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Massachusetts sets new rules to meet ambitious solar RPS goals

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In January 2008, the Massachusetts Department of Energy Resources (DOER) carved out a portion of the state’s RPS Class-I Renewable Energy requirement to support distributed solar photovoltaic (PV) energy facilities. This solar “carve-out”, also known as the SREC-I program, set forth rules to achieve 400 MW of solar generation in the state by 2017. This policy goal was met in May 2013.

As a result of achieving this early target, Massachusetts Governor Deval Patrick tasked the DOER with initiating a new rulemaking in January 2014 for the SREC-II program. The new program establishes a regulatory construct for achieving 1,600 MW of distributed solar PV from energy facilities in the state by 2020 – a much more aggressive target.

This rulemaking is expected to go into effect later this month and establishes a new compliance obligation for local electric distribution companies and retail electricity suppliers alike. The ruling will result in new renewable portfolio standard compliance costs designed to meet the ambitious solar energy requirement in Massachusetts.

What does this mean for businesses in Massachusetts? Any existing and/or extended contract in effect before the promulgation date - anticipated to be April 25, 2014 - may be exempt from the new SREC-II  compliance obligation for the length of the contract term signed prior to that date. 

If you have questions, please speak to your Direct Energy Business representative.

Posted: April 23, 2014