Department of Energy Resources

Massachusetts Surpasses 2,000 MW Of Solar Installed

Just this week Massachusetts surpassed 2,000 MW of solar installed across the Commonwealth. According to the Massachusetts Department of Energy Resources (DOER) this includes 78,646 projects across all 351 communities in the state. https://www.mass.gov/news/commonwealth-achieves-solar-milestone

A Suntility-Managed Massachusetts Solar Array

This news comes the same week that The Solar Foundation released a report detailing that the Massachusetts solar industry lost jobs versus the prior year. The industry cross currents in Massachusetts are likely due to a number of factors including the delays associated with the anticipated new solar compensation program starting in 2018, SMART, as well as the exhausted net metering caps for much of the state, primarily in National Grid territory.

Solar capacity growth in the state is anticipated to continue, however a protracted transition period to the SMART program is expected to slow larger projects as the program starts up in mid-2018.

A renewed focus on in-state solar and wind may also follow the recent turmoil the Eversource/Hydro-Quebec project, also commonly known as Northern Pass, has faced as that project was unanimously rejected by a key New Hampshire siting board. Northern Pass was expected to bring a significant amount of imported hydropower from Quebec through New Hampshire to Massachusetts.

Massachusetts has size-able untapped solar and wind resources close to load centers – where that electricity is used. Locally-sited distributed resources help reduce the need for unnecessary transmission and grid infrastructure.

Suntility is your trusted partner in success. Suntility provides renewable energy maintenance services, net metering credit services, owner’s agent services and consulting solutions to optimize facility reliability, performance and value.

To learn more contact us at 508-538-4Sun

Massachusetts SMART Solar Program Coming In 2018

Massachusetts will soon be embarking on its next and newest solar incentive program, with the aim of continuing the cost-effective development of solar energy in the Commonwealth. Massachusetts has long been New England’s leader in solar installations per year and total installed capacity. The new program, known as the Solar Massachusetts Renewable Target, or SMART, is currently being finalized through processes at the Massachusetts Department of Energy Resources (DOER) and the Massachusetts Department of Public Utilities (DPU).

The purpose of the SMART Program, filed as DOER regulation 225 CMR 20.00, is to encourage the continued development of residential, commercial, governmental and industrial solar units. The growth of these units would not only reduce peak energy demand, and system losses, but it also has the potential to increase grid reliability, along with producing a rise in investment towards new renewable infrastructure. Furthermore, generating more energy from renewables helps contribute to the Commonwealth’s goals to protect the environment by reducing emissions.

As opposed to Solar Renewable Energy Certificates (SRECs), which fluctuate based on market conditions, the SMART program is designed to provide more long-term revenue certainty. Over time, new projects that enter the program would enter with lower incentives to reflect the declining cost of solar. The program is intended to provide solar facilities with a single compensation rate that reflects both the energy value and the incentive value. This is different than that of the SREC program, where SRECs are an independent stream of revenue, separate from the actual value of the energy. Therefore, total costs of the SMART Program can be tracked with greater precision and accuracy.

The SMART Program is designed as a 1600 MW declining block program, spanning eight blocks, each containing 200 MW, with base compensation rates decreasing 4% for projects that begin in each successive block.

For current owners of residential and commercial solar, already in the SREC I or SREC II program, nothing will change for them once the shift from the SREC program to the SMART program is initiated, as they will continue to earn SRECs for the remainder of their term. However, new solar owners, not captured by the SREC II extension will be able to participate in the SMART program instead.

Overall, DOER expects the program as designed to support approximately double the solar capacity currently installed in the Commonwealth. By the end of the SMART program, this would result in almost 10% of Massachusetts electricity consumption being supplied by in-state distributed solar generation.

Suntility is your trusted partner in success. Suntility provides renewable energy maintenance services, net metering credit services, owner’s agent services and consulting solutions to optimize facility reliability, performance and value.

