Posts Tagged ‘Washington DC SRECs’

Distributed Generation Amendment Act of 2011 Implemented

Posted September 27th, 2011 by SRECTrade.

The Council of the District of Columbia and the city’s Mayor signed into law the Distributed Generation Amendment Act of 2011. SRECTrade closely watched this legislation as it evolved over the last 7 months. Our most recent blog on the subject is here. The Act ultimately focuses on providing a sustainable SREC market for the residents of Washington DC while containing the potential cost to ratepayers. The amendment increases the RPS solar requirements and closes the District’s boarders from out-of-district sited systems. The affect on the market is demonstrated in our Capacity Update of systems eligible to create DC SRECs moving forward.

This week, the PJM tracking registry (PJM GATS) is undergoing the process of de-certifying systems that were once eligible under the previous Washington DC RPS law. As per the new legislation, all non-Washington DC sited systems that were approved after January 31, 2011 by the DC Public Service Commission are no longer eligible to sell SRECs in the DC market. This cutoff date is clearly displayed by a customer’s DC State Certification Number; any certification number beginning “DC-10…-SUN-I” was certified before January 31, 2011, while any certification number beginning “DC-11….-SUN-I” was certified after that date.

What does this mean for the market?

While this law is not likely to cause DC SREC prices to rebound immediately to the level that was seen in 2010 (due to the fact that buyers have likely accumulated extra SRECs throughout the early part of this year, along with any forward contracts that were in place before the law was implemented), this law is an important step to alleviating the oversupply that has depressed DC SREC prices.

What does this mean for facilities certified after January 31, 2011?

Any facility not located within Washington DC with the state certification number beginning “DC-11…” has had their certification number de-activated. The facility is no longer eligible to generate future SRECs in the DC market, and any SRECs they have already created have lost their eligibility for the DC SREC market.

– If your facility falls under this category, and is already eligible to sell SRECs in another state, you will not see any disruption in your account except that you are no longer eligible for the DC market.

– If your facility is eligible to be certified for another SREC market, but you were only certified in DC, you can apply for certification in another state market. Please see this chart for more information on your eligibility.

– If your facility was originally only eligible for DC (i.e. your system is located in WI, NY, NC(non-Dominion Power territory) or you had a Solar Thermal system not located within Washington DC), PJM GATS will be listing your facility as “inactive”. Any SRECs you have created will not be eligible for sale, and you will not create future SRECs unless another market opens that allows your facility to be certified. Currently, solar facilities in this scenario are only eligible in the NC SREC market – but due to extremely low pricing in the oversaturated NC market, this option is not very viable for solar owners.

SRECTrade will continue to post opportunities for cross-listing SRECs in other state markets.

Solar Thermal SRECs in DC – Update

Posted April 12th, 2011 by SRECTrade.

Recent legislation passed by the council of the District of Columbia now allows non-residential solar thermal systems to be registered to produce DC SRECs. Under the new legislation non-residential systems must be SRCC OG-100 certified. The legislation went into effect on March 12, 2011 and will expire on October 23, 2011. Previously the District only accepted SRECs from residential SRCC OG-300 certified solar thermal systems.

The new legislation has the following requirements for solar thermal systems:

Solar thermal non-residential systems producing or displacing more than 10,000 kW-hrs per year must be SRCC OG-100 certified and the annual energy output must be determined by an onsite OIML compliant meter.

Solar thermal non-residential systems producing or displacing 10,000 kW-hrs or less per year must be SRCC OG-100 certified and their annual energy output can be determined by the SRCC OG-300 performance rating protocol OR by an onsite OIML compliant meter.

Residential SRCC OG-300 certified solar thermal systems are not affected by this legislation and can continue to be registered in DC.

Given the current supply dynamics of the DC SREC market, this legislation will continue to provide more supply to the oversubscribed program. While SREC prices could continue to decline in the near term, it may be beneficial for solar thermal system owners, previously not eligible for the DC market, to register and receive certification as an option for potential SREC liquidity.

For an update on the current capacity certified to produce DC SRECs see the SRECTrade SREC Markets Report: March 2011.

Additionally, the Distributed Generation Amendment Act of 2011, could have a positive impact on the oversupplied DC SREC market. The legislation is still pending and details associated with the cut off date for grandfathering in out of state DC registered systems are still unknown. SRECTrade will continue to monitor this piece of legislation and provide additional information as it becomes available. For more background on the proposed amendment see these blog posts:

Could Change Be Coming to Washington DC’s SREC Market?

DC Bill Introduced to Limit Out-of-State Facilities

For information on registering a solar thermal system directly with DC Public Services Commission see this page, or consider registering through SRECTrade’s EasyREC service.