Massachusetts’ latest piece of support for renewable energy is S. 2395, “An Act Relative to Competitively Priced Electricity in the Commonwealth.” In addition to providing for extended long-term contracting for renewables, the law also notably increased the cap on net metering capacity, from 3% of peak load to 6%. With many distributors closing in on or reaching the 3% cap, this extension should continue to provide an incentive for both renewable energy producers and financers to keep building projects in Massachusetts.
Measures like S. 2395 are in good company in Massachusetts and on the east coast in general: several states have rolled out significant support for renewable energy, thanks to mechanisms like renewable portfolio standards, Solar Renewable Energy Credit (SREC) policy in Massachusetts, Low-Emission/Zero-Emission Renewable Energy Credits (LREC/ZREC) and self-generation incentives in Connecticut, and recent performance-based incentives in New York.
With this kind of policy and incentive support available outside of California, we at Schwartz MSL are continuing to see more and more cleantech companies taking a bi-coastal approach, with a significant focus on New England and the mid-Atlantic complementing work in California.
For those with an eye on November, this drumbeat of state-based policy mechanisms may also be a sign that the upcoming presidential election may not be as “make-or-break” for the cleantech industry as many might think. Regardless of the energy stance of whoever sits in the oval office in 2013, the cleantech industry may very well continue to see crucial incentives and policy support getting rolled out at the state level.
Posted by Dave Lipson on August 8, 2012 at 9:48 AM