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 (see the "Solar Requirement" section below).* 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 assessed by the auction administrator. 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: SRECs produced under the current SREC program are defined by eligibility for the DOER Solar Credit Clearinghouse Auction. Facilities eligible for the current program may produce DOER Solar Credit Clearinghouse Auction eligible SRECs from no more than 40 quarters (10 years) of power generation. Applications submitted after certain program deadlines may either truncate the eligibility period or delay the start of eligibility until some time after the date of interconnection. See "Solar Requirement" below for more details on application eligibility.
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: Originally set at 30MW (0.0680% or 34,164 SRECs) in 2010 the requirement increases each year following a formula that takes in to account previous years' build rates and the performance of the DOER Solar Credit Clearinghouse Auction in over-supplied years. Originally the total requirement in any given year was capped at 400MW, but emergency regulation administered by the DOER on 6/28/2013 adjusted the eligibility rules to allow more than 400 MW of capacity provided that new facilities meet the following criteria:
Facilities < 100 kW in size must have a "Permission to Operate" (PTO) letter dated no later than 12/31/2013.
Facilities > 100 kW must have signed Interconnection Service Agreements (ISAs) signed no later than 6/7/2013 and prove of submission to the DOER no later than 7/5/2013. Assuming those requirements are met the facilities must be at least "50%" complete by 12/31/2013 and fully operational by 6/30/2014, unless the applicants can "demonstrate, to the satisfaction of the DOER, that the missing ["Permission to Operate" letter from the utility] is due to delays of the local distribution company or due to remaining steps required by other parties for safe and reliable interconnection."
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. Facilities with a nameplate capacity > 10 kW must report automatically using an acceptable revenue grade meter online monitoring system.
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.