To learn more contact us at 508-538-4Sun

The History Of Massachusetts’ SREC Programs

The first Massachusetts SREC program, referred to as SREC-I, was launched in January 2010 by the Massachusetts Department of Energy Resources (DOER). This SREC program was created as a result of the Green Communities Act of 2008 and the state’s Renewable Portfolio Standard (RPS), which arose out of the restructuring of the electricity industry in the late 1990’s. The SREC program serves as a Massachusetts-specific solar carve-out of the Renewable Energy Certificate (REC) market.

When SREC-I was first established, a capacity limit of 400 MW was put into place. However, this limit was reached early, in the spring of 2013, and the cap was subsequently raised to approximately 650 MW to accommodate transition projects before the commencement of a second SREC program. The DOER then initiated its SREC-II program in spring of 2014 as an incentive mechanism to further encourage Massachusetts to reach its goal of 1,600 MW of new solar installations by 2020.

Image source: Massachusetts Department of Energy Resources

The DOER determines the number of SRECs utilities are required to purchase to meet RPS guidelines based on a compliance formula which is subject to a number of factors including how much solar capacity was installed in the previous years. In the Commonwealth, a solar project receives one SREC for each MWh (1000 kWh) it produces. In the SREC-II program certain project types are ascribed greater or less value for their SRECs depending on locational factors, among others. The market value of an SREC varies based on supply (solar production) and the utility compliance obligation in that particular period.

With the SREC program caps being easily met, and the fact that long-term sustainable solutions take time to deploy, Massachusetts is currently in the process of designing its “Next Generation Incentive Program.” The DOER filed an Emergency Regulation on April 8, 2016 with the Secretary of the Commonwealth’s office to address recent developments in the state’s solar PV market and allow for a transition from the current SREC-II program to the next one. This new solar incentive regime, stemming from a solar law signed by Governor Charlie Baker on April 11, 2016, is expected to begin in mid-to-late 2017.

Overall Massachusetts’ pioneering SREC programs have provided incentives towards creating sustainable solar solutions, promoting cost-effective solar development in the Commonwealth while positioning the state as a national leader in clean energy.

For more stories and articles on Massachusetts SRECs (Solar Renewable Energy Certificates) click here:

https://www.suntilityelectric.com/category/srecs/

Sippican Community Solar Garden® Project receives prestigious 2016 Photovoltaic Project of Distinction Award

The nation’s premier approach to community solar, exhibited with the Sippican Community Solar Garden® Project, receives prestigious 2016 Photovoltaic Project of Distinction Award.

Project-of-Distinction-PV-Boston-2016-300x207The Solar Energy Industries Association (SEIA) and the Solar Electric Power Association (SEPA) presented My Generation Energy and Enphase Energy with the award at the Solar Power PV Conference & Expo – Boston on February 24, 2016.

The Sippican Community Solar Garden Project, 912kW, demonstrates a number of unique design features as well as a one-of-a-kind program approach for the purchasers of the output. The project team consisted of My Generation Energy, Inc. (installation and design) as well as Suntility Electric, LLC (Cooperative setup, enrollment and program management).

To improve the effectiveness of the site in Marion, Massachusetts, and reduce project and on-going costs a new microinverter solution from Enphase, the C250, was paired with high efficiency panels. This high voltage microinverter solution eliminated the need to install site mini-transformers, improves the capacity factor of the installation and reduces future maintenance costs. This solution, with it’s simple cabling, also helped speed the project construction during a winter that featured exceptionally harsh conditions for the Northeast.

The purchasers of the output, in the form of net metering credits, from the project include a Cooperative and a local financial institution. The Sippican Community Solar Garden Cooperative leverages the purchasing power of a large group and aids hundreds of community members in receiving substantial direct savings on their electric bills over ten years. From across 23 towns in Southeastern Massachusetts members of the Cooperative span from low-income, to condo owners, to small businesses, families, faith organizations, non-profits and more.

This Cooperative approach continues the success of a program pioneered in Brewster, Massachusetts, with the Brewster Community Solar Garden Cooperative, which was one of the first community shared solar programs implemented in the nation in 2012. The Brewster project, 346kW, was spearheaded by the same project team as the Sippican project, and has consistently exceeded production expectations and was one of the inspirations for the Community Shared Solar designation in the SREC-2 program in Massachusetts that the Sippican project has achieved. My Generation Energy and Suntility Electric are pursuing additional projects of this nature.

