Press Releases

Price Convergence of 2017 and 2018 SRECs

As expected, the prices of the 2017 vintage New Jersey SRECs are starting to converge with the prices of the 2018 vintages. Prices for 2017 were trading in the $220 to $230 range in recent weeks and have moved down to the $170 level today. After some up and down movement in the next few months they will be trading at a $5 discount to the 2018s which are now at $175.

The sudden move happened because there was an orderly expiration of the July delivery of the 2017 vintage SREC futures contract on Intercontinental Exchange. There was over 230,000 contracts in open interest in the July 2017 contract which is close to 10% of the whole years SREC obligation by all energy suppliers. Futures contracts can exhibit volatility in the last few trading days going into expiration if there is an imbalance of physical to deliver against the futures contract. For this reason the prices were held up for a longer period of time until the contract expired. The lack of volatility in this expiration means that all sellers had procured enough SRECs to satisfy delivery in the GATs by Monday, July, 31st.

The 2017 energy year is expected to be oversupplied by 7%. In the 2018 energy year it is expected that the installed solar in the whole state will oversupply the energy companies mandated compliance by about 14%. This is the reason why the 2018 vintage is trading at a discount to the 2017 prices last year. Of course the prices will move during the year as we see how much new solar is installed.

As always, we stress to our solar owners to sell consistently during the year to get an average price and not hold.

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

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New JerseyPress ReleasesSREC

New Jersey SREC Overview - Spring 2017

SREC Prices are Stable – For Now……
 
After rallying to $250 in the beginning of January the SRECs moved down to $210 and are now steady in the $225 to $230 range.
 
SREC Supply / Demand for This Year
 
SREC supply for RY 2017 is expected to be sufficient.  According to our estimates, SRECs produced this year ending in May along with supply left over from previous years will be about 4% more than what is needed by electricity suppliers. This justifies the prices that have been trading in the $200 to $250 range during the past few months.
 
SREC prices for Future Years – (Actual)
 
The following are current prices for SRECs trading between large commercial solar owners and electricity suppliers in the over-the-counter market.  You will notice that prices decrease in coming years.
 
Ry 2018: $200   (June 2017 to May 2018)
Ry 2019: $160   (June 2018 to May 2019)
Ry 2020: $130   (June 2019 to May 2020)
Ry 2021: $85     (June 2020 to May 2021)
 
3 year strip: $163

4 year strip: $143
 
SREC oversupply estimates for Future Years – (Flett Exchange Estimates)
 
Based on our supply / demand models we expect the supply of SRECs to continue to outpace the requirements in an accelerated fashion. This oversupply will put pressure on SREC prices. An oversupply of SRECs is a result of investors and developers installing more solar than is required by law. The only two ways to avoid an oversupply is for:
 
1. Investors and developers to not overbuild
2. The legislature in New Jersey pass a law to increase the solar requirements. (This happened in 2012)
 
Multiple years of overdevelopment of solar creates an overabundance of SRECs that never go away.
 
Ry 2017: 4% oversupply
Ry 2018: 10% oversupply
Ry 2019: 20% oversupply
Ry 2020: 34% oversupply
Ry 2021: 50% oversupply
 
SREC Price Projections for Future years – (Flett Exchange Estimates)
 
If the oversupply estimates in our models are correct our price estimates are as follows. We expect a drastic drop-off to occur between 2019 and 2020. Our low price may seem extreme but we base it on price action in other states that have become oversupplied – PA – $5, MD $8 and OH – $6.
 
Ry 2018: $140-$220      (this starts this summer)
Ry 2019: $90 to $180
Ry 2020: $40 to $130
RY 2021 on $5 to $85
 
3 year strip estimate: (ry 18 – ry 20): $90 to $176

4 year strip estimate (ry 18 to ry21): $55 to $123
 
Summary:
 
The goals for solar installations set out by New Jersey law under the SREC program have worked perfectly.  The free market price of SRECs has saved the ratepayers of New Jersey hundreds of millions of dollars while it encouraged new investors to install new solar at ever cheaper prices. Outside of a minority of failed (overpriced) fixed price SREC contracts encouraged by solar developers with the blessing of the Board of Public Utilities the ratepayers of New Jersey have benefited from the freely traded SREC market and will continue to benefit for decades to come. Based on SREC market prices the solar development industry in New Jersey passed its inflection point last year and is now starting to turn. This is caused by the decrease in the rate of new solar development under current legislation. For years the legislation encouraged significant new solar development during a time when solar costs have decreased significantly. That law now calls for a lower amount of solar growth. Developers and investors must re-calibrate and develop at a slower pace equal to the mandates by this law. If not, solar development in New Jersey will halt and all investors will suffer. Ratepayers will have to pay more in the future in solar subsidies to jump-start new solar development if confidence by investors in New Jersey solar is lost.
 
If you already own solar in New Jersey and rely on SREC payments to make your investment whole you are at the mercy of new solar investors. If the new investors in solar install at a cheaper price or are willing to accept a lower return on capital then they will continue to push SREC prices lower.  That is only fair since it is an open market and anyone is allowed to invest in solar on their property.
 
Outside of a purely competitive, slight oversupply of SRECs caused by market efficiency there are two (2) controllable factors that can cause an overinvestment above legislated goals. If they are not addressed the result will be a protracted oversupply of SRECs ($10 SRECs):  (Prices in NJ dropped to $60 in 2012 when the developers overbuilt.)
 
1. A lack of knowledge by new solar investors about the amount of solar required under the law. Let’s get down to it. Solar is sold by salesmen. If they want to make the sale they will not give the customer the full story about the risk of SREC oversupply and their ability to repay with SRECs. (To most solar sales people credit they probably don’t know the risk themselves) By the time most people who are signing contracts this spring get the array installed they will get a year or less of $200 SRECs. Their systems will just add to the oversupply of SRECs.
 
2. Fixed, long term, above market priced contracts for SREC granted by the BPU are being awarded and will continue to be awarded as the market gets oversupplied.  The New Jersey Board of Public Utilities actually awarded 10 year fixed contracts just recently at $165 for 10 years fixed. Above market pricing similar to this also happened in 2011 exacerbating the oversupply of solar at that time. The overpayment of SRECs above the free market is absorbed by ratepayers which they will never know. Equally damaged by these contracts are solar investors like yourself that are not lucky enough to have an installation available at the time of the BPU solicitation. This will add uncompetitive solar installations to an oversupplied market and force SREC prices lower for all other solar investors outside of those whose losses are absorbed by the ratepayers.
 
Call to Action:
 
As for solar owners we suggest to sell your SRECs on a monthly basis and not bank any SRECs. The sale of your SRECs at prices in this $200+ area will be needed to average out your sales over the years. Future years need to be discounted based on the high probability of significantly lower prices 3+ years out. In the beginning of August your first 2018 SRECs will be minted. Those prices will be $20 to $30 less than the ones you will be selling in July. We suggest to not hold those and continuously sell them even if they are under $200. Remember, our price estimate for ry 18 (June 2017 to May 2018) is $140 to $220. With that estimate a $190 SREC is still in the middle of the range.
 
As we have since 2007, we will continue to monitor the New Jersey SREC market for you, provide transparent and actionable pricing via our exchange and offer information to help you make the best of your solar investment. In 2012 members of our team testified numerous times at the New Jersey Statehouse during the last update to solar legislation. Hopefully, through transparency of information the market will not get oversupplied as it was last time and solar investment can proceed at the legislated pace.  We will update you with SREC supply and price projections as they develop.

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

TAGS:
New JerseyPress ReleasesSREC

NEW JERSEY SREC PRICES END A FOUR YEAR RALLY

NEW JERSEY SREC PRICES END A FOUR YEAR RALLY
 
The four year uptrend in spot New Jersey SREC prices between 2012 and early 2016 has officially ended. The market is now in a downtrend. It is making new lows and subsequently lower highs on any rallies. We should expect to see the market find new lows and trade off of varying levels of support as it digests and interprets how new investors react to lower SREC values. Will they throttle back and keep in line with State requirements or will they overbuild like they have in the past?
 
Prices trended higher from a low of $60 in the fall of 2012 to a high of $290.09 on June 13th of 2016. This can be attributed to the adjustment in the law governing solar development which was passed in 2012. The law achieved its goals up to this point as the amount of solar installed has almost exactly matched solar growth rates in the past few years. Prices are now under $220. Short-term support is at $200 and $180. If the market holds $200 now we may not see the $180 level until next spring after the BGS auction.
 
The end of the rally occurred as there were enough SRECs to satisfy all of the energy companies’ compliance needs for the RY 2016 deadline on November 1st. After hitting a low of $235 in August, RY 2016 SRECs led the way and rallied up to $265 briefly on September 27th. At that time the buying for the RY 2016 compliance dried up and energy companies could relax and take their time procuring SRECs for next years’ compliance. Requirements for SRECs increase next year however, new solar installations have been running higher than the State requirement which will produce enough of a cushion so that buyers do not have to worry about a shortfall.
 
