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Washington D.C. has passed a law (B24-0950 / L24-0314) to change its renewable energy infrastructure requirements, making the District’s climate goals more aggressive than previously anticipated.
With the number of installs in Washington DC doubling in the past few years, The Local Solar Expansion Act aims to re-balance the supply-demand fundamentals for the market. The bill will change the current solar carve-out from 10% of all delivered electricity to 15% by the year 2041. Additionally, the SACP (Solar Alternative Compliance Payment, or “penalty price”) is being reduced from $500.00 to $480.00 starting in 2024, and then gradually coming off $20.00 each year. This penalty price provides a theoretical ceiling for the cost of Solar Renewable Energy Credits (SRECs) in any given year. With that price being altered to a more conservative ramp-down, investor confidence will remain high and allow for further investment in the district. Although it is one of the smallest SREC markets in the country, the law’s passing allows Washington D.C.to remain one of the most premium.
|
Year |
Previous RPS |
New RPS |
Previous ACP |
New ACP |
|
2023 |
2.85% |
3.00% |
$500 |
$500 |
|
2024 |
3.15% |
3.65% |
$400 |
$480 |
|
2025 |
3.45% |
4.30% |
$400 |
$460 |
|
2026 |
3.75% |
5.00% |
$400 |
$440 |
|
2027 |
4.10% |
5.65% |
$400 |
$420 |
|
2028 |
4.50% |
6.30% |
$400 |
$400 |
|
2029 |
4.75% |
7.00% |
$300 |
$380 |
|
2030 |
5.00% |
7.65% |
$300 |
$360 |
|
2031 |
5.25% |
8.30% |
$300 |
$340 |
|
2032 |
5.50% |
9.00% |
$300 |
$320 |
|
2033 |
6.00% |
9.65% |
$300 |
$300 |
|
2034 |
6.50% |
10.30% |
$300 |
$300 |
|
2035 |
7.00% |
11.00% |
$300 |
$300 |
|
2036 |
7.50% |
11.65% |
$300 |
$300 |
|
2037 |
8.00% |
12.30% |
$300 |
$300 |
|
2038 |
8.50% |
13.00% |
$300 |
$300 |
|
2039 |
9.00% |
13.65% |
$300 |
$300 |
|
2040 |
9.50% |
14.30% |
$300 |
$300 |
|
2041 |
10.00% |
15.00% |
$300 |
$300 |
Flett Exchange will continue monitoring Washington, D.C. SREC markets and provide any additional updates as they are released.