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DC Closes Borders to Out-of-State Solar Systems

Posted July 12th, 2011 by SRECTrade.

The Council of the District of Columbia unanimously voted, today July 12th, to close the DC SREC market to out-of-state systems. The Distributed Generation Amendment Act of 2011 (Bill 19-10) increases the SREC requirement in 2011 as well as establishes an SACP schedule through 2023.  Once in effect, the bill will allow out-of-state systems registered prior to 1/31/2011 to continue to sell SRECs in the DC market. The DC Public Services Commission has not provided clarification on how the bill will affect out of state systems that have already granted DC registrations after the January 31st 2011 grandfather date. For more information on the bill please refer to our previous blog postings here and here.

The bill is not yet law. It first must go through a 30-day Congressional Review process before it can go in to effect. Given these mechanistic delays we don’t expect the bill to go in to effect for at least another month.

The following chart illustrates which out-of-state systems will be effected by the legislation.

State Eligible Markets (after B19-10 is effective)
DE DE, PA
IN OH; PA (if in American Electric Power territory)
IL PA (if in Com Ed territory)
KY OH; PA (if in American Electric Power territory)
MD MD; PA
MI OH; PA (if in American Electric Power territory)
NC NC; PA (if in Dominion Electric Territory)
NJ NJ, PA
NY –
OH OH; PA
PA PA; OH
TN PA (if in American Electric Power territory)
VA PA
WV OH; PA
WI –

Posted in Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, New York, North Carolina, Ohio, Pennsylvania, SREC Markets, State RPS, Tennessee, Virginia, Washington, DC, West Virginia, Wisconsin | 2 Comments »

MD to Accept In-state Solar Water Heating Systems for SREC Market

Posted May 27th, 2011 by SRECTrade.

Maryland recently passed legislation which will allow residential-scale in-state solar water heating systems (SWH) installed on or after June 1st 2011 to sell SRECs into the MD SREC market.  Eligible systems will, at a maximum, be able to produce 5 SRECs per year. The law does not go in to effect until January 1st 2012, so even if the system is installed now it will be another few months before they can monetize their SRECs. The bill states that eligible SWH systems are those that are not used solely for heating a pool or hot tub and are either metered by a device that meets the standards of the “International Organization of Legal Metrology” (OIML) or be OG-300 certified.

Another requirement is that the SWH collectors (the product that captures the sun’s heat) must be a “glazed liquid-type flat-plate or tubular solar collector by the OG-100 standard of the Solar Ratings and Certification Corporation (SRCC).”

Because SWH systems produce heat and not electricity, output is measured in British Thermal Units (BTUs) and not kW-hrs. In order for these systems to produce SRECs equivalent to their PV-system counterparts, they must be certified and metered in a way that can allow for accurate measuring and unit conversions. By multiplying each BTU by a conversion factor of .000293, one can determine the kWh equivalent production from the system. As a point of reference, a single a 21 ft2 flat plate solar thermal collector located in Baltimore, MD that has a conversion efficiency of 60% may produce as many as 2 SRECs per year.  Conversion efficiencies and BTU output will vary depending on the type of SWH panel used.

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Posted in Maryland, Solar Thermal, SREC Markets | 1 Comment »

Maryland SREC Market and Out-of-State SRECs

Posted March 14th, 2011 by SRECTrade.

The March SREC auction saw a drop in pricing in Maryland that accompanied the more predictable price drops in DC and Pennsylvania. March marks the first month that 2011 SRECs are available for sale in Maryland and it is not uncommon to see a slump in SREC pricing at the beginning of the trading year. However, there were a few notable changes to the SREC market in Maryland over the past few months. As we pointed out earlier, there has been a lot of uncertainty around how the state was interpreting a seemingly contradictory law with respect to out-of-state SRECs. It seemed that the state would allow SRECs from anywhere within the PJM region and adjacent areas, which could be interpreted to include New York and North Carolina.

