The Massachusetts SREC-II program officially launched on Friday, April 25th. For Massachusetts businesses with large under-utilized roof or land areas, the SREC II program can provide a lucrative way for companies to ‘go green’.
By way of background, an SREC is a Solar Renewable Energy Certificate and it represents the renewable attributes of one Megawatt-hour (MWh) of solar generated electricity. Massachusetts requires its investor owned utilities to buy a certain number of SRECs annually in order to meet the state’s Renewable Portfolio Standard requirements. The purchase of these SRECs provides additional revenue to businesses and property owners with solar energy systems. When packaged into multi-year contracts (also known as strips), SRECs can provide highly visible and predictable cash flow streams that can be readily financed.
Key Design Features of the SREC-II Program are:
Whether your business is interested in owning a solar PV system, leasing one, or simply purchasing low-cost solar energy with no capital outlay as part of a ‘Power Purchase Agreement’ (PPA), the revenue provided by the new SREC-II program is a key economic driver that makes going solar a compelling business case.