RECs

Renewable Energy Certificates and Suntility Renewable Energy Certificate Brokerage Assistance in Massachusetts

Spring, SRECs, and RECs

Spring is here. The crocuses are emerging, robins flit about, and solar production is sharply climbing as we enter the peak solar generation months. As with the changing of the seasons, a different transition of sorts is happening for legacy solar owners in Massachusetts as the Solar Renewable Energy Certificate program comes to an end for many in the final months of their 10-year program term, and participation in the broader Renewable Energy Certificate market for solar owners begins.

Here is a brief primer on the program transition. After SRECs, solar owners are eligible to participate in the Renewable Energy Certificate (REC) program. This is part of the Massachusetts Renewable Portfolio Standard (RPS) which mandates electric utilities operating in the state purchase an increasing amount of certificates from renewable energy producers (wind, solar, etc.). Production of certificates is typically reported by a solar revenue grade metering company to NEPOOL-GIS. Important note: this assumes a functioning and reporting meter, as well as having agency reporting in place. If you have been receiving payments for SRECs or RECs recently, you likely already have this in place. The RECs can then be brokered. Almost all brokers who help clients transact SRECs, also help clients transact RECs. So, this transition should go smoothly as it is in the broker’s best interest to maintain uninterrupted service.

So what are RECs worth these days? According to recent pricing from brokers, RECs are trading right around $39 per MWh (or $0.039 per kWh). So if you generate 10,000 kWh in a year you could expect about $390 in revenue, excluding broker fees.

To learn more about how Suntility can help you optimize your clean energy facility through the various transitions of solar ownership, contact Suntility through the website or by phone at 508-538-4Sun.

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.

By Michael on March 22, 2024

New England Solar Owners Welcome Spring

After four nor’easters and two historic high tide events in Boston, solar owners across the region gladly welcome the prime solar production months ahead. The fierce winter weather brought power outages to millions across the Northeast and multiple massive restoration efforts by local utility crews and utility contractors. Suntility helped its utility-scale clients quickly and safely come back online, helped commercial clients with resetting site communications for SREC reporting, and aided residential monitoring clients in identifying and resolving any post storm production issues. This past winter Suntility has been there for our solar clients in good weather and in bad. Suntility’s focus on superior clean energy performance and value is unwavering regardless of season.

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

By Michael on March 24, 2018

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.

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

By Michael on September 27, 2017

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/

By Michael on April 20, 2017

Four Keys To Success If You’re A Commercial Or Utility-Scale Solar Project Owner

Want a better performing solar array and better solar financials? Learn ways to ensure the proper management of the significant investment you’ve made in solar with these four keys to success.

1 – Monitoring Your System

Many owners wrongly assume that their installation will work flawlessly from commencement, or that if something does go wrong they’ll somehow be alerted. While solar installations are designed to last 25 to 30 years, issues will come up. Being able to recognize those issues early on and respond effectively can be the difference between losing a few hundred dollars of savings and tens of thousands of savings.

That is exactly why active remote monitoring is essential. Only with industry experts monitoring your system and measuring it’s performance relative to other systems in the area can you rest assured that your system is performing as it should. As issues are identified and alerted directly to you, you’ll save significant production value in the process.

2 – Performing Regular Inspections

Many major system issues that cause lost production and expense are entirely avoidable. By performing regular inspections with the right expertise, system owners can ensure better uptime and lower costs of operation long-term. Don’t be penny wise and pound foolish by not investing in the proactive management of your array. Furthermore, regular inspections are viewed favorably by insurance companies as they reduce risk and demonstrate the owners commitment to strong and consistent solar production.

3 – Verifying The Value Of Your Net Metering Credits And Resolving Billing Issues

In states such as Vermont and Massachusetts net metering credits are a critical source of value for solar project owners. However, because of old, arcane, and in many cases manual billing systems, utilities make significant errors when providing these credits to solar projects and their recipient accounts. That is where expert verification comes in. By tracking and analyzing the flow of net metering credits, errors can be identified and resolved to not only ensure full value but to save tens of thousands even hundreds of thousands of dollars of lost revenue and savings.

4 – Understanding You Have Choices When Selling SRECs and RECs

Most solar project owners only believe they have one choice when selling their SRECs or RECs. SREC and REC markets can be all too opaque and working with the right broker can make a huge difference in cash flows. Knowing the right questions to ask, and key qualifications are important when considering this solar project value stream. A solar project owner should be prudent and work with a broker that can offer the best in liquidity, pricing and platform.

Learn how Suntility’s professional solar services can help you and your existing solar array achieve success. Contact us today at 508-538-4-Sun.

