Jessica Lillian, 26 February 2013 (Solar Industry)
“…Massachusetts is now seeking to avoid the dreaded drop-off point with its popular solar carve-out program, which began in 2009 and currently has a 400 MW cap in place. The administration of Gov. Deval Patrick, D-Mass., recently announced that it had begun work on a new policy to sustain solar development past 400 MW [and overcome an oversupply of solar renewable energy credits (SRECs) and a draining of incentive funds]. The [Massachusetts Department of Energy Resources (DOER)] also plans to tweak carve-out compliance requirements and the queuing process for projects now in the market… “The DOER action comes as a relief to developers building in Massachusetts. With 150 MW installed last year alone, the industry can expect to hit the 400 MW cap soon…Industry stakeholders and the DOER itself are generally pleased with the results and mechanisms of the current program…PV system costs have dropped, fostering increased competition among integrators and their partners.”
click to enlarge“Although the next version of the program may feature a few changes in order to tackle any vulnerabilities, the Massachusetts SREC market as a whole has managed to avoid much of the SREC pricing volatility seen in other states - most notably in New Jersey...First, the reactive design formula takes into account supply…[A] solar credit clearinghouse auction allows for [absorption of] any unsold credits…[and a mechanism preventing] SRECs exceeding the cap from entering the market… “By the time Massachusetts reaches that 401st megawatt, the DOER expects to have its new cap and associated plans in place…[A]t least one major stakeholder has already weighed in: The Solar Energy Industries Association (SEIA) called on the commonwealth to triple or quadruple the 400 MW cap…citing New Jersey's 4 GW solar goal and Maryland's 1.3 GW solar goal…”
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