On Wednesday, July 28th, the New Jersey Board of Public Utilities (BPU) unanimously approved the highly anticipated Successor Solar Incentive Program (“SuSI Program”). The SuSI Program will support the development of 3,750 megawatts (MW) of new solar generation by 2026, effectively doubling the state’s current solar capacity and driving solar to become approximately 10 percent of the state’s total electricity supply.
Importantly, the SuSI Program will take effect on August 28, 2021, and contains two sub-programs detailed below. Thus, the New Jersey Transition Incentive (TI) Program will close at midnight on Friday, August 27th. TREC applications will be accepted until that date and will be provided with a 5-business day window to correct minor deficiencies, if required, after their review.
The Administratively Determined Incentive (ADI) – a 15-year, fixed-price incentive payment for net-metered solar projects less than or equal to 5 MW in size. This sub-program is inclusive of all residential projects and most commercial and industrial projects, with pricing varying based on project type and size (see table below).
The Competitive Solar Incentive (CSI) – a competitive solicitation for grid supply projects and net metered commercial and industrial projects larger than 5 MW. The first competitive solicitation is projected to launch in early-to-mid 2022.
Notably, net-metered residential projects will receive pricing only $1.20/megawatt-hour (MWh) less than their current effective TREC pricing of $91.20/MWh. The incentive value for public entities in each market segment is $20/MWh than their non-public counterparts. Public entities include school districts, municipalities, and public colleges and universities.
SRECTrade will continue to post significant updates on the transition between the current Transition Incentive program and the upcoming SuSI Program as they become available.
On June 1, 2021, Maryland Governor Larry Hogan allowed Senate Bill 65 (SB 65) to pass into law without his signature. SB 65 revises Maryland’s Renewable Portfolio Standard (RPS), decreasing the solar carve-out from 2022-2029 while increasing its solar alternative compliance payment (SACP) from 2023-2029. The new law still requires 50% of MD electricity sales from Tier I renewable energy resources with a 14.5% solar carve-out by 2030.
This adjustment to Maryland’s RPS should bring a more gradual increase to the solar carve-out requirement. Our enclosed analysis projects the 2021 market and forward years to be undersupplied – we expect the degree of undersupply to increase in years 2022 and 2023 and show a moderate decrease in year 2024. The forecasted degree of undersupply seen in years 2022-2024 has seen a substantial decrease from our previous analysis due to the recent reductions in RPS. While we project that the new changes to Maryland’s RPS will decrease the degree of undersupply seen in forward years, build rates still must show a substantial increase in order to keep up with the new RPS schedule.
Current MD SREC pricing has been consistent over the last few months with 2021 SRECs pricing around $77.50, 97% of the ACP and 2022 SRECs pricing around $57.00, 95% of the ACP.
Final 2021 MD SREC production, final 2021 MD load figures,
and actual grandfathered load could impact the degree of undersupply seen in
2021 and forward years.
SRECTrade’s Virginia application is currently live on our website. As previously mentioned, the Virginia Clean Economy Act compels Dominion to procure 1% of their RPS compliance from in-state distributed solar resources smaller than 1 MW. This equates to approximately 90 MW in 2021. Dominion filed an RFP this year to meet their obligations.
While there is still uncertainty regarding spot trades in the Virginia market, SRECTrade is continuing to monitor the market and will monetize RECs through all available channels. Beginning in Q3 2021, SRECTrade will be offering 2-year and 5-year forward contracts for systems under 1 MW located in the state of Virginia.
For more information regarding contract opportunities please reach out to email@example.com.
On Tuesday, June 1st, Maryland’s updated Renewable Portfolio Standard (RPS) took effect after Governor Larry Hogan allowed Senate Bill 65 (SB 65) to pass into law without signature. The new law still mandates that Maryland source 50% of its electricity sales from Tier I renewable energy sources by 2030, with a 14.5% solar carve-out. Notably, the law decreases Maryland’s solar carve-out from 2022-2029 and increases its solar alternative compliance payment (SACP) rate from 2023-2029. The bill originally cleared the Maryland legislature on April 12th by significant majorities.
The new law also removes black liquor, a paper mill byproduct, from the list of eligible Tier I REC resources.
SRECTrade plans to publish an analysis on the impacts that this law could have on Maryland’s SREC market in the coming weeks.