Many sellers are still selling their SRECs on the spot market however, buyers and sellers of large blocks of SRECs have been actively negotiating 3 year deals at the $180 level for RY 17, 18 and 19 SRECs. The prices implied for each of these individual years shows where the market prices SRECs in the future:
 
NJ2017=$220
NJ2018=$200
NJ2019=$120

 
Due to the steep discount that the market is placing on SRECs three years out there is less incentive to bank and hold SRECs as sellers have in the past.
 
Year after year there has been significant SREC buying in February as winners of the statewide BGS auction hedge out a portion of their 3 year obligations. The question each year is if prices will rally because of the BGS auction. When the market was in a bull trend there was always a rally on each BGS auction. Now that the clear uptrend has stalled that rally may not repeat itself. At least possibly not to the same degree. Between now and the end of this calendar year we can expect SREC prices to find a support level in anticipation of the BGS buying. Support levels are $200 and $180. A BGS rally off those levels will run into resistance at $220 and $235.
 
Based on current market conditions we recommend to our sellers to sell spot SRECs on a continual basis, especially if the market rallies.

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

TAGS:
New JerseyPress ReleasesSREC

New Jersey SREC Prices Drop $50

After reaching a four year high price of $290.09 on June 13th New Jersey SREC prices have dropped $50 to the $240 level.
 
There are two major reasons why the uptrend has stalled and prices have corrected slightly:
 

    1. Most New Jersey electricity compliance buyers have finished procuring their RY 2016 SRECs. Buyers needed to purchase and retire approximately 2,090,000 SRECs (They could use any SRECs generated between August of 2012 and May of 2016). In GATS there are 2,167,382 SRECs available which leaves about a 77,000 oversupply. There will be less than that available because some sellers hold their SRECs and some have been purchased for hedging purposes by other buyers. This leaves the RY 16 market almost “balanced”.  This justifies last year’s uptrend and previous $290.09 high price. Now that they have finished buying for this year the buyers seem to be stepping back and taking their time. They now have over a year to buy for their next compliance.
       
    2. The New Jersey BPU reported an increase in the amount of solar being installed. In July they released a report showing upward adjustments to the amount of solar installed last year along with a few completions of large scale grid connect projects. Since February the BPU has reported an additional 186 Mw installed which has also led to the price correction.

 

It is not expected that the market will drop quickly to levels seen in 2012 in the next year. The 2012 law throttled back the amount of large scale solar farms that can quickly oversupply an SREC market. Also, there has been a shift to more very small residential installations in the last few years and less medium size commercial installations. A surprise oversupply is unlikely however, we need to be on the lookout for a steady increase in supply. The BPU reports new solar installations monthly.
 
As for prices, sellers should not rely on steady uptrends like they saw in the 2013 – 2016 timeframe. Prices will more than likely swing like we have seen recently. We suggest to our sellers to sell if there is any short-term appreciation and if not, make sure that a periodic selling approach is taken to mitigate holding too many SRECs on a protracted down-trend.

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

TAGS:
New JerseyPress ReleasesSREC

Maryland SREC Update - April 2016

Supply and Demand. This is the main driving factor in MD SREC pricing.

 

Currently there is 478 mw of solar installations registered in PJM-EIS, the website that creates SRECs.  These facilities will generate an estimated 570,000 SRECs for the 2016 calendar year. Add in the unsold SRECs from 2014 and 2015 (around 100,000 SRECs) and we are looking at an oversupply of 230,000 or more SRECs after the buyers turn in their 2016 SREC purchases.

 

The 2017 vintage is oversupplied. The RPS requires approximately 615,000 SRECs to be turned in for 2017 compliance year. With the 230,000 plus SREC carry over from 2016 plus the current 478 mw of solar generating SRECs right now that demand is met and oversupplied again by approximately 115,000 SRECs. As the year goes along and more solar is installed the market become more and more oversupplied.

 

Build Rates: Maryland has been installing more and more solar year over year.  In 2013 around 40 mw was installed, 2014 around 60 mw and in 2015 124 mw!  Yes, in 2015 twice as much solar went on-line then 2014.   If this trend continues, installing double the 2015 number, we could potentially see 248 mw installed this year.  Is this build rate sustainable? Potentially yes, but that’s an aggressive amount to install. However, just this year MD has installed almost 100 mw’s and its only been 4 months. If the 2016 build rate does in fact double we could project a 400,000 SREC oversupply for 2017. If the build rate remains the same, 10 to 11 mw a month, an oversupply of 200,000 plus SRECs could happen.

 

Legislative variable: Will the current house bill HB116 http://tinyurl.com/zeklecq that just passed in the House and Senate fix the problem? The bill does call to increase the solar carve out. For 2017 the RPS for solar will be increased from 0.95% to 1.15% or increase the demand from 615,000 SREC to about 725,000 SRECs. This increase would soak up the oversupply of SRECs but not if the current build rate continues. The date in which the bill will reach the Governors desk has not been scheduled yet.

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

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MarylandPress ReleasesSREC

March 2016 New Jersey SREC Market Update

New Jersey SREC Prices Slip But Remain Close to Highs
 
The New Jersey SREC market reached a four year high on February 5th with a settlement of $289.78 on the Flett Exchange trading platform. Prices retraced $14 back down to $275 and are now trading close to $280 today.
 
Why have SREC prices risen?
 
SREC prices have remained stable and risen during the past few years because the majority of new solar installed in New Jersey are small lease systems on single family homes as opposed to large scale solar farms which can at times take up 50 or more acres of farmland. Legislation passed in 2012 limited the amount of cheaper large scale grid connect projects in favor for net metered projects (solar on or next to buildings that offset that buildings electricity). Smaller systems cost more than large systems to build so they need a higher SREC price. However, with spot SREC prices at $280 to $290 and 3 year SREC contracts at $245 we should see an increase in new solar construction in the next year.
 
What are solar owners doing with their SRECS?
 
Solar owners in New Jersey are taking advantage of the rising SREC prices and are selling any banked SRECs that they have accumulated along with any that they produce on a month to month basis. We suggest to our solar owners to sell on a consistent basis, especially as prices rise.
 
How do I sell?
 
If you are a Flett Exchange customer and would like to sell your SRECs for immediate payment and delivery you can always log into your Flett Exchange account or give us a call on the trading desk at 201-209-0234. If you are a new customer you can register for an account here. If you have a large amount of SRECs call and we will try to sell your SRECs at higher block prices.
 
The Quickest and Easiest way to sell:
 
Customers can also check out our “sell now price” on our website and transfer your SRECs to “Flett Exchange, LLC” at that price on GATS. We will take care of the rest for you and mail your check or send your proceeds via ACH.
 
Thank you for your continued business over the years!
 
Mike, Shean, Kevin, Brian and Mike

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

TAGS:
New JerseyPress ReleasesSREC

New Jersey SRECs Rally to Highest Levels in 4 Years!

New Jersey SRECs Rally to Highest Levels in 4 Years!
 
The New Jersey SREC market rallied to the highest levels in four years yesterday. The previous high was $282.58 on December 29, 2011 on the 2012 vintage. Yesterdays’ settlement on Flett Exchange surpassed it by just 23 cents at $282.81 for the spot 2016 vintage.
 
The 2016 vintage SREC has rallied a whopping 30% on the spot market since it started trading in July at $220 on Flett Exchange.
 
Where have SREC prices traded in previous years?
 
You can check out daily historical pricing and charts for New Jersey SRECs on Flett Exchange by clicking here. Our pricing goes back almost 9 years to June of 2007. All our pricing is based on the volume weighted average price of actual spot sales of SRECs by solar owners.
 
Why have SREC prices gone up?
 
Flett Exchange sellers, who are all solar owners, have been actively selling into this rally to take advantage of the high prices. Power companies, who are required to provide a portion of their electricity sales from solar, have been competitively procuring SRECs thus pushing prices higher. The fundamental rise in prices is partially attributable to the low rate of solar installations in New Jersey during the last year. Also, prices have risen in past years in the winter due to the hedging for a large electricity auction which is conducted each year. This may have been the case again this year giving solar owners an opportunity to capitalize on high prices once again.
 
What should I do if I have SRECs?
 
We suggest to our sellers to continue to sell at these high prices. High SREC prices encourage new solar to be installed at a higher rate because those investors will achieve higher returns on their investment. There is generally a lag of over a year in new investment in solar in response to high SREC prices. We should expect an increase in new solar installations this year which should have a dampening effect on New Jersey SREC prices.
 
What is the highest price New Jersey SRECs can go to?
 
