Adjustments to the Alternative Compliance Payment Rate
The Alternative Compliance Payment (ACP) Rate is adjusted annually pursuant to the Forward Solar Carve-Out II ACP Rate Schedule that can be found on the Current Status of the Solar Carve-Out II Program page of DOER’s website.
Market Sectors and SREC Factors
Projects under the RPS Solar Carve-Out II Program are each assigned to a particular Market Sector as follows:
|Market Sector||Generation Unit Type||SREC Factor|
|A||1. Generation Units with a capacity of <=25 kW DC|
2. Solar Canopy Generation Units
3. Emergency Power Generation Units
4. Community Shared Solar Generation Units
5. Low or Moderate Income Housing Generation Units
|B||1. Building Mounted Generation Units|
2. Ground mounted Generation Units with a capacity > 25 kW DC with 67% or more of the electric output on an annual basis used by an on-site load
|C||1. Generation Units sited on Eligible Landfills|
2. Generation Units sited on Brownfields
3. Ground mounted Generation Units with a capacity of <= 650 kW with less than 67% of the electrical output on an annual basis used by an on-site load.
|Managed Growth||Unit that does not meet the criteria of Market Sector A, B, or C.||0.7|
Individual projects will be assigned an SREC Factor that corresponds with the Market Sector they fall under. This SREC Factor will determine the percentage of the production output from their PV system that is eligible to generate SREC IIs. For example, a project that falls under Market Sector C will generate 0.8 SREC IIs for every MWh that it generates. The remaining 0.2 MWh will be tracked at NEPOOL GIS, but will automatically be retired on behalf of the generator and will not be usable for RPS compliance in Massachusetts or any other state RPS program.
The SREC Factors are officially published in a Guideline and are subject to a review that will occur no later than March 2016.
Calculation of and Adjustments to the Minimum Standard
All Retail Electric Suppliers with RPS obligations are required to demonstrate compliance with the RPS Solar Carve-Out as a percent obligation of their load served. For each Compliance Year subsequent to 2015, the Compliance Obligation will be calculated as the sum of the following quantities of generated and projected SREC IIs.
- Installed SREC II Supply: The projected number of SREC IIs that will be generated by the MW of qualified, operating, SREC II capacity.
- Qualified, but not Installed SREC II Supply: The projected number of SREC IIs that will be generated by Solar Carve-Out II Renewable Generation Units that have received Statements of Qualification, but have not yet been authorized to interconnect.
- Projected New Supply: The projected number of SREC IIs that will be generated by new installations that have not yet received Statements of Qualification.
- Rollover Volume: The volume of SREC IIs generated in the Compliance Year two and three years prior to the Compliance Year for which the Compliance Obligation is being calculated that remain available for compliance. This includes both re-minted auction SREC IIs that have not been used for compliance, as well as banked SREC IIs that have not yet been used for compliance.
- Third Round Auction Volume Doubling: In the instance the Solar Credit Clearinghouse Auction-II does not clear until the third round or later, the Department shall recalculate the Solar Carve-Out II Minimum Standard for the Compliance Year two years following the Compliance Year in which the SREC IIs deposited into the Solar Credit Clearinghouse Auction-II Account were generated. This recalculation shall add the number of SREC IIs deposited into the Solar Credit Clearinghouse Auction-II Account to the Compliance Obligation for a second time.
The methodology used to calculate future Compliance Obligations is further detailed in the SREC II Compliance Obligation Guideline .
DOER must announce the Compliance Obligation for a particular year by no later than August 30th of the preceding year. DOER shall provide documentation of its projection with its announcement of new Compliance Obligations on following page .
Termination of the Program
When DOER qualifies a combined 1,600 MW of solar PV Generation Units under both the Solar Carve-Out and Solar Carve-Out II Programs, qualification of all additional solar installations will be transferred to the RPS Class I Program. Once the cap has been met, the Minimum Standard for the RPS Solar Carve-Out will be set annually per the formula contained in the RPS Class I Regulation.
For the year after the final Compliance Year, when the Solar Carve-Out II Minimum Standard will be set to zero, SREC IIs shall cease to exist, and all generation from qualified Solar Carve-Out II Renewable Generation Units shall produce RPS Class I Renewable Energy Attributes.