What Does This Mean?
This legislation means the District has increased its target for year 2032 such that 50% of its total consumption will be from renewables, of which 5% shall be targeted for solar. Accordingly, the energy suppliers who supply energy to Pepco for DC must maintain energy portfolios from 2032 that contain at least 50% renewables, 5% of which is solar.
The bill also increases the financial penalties to the suppliers who fail to maintain that percentage of renewables and solar in their energy portfolios. Suppliers whose portfolios don’t meet those standards can purchase renewable energy credits, or RECs, to avoid paying the penalties. That will increase the value of the RECs generated by rooftop solar systems in DC! This bolsters the health of the local market for SRECs, that means that the local SREC market should remain healthy for the foreseeable future and remain a significant source of financing solar arrays for DC residents, businesses and nonprofits.