In the past few months Maryland approved facilities grew from our December report of 12.2 MW total (2.3 MW from out-of-state) to our January report of 27.6 MW total (15 MW from out-of-state). The majority of that increase comes from the inclusion of the 10 MW Exelon solar farm in Chicago. That project resides in the PJM Region and is therefore eligible for the Maryland market. In addition to that project, an additional 2.7 MW of out-of-state facilities were approved, an indication that Maryland is definitely taking on out-of-state facilities, and at a fast rate.

Maryland may have also clarified what constituted an “adjacent” area to the PJM region. On February 10th, GATS sent out an update that included the following: “There are also some MD facilities that are no longer eligible beginning January 2011 and those certification numbers will be removed prior to the certificate creation this month.” This would explain why our January report of 27.6 MW total (15 MW from out-of-state) turned into a February report of only 26.7 MW total (13.9 from out-of-state). It seems  a big part of that reduction came from the exclusion of the SAS 1.2 MW facility in North Carolina. So at the same time that the out-of-state supply was growing in Maryland, some facilities were removed from eligibility.

For the time being, Maryland is a market open to out-of-state facilities, but according to the law:

(a) Utilities must prove that they are unable to meet their requirements with in-state SRECs: “only to the extent that Maryland Tier 1 solar RECs are insufficient, a supplier may satisfy the statutory requirement with RECs from a solar renewable energy facility not connected with the electric distribution grid serving Maryland.”

Note: The concern here is how does a utility demonstrate that they are unable to procure from in-state prior to purchasing out-of-state? In 2010, according to one contact at the PSC, it seemed that the utilities were not willing to make the effort. Perhaps this has changed in 2011.

(b) Starting in 2012, the market becomes an in-state market only: “On or after January 1, 2012, a supplier’s Tier 1 solar REC obligation under Public Utilities Article, §7-703, Annotated Code of Maryland, shall be satisfied only with RECs from a solar renewable energy facility connected with the electric distribution grid serving Maryland.”

Note: This statement is clearly intended to close off the Maryland SREC market only to in-state solar after 2011, but the “electric distribution grid serving Maryland” is not clearly defined in the law. Based on discussions with the PSC, the likely interpretation is that, although the “transmission” grid serving Maryland (used in other places in the law) can include the rest of the PJM region, the actual distribution grid is most likely limited to Maryland. The likelihood of distribution level facilities originating in a bordering state would be rare, if non-existent, according to the PSC.

To summarize, there has been a significant uptake in out-of-state facilities being registered in Maryland, but the law should protect the in-state solar market from being affected by these facilities. In addition, those facilities should be ineligible for the market from 2012 onwards, so the long-term outlook for in-state solar should be secure. Barring any alternative interpretations of the Maryland RPS, the in-state Maryland solar market should be healthy in 2011. There are currently ~13 MW in Maryland and the state needs to have ~30 MW on average in 2011 to meet the requirement of approximately 34,000 SRECs in 2011. If the state can get there on its own, then it limits the opportunity for Exelon and other out-of-state facilities. If Maryland falls short, their will be a market for out-of-state facilities but only in 2011.

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Posted in Maryland | 8 Comments »

Maryland and out-of-state SRECs

Posted January 14th, 2011 by SRECTrade.

The recognition of out-of-state SRECs in Maryland has been a fairly ambiguous topic for quite some time now. According to the RPS solar carve-out law in Maryland, statute §7–701:

(i)“Renewable energy credit” or “credit” means a credit equal to the generation attributes of 1 megawatt–hour of electricity that is derived from a Tier 1 renewable source or a Tier 2 renewable source that is located:

(1)   in the PJM region; or

(2)   outside the area described in item (1) of this subsection but in a control area that is adjacent to the PJM region, if the electricity is delivered into the PJM region.

This means that Maryland buyers can procure SRECs from anywhere in the PJM region or a “control area” bordering the region if the electricity is delivered into the region.

Later, the law gets even trickier in §7–704 to say:

“On or before December 31, 2011, energy from a Tier 1 renewable source under § 7–701(l)(1) of this subtitle that is not connected with the electric distribution grid serving Maryland is eligible for inclusion in meeting the renewable energy portfolio standard only if offers for solar credits from Maryland grid sources are not made to the electricity supplier that would satisfy requirements under the standard and only to the extent that such offers are not made.”