The SACP – or the price level that energy companies will be fined for not buying enough SRECs this year – is $323. In prior years, when there were not enough SRECs produced to satisfy the amount required, (which is not the case this year) the market did not trade at the SACP. Most buyers only paid 95% of that value. 95% of this years’ cap is $306.85 for those of you who are looking for an upside objective.
 
How do I sell?
 
If you are a Flett Exchange customer and would like to sell your SRECs for immediate payment and delivery you can always log into your Flett Exchange account or give us a call on the trading desk at 201-209-0234. If you are a new customer you can register for an account here. If you have a large amount of SRECs call and we will try to sell your SRECs at higher block prices.
 
The Quickest and Easiest way to sell:
 
Customers can also check out our “sell now price” on our website and transfer your SRECs to “Flett Exchange, LLC” at that price on GATS. We will take care of the rest for you and mail your check or send your proceeds via ACH.
 
Thank you for your continued business over the years!
 
Mike, Shean, Kevin, Brian and Mike

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

TAGS:
New JerseyPress ReleasesSREC

New Jersey SREC prices rally to highest levels since January 2012!


New Jersey SREC prices rallied over $240 early this week to reach the highest levels since 2012! Prices are up over 30% from this time last year.
 
Prices are strong because the amount of solar installed in New Jersey on a monthly basis as reported by the Office of Clean Energy this year has been low. During the last 6 months there were only 13 Mw installed on an average basis on the reports. Monthly builds near 20Mw over a longer period of time is what is estimated to be needed to supply the energy companies with their mandated SREC requirement.
 
The overall supply for SRECs is less this year because most of the oversupply has been retired as a result of the legislation enacted in 2012. It requires a significant increase in SREC obligations in the short term. Also, that same legislation limited the installation of new large scale solar farms that led to the majority of the SREC crash in 2012.
 
We do expect to see a backlog of new larger solar farms hit the monthly installation numbers in the next few months along with other new projects that are vying for EDC fixed rate contracts. In the past solar developers have waited to install new solar in order to be eligible for the BPU mandated 10 year SREC contracts that shift risk from solar owner to the ratepayer.
 
Depending upon when this backlog of projects hits the market will determine a potential top of the market. If it does not happen for a few months the market may continue to rally. If it happens this month we may be nearing a potential top of the market.
 
We suggest to our solar owners to sell SRECs on a consistent basis to better achieve an average SREC price over the year. This also limits the risk of not selling your SRECs and the prices dropping as they did 3 years ago.
 

Flett Exchange - New Jersey SREC Price / Supply November 2015

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

TAGS:
New JerseyPress ReleasesSREC

New Jersey Solar Capacity Update - February 2013

The New Jersey Office of Clean Energy reported that 35 Mw of solar was installed during the month of February. This brings the installed capacity of solar in New Jersey to over 1 Gigawatt! There are now 20,340 solar arrays in operation statewide.

 

The 35 Mw for February was higher than expected and almost double what the state needs to install on a monthly basis in order to stay in line with the Renewable Portfolio Standard requirements. The monthly install rates are watched closely because they determine the value of the Solar Renewable Energy Credits (SRECs). It is estimated that monthly install rates need to be 15 to 17 Mw a month average to keep the market balanced. 

Even though the installation rate in February was quite high, the average rate per month has been decreasing steadily. If this solar development trend continues for the next six months it will send a signal that the market is under control. One needs to keep in mind the timeframe of solar development. The 35 Mw of capacity that came on line this month represents decision making from a year to a year and a half ago. Also, some of the projects that are coming on line now are projects with fixed rate SREC contracts. Once this development pipeline runs its course the true rate of installations based on SRECs at the $100 level will be seen for the next year in the future. We should expect the average build rates to continue to decrease as the development pipeline starts to represent projects built with the current SREC prices.

 

As far as prices are concerned for this spring and summer we don’t expect the market to drop below $85. Every time the market has dropped below $100 the volume of selling decreases significantly. Since there is a large oversupply of SRECs compared to this year’s requirement we don’t expect prices to move much over the recent highs of $125. However, if compliance entities wait until this summer to procure their energy year 2013 SRECs that are due in the fall then there could be a short lived squeeze above $150. We only put a 10% chance of this happening.

 

After trading briefly over $120 the NJ 2013 vintage SREC prices are trading $105 to $110 right now. The electric distribution companies auctioned off a large block of SRECs on March 19,2013. The volumes and clearing prices are as follows:

538 NJ 2012 vintage SRECs sold for $110.15 each
57,287 NJ 2013 vintage SRECs sold for $112.01 each

 

As we have suggested in the past, sell your SRECs consistently during the year, especially during times of rising prices.
More about Flett Exchange:

Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Our knowledgeable staff is also available to assist you in selling your SRECs for you. Over 4,400 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs through our brokers or on our online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers. Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, and DC supported by trained solar professionals with specialized knowledge and proven experience.

Flett Exchange also brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-5 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services. (201) 209-0234.

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

TAGS:
New JerseyPress ReleasesSREC

New Jersey SREC Prices May Have Found Support!

New Jersey SREC prices have rallied from an all-time low price of $60 in October to $80 most recently on the Flett Exchange trading platform. We think the market has found its bottom at this time.
 
We think that a bottom is put in place for three main reasons:
 
1. selling volume decreased dramatically at the $60 level
 
2. solar installation rates have started to decrease
 
3. most new solar investment cannot be supported by SREC levels below $90.
 
On Flett Exchange we have witnessed decreasing volume of selling at these low price levels. Many solar owners have opted to “sit it out” this fall and wait and see what prices will do. Our trading screen indicates that selling interest will pick up again at $95 and there should be resistance at that level and higher.
The amount of new solar installed on a monthly basis is the largest factor determining future SREC prices in New Jersey. Remember, the whole reason SREC prices crashed is because too much solar was put in too quickly. A build rate of only 10mw per month would have satisfied the power companies’ requirements. At one point earlier this year the 12 month average was 37 Mw installed per month. October 2012 solar installations were only 16Mw which is the lowest monthly install figure since May of 2011. With the new legislation that was passed in July an average of 15 to 17Mw per month is needed. Any more than this will put the market oversupplied once again. The next two months of installations are expected to be double this number however, the overall trend is decreasing.
 
The price of new solar installed has plummeted in the past year and it is expected to continue to decrease for the next 12 months. The decreasing cost of new solar installations means that the added revenue stream from SRECs does not have to be as high. However, a $60 SREC is not high enough to encourage most new solar development at these install prices.
 
We suggest to our sellers to sell consistently to average out your SREC sales for the year. Don’t get overzealous! Last year some people did not sell when the market rallied and are still holding all of their SRECs. It is next to impossible to sell the high so an averaging approach reduces your risk of holding large volumes of SRECs at low prices.
 
Flett Exchange customers can sell their SRECs in a variety of ways:
1. You can call us in the office at 201-209-0234
2. Check the price on our website www.flettexchange.com and send the SRECs to us on GATs
3. Do it all on-line by accessing our trading platform. www.flettexchange.com/portal/
 
You can always ask us a question at
 
info@flettexchange.com
 
More about Flett Exchange:
 
Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Our knowledgeable staff is also available to assist you in selling your SRECs for you. Over 4,400 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs through our brokers or on our online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers. Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, and DC supported by trained solar professionals with specialized knowledge and proven experience.
 
Flett Exchange also brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-5 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services. (201) 209-0234.

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

TAGS:
New JerseyPress ReleasesSREC

New Jersey Electric Distribution Companies Sell 60,600 SRECs at $70.50

Jersey City, NJ:The electric distribution companies (EDC’s) sold 60,600 New Jersey SRECs at $70.50 each today in an auction. This was the price for energy year 2013 SRECs. They sold over 5,000 energy year 2012 SRECs yesterday at $70.02 each. The EDC’s sell SRECs every quarter.
 
Based on an estimated average price of the long term contracts of $350 each, this auction produced approximately an $18 million loss for the quarter. The loss is spread out among the ratepayers.
 
These SREC prices match what customers have been selling on the Flett Exchange trading platform during the last few weeks.
 
Why are prices so low?
 
Prices for New Jersey SRECs have been very weak in the past few months because of the significant oversupply due to overbuilding versus the requirement set out by the State. The oversupply is going to persist until the requirements put forth by new legislation kick in for energy year 2014. At that time SREC buying obligations increase by almost 300%. Surplus SRECs from current years will be needed in those years.
 
The amount of solar installed dictates how many SRECs are produced. If too much solar is installed compared to New Jerseys requirements then the surplus will continue and prices will stay low. We estimate that if more than 15mw a month are installed on average then the market will be oversupplied. The average install rate in the last 4 months has been about 24 mw. This is still too much but it is down significantly from an average of over 37 mw for a one year period ending this past spring. The trend is going in the right direction to balance the market.
 
What will make prices rise again?
 
Install rates are expected to drop in the first quarter of next year as the project pipeline gets built out. New installs are expected to drop due to the low SREC price. If all goes to plan the market will self correct.
 
