Rodman & Rodman, P.C., providers of specialized green energy and clean technology accounting and tax services, recently spent the day at the Massachusetts State House participating in “Massachusetts Clean Energy Day.” The Representatives and government officials that Rodman & Rodman’s Green Team met at the conference all encouraged an open dialogue between government and Massachusetts business owners in renewable energy and cleantech, an industry that continues to thrive and create jobs in the Commonwealth.
An example of upcoming legislation where renewable energy and cleantech business owners can help by sharing an opinion is House Bill No. 2915. Rodman & Rodman explained that this bill was introduced in January 2013 by a group of four state representatives led by Representative Thomas J. Calter from Plymouth. The bill, if passed, would require utility companies to purchase any SRECs remaining after the close of the SREC auction each year. A utility’s purchase obligation would be determined by the utility’s percentage share of the prior year’s renewable energy portfolio standard compliance obligation. All SRECs would be purchased at the fixed floor price of the auction.
Bill 2915 would help to guarantee a source of income for solar projects. As it stands now, any SRECs not sold in the auction would carry forward to the next year to be auctioned again. As projects are trying to secure financing to begin construction, the ability to show a guaranteed inflow of cash is becoming more and more crucial. By requiring the utilities to buy up all unsold SRECs at the end of the auction, the project is guaranteed to receive at least the auction floor price on the SRECs it produces.
“At present, many projects are selling their SRECs at prices below the auction floor, taking a lower sales price to guarantee a buyer. With the large number of SRECs being produced, buyers can get away with low purchase offers,” explained Steve Rodman, CPA MST, president of Rodman & Rodman.
He continued, “By requiring utilities to purchase the leftover SRECs at the end of the auction, there may be an incentive to hold off on selling SRECs prior to the auction. Since all SRECs will be required to be purchased, perhaps more will be entered into the auction and project owners may be able to demand a higher price for their SRECs from third party purchasers prior to the auction. Perhaps most importantly, the Calter bill would help clear the market and thereby help the distribution companies, competitive suppliers and ratepayers avoid high SREC costs and SACP obligations in the program’s middle years.”
Bill 2915 is currently in the House for consideration. Those who believe this bill would benefit their project or business are encouraged by Rodman & Rodman to contact their representatives and let them know.
About Rodman & Rodman P.C.
Founded in 1961 and listed in the Boston Business Journal’s “Top 50 Firms,” Rodman & Rodman, P.C. provides accounting, tax and business services to small and medium-sized companies. The Rodman & Rodman “Green Team” is a specialized green energy and clean technology accounting and tax services practice within Rodman & Rodman, P.C. that serves “green” clients throughout the U.S. The company is Green Business Certified and has been named by “Accounting Today” as one of the “Best Accounting Firms to Work For” in 2010, 2011, and 2012. For more information, email firstname.lastname@example.org, visit their website at www.rodmancpa.com or contact (617) 965-5959.