Note that § 7–701(l)(1) refers to solar specifically. This makes things even more confusing because what it attempts to say is that Maryland buyers can purchase SRECs from facilities not connected to the grid serving Maryland until the end of 2011 as long as they can prove they cannot source SRECs from within the grid serving Maryland.

What does that even mean? Is the “electric distribution grid serving Maryland” the same as the PJM Region? Is it just the state of Maryland? Is it the PJM Region plus adjacent control areas as long as the electricity is delivered into the PJM Region? Furthermore, how does a buyer prove that they can’t fulfill their requirements within the electric distribution grid, so that they can get approval to buy from facilities not connected to the grid?

Our interpretation: If you’re not connected to the electricity grid serving Maryland, it’s probably not worth the trouble to apply. For starters, if you can sell them, your SRECs are only usable in 2011. In addition, the buyer would need to provide proof that they can’t procure SRECs from within the grid serving Maryland. Assuming that this refers to the PJM Region, then it is highly unlikely that buyers in Maryland would not be able to procure SRECs from within the grid. And finally, onerous requirements like “Mail the original and 14 paper copies of all documents” in the Maryland application process make it one of the most tedious state certifications out there.

What we do know is that there are 2.3 MW of projects outside Maryland that are currently registered in the state and generating SRECs in GATS. These facilities are from: DC, DE, IL, NC, NY, OH, PA, VA, WV.  Of the 107 facilities from outside Maryland, 63 were built in 2010. All of these states are within the PJM Region with the exception of NY, which had 4 facilities from 2004-06 approved. It is likely that the Maryland Public Service Commission has since stopped accepting NY facilities and other facilities from outside the PJM Region.

While we can’t predict how buyers view out-of-state SRECs in Maryland, we now have an in-state/out-of-state option for buyers in the Maryland SREC auction. If you have a facility that is located in the PJM region, we would encourage you to apply to the Maryland SREC market (despite the impact that 14 copy requirement might have on the environment). Instructions can be found on our State Certifications page. We can also do it for a fee if you are an EasyREC customer.

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Posted in Cross-Listing, Maryland | 1 Comment »

Solar Capacity in the SREC States in 2010

Posted July 28th, 2010 by SRECTrade.

SRECTrade’s State of the SREC Markets in 2010
The New Jersey, Pennsylvania and Delaware Energy Years came to a close on May 31, 2010.  The following is a report of the solar capacity in megawatts (MW) certified and registered to create SRECs in all states at that time.

Solar generators by state located: This table is based solely on the location of the facility and does not include multiple state listings. All facilities must have been registered by May 31st, 2010.

As you can see New Jersey has by far the largest amount of solar installed and eligible for SRECs with 146 MW. Pennsylvania is a distant second at 17 MW.  Meanwhile, Ohio and Illinois are third and fourth respectively, however of the 16 MW in Ohio, 12 come from one facility and of the 10.1 MW in Illinois, 10 come from one facility. Delaware and Maryland both have sizable markets at around 6 MW each. Volumes in other state are much smaller since there is no local SREC market.

Solar generators by size: Projects certified for SREC markets range in size from as small as 0.5 kW to as large as 12 MW, however, only 20 out of the 7,700 projects are over 1 MW.  Of those 20 projects all are well below 5 MW, with the exception of a 10 MW facility in Illinois and 12 MW facility in Ohio. The lack of multi-MW facilities in the SREC markets is a function of both the complexity involved and constraints on demand. The only state SREC market today with any legitimate appetite for multi-MW facilities is New Jersey.

Solar generators by state eligibility: Because some states accept out-of-state SRECs, the in-state supply listed above differs from the total supply available to buyers in that state.  For instance, Ohio’s market also includes facilities located in PA, WV, KY, IN, and MI.  The table below lists the total solar capacity in megawatts eligible for each SREC market, along with the percent of the market that is sourced in-state.  Note: many facilities will be counted multiple times in this table since they are eligible in several states. For example, the 10 MW facility in Illinois is eligible in both DC and PA.

