As noted in the January 16, 2026 Program announcement, announcements regarding the 2026 REC Delivery Contracts, and the release of the Program Year 2026-27 Program Guidebook, several Small DG category changes will be introduced in Program Year 2026-27, effective June 1, 2026, including:
- New Payment Schedule
- As a result of the passage of the CRGA, Small DG projects will receive 50% payment at Energization with the remainder paid ratably over the subsequent 6 years, instead of receiving 100% payment at Energization. Applications that are not Part I Verified by May 14, 2026, will receive the 2026 REC contract and new payment schedule.
- Small DG customer-owned REC Adder:
- To alleviate the known challenge of the loss of the Federal Investment Tax Credit for Small DG customer-owned projects, a $20/REC adder for customer-owned Small DG projects will be available during the 2026-27 Program Year.
- Relevant updates will be made to Disclosure Forms and applications to include this field. If an application was started and not batched by June 1, 2026, AVs will be able to add the REC adder to the application on customer-owned systems.