Solar Carve-out (SREC) and Solar Carve-out II (SREC II) Current Status

Current details on the minimum standards, ACP Rate schedules, Auction Prices, and lists of qualified units.

Minimum Standard Calculations

Every Retail Electricity Supplier must demonstrate to DOER in an Annual Compliance Filing that it complied with the RPS Minimum Standard for the prior calendar year (Compliance Year). The Minimum Standards for the Class I Solar Carve-out and Solar Carve-out II are the percentages of a Supplier's total retail load obligation that must be met by the ownership of Solar Carve-out and Solar Carve-out II Renewable Energy Certificates (SRECs and SREC IIs) issued by the NEPOOL GIS, with each SREC or SREC II representing the environmental attributes associated with one MWh of electrical energy from a Generation Unit that has been qualified by DOER.

The Solar Carve-out and Solar Carve-out II Minimum Standards are part of, not in addition to, the RPS Class I Minimum Standard. The Minimum Standards for the RPS Class I Solar Carve-out and Solar Carve-out II is calculated and announced each year in accordance with the provisions of the RPS Class I Regulation in 225 CMR 14.07(2) and (3). More details on the methodology used to calculate current and previous Minimum Standards can be found below.

Compliance Year

Solar Carve-out Compliance Obligation (MWh)

Solar Carve-out II Compliance Obligation (MWh)

Total Retail Load Obligation from two years prior (MWh)

Solar Carve-Out Minimum Standard (%)

Solar Carve-Out II Minimum Standard (%)

2010

34,164

N/A

50,321,635

0.0679%

N/A

2011

78,577

N/A

48,301,821

0.1627%

N/A

2012

81,559

N/A

50,025,563

0.1630%

N/A

2013

189,297

N/A

49,386,169

0.3833%

N/A

2014

464,520

41,279

48,992,429

0.9481%

0.0843%

2015

1,056,097

161,958

49,252,581

2.1442%

0.3288%

2016

845,519

377,877

48,129,291

1.7568%

0.7851%

2017

783,183

1,374,406

48,009,721

1.6313%

2.8628%

2018

838,995

1,906,434

46,864,431

1.7903%

4.0683%

2019

798,214

1,789,639

45,722,855

1.7458%

3.9141%

2020 748,584 1,765,527 46,448,304 1.6116% 3.8011%

Calculation of Solar PV Capacity Factor

As required by regulation, DOER has completed its analysis of the average solar PV capacity factor for projects participating in the Solar Carve-out and Solar Carve-out II. Using nine years of production data from January 2010 through December 2018, DOER determined that the average capacity factor of systems operating during this period was 13.08%. This new capacity factor was used to help project the number of SRECs and SREC II that will be generated in 2020 as part of the DOER’s Determination of CY 2020 Total Compliance Obligations for each program. The details of how this calculation was made can be found in the Determination of Average Solar PV Capacity Factor.

Solar Carve-out Minimum Standards

DOER has made a determination that the 2020 Solar Carve-out Compliance Obligation will be 748,584 MWh and that the Minimum Standard shall be 1.6116% of total retail electricity sales. The 2020 Compliance Obligation for load served under contracts signed on or before June 28, 2013 shall be 458,323 MWh and the Minimum Standard shall be 0.9867% of total retail electricity sales. The details of how this Minimum Standard was determined can be found below: 

Determination of CY 2020 Total Compliance Obligation and Minimum Standard

Prior Solar Carve-out Minimum Standard Calculations

Determination of CY 2019 Total Compliance Obligation and Minimum Standard 

Determination of CY 2018 Total Compliance Obligation and Minimum Standard

Determination of CY 2017 Total Compliance Obligation and Minimum Standard 

Determination of CY 2016 Total Compliance Obligation and Minimum Standard

Determination of CY 2015 Total Compliance Obligation and Minimum Standard 

Determination of CY 2014 Total Compliance Obligation and Minimum Standard

Determination of CY 2013 Total Compliance Obligation and Minimum Standard

Determination of CY 2012 Total Compliance Obligation and Minimum Standard 

Solar Carve-out II Minimum Standards

DOER has calculated what the 2020 SREC II Compliance Obligation and Minimum Standard will be for load under contracts signed after May 8, 2016. DOER has determined that the Compliance Obligation shall be approximately 1,765,527 MWh and that the Minimum Standard shall be  3.8011% of total retail electricity sales. The 2020 Compliance Obligation for load served under contracts signed on or before May 8, 2016 shall be approximately 1,023,737 MWh and that the Minimum Standard shall be approximately 2.2040% of total retail electricity sales. Lastly, the Compliance Obligation for load served under contracts signed on or before April 25, 2014 shall be 0% of total retail electricity sales. The details of how the preliminary Minimum Standards were calculated can be found here:

