For many in DC, solar installation is motivated by solar renewable energy credits (SRECs), incentives that are particularly valuable in DC compared to the rest of the country. The price of SRECs is determined, in part, by alternative compliance payments (ACPs), a penalty for those electricity suppliers that don’t meet DC’s Renewable Portfolio Standards (RPS).
The ACP is currently $500 per MWh but will decline to $400 in 2024 and $300 in 2029. With this new legislation, the ACP will remain $500 indefinitely, allowing for the increased value of SRECs, generating a premium for new and existing solar power system owners through 2041.
Essentially, the Local Solar Expansion Amendment Act of 2022 will amend the District’s renewable portfolio standards to increase DC’s local solar carve-out from 10% to 15% by 2041 while ensuring the alternative compliance payment isn’t phased out. These
amendments will guarantee local solar development continues to grow, allowing DC to meet its emissions-reduction goals and strengthen the city’s energy system.
Council member Cheh commented, “We also recently passed my legislation accelerating the District’s targets for reducing our greenhouse gas emissions. This bill will complement that legislation by ensuring that local solar continues to grow. This will help us meet our emissions-reduction targets while also making the District’s energy system more resilient.”