Based on low installed costs we hear that if SRECs were to rally to $120 new installs would pick up. $70 SRECs only support the very cheapest projects. Projects at this level seem speculative based on the low rate of return at current electricity prices and SRECs. Those investors may justify their actions if they have a bullish view on solar install prices, electricity prices and SRECs.
 
Two major events that could make solar more expensive is a heavy tariff on Chinese solar panels and a elimination of Federal tax incentives for new solar.
 
More about Flett Exchange:
 
Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Our knowledgeable staff is also available to assist you in selling your SRECs for you. Over 4,400 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs through our brokers or on our online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers. Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, and DC supported by trained solar professionals with specialized knowledge and proven experience.
 
Flett Exchange also brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-5 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services. (201) 209-0234.

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

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New JerseyPress ReleasesSREC

Electric Distribution Company Auction Clears $171.63

The Electric Distribution Companies (EDCs) sold 26,480 New Jersey Solar Renewable Energy Certificates (SRECs) yesterday. The clearing price for the auction was $171.63. The SRECs were auctioned off by NERA Economic Consulting, a consultant to the Board of Public Utilities. This was the lowest price for a spot sale of SRECs since the $180.00 settlement price on September 7, 2011 on the Flett Exchange.

The auctions are conducted quarterly. Due to the large volume of SRECs in these auctions, the clearing price is significant to the marketplace. Prior to the auction the settlement prices on Flett Exchange have been consistently trading at $195 for the past 30 days.

The SRECs in this auction are from solar installations that were given 10 year fixed price contracts by the local distribution companies JCP&L, Atlantic City Electric, Rockland Electric Company. Some of the SRECs are from the facilities that borrowed under the PSE&G Solar Loan Program and PSE&G investment under Solar for All. The Board of Public Utilities ordered the EDC’s to enter into long term fixed rate contracts 3 years ago to spur solar development in New Jersey. The majority of the SRECs from the JCP&L, ACE and RECO long term contracts were in excess of $400 per SREC. The ratepayer will have to make up the difference of the long term purchase price and the auction sales price achieved yesterday. Most ratepayer losses will be in excess of $230 per SREC. Solar developers are paid their contract price of $400 or more for most of the SRECs. The PSE&G loan program had a sliding fixed price scale that has lower SREC prices and the 11% interest paid by solar developers is credited back to ratepayers, less costs incurred by PSE&G.

The prices for New Jersey SRECs have been under pressure during the last year due to overbuilding by solar developers. Developers have continued to install solar even though the installed capacity is in excess of the mandated SREC purchase requirements set forth in law. At the current time there is 649 mw of installed solar capacity installed in the State of New Jersey. This installed capacity, along with future installs, (estimating that installations will drop off significantly) will produce in excess of 200,000 SRECs in addition to next years 596,000 purchase requirements for electric providers. This year there is also expected to be over 200,000 extra SRECs compared to the purchase requirement of 442,000 SRECs. Even though the requirement increases significantly every year, the SREC market in New Jersey is expected to be oversupplied possibly to 2017. There has been a political push in the last 8 months to increase the amount of SRECs the electric companies have to purchase.

The majority of investors in solar in New Jersey did not get the long term ratepayer fixed price SREC contracts. Those investors rate of return have dropped significantly due to the overbuilding of solar and subsequent SREC price drop. The ratepayers in New Jersey are benefitting directly by the lower SREC prices (except for those facilities that were covered by EDC long term contracts). Some homeowners, businesses, and municipalities who installed solar in the last year at high install rates and expected to sell SRECs at $600 or more are having a hard time making loan payments. New solar facilites are much cheaper today compared to previous years. This is due to the low prices of solar panels along with the mature installation infrastructure in New Jersey that has increased competition. These new facilites will only need an SREC value of $200 to $300 to reach the same rate of return more expensive facilities needed.

Details and press releases will be posted on www.solarrec-auction.com

Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Our knowledgeable staff is also available to assist you in selling your SRECs for you. Over 4,000 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs through our brokers or on our online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers. Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 
Flett Exchange also brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-5 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services. 201-209-0234

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New JerseyPress ReleasesSREC

New Jersey SREC Market Trades Below $200 the first time since September 2011

The New Jersey SREC market has slid below $200 for the first time since September 15, 2011. The Flett Exchange marketplace settled at $195.50 today for immediate payment and delivery. Oversupply of SRECs and the lack of corrective legislative action has caused the SREC market to drop over $80 in the last week.  Draft recommendations by the Office of Clean Energy suggesting the continuation of Electric Distribution Companies EDC long term contracting were discussed last week during a renewable energy committee meeting. This has caused further weakening in the SREC market. Long term EDC contracting is backed by ratepayers with 10 year fixed contracts.  These contracts allow new solar to be developed risk free by solar developers. Continuation of these programs may further exacerbate oversupply and depress prices. There are still close to 88mw of EDC backed projects in the pipeline that will be installed in the next 6 months.  The majority of the installations in New Jersey do not have ratepayer backed contracts. The owners of those systems may experience significant price discounts if the solar development continues in excess of the states RPS. All previous EDC backed long term contracts are at above market rates with the difference absorbed by ratepayers.

Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Our knowledgeable staff is also available to assist you in selling your SRECs for you. Over 3,500 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers. Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 
Flett Exchange also brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-5 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services. 201-209-0234

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Press ReleasesSREC

New Jersey Solar Bill Falls Apart in Negotiations

The much anticipated solar legislation (s-2371) failed to be posted during the last day of the New Jersey Legislature. The main intention of this legislation was to increase the amount of SRECs that the power companies in New Jersey have to purchase. This is needed to soak up the excess amount of SRECs because developers installed 3 times more than the amount of solar required in the present year due to dropping installed costs of solar and large solar installations. If the legislation is not passed it is expected that the SREC market will continue its crash and the amount of installations will have to virtually cease for the next few years before the State mandates catch up. Investors in solar will suffer from low SREC prices and solar business in New Jersey may have to close down.

The bill would have also lowered fine levels levied against power companies if they did not produce a certain amount of solar power each year. The potential savings to homeowners, municipalities and business’ would have been close to 1 billion dollars over the course of the legislation if it was passed.

The bill was introduced by the Democratic controlled legislature, sponsored by Senator Bob Smith.  The Republican Governors office submitted responses on Sunday for the legislature to consider. The Governors office supported an increase in the RPS to stabilize the market. The deal fell apart because of a disagreement of how to handle grid connected projects. The Christie administration suggested having all non-net metered projects seek Board of Public Utility BPU approval. These projects would not be approved if they would have a detrimental effect on the SREC market. The issue was too complicated to be resolved in the short amount of time left in the last day of the legislative session.

The bill will have to be introduced in the next legislative session.

The SREC market has dropped instantly to $200.

More on Flett Exchange:
 
Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Our knowledgeable staff is also available to assist you in selling your SRECs for you. Over 3,500 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers. Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 
Flett Exchange also brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-5 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services. 201-209-0234

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New JerseyPress ReleasesSREC

New Jersey Assembly Committee Passes Solar Legislation, Now Waiting for Passage in Legislature and e

The New Jersey Telecommunications and Utilities Committee passed s-2371 yesterday. It now needs to be passed by the legislature. This bill has a new schedule that will soak up the oversupply of SRECs due to the overbuilding of solar in the State in the past 12 months. Solar developers have flooded the market by installing an average of over 30mw a month in the last year compared to the build requirement of only 10mw a month.
 
If passed by the legislature it will eventually have to be approved by Governor Christie before it becomes law. He can either sign it as is, conditionally veto it or pocket veto it. This all has to be done by midnight on Monday January 9th 2012 before the end of this legislative session.
 
If it is not passed with this build-out schedule it is expected that the SREC market will collapse instantly to the $150 lows experienced this past summer, or even lower. It then has the potential to move under $100 if the build rate of solar continues through the spring and summer. It is expected that the market will be 35 to 45% oversupplied with solar and SRECs compared to this years’ mandates. Energy companies are required to purchase 442,000 SRECs in the current Energy Year. There will most likely be 600,000 to 650,000 SRECs produced. The extra 150,000 to 200,000 SRECs will sit in the market and depress prices for years even if solar development decreases 95%. If the legislation passes as is the SREC prices should stabilize and potentially move into the mid $300s.
 
If the legislation is passed without major changes and is signed by Governor Christie the prices should stabilize. Even with the increases shown in the bill the solar industry will sill have to contract by 50% in the coming 5 years to avoid another overbuild situation. The passage of this bill will most likely help retain 60% of the solar jobs in New Jersey.
 
State Senator Bob Smith and Assemblyman Upendra Chivakula have been diligently monitoring the solar industry in New Jersey during the past few months and support this legislation to avoid an absolute crash of the solar industry in New Jersey. The bill takes into account recent developments of the significant decreases in the installed cost of solar due to the low prices of solar panels and the mature solar industry in New Jersey.
 
