Massachusetts SREC
Massachussetts SREC Program (MA SREC)
Massachusetts is one of a number of states that have a Renewable Portfolio Standard (RPS). This requires electricity suppliers to secure a portion of their electricity from alternative energy generators. In January 2010, The Massachusetts Department of Energy Resources (DOER) took it one step further by implemented a solar carve out requirement. This mandates that a certain portion of an electricity suppliers generation be specifically from solar photovoltaic. Utilities buy solar renewable energy credits (srecs) generated from solar pv systems to meet this requirement. If they do not comply with the yearly state requirement the utility must pay a fine. Knollwood Energy buys the solar credits from residential and commercial systems, bundles them and sells them to the utilities. This affords the smallest to the largest systems the benefit of being paid as if they were an institutional seller. Our relationships and large volumes enable us to get some of the highest prices in the market.
A single solar renewable energy credit represents one megawatt hour (1,000 kilowatt hours) of electricity generated by a solar photovoltaic system. A 10kw system will generate approximately 12 srec's per year. Prices of srecs fluctuate and are determined by market forces and the state established penalty rate, they do not have an intrinsic or set value. The penalty rate is the price a utility pays if they have not purchased enough srecs by the end of the compliance year. The 2010 penalty rate is $600. DOER can reduce this by up to 10% each year based on market conditions. In any given year, only if the supply is greater than the demand, the state will implement the MA Solar Credit Clearinghouse these credits will be bought at a fixed price of $300 (minus a $15 fee) per credit. This establishes a floor and a ceiling price for Massachusetts srecs.
Facilities that received the local utility’s authorization to interconnect after January 1, 2010 are eligible. Solar pv systems must be qualified by the state, have an account on NEPOOL GIS and registered on the Production Tracking System (PTS) before they can start generating solar credits. Knollwood Energy takes care of all the paperwork necessary to make this happen. Facilities 10kw or larger must have a Data Acquisition System installed which automatically reports monthly production data. Facilities smaller than 10kw notify Knollwood Energy monthly and we take care of reporting the production data.
Credits are “minted” quarterly by NEPOOL GIS on the 15th day of the following quarterly plus one month. January - March reported production will be minted July 15th; April - June (October 15th); July - September (January 15th); October - December (April 15th).
Knollwood Energy makes the MA srec process seamless and effortless for the facility owner and the installation company. The installer completes and emails us a one page project detail form, we discuss with the customer different options to monetize their credits, we take care of all the paperwork to qualify and register the facility, production is reported monthly - credits are minted quarterly and we send out payment promptly after.
MA SREC UPDATE 8/10
First Credits Minted
On July 15, 2010 Massachusetts minted a total of 7 credits under the new solar carve-out srec program. These credits were generated from solar pv facilities that were registered and produced at least 1 mwh of production between January - March, 2010. Obviously, this is an extremely low number. It could be due to a couple of factors; facilities that were eligible were not registered and/or systems that were competed during the first quarter were actually started in 2009 under the previous program.
Next MA SREC Minting
The next credits will be minted on October 15th. These credits will be for production ending June 30, 2010. If you had a solar installation that started producing anytime between January - June 2010, it is very important that you contact me asap. Knollwood Energy will take care of all the paperwork required to get the facility registered with the MA DOER. We also monitor the facility on the MA Clean Energy Center so, if the system produced at least 1mwh by June 30, 2010, and we can get the system registered in time, we will pay immediately for all Massachusetts srec after they are minted - no need to wait for an auction to occur.
Systems that are completed between July - September, 2010 will be minted January 15, 2011. Does this mean you should wait? Absolutely not, we are registering new facilities daily. There is currently no registration backlog with the state, we submit paperwork and it gets promptly registered.
MA SREC PRICING
Knollwood Energy anticipates that there will not be enough supply to meet the srec compliance demand for the 2010 reporting year. We are paying our customers over $500 per srec. We work with residential and commercial facilities of all sizes. The more facilities we have early on as part of our aggregation, the better positioned we are to negotiate with the utilities, which in turn means better pricing per srec.
WHO WE ARE
Knollwood Energy has been monetizing solar credits for our customers since 2006. We are one of the oldest and most experienced of the large srec aggregators with over 1300 customers. Our expertise across states consistently helps our customers receive higher srec prices than an auction, exchange or other aggregators. Client satisfaction is our primary focus. Knollwood Energy provides all our customers with a level of service which has generated us multiple referrals and high customer retention.
Please email or call to discuss how we will provide an effortlessly process to monetize your credits.
Alane Lakritz
Vice President of Sales
Knollwood Energy, LLC
Alane@KnollwoodEnergy.com
862-432-0259
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