The following are common terms used in the wind and solar industries in Massachusetts ranging from technical information to regulatory and policy information. Explore and enjoy this brief guide to renewable energy definitions in the state.
Allocation Account: A customer of an electric utility that receives net metering credits from a host account.
Alternative Compliance Payment (ACP): A payment made by a retail electric supplier or electric utility to satisfy their obligations under the renewable portfolio standard versus purchasing renewable energy certificates (RECs) or solar renewable energy certificates (SRECs). Typically the ACP rate is significantly higher than the market value of RECs or SRECs and the ACP will be used when there is an under-supply of RECs or SRECs.
Bill Audit: A review of all of the constituent elements of an electric utility bill for a predetermined time period to identify errors as well as potential areas for savings.
Capacity Factor: The capacity factor of a generator is the ratio of its actual output over a period of time to its potential if it were to operate at full nameplate capacity indefinitely. Typical capacity factors include: wind 20-40%, photovoltaic solar in Massachusetts 13-15%, hydro 10-99%, nuclear 70-90%.
Distribution System: Reduces the voltage of electricity from the transmission system through substations and distributes it over lower-voltage wires to individual customers within a region. A local utility owns and operates these wires.
Distribution Utility: The utility that manages the lower voltage neighborhood and local distribution wires that carry power from higher voltage transmission lines and substations to homes and buildings.
Green Communities Act: A 2008 Act of the Massachusetts Legislature that increased energy efficiency goals and renewable energy goals in Massachusetts to address the economic, environmental and societal challenges posed by traditional fossil fuel energy use.
Host Account: A customer of an electric utility that has a net metering facility behind its utility meter. This can include business and residential accounts as well as municipal accounts.
Independent System Operator – New England (ISO-NE): Is a regional transmission organization that serves the six New England States to ensure reliability operation of regional transmission, the bulk power system and wholesale market planning. ISO-NE is an independent and non-profit corporation.
Interconnection: Is the connection of a generation system to the electric grid at either the distribution or transmission level.
Inverter: This is an electronic device or circuitry that changes direct current (DC) to alternating current (AC). These are important as solar panels produce power in DC yet electricity for use on the grid and in our buildings is in AC.
Kilowatt (kW): A unit of electrical power equal to one thousands watts.
Kilowatt Hour (kWh): One kilowatt of power used or produced for an hour.
Massachusetts Department of Energy Resources (DOER): The DOER “develops and implements policies and programs aimed at ensuring the adequacy, security, diversity, and cost-effectiveness of the Commonwealth’s energy supply within the context of creating a cleaner energy future.” DOER is an agency within the Executive Office of Energy and Environmental Affairs.
Massachusetts Renewable Portfolio Standard (MA RPS): A state legislated requirement of utilities and retail electric suppliers to derive an increasing amount of the energy supplied to their customers from renewable sources. The required percentage of renewable energy in Massachusetts is increasing by 1% each year and the requirement is targeted to reach 15% by 2020 with an additional 1% each year thereafter.
Megawatt (MW): One million watts.
Megawatt Hour (MWh): One million watts of power used or produced for an hour.
National Grid: An investor-owned Massachusetts and international gas and electric distribution utility serving Nantucket, Northern Massachusetts, the Metrowest area, parts of the South Shore, the Berkshires, many of the towns bordering Rhode Island as well as much of Central Massachusetts.
Net Metering: The ability to spin your electric utility meter backwards and receive retail value for electricity sent back to the grid.
Net Metering Credit: Is the monetary value of the excess electricity generated by a net metering facility.
Net Metering Facility: Is a plant or equipment that is used to produce, manufacture, or otherwise generate electricity and meets applicable state fuel and size requirements. These facilities generate electricity and ‘net metering credits’ that are worth more than typical wholesale electric prices and more accurately match the rates of retail electric power displaced.
NSTAR: An investor-owned Massachusetts gas and electric distribution utility, subsidiary of Northeast Utilities, primarily serving the greater Boston area and Southeastern Massachusetts.
