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Public Service Commission of the District of Columbia Decertifies Solar Energy - Systems Not Located in the District of Columbia
Solar systems that were located outside of the District of Columbia had a chance to become certified in the District prior to February 1, 2011. Those systems that were certified will become de-certified as of January 1, 2025.
Background: Prior to February 1, 2011 SRECs in PJM and also as far away as New York could be sold into DC for compliance. However, DC prices were very low at that time. In fact, most DC located solar was sold into PA because at the time PA prices were higher. Some system owners outside of DC registered in DC. They lucked out when laws were changed in DC making DC SRECS go higher and also ending the ability to register in DC. There were some installers who sold systems in DC and in the contracts had the system owners sell the installer the rights to the SRECs. Those same installers then lobbied the Public Service Commission of DC to increase the prices and exclude all other systems. These solar owners collected millions of dollars in SREC payments from electric users in DC over the last decade due to that law change. Now the loophole is being closed.
If your system is currently certified in DC but is located outside of DC or if it is not on a feeder line connected with DC it will become decertified for DC compliance beginning with your SRECs generated in January 2025. You will be able to sell them in your state as long as it is certified in that state. System owners who did not register in their state may actually have to do an initial registration. Contact Flett Exchange and we will assist you.
Here is the language:
PUBLIC SERVICE COMMISSION OF THE DISTRICT OF COLUMBIA
1325 G STREET, N.W., SUITE 800
WASHINGTON, D.C. 20005
ORDER
October 24, 2024
FORMAL CASE NO. 1181, IN THE MATTER OF THE INVESTIGATION INTO ELECTRIC SERVICES MARKET COMPETITION AND REGULATORY PRACTICES,
Order No. 22318
I. INTRODUCTION
1. By this Order, the Public Service Commission of the District of Columbia (“Commission”), pursuant to the Renewable Energy Portfolio Standard Amendment Act of 2024 (“Act”), decertifies, effective January 1, 2025, all solar energy systems not located within the District of Columbia (“District”), or in a location served by a distribution feeder serving the District, that were previously certified by the Commission to produce renewable energy credits meeting the solar requirement (“SREC”) of the Renewable Portfolio Standard (“RPS”) prior to February 1, 2011.
II. BACKGROUND
2. On July 26, 2024, the Council of the District of Columbia enacted the Fiscal Year 2025 Budget Support Act of 2024 (“Act”).1 On September 18, 2024, the Act passed Congressional Review and became law. The Act included Title VI, Subtitle B, also known as the Renewable Energy Portfolio Standard Amendment Act of 2024 (“RPS Amendment Act”).2 Notably, the RPS Amendment Act amended the language of D.C. Official Code § 34-1432 to mandate that:
“Any solar energy system not located within the District or in a location served by a distribution feeder serving the District and that was certified as eligible to produce renewable energy credits meeting the solar requirement of the renewable energy portfolio standard by the Commission prior to February 1, 2011, shall be decertified by the Commission effective January 1, 2025.”
III. DISCUSSION
3. Pursuant to the RPS Amendment Act, the Commission hereby decertifies, as of January 1, 2025, all solar energy systems that were certified to produce SRECs prior to February 1, 2011, not located within the District or served by a distribution feeder serving the District. A list of the applicable solar energy systems this Order decertifies is contained in the Appendix attached herein. The Commission clarifies that the RPS Amendment Act and this accompanying Order do not affect or decertify systems not located in the District, or in a location served by a distribution feeder serving the District, that were certified by the Commission for the generation of Tier One Renewable Energy Credits (“REC”) applicable to the non-solar portion of the RPS. However, any facility decertified by this Order specifically that wishes to continue to produce RECs for the non-solar portion of the District’s RPS must first be certified anew under 15 DCMR § 2902.4
THEREFORE, IT IS ORDERED THAT:
4. On January 1, 2025, all solar energy systems not located within the District or in a location served by a distribution feeder serving the District that were certified prior to February 1, 2011, by the Commission to produce Solar Renewable Energy Credits, are hereby DECERTIFIED.
A TRUE COPY: BY DIRECTION OF THE COMMISSION:
CHIEF CLERK: BRINDA WESTBROOK-SEDGWICK
COMMISSION SECRETARY