Qualification and Block Reservation Process for Solar Tariff Generation Units

(1) Statement of Qualification Application. A Statement of Qualification Application shall be submitted to the Solar Program Administrator by the Owner of the prospective Solar Tariff Generation Unit or by the Authorized Agent of the Owner. The applicant must use the most current forms and associated instructions provided by the Department, and must include all information, documentation, and assurances required by such forms and instructions. (a) Authorization to Interconnect. In order to retain a Statement of Qualification issued prior to a project’s Commercial Operation Date, all Solar Tariff Generation Units must provide the Solar Program Administrator with a copy of the authorization to interconnect issued by the applicable Distribution Company. (b) Required Documentation for Solar Tariff Generation Units with Rated Capacities of 25 kW or Less. A prospective Solar Tariff Generation Unit with a capacity of 25 kW or less must submit the following documentation as part of its Statement of Qualification Application in order to obtain a Statement of Qualification: 1. Executed Contract. The Owner or their Authorized Agent must submit a copy of an executed contract between the Primary Installer and the Customer of Record. For a Solar Tariff Generation Unit for which the Owner is a Third-party Owner and the Primary Installer is a subcontractor to the Owner, an executed contract between the Owner and the Primary Installer will satisfy this requirement. The contract must identify a project manager, and must include Statement of Qualification Application preparation, equipment procurement and installation, site preparation, permitting and interconnection support, Statement of Qualification Application completion paperwork, training, operations and maintenance, and compliance with all applicable state and local laws. The contract shall include a budget that identifies key project components and a timeline and corresponding payment schedule for installation of the project. Contract service must include responsibility for the Statement of Qualification Application process, including submittal of authorization to interconnect, securing required permits and engineering approvals, installation of the project, scheduling and participation in all required inspections, and providing warranty services, as required. 2. Special Provisions for Third-party Ownership. If the Owner of a Solar Tariff Generation Unit is a Third-party Owner, the Owner or his or her Authorized Agent must also submit a copy of an executed contract power purchase agreement or lease with the Customer of Record. 3. Special Provisions for Low Income Generation Units. Prospective Solar Tariff Generation Units with capacities less than or equal to 25 kW that are seeking Statements of Qualification as Low Income Generation Units must provide evidence that the Customer of Record is classified as a Low Income Customer. 4. Customer Disclosure Form. Prospective Solar Tariff Generation Units with a capacity of 25 kW or less must submit a copy of a customer disclosure form signed by the Owner as part of its Statement of Qualification Application. NON-TEXT PAGE The customer disclosure form will be developed by the Department to provide consumer information including, but not limited to, contract pricing for the length of the agreement, complete system cost information, operation and maintenance responsibilities, disposition of associated RECs and tariff terms, and anticipated production. If the Solar Tariff Generation Unit Owner is a Third-party Owner, the form must be signed by the Customer of Record. (c) Required Documentation for Solar Tariff Generation Units with Rated Capacities Larger than 25 kW. All Generation Units with a capacity larger than 25 kW must provide evidence of the following in order to obtain a Statement of Qualification: 1. an executed Interconnection Service Agreement, as tendered by the Distribution Company; 2. demonstrate a sufficient interest in real estate or other contractual right to construct the Solar Tariff Generation Unit at the location specified in the Interconnection Service Agreement; and 3. all necessary governmental permits and approvals to construct the Solar Tariff Generation Unit with the exception of ministerial permits, such as a building permit, and notwithstanding any pending legal challenge(s) to one or more permits or approvals. (d) Special Provisions for Agricultural Solar Tariff Generation Units. In order to qualify as an Agricultural Solar Tariff Generation Unit, a Solar Tariff Generation Unit must submit documentation itemized in 225 CMR 20.06(1)(d). All final determinations regarding the eligibility of such facilities will be made by the Department, in consultation with MDAR. An Agricultural Solar Tariff Generation Unit must also submit satisfactory documentation to the Department as detailed in the Department’s Guideline Regarding the Definition of Agricultural Solar Tariff Generation Units. 