Owner’s Agent for Wind or Solar: A professional representative with deep industry knowledge working on your behalf to maximize your position on wind and/or solar matters for your existing project(s) or project(s) under development.
Photovoltaic (PV): Photovoltaic devices generate electricity directly from sunlight via an electronic process that occurs naturally in certain types of material, called semiconductors.
Photoelectric Effect: Is how light can interact with metals to release electrons and therefore create electricity.
Power Purchase Agreement (PPA): An agreement between a power generator and an end user to purchase power at specified terms over a predetermined period of time.
Renewable Energy: Energy sources that can be replenished naturally with limited or no fuel costs which most commonly include sunlight and wind in the form of solar and wind energy.
Renewable Energy Certificates (RECs): RECs are trade-able environmental attributes associated with the production of a number of forms of renewable clean energy. These attributes are independent of, and in addition to, the electricity generated from those sources. A significant number of states require retail electric suppliers and utilities to purchase RECs to fulfill their Renewable Portfolio Standard requirements. A REC is calculated as 1 MWh or 1000 kWh.
Retail Electric Supplier: Companies that provide the supply portion of an electric customer’s electricity bill in a competitive marketplace for energy.
Revenue Grade Meter: A high accuracy meter used either for utility billing purposes or for the proper accounting of environmental attributes such as RECs or SRECs.
Schedule Z: The Department of Public Utilities approved net metering credit allocation form.
Semiconductors: Electrons in these materials can be freed by solar energy and can be induced to travel through an electrical circuit, powering electrical devices or sending electricity to the grid.
Site Audit: A detailed review of a renewable energy installation to identify issues, areas to be addressed, and to provide a report on the overall quality of the materials, equipment, wear and tear and workmanship. Site audits and inspections are especially helpful for wind or solar maintenance planning.
Solar Cell: A solar cell is a device people can make that takes the energy of sunlight and converts it into electricity. Typical solar cells are made with anti-reflective coatings, specially treated semi-conductor material, and contacts to carry current.
Solar Credit Clearinghouse Auction: Is an end of the trading year state run auction that extends the useful life of SRECs for owners and can increase the utilities obligation to purchase more SRECs if the SRECs entered into the auction aren’t purchased in the initial rounds by the utilities.
Solar Panel: Is a set of solar cells that is electrically connected and mounted on a supporting structure typically made of aluminum. Typical panels are rated for between 225 watts and 300 watts.
Solar Power: Is the conversion of sunshine into electricity using either photovoltaics, or using (the less common) concentrated solar power.
Solar Renewable Energy Certificates (SRECs): SRECs are trade-able environmental attributes associated with the production of solar energy. These attributes are independent of, and in addition to, the electricity generated from solar. Multiple states require retail electric suppliers and utilities to purchase SRECs as part of their Renewable Portfolio Standard requirements. A SREC is calculated as 1 MWh or 1000 kWh.
SREC or REC Broker: Aggregates generated and minted SRECs or RECs and sells them to ‘compliance entities’ such as retail electric suppliers and distribution utilities which are obligated to purchase the RECs or face steep penalties.
Transmission System: Transmits large amounts of electricity from generators over high-voltage wires to the distribution system.
Unitil: An investor-owned Massachusetts distribution utility serving the north central Massachusetts towns of Ashby, Townsend, Fitchburg and Lunenburg as well as parts of southern New Hampshire.
Watt (W): A unit of electrical power. A typical LED light bulb only requires a few watts to operate.
Western Massachusetts Electric Company (WMECO): An investor-owned Massachusetts electric distribution company, subsidiary of Northeast Utilities, serving western Massachusetts.
Wholesale Electricity Market: Where bulk power sales and wholesale capacity are procured on a regional level.
Wholesale Generator: Produces electricity, typically at large central power plants.
Wind Power: Is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electrical power or windmills for mechanical power.
Suntility is your trusted partner in success. Suntility provides renewable energy maintenance services, utility credit services, owner’s agent services and consulting solutions to optimize facility reliability, performance and value.
To learn more contact us at 508-538-4-Sun