The Massachusetts SREC-I Solar Credit Clearinghouse Auction (SCCA), for 2013 vintage SRECs, will start on Tuesday, July 29th. Depending on how things go, the SCCA can run up to three separate rounds. A detailed schedule of the Department of Energy Resources (DOER) auction can be found here.
- Round 1: Tuesday, July 29th
- Round 2: Wednesday, July 30th
- Round 3: Friday, August 1st
Why three rounds?
SRECs are not guaranteed to transact in the SCCA, but there are scenarios in which buyers are encouraged to participate and purchase SRECs. With each round the incentive for purchasing SRECs increases. Here is a summary of how the stakes change with each round.
Round 1: SRECs available for sale in the first round have a 2 year useful life (i.e. 2013 SRECs purchased in round 1 can be used towards 2014 or 2015 compliance obligations). Note, the 2015 compliance obligation was increased by the number of SRECs deposited into the auction. If all of the SRECs are not purchased in the first round, the auction will move on to round 2.
Round 2: The auction is repeated, but all SRECs now have a 3 year useful life (i.e. 2013 SRECs purchased in round 2 can be used towards 2014, 2015, or 2016). If all the SRECs are not purchased in the second round, the auction will move on to round 3.
Round 3: If round 3 needs to be held, the 2015 year compliance obligation will now be increased by 2 times the number of SRECs deposited into the SCCA account (i.e. the original amount already added on to the 2015 compliance obligation times 2). Any SREC purchased in round 3 will continue to have a 3 year useful life (i.e. 2013 SRECs purchased in round 3 can be used towards 2014, 2015, or 2016). If the auction doesn’t clear (i.e. all SRECs are not purchased) then there will be a proportional distribution to successful sellers. Any unsold SRECs will be transferred back to the original depositor and the SRECs will maintain a useful life through the next 3 compliance years (i.e. 2016 for 2013 vintage SRECs).
A few important additional things to note:
- SRECs sold in the SREC-I SCCA are sold at a fixed value of $285/SREC to sellers.
- The summer 2014 SCCA is for unsold MA SREC-I 2013 vintage SRECs only. There are no 2012 or 2014 vintage SRECs in the SCCA.
- Any Massachusetts SRECTrade clients (that utilize SRECTrade’s management services) with unsold MA SREC-I 2013 vintage SRECs had their SRECs automatically deposited in the SCCA. The original deadline was June 15, 2014.
- The SCCA’s multiple round nature and review process means that the complete results of the auction may not be known until after round 3.
- Clients utilizing SRECTrade’s management services, with SRECs deposited into the SCCA, will be notified of the auction results when they are made available by the DOER. Any funds due from sales made in the SCCA will be remitted by SRECTrade after the DOER transfers the funds. For a complete schedule click here.