1. the Solar Tariff Generation Unit will not interfere with the continued use of the land beneath the canopy for agricultural purposes; 2. the Solar Tariff Generation Unit is designed to optimize a balance between the generation of electricity and the agricultural productive capacity of the soils beneath; 3. the Solar Tariff Generation Unit is a raised structure allowing for continuous growth of crops underneath the solar photovoltaic modules, with height enough for labor and/or machinery as it relates to tilling, cultivating, soil amendments, harvesting, etc. and grazing animals; 4. crop(s) to be grown to be provided by the farmer or farm agronomist in conjunction with UMass Amherst agricultural extension services, including compatibility with the design of the agricultural solar system for such factors as crop selection, sunlight percentage, etc.; 5. annual reporting to the Department and MDAR of the productivity of the crop(s) and herd, including pounds harvested and/or grazed, herd size growth, success of the crop, potential changes, etc., shall be provided after project implementation and throughout the SMART incentive period; and 6. other system design information, which shall include, but not be limited to: a. dual-use type, e.g., ground mount racking, pole towers, tracking, etc.; b. total gross acres of open farmland to be integrated with the project; c. type of crop(s) to be grown, including grazing crops; d. pounds of crop(s) projected to be grown and harvested, or grazed; e. animals to be grazed with herd size(s); and f. design drawing including mounting system type (fixed, tracking), panel tilt, panel row spacing, individual panel spacing, for pole tower spacing and mounting height, etc. (e) Special Provisions for Energy Storage Systems. Solar Tariff Generation Units co-located with an Energy Storage System will be eligible to receive an energy storage adder under 225 CMR 20.07(4)(c), provided it meets the following eligibility criteria: 1. Minimum and Maximum Nominal Rated Power. The nominal rated power capacity of the Energy Storage System paired with the Solar Tariff Generation Unit must be at least 25%. The nominal rated power capacity of the Energy Storage System paired with the Solar Tariff Generation Unit may be more than 100% of the rated capacity, as measured in direct current, of the Solar Tariff Generation Unit, but the Solar Tariff Generation Unit will receive credit for no nominal rated power capacity greater than 100% in the calculation of its Energy Storage Adder, pursuant to 225 CMR 20.07(4)(c). 2. Minimum and Maximum Nominal Useful Energy. The nominal useful energy capacity of the Energy Storage System paired with the Solar Tariff Generation Unit must be at least two hours. The nominal useful energy capacity of the Energy Storage System paired with the Solar Tariff Generation Unit may be more than six hours, but the Solar Tariff Generation Unit will receive credit for no nominal useful energy capacity greater than six hours in the calculation of its Energy Storage Adder, pursuant to 225 CMR 20.07(4)(c). 3. Minimum EfficiencyRequirement. The EnergyStorage System paired with the Solar Tariff Generation Unit must have at least a 65% round trip efficiency in normal operation. 4. Data Provision Requirements. The Owner of the Energy Storage System must provide historical 15-minute interval performance data in a manner established by the Department for the first year of operation, and upon request, for the first five years of operation. 5. Operational Requirements. The Energy Storage System must discharge at least 52 complete cycle equivalents per year, or must participate in a demand response program, and must remain functional and operational in order for the Solar Tariff Generation Unit to continue to be eligible for the energy storage adder. If the Energy Storage System is decommissioned or nonfunctional for more than 15% of any 12-month period, the Department may disqualify the Solar Tariff Generation Unit from continuing to receive the energy storage adder. 