Delaware’s utilities are required to get an increasing percentage of their electricity from renewable resources. State law mandates that they derive 25% of their energy portfolios from renewable sources by 2025. This has created a market for the sale of renewable energy credits.
The renewable energy requirement is part of the Renewable Energy Portfolio Standards Act (26 Del.C. § 351 – § 364), passed in 2005, which was intended to establish a market in Delaware for electricity from renewable sources and to lower the consumer cost of renewable energy. The Act allows utilities to meet their portfolio standards by buying renewable energy credits from consumers or others who derive energy from wind, solar and other renewable sources.
The Act requires that Delmarva Power submit an annual report to the Public Service Commission showing compliance with the renewable energy portfolio standards. Their 2015/2016 report is posted on the Public Service Commission website.
Sales of renewable energy credits are made under the Delaware Solar Renewable Energy Credits (SREC) Program. Each spring the SREC program releases an annual procurement program to accept bids for sales of credits.
Installed renewable energy systems must be certified by the Delaware Public Service Commission (PSC) in order to sell renewable energy credits. Information on certification application, fees, and instructions for submission can be found on the PSC’s Renewable Portfolio Standard and Green Power Products page under the heading “RPS Forms.”
Once a system is certified, sellers set up accounts with the Generation Attribute Tracking System (GATS) provided by PJM Environmental Information Services, Inc. This system is an online platform to connect renewable energy credit sellers and buyers and to track their transactions to help meet government standards.
For information about the current value of renewable energy credits or questions concerning how to trade your credits, please contact your installation contractor. There are links and resources on the PSC’s Renewable Portfolio Standards and Green Power Products page. If you have questions regarding the Renewable Portfolio Standards, please contact Pamela Knotts (302.736.7500) and the Public Service Commission.
The Renewable Energy Standards Portfolio Act includes a cost cap provision (26 Del. C. § 354(i) & (j)) that gives the Director of the Division of Climate, Coastal, & Energy the authority to freeze implementation of the Renewable Portfolio Standard if the cost of renewable energy compliance exceeds three percent of total retail costs of electricity for the compliance year or if the solar energy cost of compliance exceeds one percent of the total retail costs of electricity for the compliance year.
Regulation 2102 (7 DE Admin Code 2102) governing this process was promulgated in 2016 and repealed effective August 11, 2017. Regulation 2102 was repealed to comply with a commitment to repeal the regulation made to Superior Court Judge Abigail LeGrow in the lawsuit DPA v. DNREC.