DOER and EnerNOC are continuing to certify and finalize the results of the auction. More details on the final results will be posted to the SREC I and SREC II auction webpages next week.

Dear Solar Carve-Out Stakeholder:
Pursuant to 225 CMR 14.07(2) and (3), DOER is required to calculate the Solar Carve-out and Solar Carve-out II Compliance Obligations and Minimum Standards for each Compliance Year by no later than August 30th of the preceding year. As has been the practice to date, DOER announces a preliminary Compliance Obligation and Minimum Standard prior to conducting the Solar Credit Clearinghouse Auctions (“Auctions”). For Compliance Year 2017, the formula in 225 CMR 14.07(2)(g) will be used to calculate the Solar Carve-out Compliance Obligation, and the formula in 225 CMR 14.07(3)(e) and (f) will be used to calculate the Solar Carve-out II Compliance Obligation.

DOER would like to emphasize that this is only a preliminary announcement and that final Minimum Standards will be announced no later than August 30th.

Solar Carve-out (SREC I Program)

Based on the information available at this time, DOER estimates that the final 2017 Compliance Obligation for the SREC  I Program will be approximately 783,181 MWh and that the Minimum Standard will be approximately 1.6313%. Should this year’s SREC I Auction not fully clear in the first two rounds, the 2017 Compliance Obligation and Minimum Standard will be increased to 785,077 MWh and 1.6352%, respectively. The details of how this preliminary Minimum Standard was calculated are available on the DOER’s website.

The 2017 Minimum Standard for load under contracts signed prior to June 28, 2013 will be 0.9861%.

Solar Carve-out II

Pursuant to 225 CMR 14.07(3)(a)1, all Retail Electricity Suppliers are exempt from any incremental obligations resulting from the provisions contained in the RPS Class I Emergency Regulation filed on April 8, 2016, which expanded the Solar Carve-out II (SREC II) Program Capacity Cap. As such, it is necessary for DOER to establish a baseline Compliance Obligation and Minimum Standard that would have applied had the Emergency Regulation not been filed.

To determine this baseline Minimum Standard, DOER analyzed the percentage shares of MW currently qualified under each of the four SREC II Market Sectors. DOER then multiplied these percentages by the original 947 MW SREC II Program Capacity Cap. DOER multiplied these totals by the corresponding SREC Factors, a 13.51% expected capacity factor, and 8,760 hrs/year and determined the expected MWh/year that would have resulted had the SREC II Program Capacity Cap remained 947 MW. Lastly, DOER added the auction volume and banked SREC II volume from the 2015 Compliance Filings. This yielded a total baseline Compliance Obligation of 1,102,311 MWh and a Minimum Standard of 2.2960%:

If the upcoming SREC II Auction does not fully clear in the first two rounds, the baseline Compliance Obligation and Minimum Standard for 2017 will be 1,169,357 MWh and 2.4357%, respectively.

Using all of the available information at this time, DOER has calculated what the preliminary 2017 SREC II Compliance Obligation and Minimum Standard will be for load under contracts signed after May 8, 2016. DOER has determined that the Compliance Obligation will be approximately 1,496,188 MWh and that the Minimum Standard will be approximately 3.1164%. Should this year’s SREC II Auction not fully clear in the first two rounds, the 2017 Compliance Obligation and Minimum Standard will be increased to 1,563,234 MWh and 3.2561%, respectively. The details of how this preliminary Minimum Standard was calculated are also available on the DOER’s website.

Next Steps

The first rounds of both the SREC and SREC II Solar Credit Clearinghouse Auctions are scheduled to take place on July 29, 2016. Should these auctions not fully clear, a second and third round will be held as necessary the following week. Once both auctions have concluded, DOER will be able to make its final determination of the Compliance Obligations and Minimum Standards for 2017. The announcement of the final Minimum Standards will occur no later than August 30, 2016. More information on the auctions taking place later this month are available on the DOER’s auction website.

