Posted by
Wally Cole on Sat, Feb 04, 2012 @ 09:00 AM
The Solar Renewable Energy Credit (SREC) Program launched by the Department of Energy Resources (DOER) has revolutionized the economics of solar for homeowners and businesses in Massachusetts. Recently the program made some excellent enhancements that make it even more attractive. The income flow from selling your SRECS is now much more predictable, making the multi-year ROI on a solar project investment even more attractive.
Thomas Astore, CPA and Partner at Rodman and Rodman, CPAs, has penned this terrific summary of the recent positive changes. His firm is the most solar-savvy accounting firm in Massachusetts and many of Blue Selenium Solar's clients depend on their specialized Green Team for an objective evaluation of the cash flow, tax benefits, and ROI of their renewable energy project investments. He can be reached at 617-965-5959 at www.RodmanCPA.com. Here's his article:
FUTURE OF SREC CAP RATES NOW MORE CERTAIN
Since the inception of the SREC program, there has been uncertainty over how to value SRECs into the future. While the original wording of the Act allowed the state to adjust the cap by up to 10% of the current value each year, this left a lot of room for speculation. On December 28, 2011 the Massachusetts Department of Energy Resources (DOER) announced a ten year rolling schedule that would set the SREC rate each year for the next ten years. The schedule begins to adjust the cap rate down by 5% each year beginning in 2014. The current schedule runs through 2021, and will include the rate for the next year in late January, and each year annually after that.
With this new schedule, calculating the rate of return on a solar project now contains more certainty as to what the return will be on each SREC. This is a big benefit to project developers and financers as now instead of an unpredictable 10% adjustment, there is a known 5% decrease each year.
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Blue Selenium Solar Residential and Business Solar Energy Solutions -
www.BlueSel.com Email:Info@BlueSel.com Phone 508-833-9500
Posted by
Wally Cole on Mon, Jan 16, 2012 @ 11:52 AM
Important changes to funding levels for 2012 Mass Solar Rebates were just announced and there are four key things that you need to know:
1. The Mass Clean Energy Center (MassCEC) set the new rebate levels for the Commonwealth Solar II program significantly lower for 2012 as part of a previously announced plan to phase these rebates out over time in favor of the relatively new (and very successful) SREC program. (SRECS are Solar Renewable Energy Credits that you can earn and sell for every kWatt hour of solar generation that your system generates.)
2. More information about these changes for the Commonwealth Solar II Rebate program can be found in the latest announcement from the Mass Clean Energy Center. Click here for details on 2012 Funding for the Massachusetts solar rebate program:
3. The Massachusetts SREC program has been running successfully for a year and is one of the most successful solar energy incentives in the nation. Details on the SREC Program can be found here:
4. Blue Selenium Solar is advising our customers to take advantage of the opportunity to leverage both of these programs in 2012, before the phase out of the Commonwealth Solar II Program is completed.
The exact timing of the program phase-out has not been announced, but the program announcement memo noted above shows that the program will have $ 1.5 Million/Quarter in funding for Q1 and Q2 of 2012. The levels of funding for Q3 and Q4 are uncertain. Solar Incentives have never been better in Massachusetts and we suggest that you act now to get the maximum positive benefit for your solar installation.
Blue Selenium Solar is an "expedited solar installer" for the Commonwealth Solar Rebate Program, which means that we can can move very quickly to reserve your position in the rebate queue. We will file all of the paperwork for you. More information can be found on our website
Blue Selenium Solar Residential and Business Solar Energy Solutions -
www.BlueSel.com Email:Info@BlueSel.com Phone 508-833-9500