Success in the Massachusetts Solar Credit Clearinghouse Auction & Massachusetts Net Metering Caps Raised 50%

Suntility SREC Commercial Self Storage PhotoThe annual Solar Credit Clearinghouse Auction fully cleared on Friday August 1, 2014. Long-story-short, it’s very good news for solar owners.

What is a Solar Credit Clearinghouse Auction? First, let’s clarify what is being auctioned. A Solar Renewable Energy Certificate (SREC for short) is issued to the owner of a solar project. The more clean solar energy it produces, the more SRECs are issued. The utilities purchase these certificates and the market price is somewhat regulated by the Commonwealth. Part of this regulating function is a “last chance to sell” provided by the Clearinghouse Auction at the end of each year.

Many solar owners, and those of us in the business, were watching closely as this auction played-out.  Would it indeed “clear” meaning to sell all of the remaining 2013 SRECs? If so, confidence in the program and the Commonwealth’s ability to sufficiently regulate the market would be bolstered. The Clearinghouse Auction did indeed clear Friday; and the Department of Energy Resources (DOER) immediately announced the results.

Good News for the Short-term and the Long-term

The immediate news is welcome to those participating in the auction. The long-term implications are also positive for everyone who already owns or is considering solar. Here is why: The regulation governing the SREC market has a feature where the auction process itself triggers the future market demand to increase. The details are complicated, but this creates additional pressure on the utilities to buy more SRECs and to purchase them sooner. In this way, the auction process has already driven the prices of 2014 SRECs upward in recent days. The SREC valuation will likely continue on that trend as it is anticipated that 2015 will be a “short year,” which will serve to drive prices up even further.

Solar owners rejoice in making a smart decision. Meanwhile, many of those considering going solar are now making their move based on this positive development!

Net Metering Legislative Update

Additionally in recent news out of Boston, the state legislature raised the amount of solar allowed to net meter (spin the meter backwards for full retail value) from 3% of the utilities historical peak demand to 4% of the utilities historical peak demand for private projects, and from 3% to 5% for public projects. This program is central to solar owners receiving full retail compensation for the energy they produce and send back to the grid when they aren’t using it on-site. The state will also study the benefits of net metering as part of the design of future incentive programs to achieve the governor’s goal of 1600MW of solar in the Commonwealth. For perspective there is currently over 393MW of net metering projects (including solar and wind) in Massachusetts. Prior to the legislation the net metering caps were set at 665MW. With this most recent legislative adjustment the new net metering cap levels will allow 998MW of net metering projects in the state. Important to note is that most projects under 25kW are exempt from the net metering caps, aren’t counted towards the aggregate net metering cap figures and that eligible small projects after the caps have been hit can still be built and net meter.

Portions of this article were posted on MyGenerationEnergy.com by Luke Hinkle founder of My Generation Energy and Founder and Manager of Suntility Electric, LLC.

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 508-566-6322

New Solar Renewable Energy Certificate (SREC) Program & Grid Modernization Efforts Move Massachusetts Towards a Greener Grid – Learn More & Get Involved

This spring the Massachusetts Department of Energy Resources announced it’s second solar renewable energy certificate program in Massachusetts. This incentive program allows solar owners to be compensated for the clean, local, solar benefits of the energy they produce in addition to the electricity savings. This program is intended to move the state towards an installed solar capacity of 1600 MW by 2020. To put it in perspective 1 MW is enough to power about 180 homes annually.