Auction Volume Update

Lastly, the volume of certificates available in both the SREC and SREC II Solar Credit Clearinghouse Auctions has been slightly updated as follows since DOER’s initial announcement on July 6^th:

SREC I: 1,896

SREC II: 67,046

Sincerely,

Michael Judge

Director, Renewable and Alternative Energy Development

Massachusetts Department of Energy Resources

Massachusetts RPS Solar Carve-Out Stakeholders:

The Department of Energy Resources (DOER) wishes to provide notice to all stakeholders that a public hearing will be conducted to receive verbal and written comments on the recently filed RPS Class I Emergency Regulation (225 CMR 14.00). This notice will also be published in the Massachusetts Register on May 6, 2016. A tracked changes version of the regulation has been posted to DOER’s website for stakeholder review.
The time and location of the public hearing as well as information regarding where written comments should be directed are as follows:

Location: MassART, Tower Auditorium, 621 Huntington Ave., Boston, MA 02115
Date: May 20, 2016 from 1:00-3:00 PM

Written comments will be accepted until 5 pm on May 27, 2016. DOER requests that written comments be submitted as attached pdf files to emails addressed to DOER.SREC@state.ma.us with the word COMMENTS in the subject line. Alternatively, comments can be submitted via mail to Kaitlin Kelly at the Department of Energy Resources, 100 Cambridge Street, Suite 1020, Boston, MA 02114.
We look forward to your comments and participation through this rulemaking process.

Regards,

Michael Judge
Director, Renewable and Alternative Energy Development
Massachusetts Department of Energy Resources
100 Cambridge Street, Suite 1020, Boston, MA 02114
Ph: 617.626.7368 Fax: 617.727.0030
http://www.mass.gov/doer/

STATE CAPITOL BRIEFS – WEDNESDAY, APRIL 20, 2016
STATE HOUSE NEWS SERVICE

ROSENBERG: SUSPENSION OF KINDER MORGAN PIPELINE A “GAME CHANGER”
As the Legislature prepares to consider major energy policy legislation later this spring, Senate President Stanley Rosenberg called the news that Kinder Morgan would suspend work and spending on its controversial gas pipeline project “a game changer” that would allow for a broader debate about the state’s energy mix. Kinder Morgan announced Wednesday that it would halt its Northeast Energy Direct natural gas pipeline project due to inadequate commitments from prospective customers. The planned pipeline, if green-lit by the federal government, would have run from New York through parts of western Massachusetts and southern New Hampshire to Dracut, Mass. “Kinder Morgan’s decision to suspend the Northeast Energy Direct (NED) project is a game changer. This allows us to have a broader discussion about how to meet Massachusetts’ energy needs. Our discussions moving forward must include a comprehensive approach to reducing energy costs for all while meeting our increasing renewable energy needs and continuing to protect our priceless public spaces,” Rosenberg said in a statement. Attorney General Maura Healey, among the many officials and groups to comment on the announcement, said the decision “recognized what has been clear for some time, that the project was too big and too costly for Massachusetts ratepayers.” “Our office has consistently maintained that electric ratepayers should not foot the bill for additional pipelines. I hope this announcement helps refocus and secure our energy future where it needs to be, with investments in clean and cost-effective energy resources,” Healey said in a statement. – Matt Murphy/SHNS