The Division of the Rate Council office of New Jersey has been diligently challenging the bill and has reportedly been advocating for significant savings to ratepayers. They are a critical piece of this process. It is expected that the Christie Administration will not even consider the changes if there are not savings to homeowners and business in the State. Without the ratepayer advocates office this bill would most likely not had the concessions which the Christie Administration is most likely looking for.
 
The following is the new RPS and SACP schedule. For the most part it requires the energy companies to purchase more SRECs in the next few years. This added cost is offset partially by the decrease in the SACP or “fine” that power companies have to pay if there is not enough solar installed. The SACP levels are decreased based upon the lower cost of installing solar today versus the cost of solar when the original law was passed just two years ago. Everyone can calculate savings in different ways and make the numbers look different. It is in our opinion that there is 800 million in potential savings to ratepayers if this bill passes. This is using a high NPV of 8.37. If a lower NPV is used the savings will go easily over 1 billion dollars. The savings are measured out to 2026 to make a comparison and we used the SACP which is what the rate payer advocate uses. These new SREC requirements will only increase the solar build rates from the current 10mw to 14 to 18 mw per month for the next few years. The industry built over 30mw a month this year. The ultimate amount of solar is not being increased, it is just happening sooner. This is logical since the cost of solar is almost half of what it was just a few years ago. New Jersey will get solar quicker and cheaper with this new schedule.
 
The following is the new schedule:
 
EY2013 1,020 Gwhrs

EY2014 1,264 Gwhrs

EY2015 1,450 Gwhrs

EY2016 1,680 Gwhrs

EY2017 1,987 Gwhrs

EY2018 2,180 Gwhrs

EY2019 2,368 Gwhrs

EY2020 2,510 Gwhrs

EY2021 2,709.658 Gwhrs

EY2022 2,929.164 Gwhrs

EY2023 3,166.451 Gwhrs

EY2024 3,422.96 Gwhrs

EY2025 3,700.249 Gwhrs

EY2026 4,000 Gwhrs

EY 2027 4,200 Gwhrs

EY 2028 4,400 Gwhrs

EY 2029 4,600 Gwhrs

EY 2030 4,800 Gwhrs

EY20312 , and for every energy year thereafter, at least 2[5,316] 5,0002
 

Old Schedule:
 
1[EY 2013 596 Gwhrs

EY 2014 772 Gwhrs

EY 2015 965 Gwhrs

EY 2016 1,150 Gwhrs

EY 2017 1,357 Gwhrs

EY 2018 1,591 Gwhrs

EY 2019 1,858 Gwhrs

EY 2020 2,164 Gwhrs

EY 2021 2,518 Gwhrs

EY 2022 2,928 Gwhrs

EY 2023 3,433 Gwhrs

EY 2024 3,989 Gwhrs

EY 2025 4,610 Gwhrs

EY 2026 5,316 Gwhrs
 
New SACP (fine)
 
EY 2013 $437

EY 2014 $422

EY 2015 $407

EY 2016 $393

EY 2017 $377

EY 2018 $362

EY 2019 $347

EY 2020 $334

EY 2021 $320

EY 2022 $307

EY 2023 $298

EY 2024 $289

EY 2025 $281

EY 2026 $272

EY 2027 $270

EY 2028 $265

EY 2029 $260

EY2030 $255

EY2031 $2502
 
Old SACP (fine):
 
EY 2013 $641

EY 2014 $625

EY 2015 $609

EY 2016 $594

EY 2017 $475*

EY 2018 $463*

EY 2019 $451*

EY 2020 $440*

EY 2021 $429*

EY 2022 $418*

EY 2023 $418*

EY 2024 $407*

EY 2025 $397*

EY 2026 $387*

EY 2027 $377*

*proposed
 

The Christie Administration will need to review the bill. There are also other aspects in the bill that will be considered and have the potential of preventing its passage. One last minute insertion by some solar industry insiders is a requirement that the ratepayer back a minimum of 30% of all new development in the State by forcing long term SREC contracts on ratepayers
 
Here is the bill:
 
ASSEMBLY TELECOMMUNICATIONS AND UTILITIES COMMITTEE

A M E N D M E N T S

to

[First Reprint]

SENATE, No. 2371

(Sponsored by Senator SMITH )

REPLACE TITLE TO READ:

An Act concerning 1[certain contracts for the purchase of]1 2[solar renewable energy 1[certificates] portfolio standards1] energy efficiency and renewable energy2 and amending P.L.1999, c.23.

INSERT NEW SECTION 1 TO READ:

21. Section 3 of P.L.1999, c.23 (C.48:3-51) is amended to read as follows:

3. As used in P.L.1999, c.23 (C.48:3-49 et al.):

“Assignee” means a person to which an electric public utility or another assignee assigns, sells or transfers, other than as security, all or a portion of its right to or interest in bondable transition property. Except as specifically provided in P.L.1999, c.23 (C.48:3-49 et al.), an assignee shall not be subject to the public utility requirements of Title 48 or any rules or regulations adopted pursuant thereto;

“Base load electric power generation facility” means an electric power generation facility intended to be operated at a greater than 50 percent capacity factor including, but not limited to, a combined cycle power facility and a combined heat and power facility;

“Base residual auction” means the auction conducted by PJM, as part of PJM’s reliability pricing model, three years prior to the start of the delivery year to secure electrical capacity as necessary to satisfy the capacity requirements for that delivery year;

“Basic gas supply service” means gas supply service that is provided to any customer that has not chosen an alternative gas supplier, whether or not the customer has received offers as to competitive supply options, including, but not limited to, any customer that cannot obtain such service for any reason, including non-payment for services. Basic gas supply service is not a competitive service and shall be fully regulated by the board;

“Basic generation service” or “BGS” means electric generation service that is provided, to any customer that has not chosen an alternative electric power supplier, whether or not the customer has received offers for competitive supply options, including, but not limited to, any customer that cannot obtain such service from an electric power supplier for any reason, including non-payment for services. Basic generation service is not a competitive service and shall be fully regulated by the board;

“Basic generation service provider” or “provider” means a provider of basic generation service;

“Basic generation service transition costs” means the amount by which the payments by an electric public utility for the procurement of power for basic generation service and related ancillary and administrative costs exceeds the net revenues from the basic generation service charge established by the board pursuant to section 9 of P.L.1999, c.23 (C.48:3-57) during the transition period, together with interest on the balance at the board-approved rate, that is reflected in a deferred balance account approved by the board in an order addressing the electric public utility’s unbundled rates, stranded costs, and restructuring filings pursuant to P.L.1999, c.23 (C.48:3-49 et al.). Basic generation service transition costs shall include, but are not limited to, costs of purchases from the spot market, bilateral contracts, contracts with non-utility generators, parting contracts with the purchaser of the electric public utility’s divested generation assets, short-term advance purchases, and financial instruments such as hedging, forward contracts, and options. Basic generation service transition costs shall also include the payments by an electric public utility pursuant to a competitive procurement process for basic generation service supply during the transition period, and costs of any such process used to procure the basic generation service supply;

“Board” means the New Jersey Board of Public Utilities or any successor agency;

“Bondable stranded costs” means any stranded costs or basic generation service transition costs of an electric public utility approved by the board for recovery pursuant to the provisions of P.L.1999, c.23 (C.48:3-49 et al.), together with, as approved by the board: (1) the cost of retiring existing debt or equity capital of the electric public utility, including accrued interest, premium and other fees, costs and charges relating thereto, with the proceeds of the financing of bondable transition property; (2) if requested by an electric public utility in its application for a bondable stranded costs rate order, federal, State and local tax liabilities associated with stranded costs recovery or basic generation service transition cost recovery or the transfer or financing of such property or both, including taxes, whose recovery period is modified by the effect of a stranded costs recovery order, a bondable stranded costs rate order or both; and (3) the costs incurred to issue, service or refinance transition bonds, including interest, acquisition or redemption premium, and other financing costs, whether paid upon issuance or over the life of the transition bonds, including, but not limited to, credit enhancements, service charges, overcollateralization, interest rate cap, swap or collar, yield maintenance, maturity guarantee or other hedging agreements, equity investments, operating costs and other related fees, costs and charges, or to assign, sell or otherwise transfer bondable transition property;

“Bondable stranded costs rate order” means one or more irrevocable written orders issued by the board pursuant to P.L.1999, c.23 (C.48:3-49 et al.) which determines the amount of bondable stranded costs and the initial amount of transition bond charges authorized to be imposed to recover such bondable stranded costs, including the costs to be financed from the proceeds of the transition bonds, as well as on-going costs associated with servicing and credit enhancing the transition bonds, and provides the electric public utility specific authority to issue or cause to be issued, directly or indirectly, transition bonds through a financing entity and related matters as provided in P.L.1999, c.23, which order shall become effective immediately upon the written consent of the related electric public utility to such order as provided in P.L.1999, c.23;

