SRECs

Solar Renewable Energy Certificates and Suntility Solar 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

Suntility Managed Solar Is Better Performing Solar

Famous management expert and author Peter Drucker said “You can’t manage what you can’t measure.” Too many commercial solar owners, and those in renewable energy arrangements, aren’t doing either. The cost of ineffective, or absent, management of these systems can easily add up and total in the thousands, tens of thousands, and in some cases hundreds of thousands of dollars a year in lost revenue and savings.

While solar is highly reliable and durable relative to so many other technologies, it isn’t flawless. Equipment can malfunction and will degrade, there can be interruptions from weather and animals/pests, equipment resets will often be required, inverters may require preventative maintenance or repair, communication devices can fail and grid/site disruptions can also derail solar performance. These are just some of the factors that can negatively impact solar results and ultimately financial returns.

Suntility is dedicated to helping system owners face their most challenging issues and is driving solid outperformance. In a recent study of commercial and utility-scale systems in Massachusetts, solar installations monitored by Suntility professionals performed 6.5% better than those without Suntility’s dedicated monitoring services. Think of what that could mean financially for your system.

Furthermore the revenue streams that these systems produce are also subject to additional administrative processes that are manual and where errors are commonly found including: the allocation of net metering credits by the utilities; as well as with the brokerage of SRECs. Having an industry leading team overseeing these aspects of your project is a must and just as important as the actual solar production itself.

Suntility’s solar management solutions provide the oversight and insights to help ensure that clients are receiving as much value as possible from their clean energy. To learn more about our services check out these links:

– Solar Maintenance Services

– Solar Net Metering Credit Services

– Solar Consulting Services

– Solar Owner’s Agent Services

To learn more contact us at 508-566-6322

By Michael on September 1, 2016

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

Massachusetts Focuses on Expanding the Community Benefits of Solar

As the state is just days away from approaching 16,000 cumulative solar installations, following the announcement of a state total of over 15,000 solar projects from earlier this week, the next round of photovoltaic projects in the Commonwealth will be uniquely local and equally as innovative. As highlighted by Governor Deval Patrick in a recent keynote speech on solar,

“We have a solar revolution underway here in the Commonwealth…Solar is a key part of our clean energy future. That future won’t happen overnight because it can’t, but it will happen because it wants to. And it will be up to all of us to make it happen.”

In a bid to expand the scope of solar, increase consumer options, and clean energy access, the following segments of solar installation will play a more central role in the progress to Massachusetts’ goals of 1600MW of solar by 2020:

– Small residential and commercial;

– Solar canopy units;

– Emergency power generation units;

– Community shared solar generation units; and

– Low or moderate income housing generation units.

Encouraged by proven models such as the 346kW Brewster Community Solar Garden™, and recognizing the possibilities to increase participation in the benefits of solar, these market segments will be key drivers of solar adoption in the years to come.

Community shared solar generation for example provides true consumer choice, allowing homeowners, businesses, and non-profits the ability to derive their energy locally, and with 100% renewable electricity. The Brewster Community Solar Garden™ facility, featured in a 2014 Enphase Energy press release represents a shining example of how a diverse and vibrant group of stakeholders in a community can work together and prosper from locally sited solar. Installed by My Generation Energy which has installed solar from Martha’s Vineyard to Marion, and from Quincy to Wellfleet, the project is managed by the comprehensive suite of Suntility Electric‘s solar management solutions.

“The Brewster Community Solar Garden™ project, as the first Community Shared Solar Project in the state, with nearly 3 years of operational experience, truly demonstrates the positive reception, broad benefits and strength of this exciting model,” Suntility Manager Michael Stone. “This collaborative approach to solar has successfully driven the reach of this clean, quiet, local power from beyond individual rooftops to numerous electric accounts in the area.”

If you’re a Massachusetts resident, business, or non-profit interesting in participating in a community solar garden project near you contact us by entering your information here:

https://www.suntilityelectric.com/contact-us-today-for-a-free-consultation-or-for-more-info/

If you’re a solar or wind project owner and are interested in our leading renewable energy services please contact us or feel free to read these resources on:

Massachusetts Net Metering Credits;

Solar Renewable Energy Certificates in Massachusetts;

Solar Management in Massachusetts;

Wind Management in Massachusetts; and

the Brewster Community Solar Garden™.

About Suntility Electric, LLC

Suntility’s experience on renewable energy projects spans nearly 200 systems across Massachusetts including wind and solar providing a range of services including: professional monitoring; performance reporting; owner’s agent services; net metering credit services; agency reporting; SREC brokerage assistance; solar installation inspections and audits; NSTAR and National Grid bill audits; renewable energy consulting; solar maintenance; and more.

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 August 28, 2014

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

The 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.

To learn more contact us at 508-566-6322

By Michael on August 4, 2014

Suntility’s Holistic Approach to Solar Operations, Maintenance & Administration

According to Solar Power World Online, “Solar plant owners and investors face a daunting task calibrating all the levers of solar asset ownership to reap a strong ROI.” Even with limited and/or no moving parts, long warranties, no fuel requirements, and other benefits versus traditional capital equipment, commercial and utility-scale solar still presents a unique series of tasks required of investors to ensure the myriad blue collar and white collar roles are fulfilled to maximize return on investment.

Having dedicated industry professionals that understand everything from the technology to the regulations for your solar project(s) and that can efficiently manage both over time is fundamental to the long-term success of your investments in this growing clean energy resource. Working with Suntility you can be confident that the key multidisciplinary roles required of your facility will be fulfilled to ensure that your system is both producing as well as possible and as economically as possible. With deep industry experience spanning back to the beginning of commercial deployment in Massachusetts, and significant and diverse capacity under management across the state, Suntility is uniquely positioned to cost-effectively deliver the solar performance solutions that will benefit your project(s) long-term. Whether you require just a solar monitoring partner or our full suite of solar management solutions, our services and efficiency of expertise will allow you to focus on what you do best.

About Suntility Electric, LLC

To learn more contact us at 508-566-6322

By Michael on July 1, 2014

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