Massachusetts SREC » Specifications

Click Here to View Official Massachusetts RPS Information on DSIREUSA.org

SREC State Eligibility: Massachusetts

Massachusetts is a closed market. Out-of-state solar facilities cannot sell their SRECs into the MAmarket. Massachusetts solar generators must select an SREC aggregator to assist them in monetizing their SRECS.

Flett Exchange offers a managed SREC service for Massachusetts solar generators. Flett Exchange registers Massachusetts solar facilities directly with the Massachusetts Department of Energy Resources (DOER), streamlines the minting process with NEPOOL-GIS, and monetizes your SRECs on our competitive marketplace. Our full-service SREC solution is a diligent way to bring your SRECs to market and achieve a competitive rate. Flett Exchange charges a 5% service charge for our MA SREC services. For more information on the MA SRECs, see www.mass.gov.

Eligibility Period: No defined period

Eligibility Inception: Upon date of interconnection

Calendar Year: January 1 - December 31

Tracking System: NEPOOL-GIS

SREC Lifespan:

2 years: A 2010 SREC can be counted towards 2010 and 2011 Massachusetts Renewable Portfolio Standard (RPS).

Solar Alternative Compliance Payment (SACP):

The Massachusetts Department of Energy Resources (DOER) reduced the Alternative Compliance Payment (ACP) rate pertaining to the Solar Carve Out on January 31, 2011. The ACP for compliance 2011 was reduced from $600 to $550 or an 8.3% reduction. The MA DOER has the discretion to reduce the ACP by no more than 10% each year. Attached is the MA DOER's explanation to why this decision is appropriate for the Commonwealth's solar industry and prudent for Massachusetts electric customers.

A copy of the announcement can be reviewed by clicking the following link:

Official Mass.gov Press Release

Meter Readings:

All solar photovoltaic installations report their generation from verified meter readings.

Solar Requirement:

The minimum standard percentage-compliance obligation is set for 30 MW or 0.0680% (approximately 34,164 SRECs) for installed solar energy in 2010. Each year the solar requirement will increase by 30% more than the previous year's shortage or oversupply of SRECs. The total requirement is capped at 400MW for any given year and never decrease.

Massachusetts DOER Solar Credit Clearinghouse Auction:

MA SRECs are generated quarterly with a 4 month delay
Q1 (Jan-Mar) SRECs available July15, Q2 (Apr-Jun) SRECs available October 15, Q3 (Jul-Sept) SRECs available January 15, and Q4 (Oct-Dec) SRECs available April 15
DOER Solar Credit Clearinghouse Auction- is open May16-June 15 each year. SRECs will be a sold at a $300 floor minus a 5% processing fee resulting in a $285 net price.
SRECs entered into the DOER Solar Credit Clearinghouse Auction are "re-minted" increasing their eligibility for another year

Regulation or Legislation: SB 2768 or Green Communities Act (effective 2008)

Energy Year	Capacity Required (MW)	SRECs Required (MWh)	SACP
2010	30	2,267	$400
2011	69	25,571	$400

Contact Information:

Massachusetts DOER
100 Cambridge Street
Suite 1020
Boston, MA 02114

Transfers:

Buyers and sellers of SRECs on Flett Exchange will transfer their certificates on the PJM-GATS Website. When an SREC is traded on the Flett Exchange Platform the buyer sends their payment to Flett Exchange, LLC within 3 business days. The seller immediately transfers the SRECs to "Flett Exchange LLC" on the PJM-GATS platform. Upon receiving the funds from the buyer Flett Exchange makes the funds available to the seller via check and transfers the SRECs to the buyers PJM-GATS account.

Individual and Small Corporate Sellers:

All participants in the SREC market on Flett Exchange have an account in their name. Buyers deposit funds for their SREC purchases with Flett Exchange, LLC. After a deal is completed on the Flett Exchange platform the seller transfers the SRECS to Flett Exchange account within the PJM-GATS website. Flett Exchange will then simultaneously transfer the SRECS to the buyers account on the PJM-GATS website and transfer the appropriate funds from the buyers escrow account at Flett Exchange to the sellers escrow account at Flett Exchange. The Seller can then request a check for the funds.

Flett Exchange customizes buy orders for electric generators required to fulfill RPS requirements. Flett Exchange charges buyers a $5 commission per SREC and acts as a direct representative for electric generators. Once the bulk order is filled Flett Exchange will transfer SRECs to the buyer in one completed contract.

Agreement:

Buyers and sellers agree to abide by the Flett Exchange User Agreement for Unregulated Forward Contracts. Buyers and sellers must log into the Flett Exchange platform with their user name and password and click the "I AGREE" tab for the user agreement. All transfers on Flett Exchange are bilateral in nature and Flett Exchange Does Not Guarantee performance of either party.

Seller shall promptly notify Purchaser of any change in circumstance, which causes the foregoing representation and warranty to no longer be true, including providing a copy of any notice received from the governing entity or otherwise indicating or determining that the Transferred SRECs are no longer RPS-eligible (Non-Eligible SRECs). Purchaser shall not be obligated to pay for Non-Eligible SRECs, and Seller shall be responsible to reimburse Purchaser for any payments made to Seller for Non-Eligible SRECs.

All buyers of SRECs must be aware of the nature of the Certificates. Certificates retire and are worthless at the end of the True-Up period. Buyers of Certificates may lose some or all of the value of the Certificate.

This is not a solicitation to buy or sell SRECS.

Contact your accountant before buying or selling SRECS.

Flett Exchange charges a commission of $2.50 cents per SREC for customers who execute on the Flett Exchange Internet Trading Platform.

Risk Disclaimer:

Flett Exchange, LLC discloses that there risks associated with the buying and selling of spot and long-term Solar Renewable Energy Certificates (SRECs). SRECs can fluctuate in price, be volatile in nature and there is no guarantee that SREC prices will appreciate or decline over time. SRECs are sensitive to economic, political, legislative, regulatory and other unforeseen factors and can experience periods of illiquidity.

Flett Exchange, LLC is an environmental exchange, brokerage and consulting firm. Flett Exchange, LLC facilitates the transaction and monetization of spot and long-term SREC contracts. Under no circumstances can Flett Exchange, LLC be held responsible for the actions, expectations or decisions of participating parties. All parties act on their own accord, cost and expense. All parties agree not to hold Flett Exchange or its officers, employees, subsidiaries or affiliates responsible for any wrongdoings. All parties forgo their right to claims, demands, disputes, controversies, complaints, suits, actions, proceedings and past, present or future allegations against Flett Exchange, LLC.