“Bondable transition property” means the property consisting of the irrevocable right to charge, collect and receive, and be paid from collections of, transition bond charges in the amount necessary to provide for the full recovery of bondable stranded costs which are determined to be recoverable in a bondable stranded costs rate order, all rights of the related electric public utility under such bondable stranded costs rate order including, without limitation, all rights to obtain periodic adjustments of the related transition bond charges pursuant to subsection b. of section 15 of P.L.1999, c.23 (C.48:3-64), and all revenues, collections, payments, money and proceeds arising under, or with respect to, all of the foregoing;

“British thermal unit” or “Btu” means the amount of heat required to increase the temperature of one pound of water by one degree Fahrenheit;

“Broker” means a duly licensed electric power supplier that assumes the contractual and legal responsibility for the sale of electric generation service, transmission or other services to end-use retail customers, but does not take title to any of the power sold, or a duly licensed gas supplier that assumes the contractual and legal obligation to provide gas supply service to end-use retail customers, but does not take title to the gas;

“Buydown” means an arrangement or arrangements involving the buyer and seller in a given power purchase contract and, in some cases third parties, for consideration to be given by the buyer in order to effectuate a reduction in the pricing, or the restructuring of other terms to reduce the overall cost of the power contract, for the remaining succeeding period of the purchased power arrangement or arrangements;

“Buyout” means an arrangement or arrangements involving the buyer and seller in a given power purchase contract and, in some cases third parties, for consideration to be given by the buyer in order to effectuate a termination of such power purchase contract;

“Class I renewable energy” means electric energy produced from solar technologies, photovoltaic technologies, wind energy, fuel cells, geothermal technologies, wave or tidal action, small scale hydropower facilities with a capacity of three megawatts or less and put into service after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), and methane gas from landfills or a biomass facility, provided that the biomass is cultivated and harvested in a sustainable manner;

“Class II renewable energy” means electric energy produced at a [resource recovery facility or] hydropower facility with a capacity of greater than three megawatts or a resource recovery facility, provided that such facility is located where retail competition is permitted and provided further that the Commissioner of Environmental Protection has determined that such facility meets the highest environmental standards and minimizes any impacts to the environment and local communities;

“Co-generation” means the sequential production of electricity and steam or other forms of useful energy used for industrial or commercial heating and cooling purposes;

“Combined cycle power facility” means a generation facility that combines two or more thermodynamic cycles, by producing electric power via the combustion of fuel and then routing the resulting waste heat by-product to a conventional boiler or to a heat recovery steam generator for use by a steam turbine to produce electric power, thereby increasing the overall efficiency of the generating facility;

“Combined heat and power facility” or “co-generation facility” means a generation facility which produces electric energy[,] and steam[,] or other forms of useful energy such as heat, which are used for industrial or commercial heating or cooling purposes. A combined heat and power facility or co-generation facility shall not be considered a public utility;

“Competitive service” means any service offered by an electric public utility or a gas public utility that the board determines to be competitive pursuant to section 8 or section 10 of P.L.1999, c.23 (C.48:3-56 or C.48:3-58) or that is not regulated by the board;

“Commercial and industrial energy pricing class customer” or “CIEP class customer” means that group of non-residential customers with high peak demand, as determined by periodic board order, which either is eligible or which would be eligible, as determined by periodic board order, to receive funds from the Retail Margin Fund established pursuant to section 9 of P.L.1999, c.23 (C.48:3-57) and for which basic generation service is hourly-priced;

“Comprehensive resource analysis” means an analysis including, but not limited to, an assessment of existing market barriers to the implementation of energy efficiency and renewable technologies that are not or cannot be delivered to customers through a competitive marketplace;

“Connected to the distribution system” means, for a solar power generation facility, (1) connected to a net metering customer’s side of a meter, regardless of the voltage at which that customer connects to the electric grid, or (2) directly connected to the electric grid at 69 kilovolts or less, regardless of how an electric public utility classifies that portion of its electric grid, except that notwithstanding that it meets the criterion set forth in paragraph (1) or in paragraph (2) hereof, a solar electric power generation facility that is greater than 10 megawatts in capacity and either not net metered or not an on-site generation facility shall not be considered “connected to the distribution system” unless it shall have been designated as such by the board pursuant to subsection r. of section 38 of P.L.1999, c.23 (C.48:3-87). Any facility, other than that of a net metering customer on the customer’s side of the meter, connected above 69 kilovolts shall not be considered connected to the distribution system;

“Customer” means any person that is an end user and is connected to any part of the transmission and distribution system within an electric public utility’s service territory or a gas public utility’s service territory within this State;

“Customer account service” means metering, billing, or such other administrative activity associated with maintaining a customer account;

“Delivery year” or “DY” means the 12-month period from June 1st through May 31st, numbered according to the calendar year in which it ends;

“Demand side management” means the management of customer demand for energy service through the implementation of cost-effective energy efficiency technologies, including, but not limited to, installed conservation, load management and energy efficiency measures on and in the residential, commercial, industrial, institutional and governmental premises and facilities in this State;

“EE certificate” means a certificate issued by the board or its designee, representing one megawatt hour (MWh) of eligible energy efficiency and energy conservation and has value based upon, and driven by, the energy market;

“Electric generation service” means the provision of retail electric energy and capacity which is generated off-site from the location at which the consumption of such electric energy and capacity is metered for retail billing purposes, including agreements and arrangements related thereto;

“Electric power generator” means an entity that proposes to construct, own, lease or operate, or currently owns, leases or operates, an electric power production facility that will sell or does sell at least 90 percent of its output, either directly or through a marketer, to a customer or customers located at sites that are not on or contiguous to the site on which the facility will be located or is located. The designation of an entity as an electric power generator for the purposes of P.L.1999, c.23 (C.48:3-49 et al.) shall not, in and of itself, affect the entity’s status as an exempt wholesale generator under the Public Utility Holding Company Act of 1935, 15 U.S.C. s.79 et seq.;

“Electric power supplier” means a person or entity that is duly licensed pursuant to the provisions of P.L.1999, c.23 (C.48:3-49 et al.) to offer and to assume the contractual and legal responsibility to provide electric generation service to retail customers, and includes load serving entities, marketers and brokers that offer or provide electric generation service to retail customers. The term excludes an electric public utility that provides electric generation service only as a basic generation service pursuant to section 9 of P.L.1999, c.23 (C.48:3-57);

“Electric public utility” means a public utility, as that term is defined in R.S.48:2-13, that transmits and distributes electricity to end users within this State;

“Electric related service” means a service that is directly related to the consumption of electricity by an end user, including, but not limited to, the installation of demand side management measures at the end user’s premises, the maintenance, repair or replacement of appliances, lighting, motors or other energy-consuming devices at the end user’s premises, and the provision of energy consumption measurement and billing services;

“Electronic signature” means an electronic sound, symbol or process, attached to, or logically associated with, a contract or other record, and executed or adopted by a person with the intent to sign the record;

“Eligible energy efficiency and energy conservation programs” means programs which apply measurement and verification standards adopted by the board to the board’s issuance of an EE certificate, and which utilize demand side management consisting of the management of customer consumption of electricity or of the demand for or generation of electricity through the implementation of (1) energy efficiency technologies, management practices, or other strategies in residential, commercial, industrial, institutional, or government customers that reduce electricity consumption by those customers, (2) load management or demand response technologies, management practices or other strategies in residential, commercial, industrial, institutional and government customers that shift electric load from periods of higher demand to periods of lower demand, or (3) industrial by-product technologies that use a by-product from an industrial process, including the reuse of energy from exhaust gases or other manufacturing by-products in the direct production of electricity at the facility of a customer;

“Eligible generator” means a developer of a base load or mid-merit electric power generation facility including, but not limited to, an on-site generation facility that qualifies as a capacity resource under PJM criteria and that commences construction after the effective date of P.L.2011, c.9 (C.48:3-98.2 et al.);

“Energy agent” means a person that is duly registered pursuant to the provisions of P.L.1999, c.23 (C.48:3-49 et al.), that arranges the sale of retail electricity or electric related services or retail gas supply or gas related services between government aggregators or private aggregators and electric power suppliers or gas suppliers, but does not take title to the electric or gas sold;

“Energy consumer” means a business or residential consumer of electric generation service or gas supply service located within the territorial jurisdiction of a government aggregator;

“Energy efficiency portfolio standard” means a requirement to procure a specified amount of energy efficiency or demand side management resources as a means of managing and reducing energy usage and demand by customers;

“Energy year” or “EY” means the 12-month period from June 1st through May 31st, numbered according to the calendar year in which it ends;