Q4 2020 saw California LCFS credit generation outpace deficit generation, with the credit bank increasing 4.8% between Q3 2020 and Q4 2020. (Note: LCFS credits are issued on a delayed quarterly schedule; the most recent credit issuance was on April 1 for fuel consumption in Q42020)
Electricity as a fuel has been increasing in its market share, aside from the dip at the beginning of the pandemic in Q1 2020
Steady credit pricing for the California LCFS in Q1 2021, with some fluctuation in Q2 2021 as credit prices dipped as low as $173 between March and April, far from its historic highs of $202 per credit.
Oregon CFP now allows the use of renewable energy credits (RECs) to claim zero-carbon electricity
Washington state is the next state to adopt a clean fuels program, aiming to reduce transportation emissions by 20% by 2035, with 2017 as the baseline
Federal, state, and regional grant programs available in California and across the country as regulators push for the transition to zero-emission vehicles and equipment
Learn about Fast Charging Infrastructure (FCI) crediting and how LCFS credits can lower your capital expenditure in DCFCs
City of Porterville, CA Accelerates Adoption of Zero-Emission Vehicles with Revenue from LCFSCredits Managed and Monetized by SRECTrade
Rapidly Advancing Porterville’s Top Priority – Improved Air Quality
PORTERVILLE, CA, April 7, 2021 – The City of Porterville and SRECTrade today announced key milestones and plans to continue reducing carbon emissions and improving air quality for area residents. Porterville is rapidly electrifying its fleet and getting paid to do so by SRECTrade via the California Low Carbon Fuel Standard (LCFS) program. In a region battling air pollution, the municipality has taken bold steps to deploy zero- and near zero-emissions fleet equipment by deploying Compressed Natural Gas (CNG) buses and electric buses, as well as light-duty charging stations that generated more than $65,000 of LCFS credits in 2020, and with higher post-COVID use could generate more than $100,000 in 2021.
As a visionary and early adopter of alternative fuels
among municipalities, Porterville, located in the San Joaquin Valley, deployed
its first CNG bus in 2010 and first electric bus in 2018. Porterville’s fleet today
consists of 10 battery-electric buses, 12 battery-electric vans, 10 200kW DC
Fast Chargers and six Level-2 public charging stations, with 14 additional DCFC
stations under construction, that reduce total cost of ownership and enable
quicker adoption, while also creating a healthier future for the community. By 2024
Porterville plans to convert its entire fleet to electric and provide more
public-access charging infrastructure for residents.
“The key was taking those first steps – it was hard work,
but more doable than anyone thought,” said Transit Manager Richard Tree. “A
wealth of resources existed to help us move forward. Getting started quickly showed
what was possible technologically and financially. We learned, adjusted, and
kept moving forward.” Tree emphasized the advantage of engaging resource
partners with the knowledge and capabilities required to help address the
challenges encountered when planning, funding, deploying, and managing
zero-emission transportation equipment and infrastructure.
These cleaner vehicles also save money. Electric fuel and maintenance costs have been reduced by about 80% and 75%, respectively. Grant and incentive programs such as the California LCFS program supported the city’s initial deployment while also providing an ongoing revenue stream and offsetting electricity costs. In the past year alone, the City of Porterville generated an average of $0.21/kWh from its electric fleet.
“The City of
Porterville has demonstrated committed leadership in its drive to reduce carbon
emissions. We’ve been happy to play our role on this very driven team,” noted
Mike Saxton, SRECTrade Managing Director. “SRECTrade plugged in to manage and
monetize LCFS credits generated by Porterville’s eligible equipment. The higher
dollars we pay organizations directly support our mission to help fund continued
deployment of zero-emission equipment.”
Porterville has set its sights on even bolder clean energy goals, exploring solar generation, energy storage, renewable electric vehicle chargers, and electric vehicle and charger programs that would help its residents make the switch to electric vehicles. SRECTrade will continue supporting the municipality through its expertise in environmental commodities and transparent reporting of the value being generated.
City of Porterville
Porterville is a city in the San Joaquin Valley, in Tulare County, California. It is part of the Visalia-Porterville metropolitan area. Located between Fresno to the north and Bakersfield to the south, Porterville serves as a gateway to Sequoia National Forest, Giant Sequoia National Monument, and Kings Canyon National Park. The city has a population of nearly 60,000.
