Massachusetts SRECs 101

What programs replaced Massachusetts SRECs?

Solar systems interconnected on or after November 27, 2018 may participate in the Massachusetts Class I REC market.

However:

Systems enrolled in the SMART (Solar Massachusetts Renewable Target) Program cannot also participate in the MA Class I REC market
Solar systems located in MA, NH, RI, VT, CT, and ME may be eligible for the MA Class I REC market

For additional background, see the Massachusetts DOER’s SREC transition announcement.

What is Massachusetts’ Renewable Portfolio Standard (RPS)?

Massachusetts’ RPS is divided into Class I and Class II resources.

Class I includes renewable systems (such as solar PV and wind) that began generating after 1997
- Includes a solar carve-out
Class II includes renewable and waste-energy systems operating prior to January 1, 1998

Massachusetts has a long-term emissions reduction goal of 85% below 1990 levels by 2050, which is expected to require at least 27 GW of solar capacity.

What is the Alternative Compliance Payment (ACP)?

The Alternative Compliance Payment (ACP) is a penalty paid by compliance buyers that do not meet Massachusetts’ renewable requirements.

For 2025, ACP rates are:

$330 for SREC I
$244 for SREC II
$40 for Class I RECs

How long can Massachusetts SRECs be generated and sold?

SREC I and SREC II systems may generate SRECs for up to 10 years
After the 10-year term, systems may generate Class I RECs
SRECs up to three years old may be sold in the Massachusetts market

What is the Massachusetts Clearinghouse Auction?

Massachusetts is the only SREC state with an annual Clearinghouse auction.

At the end of each compliance year (June), unsold SRECs are deposited into a DOER auction account on NEPOOL
The Clearinghouse was created to support pricing stability and reduce market volatility
Sol Brokerage customers may elect to have their SRECs deposited into the auction

What is required to register a Massachusetts system?

All required documentation must be submitted to Sol Systems by the Application Submission Deadline listed below. Missing a deadline will delay eligibility to the following quarter.

Application submission deadlines

Interconnection Date	Submission Deadline
Q1 (Jan–Mar)	May 15
Q2 (Apr–Jun)	August 15
Q3 (Jul–Sep)	November 15
Q4 (Oct–Dec)	February 15

Registration requirements by program

MA Class I REC market (MA, NH, RI, VT, CT, ME)

Customers must provide:

A signed Sol Systems contract
A signed MA REC Purchase Agreement
Proof of an Independent Verifier (MA DOER–approved third-party reporter)

Sol Systems will register the system with MA DOER and NEPOOL at no cost.

Existing SREC II systems

Customers must provide:

A signed Sol Systems contract
A signed interconnection agreement
A state registration number

Sol Systems will complete the system transfer with DOER, PTS, and NEPOOL at no cost.

Special rules for certain SREC II systems

Systems interconnected between January 8, 2018 and November 26, 2018 are subject to a 0.8 SREC factor
These systems earn 1 SREC for every 1,250 kWh generated

After certification by DOER and the Production Tracking System (PTS):

Meter readings are reported monthly
Systems under 10 kW may self-report
Systems over 10 kW must use an approved Data Acquisition System (DAS)

When are Massachusetts SREC and REC payments made?

SRECs and RECs are minted by NEPOOL on a quarterly basis, which determines payment timing.

Minting and payment schedule

Generation Quarter	Submission Deadline	Minted by NEPOOL	Sol Systems Payment Month
Q1 (Jan–Mar)	May 15	July 15	August
Q2 (Apr–Jun)	August 15	Oct. 15	November
Q3 (Jul–Sep)	November 15	Jan. 15	February
Q4 (Oct–Dec)	February 15	April 15	May

Example:
If an SREC or REC is minted for Q1 generation, payment is issued during the August payment cycle.

How are payments issued?

Direct deposit customers receive quarterly payments
Check payment customers receive one annual check during the November payment cycle