Available incentives for solar PV systems vary by state. Massachusetts has experienced phenomenal growth of installed PV systems over the last 5 years, fueled by favorable state incentives. The following incentives are available in Massachusetts, but are subject to change:
Net metering allows customers to receive value during periods when their PV system generates more electricity than they use. The electric meter runs backward whenever a customer’s net metered facility is producing more power than is being consumed and their account gets net metering $ credits (at close to a retail rate) for net excess generation at the end of the customer’s monthly billing period.
The aggregate capacity of net metering facilities is limited based on the utility’s peak load. Three-phase PV systems over 25 kW DC must apply to receive a “cap allocation”.
Solar Renewable Energy Certificates (SREC’s) are the associated positive environmental attributes of the solar energy produced. One SREC is created each time a solar PV system generates 1 MWh (or 1,000 kWh).
Through its RPS Solar Carve-out program, Massachusetts has created a market for these SREC’s by requiring each utility to purchase specified quantities of SREC’s. SREC prices are largely determined by market availability, although the DOER has created market stability by establishing an annual clearinghouse auction for unsold SREC’s. Once a PV system is qualified in the program, it can generate SREC’s for sale for 10 years.
The current Massachusetts Solar Carve-out program is called “ SREC-II” and is intended to support state solar growth up to an installed capacity goal of 1,600 MW. The value of the “SREC-II’s” vary depending on the Market Sector and are scheduled to decline by 5% annually starting in 2017. 621 Energy can provide projections of SREC-II values on specific projects. The SREC-II incentive program is projected to close to new projects in 2018 as the new “SMART” feed-in tariff incentive program takes its place.
Contact 621 Energy for the most up-to date detailed information of these incentives.