Posts Tagged ‘dc srec market’

Could change be coming to Washington DC’s SREC market?

Posted February 9th, 2011 by SRECTrade.

As you can see from our monthly update on the capacity registered in the SREC states, the DC market has requirements of no more than 8 MW of installations over the next two years. Today, there are over 27 MW currently generating SRECs that are eligible for the DC SREC market. Only 1.1 MW of the 27 MW are actually located within the District. This oversupply and weight towards foreign facilities is likely what prompted the potential legislative changes to the DC SREC market that we highlighted earlier.

This Bill is still in the early stages of the legislative process and it is unknown how long it would be before it is passed. However, it will take several months, at a minimum, before it would go into effect. At this point, it has been referred to the Committee on Public Services and Consumer Affairs, chaired by Councilmember Yvette Alexander who will establish the timing of hearings and markups of legislation.

After the hearing, it will likely go through an iterative process that will take several weeks before it is ready for a vote and another 2-4 weeks before a 2nd and final vote to enact the Bill before it is sent to the Mayor to sign. Once signed by the Mayor, the District must then send it to Congress for a lengthy review period.

The Bill seems to have enough support within the Council to have a good chance of being passed. Which then begs the question, how will they approach the grandfathering of out-of-state facilities that are already registered in DC. There are two important details here. First is the cutoff date. The initial date listed on the proposed Bill was January 31, 2011, however it is likely that if it takes several months to a year to enact the law, the actual cutoff date will be adjusted accordingly. The second detail is what defines “registered”. Would it mean any facility that was built prior to the cutoff date? Or is it any facility that has submitted an application to DC prior to the cutoff date? Or is it any facility that is approved prior to the cutoff date? The problem with the third approach is that the date an application is submitted is within the control of the solar owner, but the date that it is actually certified is not. We think it would be consistent with existing policies that DC would interpret “registered” as the date by which an application is submitted to DC.

SRECTrade will continue to follow the progress of this legislation. Any stakeholders interested in submitting testimony can do so by contacting the office of Councilmember Alexander.


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.