6. Metering and Reporting Requirements. The Department shall develop a Guideline Regarding Metering of Solar and Energy Storage Systems that shall include acceptable metering and reporting capabilities for Solar Tariff Generation Units co-located with Energy Storage Systems. (f) Special Provisions for Low Income Community Shared Solar Tariff Generation Units. In order to qualify as a Low Income Community Shared Solar Tariff Generation Unit, a Solar Tariff Generation Unit must meet the following criteria: 1. No more than two participants may receive bill credits in excess of those produced annually by 25 kW of nameplate capacity, and the combined share of said participants' capacity shall not exceed 50% of the total capacity of the Generation Unit, except in the case of Generation Units smaller than 100 kW. 2. The Owner or Authorized Agent of a prospective Low Income Community Shared Solar Tariff Generation Unit must submit a copy of a customer disclosure form signed by each Customer of Record receiving electricity or bill credits generated by the Low Income Community Shared Solar Tariff Generation Unit as part of its Statement of Qualification Application, with the exception of those participants receiving bill credits in excess of those produced annually by 25 kW of nameplate capacity. The customer disclosure form will be developed by the Department to provide consumer information including, but not limited to, contract pricing for the length of the agreement, complete system cost information, operation and maintenance responsibilities, disposition of associated RECs and tariff terms, and anticipated production. The Low Income Community Shared Solar Tariff Generation Unit Owner or Authorized Agent must provide updated customer disclosure forms for anynew Customers of Record that receive electricity or bill credits generated by the Low Income Community Shared Solar Tariff Generation Unit after it is granted its Statement of Qualification. These updates must be provided annually by no later than December 31st . 3. The Solar Tariff Generation Unit must demonstrate that no individual or distinct legal entity will receive bill credits or electricity in an amount that exceeds the applicable limitations noted in 225 CMR 20.06(1)(f)1., even if the credits are allocated across multiple utility accounts. 4. Electricity or bill credits may be allocated through a municipal load aggregation program established pursuant to M.G.L. c. 164, § 134, or through a low income community shared solar program established and administered by a Distribution Company. Low Income Community Shared Solar Tariff Generation Units that qualify through such eligible programs must submit satisfactory documentation to the Department as detailed in the Department's Guideline Regarding Low Income Generation Units and Guideline Regarding Alternative Programs for Community Shared Solar Tariff Generation Units and Low Income Community Shared Solar Generation Units. (g) Special Provisions for Low Income Property Generation Units. In order to qualify as a Low Income Property Generation Unit, a Solar Tariff Generation Unit must submit satisfactory documentation to the Department as detailed in the Department's Guideline Regarding Low Income Generation Units. (h) Special Provisions for Community Shared Solar Tariff Generation Units. In order to qualify as a Community Shared Solar Tariff Generation Unit, a Solar Tariff Generation Unit must meet the following criteria: 1. No more than two participants may receive bill credits in excess of those produced annually by 25 kW of nameplate capacity, and the combined share of said participants' capacity shall not exceed 50% of the total capacity of the Generation Unit, except in the case of Generation Units smaller than 100kW. 2. The Owner or Authorized Agent of a prospective Community Shared Solar Tariff Generation Unit must submit a copy of a customer disclosure form signed by each Customer of Record receiving electricity or bill credits generated by the Community Shared Solar Tariff Generation Unit as part of its Statement of Qualification Application, with the exception of those participants receiving bill credits in excess of those produced annuallyby25 kW of nameplate capacitynoted in 225 CMR 20.06 (1)(i)1. The customer disclosure form will be developed by the Department to provide consumer information including, but not limited to, contract pricing for the length of the agreement, complete system cost information, operation and maintenance responsibilities, disposition of associated RECs and tariff terms, and anticipated production. The Community Shared Solar Tariff Generation Unit Owner or Authorized Agent must provide updated customer disclosure forms for any new Customers of Record that receive electricity or bill credits generated by the Community Shared Solar Tariff Generation Unit after it is granted its Statement of Qualification. These updates must be provided at least annually by no later than December 31st . 