COMPTROLLER TO CONVENE SUMMIT ON ‘EMERGING DIGITAL COMMONWEALTH’
The state’s comptroller announced Wednesday that he will host a “first-of-its-kind” leadership summit for all 152 state agencies to discuss the state’s ever-evolving digital and fiscal landscape. Comptroller Thomas Shack, in announcing the May 9 summit, said the all-agency gathering is designed to allow government leaders to detail their visions for “an emerging digital commonwealth” and how they are developing strategies to support digital efforts. Gov. Charlie Baker, Treasurer Deborah Goldberg, Auditor Suzanne Bump, Administration and Finance Secretary Kristen Lepore, MassIT Executive Director Mark Nunnelly and Shack will make presentations, and representatives from the Commonwealth Fusion Center will discuss information security and the state’s anti-cyber-terrorism efforts. “The Digital Commonwealth is on our doorstep and we have to work together to embrace a new era of ‘big data’ and transparency while simultaneously protecting Commonwealth data and assets across the 152 agencies,” Shack said in a statement. “Opening up a dialogue and breaking down technology and business silos across Commonwealth operations is a big step in the right direction for us.” Ken Stasiak, CEO of SecureState, will “provide an understanding of systemic and internal vulnerabilities which, once addressed, can help agencies avoid emerging security risks,” Shack’s office said. The full-day summit will be held at 9:30 a.m. Monday, May 9 at the Federal Reserve Bank of Boston. – Colin A. Young/SHNS

-END-
4/20/2016

Serving the working press since 1910
http://www.statehousenews.com

On Friday April 8, 2016, the MA Department of Energy Resources (DOER) announced  the long awaited emergency regulation regarding the SREC 2 program. The following key provisions are part of the emergency regulation:

1) Extends eligibility to all projects >25 kW constructed within nine months of the effective date of the emergency regulation

2) Extends eligibility to all projects <=25 kW interconnected by start of the next program

3) Provides compliance exemption to retail electricity suppliers for load under existing contracts signed within 30 days of the effective date of the regulation

4) Ensures SREC II program will end in 2027 at the latest

So, what does this all mean?

Systems equal to or less than 25 kW DC

A solar facility which has received an authorization to interconnect or permission to operate (PTO) from its local distribution company and has submitted a Statement of Qualification Application by the effective date of a new solar incentive program will qualify for the SREC II program. The PTO must be dated before the start date of the new solar incentive program and after 1/1/2013.

Systems greater than 25 kW DC

To qualify for the SREC II program, a solar facility must demonstrate that it is constructed and must submit a Statement of Qualification Application by January 8, 2017.

OTHER KEY DETAILS

Statement of Qualification: Knollwood Energy of MA will submit this application and all required documentation on behalf of our customers. In the case where we have previously submitted an application, we will be contacting the installer if there are any missing items.

Incentive Program 3: DOER recently hired a third party to conduct a financial analysis of different incentive program options. It is anticipated the earliest a new program will start will be the beginning of 2017. Knollwood Energy will provide updates as additional information is announced.

SREC Pricing: Load servers will not have their requirements increased to buy SRECs if they have existing contracts. This means that the market will be more oversupplied, which will probably mean slightly lower SREC prices in the near term, until the increased installations are adjusted for properly in the states’ demand calculations.

Emergency Regulation: The complete emergency regulation filed by DOER is redlined here [http://www.mass.gov/eea/docs/eea/energy/225-cmr-14-emergency-final.pdf]. This will be effective immediately but must be ratified within 90 days. DOER will be announcing shortly the next steps in the rule making process, including information on public hearings and deadlines for submitting written comments.

In summary, this is a great outcome for the solar market and we want to thank MA DOER for addressing these issues in a way that keeps the solar industry working.

Knollwood Energy’s Chief Executive Officer Gary Lakritz will be joining a panel discussion at The Growing Solar Credit Market Exchange event in New York City on March 24th, 2016.

More about this event:

“Solar project developers are the beneficiaries of large blocks of solar tax credits. They actively sell these credits to investors at a discount, creating a substantive secondary market for solar credits. Solar-related assets are projected to reach $200 billion in the U.S. this year. Last year, it was estimated that the number of investors in the solar credit secondary market doubled. These transactions were worth $8 billion in 2015 and are expected to reach $10 billion in 2016. The purpose of this event is to discuss this burgeoning activity and the marketplace for solar credits.

