How are SREC factors applied?

SREC II Factors

SREC Factors were established by DOER for the SREC II Program. SREC Factors may vary based on Market Sector, interconnection date, and extension status. For more information regarding SREC Factor values, please see the RPS Solar Carve-Out II Program Overview.

MassCEC and NEPOOL revised the process for how SREC factors are applied starting with Q4 2017 SREC production. This revision allows SRECs to be generated sooner, rather than later, because MassCEC is eliminating one of two monthly carry-forwards. NEPOOL GIS will continue to carry-forward partial eligible SREC due to the SREC Factor (See examples below):

SREC II Issuance Process

1. The MassCEC Production Tracking System (PTS) tracks monthly total kWh of production data reported by the system authorized representative/reporter.
2. Each quarter, and on a one quarter delay, MassCEC reports total monthly production in MWh, rounded to the nearest whole kilowatt-hour (i.e., 1,879.36 kWh reported to PTS = 1.879 MWh reported to NEPOOL), to the NEPOOL GIS.
3. NEPOOL GIS applies the SREC II factor to the reported production, and creates 1 SREC II for each eligible MWh reported, and carries forward any remaining fractional SREC IIs to the next generation month.

An example of what this may look like is below, using an example system with a 0.8 SREC Factor:

Quarter 1 (Q1) Production: 0.8 SREC Factor

• System authorized representative/reporter reports to MassCEC PTS (Jan-Mar) = 1,500 kWh of production
• PTS reports to NEPOOL GIS (July 10^th) = 1.500 MWh
• NEPOOL GIS applies 0.8 SREC Factor (July 15^th) = 1.500 MWh x 0.8 SREC Factor = 1 SREC II mints for Q1 and 0.20 SREC IIs are carried forward to Q2 (April)

Quarter 2 (Q2) Production: 0.8 SREC Factor

• System authorized representative/reporter reports to MassCEC PTS (Apr-Jun) = 1,800 kWh of production
• PTS reports to NEPOOL GIS (July 10^th) = 1.800 MWh
• NEPOOL GIS applies 0.8 SREC Factor (Oct. 15^th) = 1.800 MWh x 0.8 SREC Factor = 1.44 SREC IIs and combines with the 0.20 SREC IIs carried forward from Q1 = 1.64 SREC IIs

NEPOOL GIS mints 1 SREC II and 0.64 SREC IIs are carried forward to Q3