In Ohio 89.6% of the market is in-state SRECs. Some of our customers have asked why in-state Ohio SRECs do not sell at a premium because of the 50% in-state requirement. The reason is that, as you can see, buyers are not having difficulty meeting the 50% requirement with the large supply of in-state SRECs. In the future as the requirements increase, in-state SRECs could be harder to come by and may indeed sell for more than out-of-state SRECs.

Interpreting the data: One important thing to notice is that the 2010 Capacity Requirement column details the capacity required to be sustained throughout the entire energy year. The Volume column shows the capacity registered through May 2010. For example, New Jersey needed approximately 160 MW of capacity running on average from June 2009 through May 2010 in order to meet the 2010 SREC requirement. The state is actually farther away from the 160 MW capacity mark than the 145.69 MW volume would suggest.  Capacity in New Jersey grew approximately 65 MW over the course of the year and so there were probably only enough SRECs created to meet approximately 110-115 MW of the 160 MW requirement. That requirement increases in the 2011 Energy Year to approximately 260 MW. For more information on the growth of the New Jersey market and any other state market, please visit our page devoted to State SREC Markets.

Assumptions used in calculations: Solar capacity required is based on 2007 Department of Energy electricity sales figures, assuming a 1.5% growth rate. The resulting solar megawatt-hours required (i.e. SRECs) are converted to megawatt capacity requirement at a rate of 1200 MWhs per MW.

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Posted in Delaware, Maryland, New Jersey, Ohio, Pennsylvania, SREC Markets, Washington, DC | Comments Off on Solar Capacity in the SREC States in 2010

Maryland follows New Jersey and raises RPS levels

Posted May 17th, 2010 by SRECTrade.

Maryland Governor Martin O’Malley has said he will sign into law a new Renewable Portfolio Standard that increases the Alternative Compliance Payments (ACP) due if utilities don’t buy enough SRECs. Higher ACPs support higher SREC prices which in turn encourage more solar development.

While rebate programs have proven unreliable as state budgets are stained, SREC programs have proven to be a stable incentive for solar. New Jersey recently suspended their solar rebate program but has increased their ACP levels and the percentage of solar electricity required three times. Maryland is following suit, increasing the ACP to $400 through 2014 and slowing the pace that they lower ACP.

Compare the old and new Maryland RPS:

Year Solar RPS % Old ACP New ACP
2009 0.01% $400
2010 0.025% $400 $400
2011 0.05% $350 $400
2012 0.10% $350 $400
2013 0.20% $300 $400
2014 0.30% $300 $400
2015 0.40% $250 $350
2016 0.50% $250 $350
2017 0.55% $200 $200
2018 0.90% $200 $200
2019 1.20% $150 $150
2020 1.50% $150 $150
2021 1.85% $100 $100
2022 2.00% $100 $100
2023 2.00% $50

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PJM Region

Posted March 28th, 2010 by SRECTrade.

The PJM Interconnection is a regional transmission organization.  It serves to connect the electricity produced by the various utilities across a region.  In several states, the Renewable Portfolio Standard legislation lets utilities count renewable electricity produced within the PJM region towards meeting the state’s renewable goals.

In Pennsylvania, for example, a resident within the PJM region can apply for certification in the Pennsylvania SREC program.  If your system is convered in this map, you can sell SRECs to PA!

Washington, DC is similar to Pennsylvania in that both allow SRECs from anywhere within the PJM region, however DC will also qualify facilities that are eligible to deliver their electricity into the region. This may include facilities in states that are adjacent to the PJM region such as New York or Wisconsin.

Ohio is another state that allows SRECs from out of state. In that specific case, the utilities are limited to buying 50% from out of state and only from states within the region that are contiguous: Pennsylvania, West Virginia, Kentucky, Michigan and Indiana.

Washington, DC is similar to Pennsylvania in that both allow SRECs from anywhere within the PJM region, however DC will also qualify facilities that are eligible to deliver their electricity into the region.