“Federal Energy Regulatory Commission” or “FERC” means the federal agency established pursuant to 42 U.S.C. s.7171 et seq. to regulate the interstate transmission of electricity, natural gas, and oil;

“Financing entity” means an electric public utility, a special purpose entity, or any other assignee of bondable transition property, which issues transition bonds. Except as specifically provided in P.L.1999, c.23 (C.48:3-49 et al.), a financing entity which is not itself an electric public utility shall not be subject to the public utility requirements of Title 48 or any rules or regulations adopted pursuant thereto;

“Gas public utility” means a public utility, as that term is defined in R.S.48:2-13, that distributes gas to end users within this State;

“Gas related service” means a service that is directly related to the consumption of gas by an end user, including, but not limited to, the installation of demand side management measures at the end user’s premises, the maintenance, repair or replacement of appliances or other energy-consuming devices at the end user’s premises, and the provision of energy consumption measurement and billing services;

“Gas supplier” means a person that is duly licensed pursuant to the provisions of P.L.1999, c.23 (C.48:3-49 et al.) to offer and assume the contractual and legal obligation to provide gas supply service to retail customers, and includes, but is not limited to, marketers and brokers. A non-public utility affiliate of a public utility holding company may be a gas supplier, but a gas public utility or any subsidiary of a gas utility is not a gas supplier. In the event that a gas public utility is not part of a holding company legal structure, a related competitive business segment of that gas public utility may be a gas supplier, provided that related competitive business segment is structurally separated from the gas public utility, and provided that the interactions between the gas public utility and the related competitive business segment are subject to the affiliate relations standards adopted by the board pursuant to subsection k. of section 10 of P.L.1999, c.23 (C.48:3-58);

“Gas supply service” means the provision to customers of the retail commodity of gas, but does not include any regulated distribution service;

“Government aggregator” means any government entity subject to the requirements of the “Local Public Contracts Law,” P.L.1971, c.198 (C.40A:11-1 et seq.), the “Public School Contracts Law,” N.J.S.18A:18A-1 et seq., or the “County College Contracts Law,” P.L.1982, c.189 (C.18A:64A-25.1 et seq.), that enters into a written contract with a licensed electric power supplier or a licensed gas supplier for: (1) the provision of electric generation service, electric related service, gas supply service, or gas related service for its own use or the use of other government aggregators; or (2) if a municipal or county government, the provision of electric generation service or gas supply service on behalf of business or residential customers within its territorial jurisdiction;

“Government energy aggregation program” means a program and procedure pursuant to which a government aggregator enters into a written contract for the provision of electric generation service or gas supply service on behalf of business or residential customers within its territorial jurisdiction;

“Governmental entity” means any federal, state, municipal, local or other governmental department, commission, board, agency, court, authority or instrumentality having competent jurisdiction;

“Greenhouse gas emissions portfolio standard” means a requirement that addresses or limits the amount of carbon dioxide emissions indirectly resulting from the use of electricity as applied to any electric power suppliers and basic generation service providers of electricity;

“Incremental auction” means an auction conducted by PJM, as part of PJM’s reliability pricing model, prior to the start of the delivery year to secure electric capacity as necessary to satisfy the capacity requirements for that delivery year, that is not otherwise provided for in the base residual auction;

“Leakage” means an increase in greenhouse gas emissions related to generation sources located outside of the State that are not subject to a state, interstate or regional greenhouse gas emissions cap or standard that applies to generation sources located within the State;

“Locational deliverability area” or “LDA” means one or more of the zones within the PJM region which are used to evaluate area transmission constraints and reliability issues including electric public utility company zones, sub-zones, and combinations of zones;

“Long-term capacity agreement pilot program” or “LCAPP” means a pilot program established by the board that includes participation by eligible generators, to seek offers for financially-settled standard offer capacity agreements with eligible generators pursuant to the provisions of P.L.2011, c.9 (C.48:3-98.2 et al.);

“Market transition charge” means a charge imposed pursuant to section 13 of P.L.1999, c.23 (C.48:3-61) by an electric public utility, at a level determined by the board, on the electric public utility customers for a limited duration transition period to recover stranded costs created as a result of the introduction of electric power supply competition pursuant to the provisions of P.L.1999, c.23 (C.48:3-49 et al.);

“Marketer” means a duly licensed electric power supplier that takes title to electric energy and capacity, transmission and other services from electric power generators and other wholesale suppliers and then assumes the contractual and legal obligation to provide electric generation service, and may include transmission and other services, to an end-use retail customer or customers, or a duly licensed gas supplier that takes title to gas and then assumes the contractual and legal obligation to provide gas supply service to an end-use customer or customers;

“Mid-merit electric power generation facility” means a generation facility that operates at a capacity factor between baseload generation facilities and peaker generation facilities;

“Net proceeds” means proceeds less transaction and other related costs as determined by the board;

“Net revenues” means revenues less related expenses, including applicable taxes, as determined by the board;

“Offshore wind energy” means electric energy produced by a qualified offshore wind project;

“Offshore wind renewable energy certificate” or “OREC” means a certificate, issued by the board or its designee, representing the environmental attributes of one megawatt hour of electric generation from a qualified offshore wind project;

“Off-site end use thermal energy services customer” means an end use customer that purchases thermal energy services from an on-site generation facility, combined heat and power facility, or co-generation facility, and that is located on property that is separated from the property on which the on-site generation facility, combined heat and power facility, or co-generation facility is located by more than one easement, public thoroughfare, or transportation or utility-owned right-of-way;

“On-site generation facility” means a generation facility, including but not limited to, a generation facility that produces Class I or Class II renewable energy, and equipment and services appurtenant to electric sales by such facility to the end use customer located on the property or on property contiguous to the property on which the end user is located. An on-site generation facility shall not be considered a public utility. The property of the end use customer and the property on which the on-site generation facility is located shall be considered contiguous if they are geographically located next to each other, but may be otherwise separated by an easement, public thoroughfare, transportation or utility-owned right-of-way, or if the end use customer is purchasing thermal energy services produced by the on-site generation facility, for use for heating or cooling, or both, regardless of whether the customer is located on property that is separated from the property on which the on-site generation facility is located by more than one easement, public thoroughfare, or transportation or utility-owned right-of-way;

“Person” means an individual, partnership, corporation, association, trust, limited liability company, governmental entity or other legal entity;

“PJM Interconnection, L.L.C.” or “PJM” means the privately-held, limited liability corporation that is a FERC-approved Regional Transmission Organization, or its successor, that manages the regional, high-voltage electricity grid serving all or parts of 13 states including New Jersey and the District of Columbia, operates the regional competitive wholesale electric market, manages the regional transmission planning process, and establishes systems and rules to ensure that the regional and in-State energy markets operate fairly and efficiently;

“Private aggregator” means a non-government aggregator that is a duly-organized business or non-profit organization authorized to do business in this State that enters into a contract with a duly licensed electric power supplier for the purchase of electric energy and capacity, or with a duly licensed gas supplier for the purchase of gas supply service, on behalf of multiple end-use customers by combining the loads of those customers;

“Public utility holding company” means: (1) any company that, directly or indirectly, owns, controls, or holds with power to vote, ten percent or more of the outstanding voting securities of an electric public utility or a gas public utility or of a company which is a public utility holding company by virtue of this definition, unless the Securities and Exchange Commission, or its successor, by order declares such company not to be a public utility holding company under the Public Utility Holding Company Act of 1935, 15 U.S.C. s.79 et seq., or its successor; or (2) any person that the Securities and Exchange Commission, or its successor, determines, after notice and opportunity for hearing, directly or indirectly, to exercise, either alone or pursuant to an arrangement or understanding with one or more other persons, such a controlling influence over the management or policies of an electric public utility or a gas public utility or public utility holding company as to make it necessary or appropriate in the public interest or for the protection of investors or consumers that such person be subject to the obligations, duties, and liabilities imposed in the Public Utility Holding Company Act of 1935 or its successor;

“Qualified offshore wind project” means a wind turbine electricity generation facility in the Atlantic Ocean and connected to the electric transmission system in this State, and includes the associated transmission-related interconnection facilities and equipment, and approved by the board pursuant to section 3 of P.L.2010, c.57 (C.48:3-87.1);

“Registration program” means an administrative process developed by the board that requires that all solar electric power generation facilities with a planned capacity of one megawatt or greater that are filing with the board for approval to generate SRECs, to file documents detailing the size, location, and other project information as required by the board;

“Regulatory asset” means an asset recorded on the books of an electric public utility or gas public utility pursuant to the Statement of Financial Accounting Standards, No. 71, entitled “Accounting for the Effects of Certain Types of Regulation,” or any successor standard and as deemed recoverable by the board;

“Related competitive business segment of an electric public utility or gas public utility” means any business venture of an electric public utility or gas public utility including, but not limited to, functionally separate business units, joint ventures, and partnerships, that offers to provide or provides competitive services;