By Michael on April 23, 2016

Suntility helps renewable energy system owners maximize value & helps them meet their biggest challenges

Dedicated, expert management is key to the success of commercial and utility-scale renewable energy projects. Suntility’s commercial and utility-scale clients have earned additional revenue and recovered lost benefits by allowing us to manage their clean energy programs. Suntility’s comprehensive solutions help system owners and beneficiaries maximize:

– system production;
– Net Metering Credit value;
– Solar Renewable Energy Certificate value;
– Renewable Energy Certificate value; and more.

With over $45M of operating clean energy assets under management, including many of the region’s largest solar installations, Suntility is simplifying renewables and delivering significant value for clients.

https://www.suntilityelectric.com/

Account Management. Validation. Results.

By Michael on September 23, 2015

Site Audits & Bill Audits are a Great Way to Start the Spring & Summer Solar & Wind Production Seasons

With the best months ahead for renewable energy production, and most specifically for solar, now is a great time to ensure your utility electricity account (NSTAR or National Grid) is in order and that your physical renewable energy facility is in good shape. Before spring is prime time to recognize any potential maintenance issues and also ensure your utility account will be providing you the best value through the peak production months ahead.

Many solar and wind projects are completed in early spring after the snow and ice has cleared. Therefore full technical audits at this time can offer a detailed picture of the workmanship of an installation and offer the peace of mind that you’ll be in the best position moving forward with your net metering credits and renewable energy certificates as well. Additionally for existing systems harsh winter weather conditions can also warrant further technical reviews. For solar and wind facilities worth millions of dollars, site audits and bill audits are both extremely cost-effective ways to help manage the significant investment you’ve made in clean energy. To learn more and receive a free initial consultation and complimentary proposal for your installation(s) contact us at the information below.

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

By Michael on February 25, 2014

Best 6 Solar Production Months Ahead – More Sunshine Means More Net Metering Credits & SRECs On The Way

The melt from New England’s deep freeze has begun and solar installation owners in Massachusetts can look forward to the 6 best months of solar production in the year starting with March.

In a start to the year characterized by nearly consistent below average temperatures and above average precipitation, systems from Cape Cod to Boston to the Metrowest area and to the Berkshires are beginning to achieve strong production. Low pitch solar installations, which are most susceptible to snow cover, have completely melted in most cases based on Suntility’s solar monitoring services. The beginning of February was especially challenging for many solar installations as cold temperatures trapped snow on solar panels and many systems almost used more energy than they produced for the first two weeks of the month.

With the snow dissipating and better weather ahead – we can hope – months like March, April and May are typically very strong for solar production. These spring months have limited tree cover (less shading), are cool (solar panels have a negative temperature coefficient which means they function better in colder weather), the sun is higher in the sky and the daylight hours are longer. For example, March historically offers 15-25% better solar production than February based on National Renewable Energy Laboratory solar data for the Northeast.

With the best months ahead it is important to have the right services in place to make sure that your solar installation is well maintained; performing at its best; and that you’re receiving the full and proper value for your net metering credits and maximizing your solar renewable energy certificate (SREC) or REC revenue streams. To learn how to make the most of the months ahead for your solar array get started with a free consultation by contacting Suntility.

To learn more contact us at 508-566-6322

By Michael on February 22, 2014

Suntility – The Clean Energy Experts For Your Wind or Solar Facility

You’ve made, or are going to make, a significant investment in wind or solar. The sun and the wind are free and many of the components (i.e. solar panels, inverters, structural elements) have long warranties; so once the system is installed you’ll be set to go, right?

While solar and wind do boast these tremendous advantages over other forms of energy generation these systems utilize incredibly sophisticated equipment and your investment operates in an ever changing regulatory and market environment. It’s important to have someone working alongside you that can provide you with the comprehensive solutions to help you meet and exceed your clean energy goals. Our technical and regulatory advice, maintenance decisions, dedicated monitoring, and net metering credit and renewable energy certificate (including solar renewable energy certificate) support are all value driven. That means we’re always seeking for you to achieve the most with the investment you’ve made. Ultimately each decision made in the life-cycle of a wind or solar installation can have a significant impact on the overall financial results. It’s worth having experienced and quality industry professionals ensuring you achieve the best outcomes possible.

To understand how we can help you and your investment in a solar or wind facility in Massachusetts reach out to us for a free initial consultation.

To learn more contact us at 508-566-6322

By Michael on February 2, 2014

What is an SREC or REC?

SRECs 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.

To learn more contact us at 508-566-6322

By Michael on January 28, 2014

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