For these reasons, it is important to know what constitutes the PJM region to determine whether or not you qualify.  Here is a map of the region, along with the retail electricity companies who are served by PJM.

pjm-region

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Posted in Cross-Listing, Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, Washington, DC, West Virginia | 6 Comments »

New to Solar?

Posted February 15th, 2010 by SRECTrade.

We realize that many visitors of our site are learning about solar for the first time, so we thought we would put up this post by way of an introduction and some guidance on how to navigate our site. A growing number of states are implementing SREC programs. If you are new to solar, here is what you need to know:

1. Understand SRECs: For a deeper understanding of what SRECs are and how the programs work, visit our SREC Program page.

2. Find out where you are eligible to sell your SRECs: Your state may or may not have a program, however your ability to sell your SRECs into other states could have a significant impact on the value of your SRECs. You may be eligible to get your system certified in many state programs, regardless of if your state has one or not. Everyone should check our Cross-Listing post to see the states in which they may be eligible for certification.

3. Get your system installed: SRECTrade works with several installation companies. In addition, you should be able to sign up for the EasyREC service through your installer. If they do not offer the service, then feel free to contact us directly.

4. Enroll with SRECTrade: SRECTrade provides two options. If you sign up for the EasyREC service, we handle everything else including submitting your state certification applications, creating your SREC tracking account and automating the sale of your SRECs in our auction.

If you do not sign up for EasyREC, here are the additional steps:

4a. Get your system certified by your state: Once the system is installed, it is now ready to be certified by your state and any other states in which you are eligible. You can find out more on where you are eligible and how to apply on the Cross-Listing page. Every state handles this process differently, but we recommend beginning the application as soon as possible, before your installation is complete.

4b. Set up your SREC tracking account: Every state or region will use a different system for creating and tracking the SRECs. The Mid-Atlantic states use GATS, North Carolina uses NC-RETS, Massachusetts uses NE-GIS. If you opt to manage your own SRECs, you will need to have a tracking account with one of these registries. Once you have SRECs in that account, you can then post them in our auction.

4c. Create an account online with SRECTrade: This is the simplest step of all. Complete the online form to create your account and when your SRECs are available in your tracking account, log into your SRECTrade account, select the “Orders” link and place an offer to sell your SRECs.

5. Understand the timing: After you initially sign up, it will take a few months before you begin receiving payments. For example, if your system goes online on January 1st, your January generation will be recorded on February 1st. Your first SREC(s) will be actually credited to your account on March 1st. They would then be sold in the March auction, so your first payment would come in late March. After that, payments will come as SRECs are generated. Also note: some systems operate on a quarterly basis, rather than monthly.

As these processes are refined, we will continue to update this post. Please feel free to contact us any time at 877-466-4606 if you have any questions.

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Posted in Delaware, Getting Started, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, SREC Markets, Virginia, Washington, DC, West Virginia | Comments Off on New to Solar?

Maryland Governor to accelerate the solar RPS

Posted January 22nd, 2010 by SRECTrade.

In a press release issued by the Governor’s office, Governor Martin O’Malley has prioritized solar electricity in his 2010 agenda. He plans to increase the solar RPS requirement in the earlier years. Currently, compared to other states, Maryland’s RPS solar requirement increases exponentially in the later years. It appears the Governor is planning to straighten out the growth path so that more solar is required earlier.  This is great news for the industry in Maryland in the next five years because it allows the state to remain competitive with other states in the region while the solar industry is in its formative years. Hopefully this will help establish the state at the foreground of industry along with New Jersey and Delaware.  Here are the specific agenda items relating to the solar RPS:

  • This legislation will accelerate Maryland’s solar RPS requirements in the early years (2011 – 2017), resulting in more residential and commercial solar installation and greater job creation.
  • It will make the phase-in of the Solar RPS more evenly distributed over the next decade and provide more long-term support for Maryland‘s growing solar industry.  This change will put the State’s solar goals more in line with New Jersey and Delaware.
  • Additional solar energy in Maryland will decrease peak load electricity prices in the summertime, reduce greenhouse gas emissions by displacing fossil-fueled powered generation, create new green jobs, and help Maryland meet its renewable energy goals.

