MASS SRECs, Monitoring & Aggregation Services
CED Monitoring and SREC Aggregation Services
Clean Energy Design provides professional services for PV system owners who would like to participate in the Solar -Carve Out Program including the monitoring your systems performance, aggregation and sale of renewable energy credits (SREC’s). We closely monitor market trends and sell certificates when we feel we can get the best value for our clients.
The Massachusetts Solar Carve Out / Solar Renewable Energy (SREC) incentive program was spawned from critical legislation in Massachusetts enacted in 2008 that supports energy efficiency and encourages investment in renewable energy.
Massachusetts’ renewables portfolio standard (RPS) requires each regulated electricity supplier/ provider serving retail customers in the state to include 15% qualifying renewables in the electricity it sells by December 31, 2020. The Solar Carve-Out program was developed to provide a means for solar renewable energy certificates (SRECs) to be created and verified based on the production of a solar system. This program allows electric suppliers to buy these certificates in order to meet their solar RPS requirements. All electric suppliers must use SRECs to demonstrate compliance with the RPS. All solar electric facilities in Massachusetts are eligible to participate in the program provided they meet specific criteria.
Solar Renewable Energy Certificates (SRECs) are Performance Based Incentives and offer a substantial revenue stream for owners of photovoltaic systems for up to 10 years!
Solar Renewable Energy Certificates (SRECs)
An SREC is a tradable certificate that represents all the positive, renewable environmental attributes of electricity generated from a solar electric system. These certificates are created based on the solar production from a facility. Each time a solar system generates 1,000 kilowatt hours (1 megawatt hour) of electricity, an SREC is issued by the DOER which can then be sold or traded.
The SREC 2 program, now in place is quite different than the initial program. It provides different incentive factors for specific market sectors. This means that the percentage of power production eligible for SREC aggregation will depend on the system size, location and how much power is being consumed onsite for facilities over 25 kW. This ranges between 70-100%.
The price or value of an SREC is established by the state and market availability, although the Department of Energy Resources (DOER) has created some market stability by offering a state Solar Credit Clearinghouse Auction. This Auction ensures that if SRECs are not able to be sold on the open market, they will be purchased by the state through this mechanism.
The state guaranteed floor price will diminish from $285-$189 over the 10 year period. In addition to the SREC incentive, in order to further bolster the residential solar market, the DOER has now implemented the new Solar Loan Program in which approximately $30 million of ACP funds will be leveraged for a low interest loan program. The SREC II program is further explained here on the DOER website.
How Solar Renewable Energy Credits Can Benefit You!
A typical 5 kW sized solar system in MA will generate roughly 5 SRECs per year for the renewable electricity you produce. SREC’s are guaranteed payments from the utility companies or their representatives to you for 10 years. So, if you sell 5 of them each year and you are able to sell them for an average of $200 each over that timeframe, that’s about $1,000 a year for 10 years – or $10,000. For SREC market stability, the Massachusetts Department of Energy Resources (DOER) has also set a floor Clearinghouse auction price that is currently at $285 (this includes a 5% handling fee) which will diminish over time.
To get more information about how this all works, please call or email our our experts at Clean Energy Design, LLC. who can help get you a customized quote.
For more information on the Massachusetts Solar Carve Out program of 2016 please go to the DOER website.