3. A Solar Tariff Generation Unit seeking a Community Shared Solar adder must allocate at least 90% of bill credits or electricityby the Incentive Payment Effective Date. i. Failure to do so will result in the Solar Tariff Generation Unit going to the last position of the application queue for the applicable service territory as established pursuant to the Statement of Qualification Reservation Period Guideline. ii. Within 60 days following the Publication Date, a previously qualified Community Shared Solar Tariff Generation Unit may elect to remove their application for the adder and retain its queue position. Any capacity that is made available during this 60-daytime period shall be reallocated to the remaining qualified Community Shared Solar Tariff Generation Units, and tranches reassigned as necessary according to the available capacity established pursuant to the Guideline on Capacity Blocks, Base Compensation Rates, and Compensation Rate Adders. 4. The Solar Tariff Generation Unit must demonstrate that no individual or distinct legal entity will receive bill credits or electricity in an amount that exceeds the applicable limitations noted in 225 CMR 20.06(1)(h)1., even if the credits are allocated across multiple utility accounts. 5. Electricity or bill credits may be allocated through a municipal load aggregation program established pursuant to M.G.L. c. 164, § 134, or through a community shared solar program established and administered by a Distribution Company. Community Shared Solar Tariff Generation Units that qualify through such eligible programs must submit satisfactory documentation to the Department as detailed in the Department's Guideline Regarding Alternative Programs for Community Shared Solar Tariff Generation Units and Low Income Community Shared Solar Tariff Generation Units. (i) Special Provisions for Floating Solar Tariff Generation Units. In order to qualify as a Floating Solar Tariff Generation Unit, a Solar Tariff Generation Unit must submit documentation itemized in 225 CMR 20.06(1)(i)1. through 7. All final determinations regarding the eligibility of such facilities will be made by the Department, in consultation with MassDEP and the Massachusetts Department of Fish and Game, or other state agencies as necessary. 1. the Solar Tariff Generation Unit will not interfere with the continued use of the water body for its designed purposes; 2. the racking system shall be made of materials that have been tested for water quality impact; 3. the Solar Tariff Generation Unit will not be permitted in wetland resource areas and natural waterbodies such as salt ponds, or freshwater lakes and great ponds, as defined in M.G.L. c. 91; 4. the ratio of the total surface area covered by the Floating Solar Tariff Generating Unit divided by the total surface area of the water body under standard conditions shall not exceed 50%; 5. the Solar Tariff Generation Unit shall be designed to minimize potential interaction with native species; 6. the Solar Tariff Generation Unit is a floating structure allowing for continued use and maintenance of the water body while generating electricity; and 7. other system design information which shall include, but not be limited to: a. total gross acres of open water to be integrated with the project; b. designated function of water body; c. anchoring system design and materials; and d. design drawing including mounting system type, panel tilt, panel row spacing, individual panel spacing, etc. (j) Special Provisions for Canopy Solar Tariff Generation Units. In order to qualify as a CanopySolar Tariff Generation Unit, a Solar Tariff Generation Unit must submit documentation itemized in 225 CMR 20.06(1)(j)1. and 2. All final determinations regarding the eligibility of such facilities will be made by the Department, in consultation with other state agencies including, but not limited to, the Massachusetts Department of Transportation, MassDEP, Massachusetts Department of Conservation and Recreation, and the Massachusetts Department of Fish and Game, as necessary. 1. The Solar Tariff Generation Unit will have 100% of its nameplate capacity of the solar photovoltaic modules used for generating power installed on top of a parking surface, pedestrian walkway, or canal; or 2. The Solar Tariff Generation Unit will have 100% of its nameplate capacity of the solar photovoltaic modules used for generating power installed over certain roadways or highways or adjacent parcels owned or controlled by the Massachusetts Department of Transportation; and 3. The Solar Tariff Generation Unit will maintain the function of the area beneath the canopy. (k) Special Provision for Serving Low Income Customers. After the Publication Date, a Solar Tariff Generation Unit that services eligible Low Income Customers must demonstrate to the Department's satisfaction that any such customers shall receive a net savings by enrolling in the solar contract, as detailed in the Department's Guideline Regarding Low Income Generation Units. (l) Special Provisions for Public Entity Solar Tariff Generation Units. A Public Entity Solar Tariff Generation Unit may apply for a Statement of Qualification pursuant to 225 CMR 20.06(1)(c) by providing satisfactory evidence to the Department that a Municipality or Other Governmental Entity has awarded a contract to develop a Solar Tariff Generation Unit. (m) Auditing of Customer Disclosure Forms. The Department shall conduct periodic audits of the customer disclosure forms submitted subject to the requirements of 225 CMR 20.06(1)(b)3. 