At the same time significant discussion and planning is underway to ensure those resources can be brought online quickly, effectively and with the most benefits to electricity customers here in Massachusetts. To facilitate that the electric grid itself – from the Berkshires, to Boston, to Cape Cod – will need to evolve and become more modern. Suntility Manager Luke Hinkle has been actively engaged on these issues at the local, regional and state level and recently took part in a WCAI discussion titled ‘Smarter and Greener: Making Changes in Our Energy Use.’ This discussion covers the state of the electric grid, managing distributed generation resources, and actions that can be taken to ensure the electric system can adapt to the economic and environmental drivers in our world today. To listen click here:

http://capeandislands.org/post/smarter-and-greener-making-changes-our-energy-use

To learn more and get involved click here:

https://www.change.org/petitions/cape-power-brokers-green-our-grid-now

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 508-566-6322

 

Suntility’s Solar Solutions Advance One of Massachusetts Most Innovative Net Metering Credit Facilities

Suntility Brewster Community Solar Garden Net Metering CreditsSuntility, My Generation Energy and the Brewster Community Solar Garden™ Cooperative were recently featured in Enphase Energy’s Array of the Week. This innovative community solar arrangement allows members of the cooperative to receive the electricity benefits of a solar array in their community, in the form of net metering credits, directly on their NSTAR electric bills. Brewster residents and organizations that understand the value of predictable, clean, local electricity but can’t go solar at their particular location are able to participate and capture those benefits through the Brewster Community Solar Garden™ Cooperative.

This system has been in operation for more than two years and has been producing at peak performance thanks to Suntility’s solar management practices and the highest quality installation provided by local installer My Generation Energy. The benefits of the array in the form of net metering credits and solar renewable energy certificates, have been flowing smoothly thanks to Suntility’s regulatory, administrative and operational solutions. Working in conjuction with Enphase, My Generation Energy, and the Brewster community, Suntility is proud to be a part of this market leading solution just as community solar in Massachusetts continues to grow under the Department of Energy Resources (DOER) SREC-II program. For the full article from Enphase click here:

https://enphase.com/eblog/2014/featured-array-revisited-brewster-community-solar-garden-facility/

To learn more about solar installation and development in Southeastern Massachusetts with My Generation Energy click here:

http://www.mygenerationenergy.com/

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 508-566-6322

What is an SREC or REC?

Suntility SREC Commercial Self Storage PhotoSRECs and RECs are integral parts of the Massachusetts Renewable Portfolio Standard (RPS) which requires an increasing percentage of the state’s electricity supply to come from renewable energy 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. For example retail electric suppliers must provide a minimum percentage of 9% renewable energy as a percentage of sales by the end of 2014.

A Renewable Energy Certificate, or REC as it is commonly known, represents the positive environmental attributes associated with clean energy production. This is independent of, and in addition to, the electricity component of clean energy production. Effectively a REC is one of two components that renewable energy generators produce: electricity and RECs. Every time 1000 kWh (1 MWh) of electricity is produced by a qualified renewable energy facility, that facility produces a REC as well. These RECs once minted can be traded and sold to retail electric suppliers (utilities that generate electricity) to help them fulfill their renewable energy obligation. RECs can be created by a number of renewable energy sources including: solar PV; geothermal; marine or hydrokinetic energy; low-emission advanced biomass; low impact small hydroelectric; landfill methane gas; fuel cell; wave/tidal energy; ocean thermal electric; wind; and solar thermal electric. REC prices trade in a range that is in part determined by an Alternative Compliance Payment (ACP) Rate set by the Massachusetts Department of Energy Resources. If retail electric suppliers are unable to procure enough RECs in the marketplace to satisfy their renewable energy obligation they must pay a penalty at the Alternative Compliance Rate. Therefore electric suppliers have been incentivized to purchase RECs in the open market place to avoid the ACP.

A Solar Renewable Energy Certificate, or SREC, is virtually the same as a REC except that SRECs are associated with energy from solar photovoltaic systems. Because they have a separate and higher ACP than regular RECs, SRECs often command a higher market price. The Department of Energy Resources (DOER) has also utilized a price support auction to aid SREC pricing. This auction is often referred to as the Solar Credit Clearinghouse Auction or DOER Auction. While the majority of SREC sales occur in the open market through SREC brokers the Solar Credit Clearinghouse Auction is an important option for solar installation owners.

To understand your options in brokering your RECs or SRECs contact Suntility Electric and we can discuss what is available to you in the marketplace to assist you in selling your certificates.

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 508-566-6322