Home > REC Markets > Massachusetts
The Massachusetts Renewable Portfolio Standard (RPS) was adopted by the Department of Energy Resources (DOER) in 2002. In 2008, the Green Communities Act (Senate Bill 2768) expanded the RPS and identified two different renewable energy standards - Class I RPS and Class II RPS. The expansion requires all retail electricity suppliers to provide a specific portion of their annual energy sales to end-use customers from a renewable energy source that qualifies for Class I or Class II REC production.
Class I RECs are a different type of commodity than SRECs, which are specific to the solar carve-out of the RPS, and trade at a lower price. The Class I REC market includes a variety of renewable energy sources.
States Eligible
Tracking Registry
Energy Year
Production Tracking
The following renewable energy sources are eligible to produce Class I RECs:
| Energy Year | Minimum Standard % (inclusive of Solar Carve Outs) | ACP |
|---|---|---|
| 2018 | 13.00% | $68.95 |
| 2019 | 14.00% | $70.44 |
| 2020 | 15.00% | N/A |
| 2021 | 17.00% | N/A |
| 2022 | 19.00% | N/A |
| 2023 | 21.00% | N/A |
| 2024 | 23.00% | N/A |
| 2025 | 25.00% | N/A |
| 2026 | 27.00% | N/A |
| 2027 | 29.00% | N/A |
| 2028 | 31.00% | N/A |
| 2029 | 33.00% | N/A |
| 2030 | 35.00% | N/A |
An obligated entity may meet the Minimum Standard requirement by paying the Alternative Compliance Penalty (ACP) for each Megawatt-hour (MWh) of renewable energy shortfall of the obligation. The DOER announces the ACP annually, on January 31st, which is adjusted each year based upon the previous year’s Consumer Price Index. The ACP rate caps the market.
There is no limit to the period of time that a renewable energy facility is eligible to produce Class I RECs. The following dates are the deadlines to submit an application to SRECTrade in order to guarantee the facility will be eligible for the corresponding quarter:
All facilities must use an Independent Verifier (IV) to report their readings directly to NEPOOL. A list of independent verifiers can be found here.
A facility’s eligibility to produce Class I RECs can begin with the system’s interconnection, so long as the certification application is submitted prior to the interconnection quarter’s application deadline. Otherwise, eligibility will be based on the application date and its corresponding quarter. System owners should apply for certification around the date of interconnection to ensure they receive Class I REC eligibility for all generation produced following interconnection.
As Massachusetts transitions from the SREC II program to the new SMART program, solar facilities enrolled in the SREC markets will no longer be eligible for SREC production upon (1) conclusion of their 10 year (or 40 quarter) lifespan, dating back to the application submission date, or (2) the close of Q4 2027. The lifespan ends with whichever date comes first.
Once the SREC production eligibility period ends, the solar system will be eligible to produce Class I RECs. SRECTrade will continue any existing management and transaction services for facilities as they transition to Class I REC production.
Class I RECs are issued quarterly on a one quarter delay. The following dates represent the state’s issuance of Class I RECs for the corresponding quarter:
