Massachusetts SREC Market

The Massachusetts Department of Energy Resources (DOER) recently approved an SREC market to begin in January 2010.  The state will implement a solar carve out that establishes a requirement for solar in Massachusetts.  In addition to that, the state will implement 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 resulting in a floor price of $285.  This establishes a floor price for Massachusetts SRECs and gives project financers a minimum value they can expect per SREC, though prices could rise as high as $600 depending on market conditions.

Pricing:
SREC Auction - Auction closing prices history

News:
Massachusetts Blog - Starting point for useful information regarding the Massachusetts SREC market

Other States in which Massachusetts facilities are eligible:
None

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.
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 2 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 $600 for 2010 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 establish a floor price of $300.

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.