Massachusetts SREC Market
The Massachusetts Department of Energy Resources (DOER) created an SREC market which began in January 2010. Massachusetts's market is unique as it's final goal is 400MW of solar capacity. This has led to DOER to adopt a policy of setting requirements annualy, based on a formula incorporating build rates and SREC data from past years. In addition to this, the state has implemented the MA Solar Credit Clearinghouse as a last resort, fixed-price auction in the last quarter of each year with a fixed price of $300 per SREC less a 5% fee. This fixed price auction acts as a price floor mechanism with the goal of creating a sustainable SREC market. This is not a concrete price floor as compliance buyers are not required to buy all of the SRECs that are put into the auction.
SREC Auction - Auction closing prices history
Massachusetts Blog - Starting point for useful information regarding the Massachusetts SREC market
Other States in which Massachusetts facilities are eligible:
States Eligible for MA Market: Only Massachusetts solar photovoltaic installations under 6 MW are eligible.
Eligibility Period: No defined period of years in which a facility is eligible to generate and sell MA SRECs. Systems are granted an opt-in period for the DOER Clearinghouse auction at the time of their registration. The opt-in period for systems that apply for registration before June 20th, 2013 is 40 quarters (= 10 years). After June 20th the opt-in period will likely be 32 quarters (=8 years).
Energy Year: January 1 to December 31
Tracking Platform: NEPOOL-GIS
SREC Useful Life: A 2010 SREC will be retired if it is not either sold or included in the DOER last-chance auction at the end of the 2010 trading period. If it is added to the DOER last-chance auction, it is re-minted with an extended life of up to 3 years.
Solar Requirement: Set at 30MW (0.0680% or 34,164 SRECs) in 2010. Each year the requirement will increase by 30% more than the previous year's increase. It will then be adjusted by the previous year's oversupply or shortage of SRECs. The total requirement in any given year is capped at 400MW and shall never decrease.
SACP: Set at $550 for 2013 and can be reduced by DOER by up to 10% each year. The Solar Clearinghouse Auction, held in July for the prior calendar year, will incentivize buyers to purchase SRECs for $285/SREC (after the DOER’s fees). SRECs are not guaranteed to be purchased in this auction, but this mechanism is intended to support SREC prices
Meter Readings: Facilities must report generation from revenue grade meters.
Eligibility Begins: Upon date of interconnection, as long as the system is certified by the state before that quarter's SREC's are generated. A system should apply for certification around the date of interconnection to assure they receive full credit for their generation.