225 C.M.R. 28.14 – Calculation of Incentive Payments for STGUs

(1) Calculation of Incentive Payments for Standalone STGUs Greater than 25 kW. Any payments provided to the Owner of a Standalone STGU, which meets the criteria of 225 CMR 28.14(1)(a) or (b), will be equal to total of the STGU's Base Compensation Rate plus any Compensation Rate Adders multiplied by the total kWh generated by the STGU in the Distribution Company billing period, minus the value of the energy generated by the STGU in a Distribution Company billing period.
Standalone Solar Incentive Payment
= (Base Compensation Rate + Compensation Rate Adders) ✷ total kWh generated - value of energy generated
1. (a) Value of Energy Generated for Standalone STGUs Receiving Bill Credits. The methodology for calculating the value of the energy generated by a Standalone STGU 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. 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 STGU'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. 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 STGU's applicable credit value under its applicable tariff structure.
    Alternative On Bill Credit Generation Unit energy value = total kWh generated ✷ energy compensation rate
2. (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 generation ✷ State Qualifying Facility value
(2) Calculation of Incentive Payments for Behind-the-meter STGUs greater than 25 kW. Payments provided to the Owner of a Behind-the-meter STGU by a Distribution Company for RPS Class I Renewable Generation Attributes and Environmental Attributes will be fixed at the point in time that an STGU receives its Final Statement of Qualification for the duration that the STGU is eligible under 225 CMR 28.00 and will be equal to the total of the STGU's Base Compensation Rate plus any Compensation Rate Adders , minus the value of energy, multiplied by the total kWh generated by the STGU in the Distribution Company billing period.
Behind-the-meter Solar Incentive Paymnet = [(Base Compensation Rate + Compensation Rate Adders - value of energy] ✷ total kWh generated

The methodology for calculating the value of the energy for a Behind-the-meter STGU 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 0.35% of the average of the basic service kWh charge in the prior three calendar years, as of the date of the STGU's preliminary Statement of Qualification.
Alternative On Bill Credit and Non Metered value of energy = [0.65(three year average of basic service kWh charge + distribution kWh charge + transmission kWh charge + transition kWh charge)

(3) Calculation of Incentive Payments for STGUs Less than or Equal to 25 kW. The value of incentive payments provided to the Owner of an STGU less than or equal to 25 kW by a Distribution Company for RPS Class I Renewable Generation Attributes and Environmental Attributes will be set on annual basis pursuant to 225 CMR 28.05(7) and fixed at the point in time that an STGU receives its Statement of Qualification for the duration that the STGU is eligible under 225 CMR 28.00.
(4) Calculation of Blended Rates. In instances when multiple STGUs qualifying for different compensation rates are being interconnected behind the same retail meter, the Department may establish a blended rate for the STGUs, in consultation with the Distribution Company and the Solar Program Administrator. The blended rate will be based on the total compensation rate for each STGU but will be weighted based on the AC capacity of each STGU that will be connected behind the same retail meter. The single, unique blended rate will be the same on each Statement of Qualification for the STGUs.
(5) Calculation of Combined Rates. In instances when two or more STGUs are being installed on one parcel with a combined capacity that does not exceed 5,000 kW and the STGUs have been granted an exception to the project segmentation requirements for good cause, pursuant to 225 CMR 28.08(5)(a)10., the Department may establish the Base Compensation Rate based on the combined capacity of the STGUs. The Department may require that the Applicant submit a single Statement of Qualification Application for the combined capacity installed on the parcel and may issue a single Statement of Qualification with a single Base Compensation Rate based on the combined AC capacity of the STGUs.