $0.0001520 $1.63 $0.14 $22.79 $1.90

As the table shows, the residential bill on average increases by less than 14 cents over five years and under $2 for commercial customers with an assumed annual electric usage of 150,000kWh/yr. This amounts to less than half a penny a day for residential owners. In addition, these are pre-tax costs, so for-profit commercial and industrial customers will pay less than these estimates based on their effective tax rates..

For more information, please contact:
Ron Celentano
PASEIA – President
CelentanoR@aol.com

Pennsylvania Legislative Update: HB 1580 Still in Committee and In Need of Support

Posted October 28th, 2011 by SRECTrade.

Over 90 members of the Pennsylvania solar industry lobbied Pennsylvania legislators on Monday, 10/28/11 to voice their support HB 1580 an SREC bill. The effort was part of an official “Pennsylvania Solar Advocacy Day” event put on by PennFuture, Solar Alliance, Vote Solar, PASEIA and others. By the end of the day more than 108 members of the Pennsylvania House (of a required 100) had offered to sponsor the legislation should it make it out of committee.

House Bill 1580 (sponsored by Rep. Chris Ross, R-Chester) proposes to move the total requirement of SRECs forward by three years to increase the number of SRECs Load Serving Entities (utility-scale “dirty” electricity producers) must purchase. The rapid implementation of Pennsylvania SREC eligible facilities over the last year has led to an SREC over-supply of more than double the amount of SRECs needed by utility-scale electricity producers. This over-supply is responsible for low SREC pricing in Pennsylvania.

SREC markets are driven by the fundamentals of supply and demand. However in Pennsylvania demand (the amount of SRECs required for a given year) is significantly lower than the number of SRECs available. The Pennsylvania SREC market is designed in such a way that every year there is a set goal for amount of power that comes from renewable energy sources and any adjustment to the yearly goal requires legislative action.

In order for the bill to move forward it needs the support of Rep. Bob Godshall, Chairman of the House Consumer Affairs Committee for Committee vote. PennFuture has asked the Pennsylvania solar community to write Rep. Godshall to show their support of the bill. However, even if the bill gets out of Committee in its current form it still needs to pass the House and Senate.  With 108 state Representatives co-signing the bill it is expected to pass the House, but it’s unclear how it will fair if it reaches the Senate.

Stay tuned for more HB 1580 Updates.

Solar Capacity in the SREC States – December 2010

Posted January 5th, 2011 by SRECTrade.

SRECTrade SREC Markets Report: December 2010

The following post outlines the megawatts of solar capacity certified and/or registered to create SRECs in the SREC markets SRECTrade currently serves.

PJM Eligible Systems

As of the end of December, there were 11,241 solar PV (11,015) and solar thermal (226) systems registered and eligible to create SRECs in the PJM Generation Attribute Tracking System registry. Of these eligible systems, 35 (~0.3%) have a nameplate capacity of 1 megawatt or greater, of which only 3 systems are greater than 5 MW. The largest system, currently located in Ohio, is 12 MW,  and the second largest, located in Chicago and eligible for the PA and DC markets, is 10 MW. The third largest system, located in NJ, is 5.6 MW.

Massachusetts DOER Qualified Projects

As of December 10, 2010, there were 180 MA DOER qualified solar projects; 156 operational and 24 not operational. Of these qualified systems, 9 (~5.0%) have a nameplate capacity of 1 megawatt or greater, of which only 2 are between 1.5 and 2 MW. None of the projects greater than 1 MW are currently operational.

Capacity Summary By State

The tables below demonstrate the capacity breakout by state. Note, that for all PJM GATS registered projects, each state includes all projects certified to sell into that state. State RPS programs that allow for systems sited in other states to participate have been broken up by systems sited in state and out of state. For example, PA In State includes projects eligible to sell into the PA SREC market as well as projects that may also be eligible to sell into OH and DC. PA Out of State includes systems sited in states with their own state SREC market (i.e. DE) as well as systems sited in states that have no SREC market (i.e. VA). Also, it is important to note that the Current Capacity represents the total megawatts eligible to produce and sell SRECs as of the noted date, while the Estimated Required Capacity – Current and Next Reporting Year represents the estimated number of MW that need to be online on average throughout the reporting period to meet the RPS requirement within each state. For example, New Jersey needs approximately 255 MW online for the entire 2011 reporting year to meet the RPS requirement. Additionally, the data presented below does not include projects that are in the pipeline or currently going through the registration process in each state program. This data represents specifically the projects that have been approved for the corresponding state SREC markets to date.

Dec JPEG Image updated

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Pennsylvania SREC Pricing

Posted July 13th, 2009 by SRECTrade.

The Pennsylvania Solar Alternative Compliance Payment (SACP) is structured a bit differently than the rest of the states in our auction.  Most states have a set SACP that is known at the beginning of each year.  Pennsylvania releases their SACP six months after the Energy Year ends. The 2008 Pennsylvania SACP of $528.34 was released in December of 2008 for the Energy Year ending May 31, 2008. It is calculated as 200% of the PJM area average SREC price. This means that from June 1, 2007 – May 31, 2008, the average PJM area SREC price was $264.17.  The interpretation used by the program is that this is an average of the price paid for SRECs used to comply with the Pennsylvania state RPS.  So in reality, it is an average of PA SRECs.

PA SRECs are valued based on speculation of what the SACP will be in  December. PA utilities should be willing to pay more for SRECs if they are struggling to meet the solar requirement in Pennsylvania. In the early years of this program, that requirement may be attainable, but it ratches up pretty quickly, so it may not be long before the SREC values in Pennsylvania increase above all the other states in the region.

For reference, our July 10th auction saw PA close at $300.  DE closed at $245, and MD closed at $375.

This is good news for solar owners in Delaware, Maryland, Ohio, West Virginia and the other surrounding states who may be eligible to sell into Pennsylvania.  Of course the influx of supply of SRECs into PA might at some point depress the price of SRECs.  It will be interesting to see how the market plays out.  One thing is certain—as a seller, it doesn’t hurt to be registered in as many states as you can.  See our post on cross-listing to learn how.