On Friday, April 8th, 2016 DOER announced emergency regulations to extend SREC II. SREC II was the second solar incentive program created by the state to support the installation of solar projects in the state from 400MW to 1,600MW of installed capacity. The cap of 1,600MW of approved projects was hit in early March. Please see the email from DOER that was sent out with information about the extension below:
As indicated previously, the Department of Energy Resources (DOER) has received a quantity of SREC II applications that is in excess of the available capacity under the SREC II program cap. Recognizing that a long-term sustainable solution will take time to develop and that many projects are in advanced stages of development, DOER filed an emergency regulation with the Secretary of State’s office earlier today which will address market uncertainty and establish a smooth transition from SREC II to the next incentive program.
The emergency regulation contains the following key provisions:
- Extends eligibility to all projects >25 kW constructed within nine months of the effective date of the emergency regulation
- Extends eligibility to all projects <=25 kW interconnected by start of the next program
- Provides compliance exemption to retail electricity suppliers for load under existing contracts signed within 30 days of the effective date of the regulation
- Ensures SREC II program will end in 2027 at the latest
- Other minor language changes to ensure consistency
Effective immediately, the emergency regulation will ensure that all projects >25 kW DC that have existing Assurances of Qualification or that have submitted applications will be granted Statements of Qualification dated April 8, 2016. The retention of all Statements of Qualification granted will be dependent on projects demonstrating to DOER that they have been authorized to interconnect or have been constructed by January 8, 2017.
All applications for projects <=25 kW DC that are not yet interconnected will be returned to applicants the week of April 11, 2016. Applicants who resubmit applications with utility authorization to interconnect prior to the start date of the next incentive program will be qualified under the SREC II program.
While the emergency regulation takes effect immediately, it can only remain in effect for 90 days pending a full rulemaking proceeding conducted by DOER. Additionally, DOER will provide a separate announcement regarding the next steps in the rulemaking process, including information on any public hearing(s) and deadlines for submitting written comments on the emergency regulation.
Lastly, DOER has begun the process of developing the next generation incentive framework for solar. Sustainable Energy Advantage, LLC (SEA) has been selected to assist DOER in our program financial analysis. Upon the completion of SEA’s work, DOER will engage the stakeholder community in a robust public process as it designs and implements the next solar incentive program.
Office of State Senator William N. Brownsberger