Massachusetts SREC II Expansion: What to Expect
Sustainable energy plays an increased role in today’s energy market. Since 2010, Massachusetts has followed the Department of Energy Resources’ (DOER) solar carve-out plan (SREC). This plan has added phases as technology and time has progressed. The latest is the SREC II Expansion.
The SREC II Expansion focuses on higher percentages of Renewable Portfolio Standards (RPS) from solar. RPS is a state-by-state policy that all competitive suppliers must follow. Suppliers need to source a certain percentage of their total statewide load from qualified renewable resources. In the case of SREC II, their Renewable Energy Credits (RECs) must come from solar photovoltaic (PV) energy facilities.
While all competitive suppliers have to comply with SREC and the SREC II Expansion, they do not have to handle the costs associated with it the same way. Many suppliers can offer customers lower rates by adding charges like this over time. Constellation gives customers the option to fix or pass through SREC II Expansion costs.
Constellation makes sure our customers know what to expect on their monthly bill and don’t incur additional charges due to state policies. We also aim to keep our customers informed of changes and what it could mean for their business. Here’s more about what SREC means to suppliers and their customers:
When it comes to energy bills, there are many different components that make up the supplier price; the total MA RPS costs make up approximately 19-20% of the total cost. These allocations of components vary depending on the details of the account. With the addition of the expansion program, the SREC2 Expansion costs now make up 2-3% of the total supplier charge. The chart below is a full break down for the percentages dedicated to RECs for Massachusetts.
RPS/Solar Cost Allocations
The associated costs for policy changes like SREC must, at some point, be passed on to the customers in some way. Constellation’s open and forthright pricing ensures that customers know what charges to expect on their monthly bills. The chart below is a comparative break down in all percentages associated with various components of a customer’s bill for Massachusetts.
Please note that these are for illustration purposes only, actuals may vary depending on customer load/profile.
We are happy to provide additional resources to customers who wish to increase their knowledge about SREC, and to help manage their budgets and energy strategies as new regulations are enacted. Please contact your Constellation Business Development Manager for assistance.
*Percentages are those of either Constellation NewEnergy-Gas Division, LLC, Constellation NewEnergy, Inc., Constellation Energy Services – Natural Gas, LLC, Constellation Energy Services, Inc. or Constellation Energy Services of New York, Inc., affiliates of each other and ultimate subsidiaries of Exelon Corporation. Amounts are derived from MA DOER compliance percentages, errors and omissions excepted.