On Friday, June 7, the Massachusetts DOER held a meeting to discuss the finalization of the current SREC program in addition to the implementation of the next program. The meeting was crucial in addressing the ramifications of the unexpected announcement it made on Wednesday, May 29, saying that the current SREC program had reached its 400 MW capacity. Many people in the industry had expected the program to be closed in 2014, indicative of a higher demand for projects than originally anticipated. The meeting in part laid out an expansion of the current program with applications based on size (projects less than or equal to 100 kW and projects greater than 100 kW).
The DOER set to adapt a new overall solar capacity goal of 1,600 MW for the next phase of the SREC program. The final size of the next SREC program is dependent on the number of facilities that meet the criteria for the current program. For example, if 600 MW of capacity is approved in the current program, the next SREC program will allow for 1,000 MW of eligible capacity. The DOER is waiting for legislature to determine the outcome of H2915, a bill that if passed would establish a floor of SREC prices in periods of SREC excess supply. The current floor price in the auction is $285; however, the market for short-term SRECs is trading at $200 given the excess supply.