Class I Renewable Energy Certificates (RECs)

What's a REC?

Under the Massachusetts Renewable Energy Portfolio Standard (RPS), a Renewable Energy Certificate (REC) represents the positive environmental attributes associated with clean energy production. Retail electricity suppliers are required to source a percentage of the electricity they provide to customers from qualifying renewable energy facilities. This requirement is met through the acquisition of RECs. While the Solar Renewable Energy Certificate (SREC) are specific to solar photovoltaic systems, RPS Class I RECs include a wider range of renewable technologies, making the program more inclusive. Eligible technologies include:

• Solar photovoltaic
• Solar thermal electric
• Wind energy
• Small hydropower
• Landfill methane and anaerobic digester gas
• Marine or hydrokinetic energy
• Geothermal energy
• Eligible biomass fuel

The RPS is a regulation that is administered by the Massachusetts Department of Energy Resources (DOER).

About RPS Class I REC

The Massachusetts Renewable Energy Portfolio Standard (RPS) requires retail electricity suppliers (both regulated distribution utilities and competitive suppliers) obtain a percentage of the electricity they serve to their customers from qualifying renewable energy facilities. Suppliers meet their annual RPS obligations by acquiring a sufficient quantity of RPS-qualified renewable energy certificates (RECs). The SREC I and SREC II programs were created as carve-outs of the RPS Class I REC program to incentivize adoption of solar PV.

Key points:

• Multiple technology types are eligible to participate in RPS Class I RECs.
• Eligible facilities generate RPS Class I RECs as long as they are operational. There is no established end date.
• One REC is generated from 1000 kWh.

Transition of Systems from SREC to RPS Class I REC

Effective January 1,2022, any SREC system whose SREC eligibility term has expired will be qualified to generate RPS Class I RECs. To ease the transition to Class I, MassCEC PTS will remain the Independent Verifier for all previously qualified SREC systems. These systems can continue to provide production data to PTS each month for verification and quarterly reporting to NEPOOL GIS to issue RPS Class I RECs. Learn More from DOER.

Production Tracking System (PTS) Registration, Transfers, Updates and Aggregations

While the Production Tracking System (PTS), managed by MassCEC, has been designated by the Department of Energy Resources (DOER) as the sole and required independent verifier for the SREC I and II programs, PTS is not the sole independent verifier for the RPS Class I REC program. The SREC I and II programs were designed specifically for solar energy. However, the RPS Class I REC program covers a broader range of renewable energy resources. A full list of Qualified Independent Verifiers is maintained by DOER at the link below. If your system is participating in the RPS Class I REC program but is not registered with MassCEC PTS as the Independent verifier, please contact the DOER team at rps.doer@mass.gov for any system registration, transfer, or update needs. The instructions in the section below apply only to systems registered with MassCEC PTS as the Independent Verifier.

Qualified Independent Verifiers - Refer to “Independent Verifier Form for Generation Units Not Monitored by ISO-NE" Section

New Applications

For more information on how to apply to participate in the RPS Class I REC program, please visit DOER’s website.

At this time, MassCEC PTS is only able to act as the Independent Verifier of RPS Class I RECs for systems that have transferred from SRECs to RPS Class I and eligible expansions to these systems. An eligible expansion typically includes modifications such as increasing system capacity by adding additional solar panels or upgrading system equipment, provided these changes meet the program’s requirements. For more information on expansion eligibility, please see our expansion guidelines.

Transfer of System Ownership or Aggregation

If you transfer ownership of your solar system when you move, or if you decide to work with a different aggregator, it is important that you notify DOER so that they can update their records and make sure that the correct individual or aggregation receives the appropriate RECs. If you are working with an aggregator, you should first contact them so they can handle the transfer process for you. The aggregator must submit the owner or aggregator change request online through the PTS website along with an updated REC services agreement and owner change documentation. Once DOER approves the transfer, the change request will be sent to PTS for processing.

Please note that the decision to transfer RECs at the time of a property sale is up to the buyer and seller of the property.

System Information Updates

If you need to update your system information (such as equipment details or other corrections) you will need to notify DOER - please follow these steps:

• Complete the  Change Request Form (this form is required for all corrections or updates),
• Email your completed form to to doer.srec@mass.gov.
• If you are working with an aggregator, you should first contact them so they can handle the request for you.

Expanding Your System:

Expansions to RPS Class I REC qualified projects are permitted and will not impact program eligibility, unlike the Solar Carve-Out (SREC I) or Solar Carve-Out II (SREC II) Programs. However, the process for registering an expanded system and Independent Verification of the production may vary depending on how the expanded capacity is installed and metered.