CY 2020 Calculation of Minimum Standard Guideline

Prior Minimum Standard Calculations

CY2019 Calculation of Minimum Standard Guideline

CY2018 Calculation of Minimum Standard Guideline

CY2017 Calculation of Minimum Standard Guideline

CY2016 Calculation of Minimum Standard Guideline

 

Market Information

Exempt Load and Re-Minted Auction Certificates

The RPS Solar Carve-Out and Solar Carve-Out II Programs provide compliance exemptions for load served under contracts executed prior to certain dates. 

The following spreadsheet contains the most recent aggregate information on past and future exempt loads collected from retail suppliers, with the first tab containing data on the Solar Carve-Out exemption and the second containing data on the Solar Carve-Out II exemptions. The third tab lists the amount of Re-Minted Auction Certificates created each year and documents when such certificates were used for compliance and how many remain available for use and future years.

SREC I and II Exempt Load Projections

 

SRECs Minted and Expected

The following spreadsheet contains updated numbers of the monthly production totals for SREC I systems, as well as the total number of SREC Is minted each quarter at NEPOOL GIS.

SRECs Minted and Expected

Alternative Compliance Payment Rates and SREC I and II Auction Rates

The schedule below details the Solar Carve-out and Solar Carve-out II ACP Rates in effect for every Compliance Year through 2029.

Compliance Year

Solar Carve-out ACP Rate ($/MWh)

Solar Carve-out II ACP Rate ($/MWh)

2010

$600

N/A

2011

$550

N/A

2012

$550

N/A

2013

$550

N/A

2014

$523

$375

2015

$496

$375

2016

$472

$350

2017

$448

$350

2018

$426

$350

2019

$404

$333

2020

$384

$316

2021

$365

$300

2022

$347

$285

2023

$330

$271

2024

$330

$257

2025

$330

$244

2026

N/A

$232

2027

N/A

$220

2028

N/A

$209

2029

N/A

$199

Solar Credit Clearinghouse Auctions

DOER has established two separate accounts on the NEPOOL GIS system, one for SREC I and one for SREC II deposits. Each solar installation, as part of its Statement of Qualification issued by DOER, is permitted to deposit SRECs or SREC IIs into the applicable Solar Credit Clearinghouse Auction Account established by DOER. The term shall be no more than 40 quarters for all qualified Generation Units.

SRECs deposited into the auction account shall be sold at a fixed price of $300/MWh, with depositors receiving $285/MWh for each SREC successfully sold. SREC IIs deposited into the auction account shall be sold at the applicable fixed price for the year in which they were generated according the following table:

Compliance Year

Auction Bid Price ($/MWh)

Value to Depositor ($/MWh)

2014

$300

$285.00

2015

$300

$285.00

2016

$300

$285.00

2017

$285

$270.75

2018

$271

$257.45

2019

$257

$244.15

2020

$244

$231.80

2021

$232

$220.40

2022

$221

$209.95

2023

$210

$199.50

2024

$199

$189.05

2025

$189

$179.55

2026

$180

$171.00

2027

$171

$162.45

More information on the Solar Credit Clearinghouse Auctions can be found on DOER’s SREC and SREC II Auction webpage.

List of Qualified Generation Units

The following page provides links to lists of projects that have received a Statement of Qualification under the Solar Carve-out or Solar Carve-out II.

Qualified Generation Units 

 

SREC II Managed Growth Capacity Blocks

The following is a list of projects that have received a Statement of Qualification and have been allocated a position under a Managed Growth Annual Capacity Block. Projects on the Waiting List are also listed.

Managed Growth Capacity Block Allocations 

Historical Program Development Pages

The process of developing both the Solar Carve-out and the Solar Carve-out II Programs can be found on the following pages. Each page not only outlines the development of the policy, but also contains links to program and policy documents issued and revised to reach the final program design.

Historical Development of the Solar Carve Out

Historical Development of the Solar Carve-Out II

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