225 CMR 20.06(1)(f) and 225 CMR 20.06(1)(h) pursuant to the Guideline on SMART Consumer Protection. If the Department audit identifies material defects in the information provided including, but not limited to, discrepancies between the information provided on the customer disclosure form and the customer contract, or if the audit finds the application does not meet the criteria for a Low Income Solar Tariff Generation Unit or a Low Income Community Shared Solar Generation Unit, the applicant shall be issued a warning by the Department. If a single applicant is issued three warnings by the Department, the Department shall notify the applicant that, effective upon date of issuance of the third warning, that applicant may not submit any further Statement of Qualification Applications for a period of 12 months. (n) Customer Disclosure Form Exception. Prospective Solar Tariff Generation Units seeking to qualify as a Low Income Community Shared Solar Tariff Generation Unit or Community Shared Solar Tariff Generation Unit may be exempt from the customer disclosure form requirements in 225 CMR 20.06(1)(f) and 20.06(1)(h) if the applicant can demonstrate to the Department's satisfaction that the Customers of Record are enrolled without a customer contract. In these instances, Solar Tariff Generation Units may be required to demonstrate that the Customer(s) of Record have received an explanation of benefits, pursuant to the documentation outlined in the Guideline Regarding Alternative Programs for Community Shared Solar Tariff Generation Units and Low Income Community Shared Solar Tariff Generation Units, or further Department guidance. (2) Application Review Procedures. (a) The Solar Program Administrator will notify the applicant when the Statement of Qualification Application is administratively complete or if additional information is required pursuant to 225 CMR 20.06(2). (b) The Department may, at its sole discretion, provide an opportunity for public comment on any Statement of Qualification Application. (3) Issuance or Non-issuance of a Statement of Qualification. (a) If the Department finds that a Generation Unit meets the requirements for eligibility as a Solar Tariff Generation Unit pursuant to 225 CMR 20.00, the Solar Program Administrator will provide the Owner of such Unit or the Authorized Agent of the Owner with a Statement of Qualification. (b) The Statement of Qualification shall include any applicable restrictions and conditions that the Department deems necessary to ensure compliance by a particular Solar Tariff Generation Unit with the provisions of 225 CMR 20.00. (c) If a Generation Unit does not meet the requirements for eligibility as a Solar Tariff Generation Unit under 225 CMR 20.00, the Solar Program Administrator shall provide written notice to the Owner or to the Authorized Agent of the Owner, including the reasons for such finding. (4) RPS Effective Date. The RPS Effective Date shall be the earliest date on or after the Commercial Operation Date on which electrical energy output of a Solar Tariff Generation Unit can result in the creation of RPS Class I Renewable Generation Attributes. (5) Notification Requirements for Change in Eligibility Status. The Owner or Authorized Agent of a Solar Tariff Generation Unit shall notify the Solar Program Administrator of any changes that may affect the continued eligibility of the Generation Unit as a Solar Tariff Generation Unit. The Owner or Authorized Agent shall submit the notification to the Solar Program Administrator no later than five days following the end of the month during which such changes were implemented. The notice shall state the date the changes were made to the Solar Tariff Generation Unit and describe the changes in sufficient detail to enable the Solar Program Administrator and the Department to determine if a change in eligibility is warranted. (6) Notification Requirements for Change in Ownership, Generation Capacity, or Contact Information. The Owner or Authorized Agent of a Solar Tariff Generation Unit shall notify the Solar Program Administrator of any changes in the ownership, capacity, or contact information for the Solar Tariff Generation Unit. The Owner or Authorized Agent shall submit the notification to the Solar Program Administrator no later than five days following the end of the month during which such changes were implemented. (7) Statement of Qualification Reservation Period. A Solar Tariff Generation Unit may retain its Statement of Qualification pursuant to the procedures set forth in the Statement of Qualification Reservation Period Guideline.