• If your expanded capacity meets MassCEC’s expansion guidelines, MassCEC will serve as the Independent Verifier for eligible expansion. System Owners or GIS Account Holders should e-mail pts@masscec.com to notify MassCEC of the expanded capacity.
• If a system does not meet these criteria:
• Select a different Independent Verifier (an organization approved by the DOER to confirm renewable energy production) from the program’s approved list.
• Notify MassCEC PTS so we can notate the existing records for future reference.
• Note: System changes that alter your eligibility may result in the loss of Independent Verifier services provided by MassCEC.

Reporter Changes:

Reporter changes can be submitted by the system owner or aggregator through an online change request on the PTS website.

Information on Aggregators & Traders/Brokers

Owners of qualified solar PV systems of any size may establish accounts with NEPOOL GIS and participate in the marketing and sale of RECs. However, many owners find it easier to join an aggregation, which brings together multiple PV systems and owners under a single aggregation.

When joining an aggregation, owners typically sign a contract outlining the terms, including commitment period, payment frequency, and fees associated with the service. The aggregator then manages the entire process on behalf of its members: submitting an application for qualification to the DOER, establishing and maintaining an account at NEPOOL GIS, and handling the marketing and sale of RECs. After RECs are sold, owners receive proceeds according to the aggregation agreement. This streamlined process allows owners to benefit from the aggregator’s expertise and resources while reducing their administrative burden.

List of Aggregators – Reference “REC Services Agreement for Generation Units in an Aggregation” Section

Reporting Production to PTS

Timing Requirements

Production must be reported to PTS monthly to remain RPS Class I REC compliant. The reporting window is open for 10 days each month: the last 5 days of the month through the first 5 days of the following month. Reporting can occur at any point during this 10-day window. Not reporting metered data during the reporting period may result in forfeiture of RPS Class I RECs that would have otherwise been generated during the unreported period.

Meter Requirements

All generation from qualified solar projects participating in the RPS Class I REC market with MassCEC as Independent Verifier must be individually metered and production must be reported to the PTS. NEPOOL GIS Rule 2.5(j) states that only "revenue grade" (also called "revenue quality") meters tested and certified to ANSI C-12 standards are allowed to report generation data. RPS Class I REC meter requirements mirror those for SREC, with different accuracy classes required depending on the system size. Please reference MassCEC's approved meter list.

To apply to have a new revenue-grade meter added to MassCEC’s approved meter list, please fill out the meter application and submit it to pts@masscec.com.

• SREC/Class I REC Meter Requirements

Data Acquisition System (DAS) Service Provider Requirements

For projects less than or equal to 25 kilowatts (kW) DC, data can be reported manually or automatically to the PTS. This requirement was modified from 10 kW DC effective January 2022.

For projects greater than 25 kW DC, data must be reported automatically through a Data Acquisition System (DAS) to the PTS. A list of approved Data Acquisition System (DAS) Service Providers is available. To apply to become an approved DAS Provider, please fill out the DAS application and submit it to pts@masscec.com.

• Manual Reporting Information
• DAS Reporting Information

REC Minting and Sales Process

Reporting and Minting Timelines

MassCEC’s PTS team reports the RPS Class I RECs (based on reported production) to NEPOOL GIS for minting once per calendar quarter, with a one-quarter delay. Please see the table for details.

Note: To guarantee receiving credit for production in a particular calendar quarter, you must ensure that all production from that quarter is reported to the PTS prior to the NEPOOL reporting deadlines listed in the table. If a quarter is reported to NEPOOL before missing production is prorated, any prorated production will not automatically be captured in the following reporting quarter, which may result in a loss of RPS Class I RECs. For more information on requesting reconciliation for missed production, please refer to the RPS Class I REC True-Up Guidelines.

RPS Class I REC Reporting and Minting Schedule

Pricing and Payments

For systems that have transferred from SRECs to RPS Class I RECs, it is important to note that RPS Class I RECs have a significantly lower value than SRECs, which will impact the value of payments received.

While RPS Class I REC values are generally determined by market supply and demand in a given compliance year, DOER plays a role in establishing a parameter on market prices by setting an Alternative Compliance Payment (ACP) Rate. This serves as a ceiling price and allows suppliers to meet their annual obligations by paying at this rate in lieu of purchasing RECs. For every MWh a supplier is short of meeting its compliance obligation, it must make an ACP to DOER. Therefore, the ACP Rate incentivizes retail electricity suppliers to purchase RECs from qualified facilities at a price below the ACP Rate to meet their compliance obligations. Revenue collected from ACPs is used by DOER to support new renewable energy, energy efficiency, and other clean energy projects throughout the Commonwealth.

Receiving RPS Class I REC payments from your aggregator can vary in both timing and amount depending on your contract with them and the market value of RPS Class I RECs. We recommend that you carefully review and compare contracts from the aggregators and choose the option that best suits you. Questions about RPS Class I REC payments should be directed to your aggregator.

More Resources and Contacts

• PTS Help Center
• Email DOER about SRECs: doer.srec@mass.gov
• Email DOER about Class I RECs: doer.rps@mass.gov
• DOER, DPU, and Utility Resources