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Solar Carve Out I and II Clearinghouse Auction

Annual auction for the sale of remaining Solar Carve Out I and II certificates not settled by the end of the NEPOOL GIS REC trading year.

Compliance Year 2016 Auction Schedule and Results

Results of the 2016 Solar Credit Clearinghouse Auction Accounts will be placed in the following table once it has taken place.  
 

Rounds of Auction Date SEC I Auction Result "Cleared" or "Did not Clear" SEC II Auction Result "Cleared" or "Did not Clear"
1 Monday, July 24, 2017 Cleared Cleared
2 Wednesday, July 26, 2017 TBD TBD
3 Friday, July 28, 2017 TBD TBD

 

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 during which it will have the right (but not the requirement) to deposit Solar Renewable Energy Certificates (SRECs) into the Auction Account. The term shall be 40 quarters for all qualified Generation Units.

Instructions on how to deposit eligible SRECs 

Auction Account

DOER will establish two separate Auction Accountson the NEPOOL GIS system, one for SREC I and one for SREC II deposits. Eligible SRECs that have been generated within the term prescribed to that project by DOER at the time of its qualification 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 4 th quarter trading period (May 16-June 15).

Auction Timing and Design

DOER will hold a fixed-price 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 the years that SRECs have been deposited into the Auction Account.

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. 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. For the Compliance Year 2016 auctions held in July 2017, both the SREC I and SREC II Auctions have a fixed price of $300/MWh.

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 selected EnerNOC to manage and operate the Solar Credit Clearinghouse auction. In the event that there is a deposit into the Auction Account all auction documents have been prepared. To view the documents, click here

Auction Bid Price 

The Solar Credit Clearinghouse Auction is a fixed price auction that takes place following the close of each NEPOOL GIS trading year. SREC I and II owners that are unable to sell their SRECs by the close of the trading year are able to make deposits into the account. Bids are then received for the volume of SRECs that bidders wish to buy at the fixed price established by regulation. 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 Is is $300, prior to 5% auction fee. 

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

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