Many environmentally-conscious facilities in Massachusetts qualify to generate energy credits because of all the sustainable features they are installing. There are others in New England who must buy such credits to offset their production of greenhouse gas, carbon, or unclean emissions.  In order to capitalize on the potential value of government-owned energy credits, The Division of Capital Asset Management and Maintenance (DCAMM) has contracted with several vendors to sell these credits in the New England Power Pool (NEPOOL). The vendors are registered brokers/aggregators for a variety of energy credits. Although the contract was initiated for government owned generation, this is a state-wide contract, open to authorities, districts and municipalities.

Energy Credit Categories: 
There are three major categories of energy credits: The Alternative Energy Credit (AEC), the Solar Renewable Energy Credit  (SREC) and the Renewable Energy Credit (Class 1 and Class 2 REC). The Alternative Portfolio Standard (APS), which regulates the AECs, is a mandate placed on utilities that requires utilities to supply a percentage of generation from a mix of clean alternative generation resources. The Renewable Portfolio Standard (RPS) is a similar program to the APS that applies to generation resources that are powered by a qualifying renewable energy resource (solar, wind, hydro, biomass, biofuel).  

Who can qualify?
If you have (or plan to have) qualifying equipment installed at your site anytime after January 1, 2008 then you may use the program.

Equipment that produces reliable electricity from efficient sources qualifies for AECs. This could include:

  • Efficient gasification
  • Flywheel energy storage
  • Paper-derived fuel
  • Efficient steam technology
  • Combined Heat and Power (aka distributed generation or co-generation)

Equipment that could potentially qualify for the RPS or REC/SREC program include:

  • Wind power (turbines)
  • Solar power (photo-voltaic)
  • Biomass or biofuel-burning power plants
  • Geothermal installations (systems installed on or after 1/1/15)
  • Solar Thermal installations (systems installed on or after 1/1/15)
  • Renewable energy powered CHP

What the DCAM vendor does:
DCAMM's vendors will work with DCAMM and facilities (including cities and towns) to submit an application to sell potential energy credits in the market. The vendor will work in cooperation with the participating facilities to ensure that the correct metering is installed and develop the application for enrollment. Once qualified for the program, any qualified credits will be sold on the market for the highest value potential.  Proceeds from the credit sales will be passed on to the participating facility directly or through DCAMM's expendable trust.

All facilities enrolled in this program will fall into two categories:   DCAMM coordinated and Non-DCAMM coordinated.  The DCAMM coordinated sites include:  Executive, Legislative and Judicial Branches, including all Departments and elected offices therein, and public hospitals owned by the Commonwealth. The Non-DCAMM coordinated sites include: independent public authorities, commissions and quasi-public agencies, public institutions of higher education, municipal government entities and all other entities outside of the DCAMM Coordinated group.

What are the benefits?
The credits translate into a revenue stream for your facility with fairly minimal effort.  A participating facility is paid for each megawatt-hour of electricity generation for a quarterly period.  This translates into significant income particularly for large capacity installations such as large photovoltaic installations, wind generation and cogeneration systems that generate electricity for most of the year and also for consistent generators not at the mercy of the weather such as conduit based hydro-turbines.  Since inception of the program, revenue generated has exceeded 17 million dollars.

State facilities that fall within the DCAMM coordinated group should contact Dave Lewis at 857-204-1472 .Sites within the Non-DCAMM coordinated group should contact Patricia Arp of the Mass DEP at:  508-792-7650 x: 2771

For a copy of the contracts please click on the following links:

For Renewable Energy Credit purchases rtf format of Response_Attachments_BGCEBS
For Alternative Energy Credits/SREC sales rtf format of Response_Attachments_NexantInc
file size 67MB
For Class 1 and Class 2 Renewable Energy Credit sales rtf format of Response_Attachments_energyROI
or see The Contract User Guide rtf format of FAC83designatedDCAMM_Contract User Guide RECs
file size 1MB for a summary of the contract terms and conditions


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