On June 30, 2017, the Massachusetts Department of Energy Resources (“DOER”) announced an “aspirational” target for Massachusetts’ utilities to procure 200 MWh of energy storage by January 1, 2020. While solar targets are typically expressed in MW, the capabilities of energy storage facilities are often measured both in terms of power (MW) and energy (MWh), reflecting the multiple applications for which energy storage can be used. … More
Category Archives: Distributed Generation
In a letter circulated on January 24, 2017, the Massachusetts Department of Energy Resources (DOER) announced it will present a final proposed design of a new solar incentive program at a meeting on January 31, 2017.
DOER has worked with stakeholders over the last several months to develop a successor program to the Solar Carve Out II Program (SREC II). Final details are not yet available,… More
MA Appellate Tax Board Again Finds Virtually Net Metered Solar Facility Exempted from Property Taxation
The Commonwealth of Massachusetts’ Appellate Tax Board (the “Board”) has again ruled that a ‘virtual’ net-metered solar PV project is exempted from property taxation under clause “forty-fifth” of Massachusetts General Laws, Chapter 59, Section 5. This time, the board promulgated its Findings of Fact and Report in KTT, LLC v. Board of Assessors of The Town of Swansea.
The Findings represent yet another major change in the application of the Commonwealth’s property tax exemption for off-site,… More
On September 23, DOER presented a straw proposal for the next phase of Massachusetts solar incentives. DOER’s ambitious proposal for a tariff-based program reflects a thoughtful development process and a laudable goal of crafting a program that is more efficient at promoting sustained solar deployment. There is plenty to like. But, DOER has bitten off quite a mouthful by proposing a structure that departs so dramatically from the SREC approach. … More
The report on energy storage released by the Massachusetts Department of Energy Resources (DOER) and the Massachusetts Clean Energy Center (MassCEC) on September 16 put forward a bevy of policy proposals that have reinvigorated discussions of energy storage in the Commonwealth. A key policy initiative that seems certain to be implemented is the Advancing Commonwealth Energy storage (ACES) Program a $10 million, competitive grant program for energy storage projects to be administered by MassCEC and DOER. … More
The Massachusetts Department of Energy Resources (“DOER”) and the Massachusetts Clean Energy Center (“MassCEC”) released their long-awaited report on energy storage, “State of Charge” (the “Storage Study”) on Friday. The Storage Study is a central component of the Commonwealth’s “Energy Storage Initiative” and is likely to serve as the basis for future policy initiatives. It recommends a suite of policies designed to promote the development of 600 MW of advanced energy storage (i.e.… More
On April 11, Massachusetts Governor Charlie Baker signed into law compromise legislation modestly raising the cap on the state’s net metering program. Net metering allows customers to generate solar power to offset electricity costs and provide surplus power to the grid.
The program was previously limited to 4 percent of peak electricity demand for private projects and 5 percent for public projects. These limits were reached in National Grid’s service territory last March,… More
On Tuesday, after months of waiting, the Massachusetts Department of Public Utilities (DPU) took action on the Grid Modernization Plans filed last summer by the three Massachusetts Electric Distribution Companies (EDCs), Eversource Energy, National Grid, and Unitil, calling for all interested parties to intervene in the proceedings by March 30, 2016.
The EDCs’ Grid Modernization Plans propose concrete steps to modernize the electric grid,… More
Reflecting the nation’s growing interest in community solar, on May 15, 2015, Maryland passed a law directing the state’s Public Services Commission (PSC) to establish a three-year pilot program for community solar projects, which provide the means for electricity customers to benefit from off-site or group-owned solar panels through “virtual” net metering.
The Maryland law imposes a two-MW limit on the capacity of individual community solar systems and requires that they be located in the same electric service territory as its subscribers,… More
The Supreme Court handed down a decision on Monday in Federal Energy Regulatory Commission v. Electric Power Supply Association affirming FERC’s Order No. 745. Order No. 745 generally requires market operators to pay the locational marginal price (LMP) for demand response (offers to voluntarily curtail electricity use)—the same price paid to generators for producing electricity. (Seth Jaffe previously posted on the decision.) The Supreme Court’s decision reverses a May 2014 decision from the D.C.… More
San Diego Gas & Electric Company Proposes Paying Customers to Install Customer-Owned Energy Storage Resources
One key challenge to tapping the full potential of energy storage systems to improve the function of the electric grid is the absence of obvious paths for the owner of storage resources to realize the revenue opportunities associated with all of the various services that such a resource could provide. Energy storage resources can frequently provide multiple services – often crossing lines between categories of traditional resources that are compensated under different regulatory schemes. … More
Readers expecting the Massachusetts electric distribution companies to file their Grid Modernization Plans yesterday will have to wait another two weeks. On Tuesday, the Massachusetts Department of Public Utilities granted a last minute extension, making the GMP filings due on August 19th. In their request for the extension, the electric distribution companies noted that the “requirement to develop comprehensive, forward-looking GMPs was the first of its kind” and that the GMPs “encompass sophisticated and complex technological investment portfolios,… More
California has been a national leader in promoting policies to support the deployment of energy storage resources. The California Public Utility Commission’s directive that California utilities procure 1,325 MW of energy storage through biennial procurements has spurred significant excitement and economic activity as have capacity procurements that required a portion of need to be met with energy storage. (The California Roadmap, … More
The latest volley in the ongoing debate over the economic value of solar policies comes from Maine, where the state’s Public Utilities Commission (PUC) released an independent study finding that the net value of distributed solar is $0.337 per kWh when levelized over the course of twenty-five years. That is significantly more than the state currently offers as offset credit to customers engaged in photovoltaic net metering.… More
Massachusetts Appellate Tax Board Finds MA Department of Revenue’s Denial of Property Tax Exemption for Virtually Net Metered Solar Facility “Incorrect,” Based on an “Illusory Distinction” and “Entitled to No Deference”
On December 4, 2014, the Commonwealth of Massachusetts’ Appellate Tax Board (the “Board”) promulgated its Findings of Fact and Report in Forrestall Enterprises, Inc. v. Board of Assessors of The Town of Westborough.
The Findings represent a major change in the application of the Commonwealth’s property tax exemption for off-site, net-metered and virtual-net-metered wind and solar systems. For some time now, the Massachusetts Department of Revenue (“DOR”) has taken the position that certain net metered solar and wind systems,… More
Will Time Varying Rates Shift Demand and Reduce Costs in Massachusetts? We Will Find Out (Eventually)
In June, I wrote about the Massachusetts Department of Public Utilities’ proposal to shift “Basic Service”—the default electricity service provided by electric distribution companies and used by most residential customers—from a flat rate structure to a time varying rate. On November 5th, the DPU adopted that proposal without modification.
That means that, in the future, the default service for retail customers in Massachusetts will have a time-of-use pricing structure. … More
The Massachusetts DPU Sets Requirements for Utility Grid Modernization Plans, Starting a Nine Month Period for Utilities to Identify Investments
Massachusetts has taken the next step towards requiring substantial investments to increase the capabilities of its electrical system and create opportunities for new technologies and innovations. On November 5th, the Massachusetts Department of Public Utilities issued an Order, D.P.U. 12-76-C, along with itemized filing requirements and a summary template, laying out what Massachusetts utilities must file in their “Grid Modernization Plans” (“GMPs”)—the ten-year proposals for investments promoting “grid modernization objectives” (such as reducing the effects of outages,… More