SRECTrade provides trusted advice, management, and technology to maximize financial and environmental benefits of environmental commodities for the owners of clean transportation and renewable energy assets. We manage all credit generation and sale to get companies paid in compliance with complex regulatory programs. SRECTrade is the largest agent manager of EV assets for the California Low Carbon Fuel Standard (LCFS) and has earned an annual client retention greater than 99% with more than 54,000 unique assets under management and more than 150,000 clean energy assets utilizing its proprietary technology platform. With presence across 10 regulated markets and 20 tradable products in North America, SRECTrade helps accelerate the adoption of clean energy and clean transportation equipment by minimizing the time, cost, and risk associated with realizing program benefits.
On Friday, March 26th, Pennsylvania State Senators Art Haywood (D-Montgomery/Philadelphia) and Dan Laughlin (R-Erie) introduced legislation that would amend PA’s Alternative Energy Portfolio Standards (AEPS) Act of 2004 and increase the state’s Tier I requirement from 8% to 18% by 2026. In addition, the legislation would increase the state’s solar carve-out from 0.5% at present to 5.5%, with 3.75% of the carve-out being sourced from in-state utility-scale solar (projects larger than 5 MW) and 1.75% from in-state distributed solar (smaller, interconnected residential and commercial projects). Notably, the legislation would also establish a limit on the cost of alternative energy credits (AECs, PA’s renewable energy credits) and facilitate long-term contracting in an effort to help minimize ratepayer impacts. Lastly, the legislation would also initiate a study on renewable energy storage in the state. The proposed legislation is expected to help address the state’s current economic crisis due to COVID-19 by inspiring renewable energy investment and creating jobs.
This legislation was introduced just days after PA Governor Tom Wolf’s announcement on March 22nd that 50% of the Pennsylvania government’s electricity will come from solar energy by 2023. The governor’s initiative, named PULSE (Project to Utilize Light and Solar Energy), represents the largest state government solar energy commitment in the nation. PULSE includes seven new solar arrays totaling 191 MW that will be built around the state.
While a number of steps in the legislative process must still be completed before the AEPS expansion would be passed into law, its introduction represents a continued step forward in PA’s renewable energy transition. SRECTrade will continue to monitor the legislation’s development and provide updates.
It is horrific, heartbreaking, and saddening to see members of our communities and neighborhoods killed, attacked, and abused. We stand in solidarity with the Asian American and Pacific Islander (AAPI) communities during the continued increase in xenophobic, racist anti-Asian American violence across the United States.
No one should live in fear in their own country. No one should see their loved ones killed or attacked. No one should be afraid to go outside.
We acknowledge to the AAPI members of our community – team members, partners, stakeholders, and beyond – that we will continue to commit to doing our part to combat the structural racism and fear-mongering that is degrading the safety of our communities. It remains very important that we acknowledge this violence and recognize that this continues to be a daily reality for many others including Black, Latinx, Indigenous, and LGBTQ+ communities across our country.
These moments and events are a constant reminder that as a company and individuals we need to recommit to the work of supporting cross-racial unity and work towards a future where our communities are free of hate and violence.
To demonstrate our immediate support, we have donated $5,000 to Asian Americans Advancing Justice (AAJC) and $5,000 to the Asian Pacific Environmental Network (APEN).
Additionally, below are some resources to help support each other, create awareness, and further educate ourselves.
Last October, SRECTrade provided information regarding the passage of the Virginia Clean Economy Act (VCEA). This Act mandates a Renewable Portfolio Standard (RPS) for Dominion and Appalachian Power Company. This update will present information regarding the progress of the RPS implementation and current REC transaction options for Virginia-sited systems.
Since the Act’s passage, utilities and other solar stakeholders have participated in public proceedings held by the Virginia State Corporation Commission (SCC). The SCC is currently reviewing the information that was presented throughout the process and will provide RPS implementation details later this spring. The SCC will be providing guidance regarding REC procurement, eligibility requirements, and the solar facility certification process.
In the meantime, Virginia-sited systems are eligible to register in the Pennsylvania Tier I REC market. Upon registration in this market, solar facilities will be issued a Virginia Certification number as part of the PJM GATS registry approval process. It is likely that these VA-certified systems and RECs will be eligible when the Virginia REC market opens.
We encourage anyone with an eligible solar system located in Virginia to begin the registration process now. To start a Pennsylvania Tier I application, please log in to your SRECTrade account and select the link to “Apply to sell SRECs”. There is currently no application fee for Virginia-sited solar assets.
SRECTrade will monitor program updates and will trade Virginia-generated RECs when the market opens. Please contact SRECTrade with any questions.