Key Discussion Items of Event:

• Analysis of secondary market for solar tax credits
• Participants in solar tax credit secondary market
• Individual investor activity in secondary market
• Filing issues, state and federal programs
• Identifying solar projects for investment

For more information about this event, including registration information, click here.

The Massachusetts Department of Energy Resources (DOER) has announced that the SREC-II program has reached its capacity limit for systems exceeding 25 kW. The DOER will post project status as well as its waiting list on their website. In the meantime, we’ll continue to accept applications for systems exceeding 25kW. We will send them to the DOER so that projects can be added to the waiting list. Consult the MA DOER website for further information.

Announcement from DOER regarding the SREC II program, as well as the future of solar incentives in Massachusetts:

1.  Final Assurance of Qualification Guideline and Small Generator Set-Aside
On January 5, 2016, DOER announced the establishment of the Small Generation Unit set-aside, which was prompted by having allocated Assurances of Qualification or Statements of Qualification for an amount of capacity equal to 60 percent of Solar Carve-Out II Program Capacity Cap.  To implement this change (as well as a few other procedural clarifications), a draft version of the Assurance of Qualification Guideline was posted for public comment, which reserved 120 MW of the capacity remaining under the Program Capacity Cap at that time, for PV projects with a capacity equal to or less than 25 kW DC.

Having reviewed all of the comments received by stakeholders, DOER has determined that the final Small Generation Unit set-aside shall be 120 MW DC. More details can be found in the revised final Assurance of Qualification Guideline.

2.  SREC II Cap Reached for Projects Larger than 25 kW DC
As the capacity reserved under the Small Generation Unit set-aside remains unchanged, the total capacity available under the SREC II Program Capacity Cap for projects larger than 25 kW DC also remains unchanged, at 660.595 MW DC. As of today, DOER has qualified or received applications for over 854 MW DC of capacity, exceeding the cap for  projects over 25kW DC by more than 193 MW DC. At this time, it is not yet clear whether or not all of the facilities that submitted applications will meet the eligibility criteria to qualify under the SREC II program. Assuming they do, a Waiting List will be established pursuant to the rules outlined in the Assurance of Qualification Guideline.

While DOER can confirm that all applications for projects larger than 25 kW DC submitted on or before February 1, 2016, were received before the cap was reached, we cannot guarantee the same for projects submitted after February 1, 2016. As DOER continues to review applications, DOER will queue them according to the procedure outlined in Section 4(B) of the Assurance of Qualification Guideline. Once DOER can confirm that 660.595 MW DC of capacity has been issued Statements or Assurances of Qualification, DOER will follow up with applicants that submitted applications after February 1, 2016, to inform them of where their applications stand in the queue. The Waiting List will be published on DOER’s website.

3. RFQ for Consulting Services
DOER has posted a Request for Quotes (“RFQ”) for consulting services under Statewide Contract PRF62 to help DOER identify the current costs of different types of solar installations in Massachusetts. The consultant(s) will use the cost data collected to help establish the total energy and incentive value necessary for different types of solar projects to move forward and receive a reasonable rate of return under current economic conditions. The consultant will also be tasked with analyzing the total cost to ratepayers of different potential solar incentive policy frameworks. A copy of the QRF will be posted to the Current Status of th SREC II Program page on Monday. The results of this work will be used to inform DOER as it contemplates future program opportunities. More details on this process will be provided as soon as possible.

DOER requests that any questions related to applications, procedures, or the next generation of solar initiatives, be directed to DOER.SREC@state.ma.us.

Knollwood Energy is pleased to announce the rollout of our new website and blog.  We will strive to provide the market with insight and updates on SREC and solar markets throughout the country.  Also, we will focus some blogs on our customers and how solar is helping them.

Many of our existing customers have recently been utilizing the initial functionality of our new Knollwood Energy portal.  The portal will provide our customers with information about their accounts and allow them an easy and efficient way to interact with us.  Our installer partners will also find new functionality which will make Knollwood Energy the simplest and most efficient SREC partner in the market.