Massachusetts Solar Projects: Deadline LoomingFebruary 28, 2013
Massachusetts has one of the best solar incentive programs in the country. Learn how your business can take advantage of it.
The state of Massachusetts has one of the best solar incentive programs in the country. The Solar Carve-Out Renewable Energy Certificate (SREC) program, which allows for additional income to be received from selling SRECs which increases the economic value of a solar investment and assists with the financing of solar technology. A pending change to the opt-in term for the program is right around the corner and now is the time to act if you are considering a solar project here in Mass.
Currently the opt-in term for the program, which represents the length of time you can participate in the SREC auction process, is 10 years. One SREC is generated for every megawatt hour (MWh) of solar power produced. Assuming you were to participate in the auction, at the current floor price, your project would generate $285/MWh generated, which is in addition to any electricity savings from net metering. Couple that with the current federal investment tax credit, 30% of the projects cost, along with a continued decline in the price of solar panels, and these projects become very attractive.
There is more that goes into the calculation of the opt-in term than noted above, including the fact that it can drop by as much as 2 years a year down to a minimum of 5 years, but what’s more important now is that come June 20, 2013, it appears that it will be reduced to 8 years. That means 2 less years of a guaranteed floor, should you take advantage of the auction process. Depending on the size of your project, this will likely have a significant impact on its profitability.
In order to qualify for the 10 year opt-in, your information needs to be submitted to the Massachusetts Department of Energy Resources by June 1, 2013. This should allow for sufficient time to respond to any questions they may have by the June 20, 2013 deadline. You can visit the Mass.gov website to learn more about the solar carve-out program.
KLR has developed a deep knowledge base in the area of renewable energy programs specifically this one and analyzing the feasibility of these projects for your business. We have developed a network of trusted advisors that can help you through this process or answer any questions you may have. KLR offers a free consultation to business owners evaluating whether solar power is right for your business. For more information on this service please contact any member of our renewable energy services team.