2017 SREC Procurement Program Results
- Posted on July 13, 2017
The results of 2017’s SREC Procurement Program are surprising and disappointing for Delaware’s solar customers and the local solar industry. Changes were made to this year’s program rules that when combined with an unidentified loophole, have resulted in unintended consequences. Essentially two large out of state commercial companies were able to sweep all but a few SRECs in Tier 1, and all of Tier 3 and all of Tier 4 at well under market values. These commercial companies systems use tax advantage strategies not available to individual owners, and do not need SRECs to make their projects work. For them, SRECs are “found money” and they bid them below a level needed to make individually owned systems economically viable. There were insufficient safeguards in place to prevent these two companies from taking the bulk of the Procurement.
Only 4 new, and 2 existing residential projects will be awarded to individual owners this year, all of whom bid below $35. This means almost all Delaware small systems owners who bid into the program this year will not be awarded a contract. This also means that Delmarva ratepayers will be sending 20 years of SREC money to North Carolina and California, rather than it staying in the local economy.
We are working with the appropriate agencies via the Renewable Energy Taskforce to fix the program, so this result cannot occur in the next Procurement. We ask for your patience and understanding, but moreover, will be asking for your help. In the coming months, CMI Solar & Electric will be providing information on where and how you can voice concerns and opinions about the future of the Delaware RPS. With your help, we feel confident that next year’s SREC Procurement Program will be back on track.
Delaware, Pennsylvania, and Ohio are the only states that accept SRECs from other states. Those other states are working to close their borders, with Pennsylvania likely to close this year. It is time for Delaware to stop the import of SREC from out of state. It’s senseless to have Delaware ratepayer money go to solar development elsewhere. We need those jobs and dollars in Delaware’s economy, and Delaware residents should be the ones benefitting from lower electrical bills and reduced utility grid demand.. We’ll be working in the next legislative session to fix this problem.
If you have any questions, please do not hesitate to ask.