Compliance Year 2022 Auction Schedule and Results
The Solar Credit Clearinghouse Auction is a fixed price auction that takes place following the close of each NEPOOL GIS trading year. NEPOOL GIS account holders that are unable to sell their Solar Renewable Energy Certificates (SRECs) by the close of the trading year are able to make deposits into the Auction. Bids are then received for the volume of SRECs that bidders wish to buy at the fixed price established by regulation.
Results of the Solar Credit Clearinghouse Auction Accounts will be placed in the following table once it has taken place.
| Auction Round | Date | SREC I Auction Result "Cleared" or "Did not Clear" | SREC II Auction Result "Cleared" or "Did not Clear" |
|---|---|---|---|
| 1 | 7/27/23 | Cleared | Cleared |
| 2 | 7/28/23 | N/A | N/A |
| 3 | 7/31/23 | N/A | N/A |
Questions regarding next steps for the 2022 Solar Credit Clearinghouse Auction can be directed to the Auction Manager at masrecauctionmanager.enelxnorthamerica@enel.com.
Auction Eligibility
Each solar installation, as part of its RPS Solar Carve-out or Solar Carve-out II qualification by the Department of Energy Resources (DOER), will be given a set term of years, called the Opt-in Term, during which it will have the right (but not the requirement) to deposit SRECs into the Auction. The Opt-in Term shall be no more than 40 quarters for all qualified Generation Units.
Auction Accounts
DOER has established two separate Auction accounts through the NEPOOL GIS system, one for SREC I deposits, and one for SREC II deposits. Eligible SRECs that have been generated within the term prescribed for that project at the time of its qualification by DOER can be deposited into the Auction account. The Auction accounts will be open to accept deposits of eligible, unsold SRECs during the final 31 days of the Compliance Year's fourth quarter trading period from May 16 - June 15.
Instructions on how to deposit eligible SRECs
Auction Timing and Design
DOER will hold the Auction for the Re-minted Auction Account Attributes no later than July 31 and after it has announced the adjustment to the Minimum Standard. The Auction will only be held during years when SRECs have been deposited into the Auction accounts.
The Auction is open to any qualified bidders. However, bidders who are not licensed retail electric suppliers in Massachusetts with RPS compliance obligations are required to provide financial security prior to the auction to cover their full bid amounts.
Auction Rounds
If the bid volume is insufficient to clear the volume of available Re-minted Auction Account Attributes, then the shelf life of the Re-minted Auction Account Attributes is increased to three years (enhancing their market value), and the auction is repeated. If the bid volume is still insufficient to clear the volume of the available Re-minted Auction Account Attributes, then the Minimum Standard for the new Compliance Year is re-adjusted by increasing the MWh obligation by the total volume of SRECs that were deposited into the Auction Account. The auction is repeated with the shelf life remaining at three years. If the third (and final) Auction does not clear, the Re-minted SRECs deposited in the Solar Credit Clearinghouse Auction Account shall be allocated to the bidders in a pro-rated manner so that an equal percentage of Re-Minted SRECs are allocated from each Generation Unit that deposited SRECs. The remaining Re-minted SRECs shall be returned to the person or entity that made the deposit. These SRECs shall be eligible in any of the three subsequent Compliance Years from the year in which they were generated to meet obligations under the Massachusetts Solar Carve-out Minimum Standard, and may be sold by the Owner or Operator of the Generation Unit.
Clearing the Auction
Once the auction clears, each bidder is awarded a portion of the total available SRECs proportional to the bidder's bid volume, relative to the total bid volume. Each successful bidder is required to submit payment for the awarded volume within 10 business days.
Auction Revenues and Fee
Revenues received from the Auction are redistributed to the generators who deposited SRECs into the Auction Account, minus an auction fee of 5% DOER oversees the auction fees received, which are used to defer any auction costs and to benefit the continued development of renewable energy in the Commonwealth.
Auction Management
DOER has selected Enel X to manage and operate the Solar Credit Clearinghouse Auction. To access documents and resources related to participating in the auction, please visit the Auction Announcement Website, which goes live each year at the end of June.
Auction Bid Price
Both the SREC I and SREC II Auctions have a fixed price. Bids are for the volume of Re-minted Auction Account Attributes that bidders are willing to buy for this fixed price. All deposits are assessed a 5% fee by DOER, resulting in payments to depositors that are 95% of the value paid by bidders.
The auction bid price for all SREC I certificates is $300, prior to the 5% auction fee.
The auction bid price for all 2022 SREC II certificates is $221, prior to the 5% auction fee, and will continue to decline each year.
The following table reflects the schedule of SREC II Auction Bid Prices found in the RPS Class I Regulation (225 CMR 14.00).
|
Solar Carve-out II Auction and ACP Price Schedule |
|||
|
Compliance Year |
Auction Bid Price |
Minus 5% Auction Fee |
ACP |
|
2014 |
$300 |
$285.00 |
$375 |
|
2015 |
$300 |
$285.00 |
$375 |
|
2016 |
$300 |
$285.00 |
$350 |
|
2017 |
$285 |
$270.75 |
$350 |
|
2018 |
$271 |
$257.45 |
$350 |
|
2019 |
$257 |
$244.15 |
$333 |
|
2020 |
$244 |
$231.80 |
$316 |
|
2021 |
$232 |
$220.40 |
$300 |
|
2022 |
$221 |
$209.95 |
$285 |
|
2023 |
$210 |
$199.50 |
$271 |
|
2024 |
$199 |
$189.05 |
$257 |
|
2025 |
$189 |
$179.55 |
$244 |
|
2026 |
$180 |
$171.00 |
$232 |
|
2027 |
$171 |
$162.45 |
$220 |