Massachusetts has been a solar leader in virtual net metering credits – the ability to generate excess electricity with one account, and send that monetary value to another account to offset electricity usage there. Tens of thousands of solar projects across the Commonwealth use net metering to receive fair compensation for the excess solar energy they generate. With the state having effectively phased out net metering for new large solar projects, a new mechanism under the Massachusetts SMART Solar Program will allow solar projects to send the monetary value of excess production to other electric accounts. This value is called an Alternative On-Bill Credit, or AOBC. While an Alternative On-Bill Credit Generation Unit (solar project) receives the incentive payments from the SMART program, AOBCs can be sent to other accounts and credited on those accounts’ electric bills.
What are AOBCs worth? The value of an AOBC is based on the electric utility’s Basic Service rate. This is also known as the ‘supplier’ or ‘generation’ rate. Typically, in Massachusetts, this value has fluctuated from $0.08 per kWh to $0.14 per kWh. Therefore, if you generate 100 kWh of Alternative On-Bill Credits that is worth somewhere between $8 and $14 worth of credits that can be sent to other accounts, depending on the current Basic Service rate. Those AOBCs can be sent to other accounts within the state, provided that the recipient accounts are in a service territory of the same electric utility.
While AOBCs provide much of the same functionality of net metering credits and have many of the same requirements when allocating credits, there are multiple additional new aspects and nuances to managing AOBCs. Suntility’s expert management and consulting services are helping clients navigate and optimize this new incentive structure and regulatory framework. Massachusetts solar market has always been dynamic. Suntility’s industry insights and technical assistance are a trusted resource for solar owners and those engaged in solar energy deals. Let Suntility help you manage, and know, your AOBCs.
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.
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