I have been researching SRECs for MassAudubon’s. To date we have 250 kW of installed capacity around the state of which 44 kW qualify for the MA solar carveout. I learned thatoin January 1, 2011 the DOER reduced, by over 8%, the penalty that producers pay for each MW below the state’s mandated solar quota (ACP). Their stated reason was that the cost of solar installation had declined since 2010. This makes no sense to me. Massachusetts has a miniscule amount of installed solar generation, way below the goals set by DOER. The solar carveout is supposed to to encourage more solar, quickly. Reducing the incentive payment does the opposite: it reduces the finanacial incentive anyone, including the utilites, have to install more solar and; it introduces uncertainity into the pricing system, another disincentive, as well as driving down the price an SREC aggregator would offer for a fixed price contract many producers, like MassAudubon, would like.
What do you think? If I am correct in my analysis is there anything the legislature can do to stablize the ACP going forward? Note that New Jersey is the state with the second greatest installed solar capacity largely because they have a fixed and favorable price for the ACP.