Massachusetts: SREC II Extended To Support PV Facilities2 min read
The current Massachusetts Solar Carve-Out (SREC) Program has been critical in supporting solar facilities. The goal of SREC is to support solar power by encouraging use of distributed solar photovoltaic (PV) energy facilities. SREC encourages solar use by setting benchmarks that suppliers must meet for purchasing of Renewable Energy Credits (RECs) from PV facilities.
This support will continue through the SREC II Expansion, implemented in mid-2016. SREC is able to support solar in two ways, net metering (utility bill credit for providing to the grid) and solar incentives. Customers will see the effects of the SREC II Expansion through mandatory REC percentages that suppliers must meet, effective June 2017.
Impact of Massachusetts’ Solar Incentive Program
Solar energy benefits Massachusetts in a variety of ways. Solar energy use helps to offset the $22 billion of capital that flows out of the state every year to purchase coal, oil and gas.* Solar also supports nearly 15,000 jobs in Massachusetts, which makes it the second largest solar industry employment state in the U.S.**
Massachusetts cities have even begun to support renewable energy on their own. At least 175 cities and towns host their own solar projects. These projects provide a combined capacity of more than 340 MW. Projects like this help to reduce and stabilize energy costs.** Last but not least, renewable energy is part of addressing the climate crisis we face.
Massachusetts’ Solar Incentive Program’s Impact on Suppliers
Currently under SREC, all competitive energy suppliers are required to comply with the state’s policy. How suppliers handle their compliance is up to them. For Constellation, customers have the option to fix or pass through charges. This is done to help our customers avoid surprises and know what charges are on their monthly bills.
Customers should be wary of estimated charges from electricity suppliers. This estimate cost may not be clear about SREC charges, skewing direct price comparisons. A good tip is to keep in mind that all suppliers serving the Massachusetts load must meet the same REC percentage requirements. Constellation’s open and forthright pricing ensures that customers know what charges to expect.
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.