To help with cash flow planning, it is important to understand the timeline inherent with the Massachusetts SREC program. Customers are often surprised to learn that SRECs are created by the state several months after they are produced. Here is a chart outlining when SRECs are created in Massachusetts.
In Massachusetts SRECs are created once a quarter on a quarter delay. This means that a system that was installed in say, July 2010, will sell its first SRECs in January. Why the long delay? This is a function of the way the program has been implemented in Massachusetts. The solar system owners must first report solar production to the Production Tracking System (PTS). The PTS is part of the Massachusetts Clean Energy Center and is in charge of collecting all renewable energy production data. At the end of each quarter all of the solar production information is submitted to the NEPOOL-GIS, a third-party organization that is in charge of the software used to register and track SRECs. The NEPOOL-GIS creates SRECs at the end of the new quarter based on the previous quarter’s production data.
SRECTrade holds a Massachusetts specific auction on the day that the SRECs get created or the first business day that they are available. For example, January 15th 2012 falls on a Sunday, so the auction will be held on Monday, January 16th 2012.