Calculation of Incentive Payments for Solar Tariff Generation Units

(1) Calculation of Incentive Payments for Standalone Solar Tariff Generation Units. Any payments provided to the Owner of a Standalone Solar Tariff Generation Unit, which meets the criteria of 225 CMR 20.08(1)(a) or (b), will be equal to total of the Solar Tariff Generation Unit's Base Compensation Rate plus any Compensation Rate Adders minus any Greenfield Subtractor, multiplied by the total kWh generated by the Solar Tariff Generation Unit in the Distribution Company billing period, minus the value of the energy generated by the Solar Tariff Generation Unit in a Distribution Company billing period. Standalone Solar Incentive Payment = (Base Compensation Rate + Compensation Rate Adders – Greenfield Subtractor) * total kWh generated – value of energy generated (a) Value of Energy Generated for Standalone Solar Tariff Generation Units Receiving Bill Credits. The methodology for calculating the value of the energy generated by a Standalone Solar Tariff Generation Unit that receives a bill credit is dependent on whether it is qualified as a Net Metered Generation Unit or as an Alternative On-bill Credit Generation Unit and will be determined as follows: 1. Net Metered Generation Unit. The value of energy for a Net Metered Generation Unit shall be equal to the total kWh generated during a utility billing period multiplied by the Solar Tariff Generation Unit's applicable net metering credit, as established in M.G.L. c. 164, § 138. Net Metered Generation Unit Energy Value = total kWh Generated * net metering credit rate 2. Alternative On-bill Credit Generation Unit. The value of energy for an Alternative On-bill Credit Generation Unit shall be equal to the total kWh generated during a utility billing period multiplied by the Solar Tariff Generation Unit's applicable credit value under its applicable tariff structure. Alternative On-bill Credit Generation Unit energy value = total kWh generated * energy compensation rate (b) Value of Energy Generated for Non-net Metered Generation Units. The value of energy for a Non-net Metered Generation Unit shall be equal to its total compensation received from a Distribution Company as a State Qualifying Facility under 220 CMR 8.00: Sales of Electricity by Qualifying Facilities and On-site Generating Facilities to Distribution Companies, and Sales of Electricity by Distribution Companies to Qualifying Facilities and On-site Generating Facilities. Non-net Metered Generation Unit energy value = total kWh generated * State Qualifying Facility value (2) Calculation of Incentive Payments for Behind-the-Meter Solar Tariff Generation Unit. Payments provided to the Owner of a Behind-the-Meter Solar Tariff Generation Unit by a Distribution Company for RPS Class I Renewable Generation Attributes and Environmental Attributes will be fixed at the point in time that a Solar Tariff Generation Unit receives its Statement of Qualification for the duration that the Solar Tariff Generation Unit is eligible under 225 CMR 20.00 and will be equal to the total of the Solar Tariff Generation Unit's Base Compensation Rate plus anyCompensation Rate Adders minus anyGreenfield Subtractor, minus the value of energy, multiplied by the total kWh generated by the Solar Tariff Generation Unit in the Distribution Company billing period. Behind-the-meter Solar Incentive Payment = [(Base Compensation Rate + Compensation Rate Adders – Greenfield Subtractor) - value of energy] *total kWh generated The methodology for calculating the value of the energy for a Behind-the-meter Solar Tariff Generation Unit is dependent on whether the Generation Unit is qualified as a Net-metered Generation Unit, an Alternative On-bill Credit Generation Unit, or a Non-net Metering Generation Unit, and will be determined as follows: (a) Value of Energy for Net-metered Generation Units. The value of energy shall be equal to the sum of the Owner's current distribution kWh charge, current transmission kWh charge, current transition kWh charge, and the average of the basic service kWh charge in the prior three calendar years Net-metered value of energy = (distribution kWh charge + transmission kWh charge + transition kWh charge) + three-year average of basic service kWh charge) (b) Value of Energy for Alternative On-bill Credit Generation Units and Non-net Metered Generation Units. The value of energy shall be equal to 65% of the sum total of the average of the basic service kWh charge in the prior three calendar years, current distribution kWh charge, current transmission kWh charge, and current transition kWh charge, plus 35% of the average of the basic service kWh charge in the prior three calendar years, as of the date of the Solar Tariff Generation Unit's preliminary Statement of Qualification. Alternative on Bill Credit and Non-net Metered value of energy = [0.65 (three year average of basic service kWh charge + distribution kWh charge + transmission kWh charge + transition kWh charge + 0.35 (three-year average of basic service kWh charge)