The Massachusetts Department of Energy Resources (DOER) is expected to announce via a general email that they will forego the much anticipated DOER Solar Credit Clearinghouse Auction eligibility step down requirement for systems registered after a certain date this year. Previously the DOER had stated that applications must be submitted by either June or July (the deadline was recently pushed to July 15th) in order to be eligible for the DOER Solar Credit Clearinghouse Auction for 40 quarters worth of SREC production.
This adjustment has a few obvious implications. The market will now last longer (40 quarters from the date that the 400th MW is installed) and all systems will have 40 quarters of eligibility from the date that they begin their SREC production eligibility. All solar facilities registered in the current version of the Massachusetts SREC market are limited to 40 quarters of Opt-In eligibility. This announcement does not imply that existing solar facilities now have more time to produce SRECs that are eligible for the DOER Solar Credit Clearinghouse Auction.
In Massachusetts SRECs are created on a quarterly basis and the DOER Solar Credit Clearinghouse Auction is viewed as a price support mechanism for the stability of SREC prices. The DOER Solar Credit Clearinghouse Auction goes in to effect in years where there are more SRECs available to the market than are required by the state’s Renewable Portfolio Standard (RPS). In previous trading years the market was under-supplied. The 2012 trading year is the first over-supplied year for Massachusetts SRECs and approximately 45,000 SRECs will be deposited in the inaugural DOER Solar Credit Clearinghouse Auction. For those clients using SRECTrade’s asset management services, EasyREC, SRECTrade will automatically transfer any unsold SRECs to the DOER Solar Credit Clearinghouse Auction account. No action is required by clients utilizing this service. To learn more about the current state of the market and the upcoming DOER Solar Credit Clearinghouse Auction click here.
SRECTrade will continue to post updates on this topic as more information becomes available.