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Posted in Maryland | Comments Off on Maryland Governor to accelerate the solar RPS

Cross Listing Your SRECs

Posted January 3rd, 2010 by SRECTrade.

2011 Update: State certification information can be found here

One of the benefits of the SRECTrade multi-state auction platform is the ability to cross-list in multiple states in which you have registered your SRECs. If an SREC is cross-listed, it will be included in any state in which it has been registered to be sold.  SRECs will be sold in the state auction that offers the most value. In order to qualify to sell your SRECs in a state that accepts out-of-state SRECs, you need to get your system certified in that state. The following section has information on what states accept out-of-state SRECs and how to get your systems registered and obtain a state certification number. For EasyREC customers, SRECTrade can help you register in the states available to you.

SREC Markets by State

SREC State Registration Information:

Delaware

To get a Delaware state certification number, your installation must be located in DE. You must apply to become an Eligible Energy Resource. The link for the application is here.  For more information, go to the Delaware Public Service Commission.

Contact:
Delaware Public Service Commission
861 Silver Lake Boulevard
Cannon Building, Suite 100
Dover, DE 19904
Main: (302) 736-7500
Toll-Free: (800) 282-8574
Fax: (302) 739-4849

District of Columbia

Eligible to states within and adjacent to the PJM Region. For information on the DC registration process, see DC State Certification Instructions.

Contact:
Dorothy Wideman
Commission Secretary
Public Service Commission of the District of Columbia
1333 H Street, N.W
2nd Floor West Tower
Washington, D.C. 20005

Maryland

To register in Maryland, your solar installation must be in MD and you must complete and file an application for certification as a Solar Renewable Energy Facility (REF) with the Public Service Commission. The link to the application is here.  For more complete details on the process, see Maryland SREC Registration Details.

New Jersey

New Jersey is a closed market, therefore only SRECs produced in New Jersey are eligible. New Jersey residents can apply for state certification at the New Jersey Office of Clean Energy’s website.

Contact:
New Jersey’s Clean Energy Program
c/o Conservation Services Group
75 Lincoln Highway, Suite 100
Iselin, New Jersey 08830
Phone: 866-NJSMART (866-657-6278)

North Carolina

North Carolina is still in the early stages of implementing an SREC program. The state is still accepting applications for a REC tracking system through December 15, 2009.  More information can be found on the North Carolina Utilities Commission website. A sample application can be found here.

Contact:
Chief Clerk
North Carolina Utilities Commission
4325 Mail Services Center
Raleigh, NC 27699-4325

Ohio

Utilities in Ohio are allowed to procure 50% of the SRECs from out of state facilities. However, these states must be contiguous with Ohio (PA, MI, IN, KY, WV). Instructions and forms required for Ohio certification can be found here: Application for Certification as an Ohio Renewable Energy Resource Generating Facility

Contact:
Public Utilities Commission of Ohio
Email: AEPS@puc.state.oh.us
Toll-Free: (800) 686-PUCO (7826)
Phone: (614) 466-3292 (in Columbus area)
Fax: (614) 752-8351
180 East Broad Street
Columbus, Ohio 43215
Directions to the PUCO

Pennsylvania

Utilities in Pennsylvania are allowed to buy out of state SRECs from solar generators in the PJM region to meet the Renewable Portfolio Standard. If you are interested in selling in PA, you need to get your solar system registered.  For a detailed explanation of the process with screenshots see our most recent post on Pennsylvania State Certification Registration Process.

Contact Info:
Dina M. Deana
Pennsylvania AEPS Program Manager
Clean Power Markets, Inc.
Phone: 1-877-AEPS-773 (1-877-237-7773)
Fax: (610) 444-9213
Email: paaeps@cleanpowermarkets.com


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Posted in Cross-Listing, Delaware, Getting Started, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, SREC Markets, Virginia, Washington, DC, West Virginia | 4 Comments »

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