Earlier this year, the SREC II program in Massachusetts had reached its cap for projects that are greater than 25kW DC, causing some consternation among developers that had planned to install solar in the coming months. To address this issue, the Massachusetts Department of Energy Resources (DOER) filed an emergency regulation with the Secretary of State’s office on April 8, 2016 which will address market uncertainty and establish a smooth transition from SREC II to the next incentive program.
The emergency regulation contains the following key provisions:
- Extends eligibility to all projects >25 kW constructed within nine months of the effective date of the emergency regulation
- Extends eligibility to all projects <=25 kW interconnected by start of the next program
- Provides compliance exemption to retail electricity suppliers for load under existing contracts signed within 30 days of the effective date of the regulation
- Ensures SREC II program will end in 2027 at the latest
Effective immediately, the emergency regulation will ensure that all projects greater than 25 kW DC that have existing Assurances of Qualification or that have submitted applications will be granted Statements of Qualification dated April 8, 2016. The retention of all Statements of Qualification granted will be dependent on projects demonstrating to DOER that they have been authorized to interconnect or have been constructed by January 8, 2017.
This action on the part of the DOER is a welcome response to the situation the SREC market was facing. Projects that may have been shelved, due to the cap, may once again be able to move forward.