Thank you, Scott, now I know what Schedule Z is!
On Sun, Sep 21, 2025 at 3:19 PM slrodman 8500.org <[email protected]> wrote:
> With today being "Sun Day", a day when many environmental groups are
> celebrating the benefits of solar and other renewable power sources, I
> thought that it would be a great time to mention "Schedule Z". This is the
> oddly named approach that the Mass Department of Public Utilities ("DPU")
> has had in place for many years to allow solar array owners to transfer
> their credits that are created from any excess solar generation above their
> own consumption needs. Having been involved in many of the Lincoln CFREE
> discussions with solar owners and other people across the state, I have
> been surprised to find that there are many solar array owners who have
> large credits that have built up over time where they have not used the
> Schedule Z process to have those transferred to friends, families, or
> others who might want to buy them. In many ways, this transfer process is
> similar to "community solar", but done individually, not as large groups
> with very large solar arrays.
>
> I have had solar installed on a couple of homes of mine and family members
> over the last eight years and am a big believer in the importance of this
> direction. I have also seen the importance for customers who produce more
> solar annually than they consume to have thoughtful advance planning for
> how to deal with those extra credits and not let them grow over time on
> their account. It is difficult to monetize them once they build above your
> annual consumption level. The two models that are often discussed for
> solar are:
>
> 1. Your bill is as close to zero at the end of the winter as possible,
> meaning your array is sized to build credits over the high sun periods of
> the summer and use all of them in the winter, or
> 2. You generate a lot of solar above your own needs that helps support
> more distributed generation and have "off-takers" for the credits who buy
> them.
>
>
> I have lived with both models. There is also an added set of important
> benefits when you add battery storage that can support peak demand periods,
> but that is another topic.
>
> Recently, I have talked with a number of people in Lincoln and across the
> state who have vast amounts of money built up as credits on their electric
> accounts and have not used the "Schedule Z" process to have those credits
> transferred by way of Schedule Z to friends, family, by donation to
> non-profits, etc. Having carefully kept my annual credit balances at or
> close to zero, I am well aware that this process takes some effort, and I
> have wondered whether there would be an opportunity to arrange an informal
> "exchange" process where people who have those credits and people who want
> to buy credits that are generated from solar, but cannot have their own
> solar for a variety of reasons, would be able to find each other and
> resolve this issue. In essence, this is very similar to the idea of
> community solar, without the overhead and a formal process.
>
> While I am not looking to end up in the role of coordinating a process, it
> would be helpful to hear from anyone who has the problem of too much credit
> on their Eversource account from solar generation and wants to resolve it,
> and anyone who might have an interest in buying some of the credits. From
> the numbers that I have heard of people with over $5,000 and over $10,000
> in credit built up, I would imagine that solving this issue would benefit
> many people. I have recently heard of several municipalities, each with
> over several million in built-up credits. We are fortunate that Lincoln
> does not have that issue, with good advance planning! It is also exciting
> to go to the transfer station and see the wonderful progress on the new
> solar array that will cover a large portion of the old landfill, meeting
> most of the town's municipal energy needs.
>
> I have included a summary of Schedule Z below, in case anyone is
> interested in some very dry reading. Everyone with solar would benefit
> from understanding at least the basics of Schedule Z.
>
> Lincoln is very fortunate to have over 300 homes with solar, a net-zero
> school, planned solar on the new Community Center that should make it
> net-zero, and the new landfill array. That is great progress. Lincoln is
> also number 4 in the state in terms of the % of registered vehicles that
> are EVs or hybrids.
>
> Please let me know if you have credits or want to buy them and we can see
> if it makes sense to find a way to create an informal exchange process. If
> you are interested in participating in any process that is started, please
> let me know that as well.
>
> Best regards,
>
> Scott Rodman
>
>
> *Schedule Z basics*
> This is the program that is used by the three primary utilities
> (Eversource, National Grid, and Unitil) in the state to manage where solar
> credits are applied. It was established and is governed by a DPU tariff.
> While this may have some applicability to those with leased solar arrays, I
> am not sure of the implications. This is written only with the experience
> of knowing how it works for arrays that are owned by the homeowner.
>
> Solar array customers of the three large utilities in Massachusetts fill
> out a Schedule Z form when they first have their array installed and it
> becomes operational. That tells the utility where they want the credits to
> be applied for the power that is generated. The initial Schedule Z form
> applies the credit directly to the account where the solar array is
> located, referred to as the "host account". Subsequent Schedule Z form
> submissions, or now through Eversource's online portal, are able to apply
> any *excess* credits that result from more power generation than
> consumption in any month to accounts of other Eversource customers. That
> only used to be able to be applied to customer accounts within the same
> "load zone", but that now allows for transfers to customers across each
> utility's account base in Massachusetts and will soon allow transfers to
> the customers of the other two primary utilities within the state. It is
> unclear whether this will include Cape Light Compact at some point.
>
> The way that the Mass Department of Public Utilities ("DPU") tariff is
> written and interpreted by Eversource, you are allowed a "one-time"
> transfer of any built-up credit to another account, as well as the ability
> to transfer that credit balance to another account when you close your
> account. They are fairly strict about those rules. That allows for the
> ability to move built-up credits, but you need to find someone who wants
> them and can use them. Regular and one-time transfers are done at either
> par value or at a discount and that is totally up to the parties involved.
>
> While the process used to only allow 2 changes to the allocation of
> credits per year and each one took several months to have applied and
> changed, their recent addition of an online portal allows an infinite
> number of annual changes, and they go into effect within 24 hours of
> uploading the changes and must be in 24 hours before the billing cutoff for
> any cycle. In reality, that infinite number of changes results in only 12
> times per year when they have an effect, as the billing is monthly.
>
> If anyone has any questions regarding Schedule Z or any specific issues,
> please get in touch, and I am happy to help. It is likely that the Lincoln
> CFREE group will run a webinar on this topic in the near future. While it
> all might sound quite boring, it is a vital part of having solar and a very
> important aspect of the economics of that investment in a solar array.
>
>
> ___________________________
> *Scott L. Rodman*
> *[email protected] <[email protected]>*
> *212.665.8500*
> --
> The LincolnTalk mailing list.
> To post, send mail to [email protected].
> Browse the archives at https://pairlist9.pair.net/mailman/private/lincoln/
> .
> Change your subscription settings at
> https://pairlist9.pair.net/mailman/listinfo/lincoln.
>
>
--
The LincolnTalk mailing list.
To post, send mail to [email protected].
Browse the archives at https://pairlist9.pair.net/mailman/private/lincoln/.
Change your subscription settings at
https://pairlist9.pair.net/mailman/listinfo/lincoln.
