MA SREC Update
MA SREC Update August 21, 2014
©2014 SRECTrade, Inc.
Speakers Steven Eisenberg CEO
Alex Sheets Director Environmental Markets
Sam Rust Director Business Development
Agenda • Company Overview Steven Eisenberg
• SREC Program Overview Steven Eisenberg
• Net metering caps and H.4185 Sam Rust
• SREC-I Pricing Alex Sheets
• Q and A 3
Overview
Online SREC transaction & management platform • • • • •
Since 2008 9,000+ clients 135+ MW under management 100% SREC focused Brokerage model
4
Services Corporate Electricity suppliers and institutional clients with systems above 250 kW
Residential and Small Commercial Home owners and commercial systems smaller than 250 kW
Installers Turn-key SREC solutions for solar installers and developers 5
Two SREC Programs in MA SREC-I • Started in 2010, “capped” June 30, 2014
SREC-II • Started April 25, 2014 Both programs utilize Solar Credit Clearinghouse Auctions (SCCA) and a reactive demand formula.
6
SREC-I vs. SREC-II Features
SREC-I
SREC-II
Program start
January 1, 2010
April 25, 2014
Adjustable Minimum Standard
Yes
Yes
Decreasing ACP Rate Schedule
Yes
Yes
Solar Credit Clearinghouse Auction Opt-in Schedule
Yes
Yes, all projects get 40 quarters from qualification date
Decreasing Solar Credit Clearinghouse Auction Schedule
No (fixed at $285/SREC)
Starts at $285/SREC and decreases over time
Program Cap
< 100 kW = 4/25/2014 PTO or > 1,600 MW less final SREC100 kW with ISA from 6/7/2013 I qualified capacity = 6/30/2014 PTO
Market Sectors
No
Yes
SREC Factors
No
Yes
Project Size Maximum
Yes, 6 MW DC
Yes, 6 MW DC 7
SREC-I Status • As of 8/08/14, 659.1 MW of Qualified Capacity • 548.3 MW operational / 110.8 MW not operational • No new capacity is eligible
• 2014 SCCA Cleared in 3rd Round • Preliminary 2015 compliance requirement set at 1,054,933 SRECs (as of 7/30/2014)
Source: DOER and RPS Solar Carve-Out Qualified Renewable Generation Units Report 8
SREC-I SCCA • SREC-I qualified projects have up to 40 Quarters of production eligibility for the SCCA • SREC-I SCCA set at $285/SREC • 142,786 MA 2013 SRECs for sale in SCCA • SCCA cleared 8/1/2014 during the 3rd round; 232,060 bids • SREC-I 2015 obligation increased • Payments issued in September by DOER
9
SREC-II Status • CY2014 estimated requirement of 41,279 SRECs / 85 MW • 124.0 MW currently qualified (109.7 MW not operational)
• 14.3 MW operational • • • •
Market Sector A - 7.2 MW operational Market Sector B - 7.1 MW operational Market Sector C - 0 MW operational Managed Growth - 0 MW operational* *27.5 MW qualified for CY2014, 81.8 MW for CY2015, 35.0 MW on waiting list
Source: DOER and RPS Solar Carve-Out II Qualified Renewable Generation Units Report and Managed Growth Annual Capacity Block Allocations 10
SREC-II Market Sectors Market Sector
SREC Factor
Generation Units with a capacity 25 kW with 67% or B more of the electric output on an annual basis used by an on-site load. Generation Units on Landfills or Brownfields, or Generation Units with a capacity of
©2014 SRECTrade, Inc.
Speakers Steven Eisenberg CEO
Alex Sheets Director Environmental Markets
Sam Rust Director Business Development
Agenda • Company Overview Steven Eisenberg
• SREC Program Overview Steven Eisenberg
• Net metering caps and H.4185 Sam Rust
• SREC-I Pricing Alex Sheets
• Q and A 3
Overview
Online SREC transaction & management platform • • • • •
Since 2008 9,000+ clients 135+ MW under management 100% SREC focused Brokerage model
4
Services Corporate Electricity suppliers and institutional clients with systems above 250 kW
Residential and Small Commercial Home owners and commercial systems smaller than 250 kW
Installers Turn-key SREC solutions for solar installers and developers 5
Two SREC Programs in MA SREC-I • Started in 2010, “capped” June 30, 2014
SREC-II • Started April 25, 2014 Both programs utilize Solar Credit Clearinghouse Auctions (SCCA) and a reactive demand formula.
6
SREC-I vs. SREC-II Features
SREC-I
SREC-II
Program start
January 1, 2010
April 25, 2014
Adjustable Minimum Standard
Yes
Yes
Decreasing ACP Rate Schedule
Yes
Yes
Solar Credit Clearinghouse Auction Opt-in Schedule
Yes
Yes, all projects get 40 quarters from qualification date
Decreasing Solar Credit Clearinghouse Auction Schedule
No (fixed at $285/SREC)
Starts at $285/SREC and decreases over time
Program Cap
< 100 kW = 4/25/2014 PTO or > 1,600 MW less final SREC100 kW with ISA from 6/7/2013 I qualified capacity = 6/30/2014 PTO
Market Sectors
No
Yes
SREC Factors
No
Yes
Project Size Maximum
Yes, 6 MW DC
Yes, 6 MW DC 7
SREC-I Status • As of 8/08/14, 659.1 MW of Qualified Capacity • 548.3 MW operational / 110.8 MW not operational • No new capacity is eligible
• 2014 SCCA Cleared in 3rd Round • Preliminary 2015 compliance requirement set at 1,054,933 SRECs (as of 7/30/2014)
Source: DOER and RPS Solar Carve-Out Qualified Renewable Generation Units Report 8
SREC-I SCCA • SREC-I qualified projects have up to 40 Quarters of production eligibility for the SCCA • SREC-I SCCA set at $285/SREC • 142,786 MA 2013 SRECs for sale in SCCA • SCCA cleared 8/1/2014 during the 3rd round; 232,060 bids • SREC-I 2015 obligation increased • Payments issued in September by DOER
9
SREC-II Status • CY2014 estimated requirement of 41,279 SRECs / 85 MW • 124.0 MW currently qualified (109.7 MW not operational)
• 14.3 MW operational • • • •
Market Sector A - 7.2 MW operational Market Sector B - 7.1 MW operational Market Sector C - 0 MW operational Managed Growth - 0 MW operational* *27.5 MW qualified for CY2014, 81.8 MW for CY2015, 35.0 MW on waiting list
Source: DOER and RPS Solar Carve-Out II Qualified Renewable Generation Units Report and Managed Growth Annual Capacity Block Allocations 10
SREC-II Market Sectors Market Sector
SREC Factor
Generation Units with a capacity 25 kW with 67% or B more of the electric output on an annual basis used by an on-site load. Generation Units on Landfills or Brownfields, or Generation Units with a capacity of
