But opportunity won’t wait much longer in Massachusetts.
The Massachusetts Solar Renewable Energy Certificate (SREC) II program will soon be replaced by the Solar Massachusetts Renewable Target (SMART) program.
What are the differences between SREC II and SMART?
Under the Solar Carve-Out II Program, SRECs “represent the renewable attributes of solar generation”. These SRECs can then be bought by other organizations and suppliers to meet their renewable portfolio standard. SREC II prices are market-based, dependent upon availability. Since prices are based on the market, there is opportunity for higher prices and increased savings over time for the seller (i.e.; the customer generating solar power)
Transitioning to the SMART program is an attempt at creating a more stable solar incentive program for Massachusetts. Compensation under the SMART program is based on fixed price terms over 10 or 20 years. This incentive is likely to decrease over time as the cost of solar decreases.
To qualify for the SREC II program, solar systems must be installed and operational by March 2018.
Why should you take advantage of the SREC II program?
Currently, under the SREC II program a customer will average about 18-20 cents / kWh benefit. With the new SMART program, a customer will average 9-12 cents / kWh benefit if utility rates remain the same.
Since SREC II prices are market-based, not fixed like the SMART program, there is opportunity for incentives and savings to increase over time. Under the SREC II program an 8 kW solar system would likely generate around $19,000 as additional savings over the life of the system. However, with the SMART program, additional savings are closer to an estimated $10,000.
While both programs incentivize Massachusetts residents to go solar, the SREC II program offers more savings over the lifetime of a solar system.
*Prices and savings numbers are estimates and based on current net generation prices for an 8kW solar system. RGS Energy do not guarantee any savings.