“Related competitive business segment of a public utility holding company” means any business venture of a public utility holding company, including, but not limited to, functionally separate business units, joint ventures, and partnerships and subsidiaries, that offers to provide or provides competitive services, but does not include any related competitive business segments of an electric public utility or gas public utility;

“Reliability pricing model” or “RPM” means PJM’s capacity-market model, and its successors, that secures capacity on behalf of electric load serving entities to satisfy load obligations not satisfied through the output of electric generation facilities owned by those entities, or otherwise secured by those entities through bilateral contracts;

“Renewable energy certificate” or “REC” means a certificate representing the environmental benefits or attributes of one megawatt-hour of generation from a generating facility that produces Class I or Class II renewable energy, but shall not include a solar renewable energy certificate or an offshore wind renewable energy certificate;

“Resource clearing price” or “RCP” means the clearing price established for the applicable locational deliverability area by the base residual auction or incremental auction, as determined by the optimization algorithm for each auction, conducted by PJM as part of PJM’s reliability pricing model;

“Resource recovery facility” means a solid waste facility constructed and operated for the incineration of solid waste for energy production and the recovery of metals and other materials for reuse which the Department of Environmental Protection has determined are in compliance with current environmental standards, including, but not limited to, all applicable requirements of the federal “Clean Air Act” (42 U.S.C. s.7401 et seq.);

“Restructuring related costs” means reasonably incurred costs directly related to the restructuring of the electric power industry, including the closure, sale, functional separation and divestiture of generation and other competitive utility assets by a public utility, or the provision of competitive services as such costs are determined by the board, and which are not stranded costs as defined in P.L.1999, c.23 (C.48:3-49 et al.) but may include, but not be limited to, investments in management information systems, and which shall include expenses related to employees affected by restructuring which result in efficiencies and which result in benefits to ratepayers, such as training or retraining at the level equivalent to one year’s training at a vocational or technical school or county community college, the provision of severance pay of two weeks of base pay for each year of full-time employment, and a maximum of 24 months’ continued health care coverage. Except as to expenses related to employees affected by restructuring, “restructuring related costs” shall not include going forward costs;

“Retail choice” means the ability of retail customers to shop for electric generation or gas supply service from electric power or gas suppliers, or opt to receive basic generation service or basic gas service, and the ability of an electric power or gas supplier to offer electric generation service or gas supply service to retail customers, consistent with the provisions of P.L.1999, c.23 (C.48:3-49 et al.);

“Retail margin” means an amount, reflecting differences in prices that electric power suppliers and electric public utilities may charge in providing electric generation service and basic generation service, respectively, to retail customers, excluding residential customers, which the board may authorize to be charged to categories of basic generation service customers of electric public utilities in this State, other than residential customers, under the board’s continuing regulation of basic generation service pursuant to sections 3 and 9 of P.L.1999, c.23 (C.48:3-51 and 48:3-57), for the purpose of promoting a competitive retail market for the supply of electricity;

“Shopping credit” means an amount deducted from the bill of an electric public utility customer to reflect the fact that such customer has switched to an electric power supplier and no longer takes basic generation service from the electric public utility;

“Small scale hydropower facility” means a facility located within this State and connected to the distribution system, and that meets the requirements of, and has been certified by, a nationally recognized low-impact hydropower organization that has established low-impact hydropower certification criteria applicable to: (1) river flows; (2) water quality; (3) fish passage and protection; (4) watershed protection; (5) threatened and endangered species protection; (6) cultural resource protection; (7) recreation; and (8) facilities recommended for removal;

“Social program” means a program implemented with board approval to provide assistance to a group of disadvantaged customers, to provide protection to consumers, or to accomplish a particular societal goal, and includes, but is not limited to, the winter moratorium program, utility practices concerning “bad debt” customers, low income assistance, deferred payment plans, weatherization programs, and late payment and deposit policies, but does not include any demand side management program or any environmental requirements or controls;

“Societal benefits charge” means a charge imposed by an electric public utility, at a level determined by the board, pursuant to, and in accordance with, section 12 of P.L.1999, c.23 (C.48:3-60);

“Solar alternative compliance payment” or “SACP” means a payment of a certain dollar amount per megawatt hour (MWh) which an electric power supplier or provider may submit to the board in order to comply with the solar electric generation requirements under section 38 of P.L.1999, c.23 (C.48:3-87);

“Solar renewable energy certificate” or “SREC” means a certificate issued by the board or its designee, representing one megawatt hour (MWh) of solar energy that is generated by a facility connected to the distribution system in this State and has value based upon, and driven by, the energy market;

“Standard offer capacity agreement” or “SOCA” means a financially-settled transaction agreement, approved by board order, that provides for eligible generators to receive payments from the electric public utilities for a defined amount of electric capacity for a term to be determined by the board but not to exceed 15 years, and for such payments to be a fully non-bypassable charge, with such an order, once issued, being irrevocable;

“Standard offer capacity price” or “SOCP” means the capacity price that is fixed for the term of the SOCA and which is the price to be received by eligible generators under a board-approved SOCA;

“Stranded cost” means the amount by which the net cost of an electric public utility’s electric generating assets or electric power purchase commitments, as determined by the board consistent with the provisions of P.L.1999, c.23 (C.48:3-49 et al.), exceeds the market value of those assets or contractual commitments in a competitive supply marketplace and the costs of buydowns or buyouts of power purchase contracts;

“Stranded costs recovery order” means each order issued by the board in accordance with subsection c. of section 13 of P.L.1999, c.23 (C.48:3-61) which sets forth the amount of stranded costs, if any, the board has determined an electric public utility is eligible to recover and collect in accordance with the standards set forth in section 13 of P.L.1999, c.23 (C.48:3-61) and the recovery mechanisms therefor;

“Thermal efficiency” means the useful electric energy output of a facility, plus the useful thermal energy output of the facility, expressed as a percentage of the total energy input to the facility;

“Transition bond charge” means a charge, expressed as an amount per kilowatt hour, that is authorized by and imposed on electric public utility ratepayers pursuant to a bondable stranded costs rate order, as modified at any time pursuant to the provisions of P.L.1999, c.23 (C.48:3-49 et al.);

“Transition bonds” means bonds, notes, certificates of participation or beneficial interest or other evidences of indebtedness or ownership issued pursuant to an indenture, contract or other agreement of an electric public utility or a financing entity, the proceeds of which are used, directly or indirectly, to recover, finance or refinance bondable stranded costs and which are, directly or indirectly, secured by or payable from bondable transition property. References in P.L.1999, c.23 (C.48:3-49 et al.) to principal, interest, and acquisition or redemption premium with respect to transition bonds which are issued in the form of certificates of participation or beneficial interest or other evidences of ownership shall refer to the comparable payments on such securities;

“Transition period” means the period from August 1, 1999 through July 31, 2003;

“Transmission and distribution system” means, with respect to an electric public utility, any facility or equipment that is used for the transmission, distribution or delivery of electricity to the customers of the electric public utility including, but not limited to, the land, structures, meters, lines, switches and all other appurtenances thereof and thereto, owned or controlled by the electric public utility within this State; and

“Universal service” means any service approved by the board with the purpose of assisting low-income residential customers in obtaining or retaining electric generation or delivery service.2

(cf: P.L.2011, c.9, s.2)

REPLACE SECTION 1 TO READ:

2[1.] 2.2 Section 38 of P.L.1999, c.23 (C.48:3-87) is amended to read as follows:

38. a. The board shall require an electric power supplier or basic generation service provider to disclose on a customer’s bill or on customer contracts or marketing materials, a uniform, common set of information about the environmental characteristics of the energy purchased by the customer, including, but not limited to:

(1) Its fuel mix, including categories for oil, gas, nuclear, coal, solar, hydroelectric, wind and biomass, or a regional average determined by the board;

(2) Its emissions, in pounds per megawatt hour, of sulfur dioxide, carbon dioxide, oxides of nitrogen, and any other pollutant that the board may determine to pose an environmental or health hazard, or an emissions default to be determined by the board; and

(3) Any discrete emission reduction retired pursuant to rules and regulations adopted pursuant to P.L.1995, c.188.

b. Notwithstanding any provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the board shall initiate a proceeding and shall adopt, in consultation with the Department of Environmental Protection, after notice and opportunity for public comment and public hearing, interim standards to implement this disclosure requirement, including, but not limited to:

(1) A methodology for disclosure of emissions based on output pounds per megawatt hour;

(2) Benchmarks for all suppliers and basic generation service providers to use in disclosing emissions that will enable consumers to perform a meaningful comparison with a supplier’s or basic generation service provider’s emission levels; and

(3) A uniform emissions disclosure format that is graphic in nature and easily understandable by consumers. The board shall periodically review the disclosure requirements to determine if revisions to the environmental disclosure system as implemented are necessary.

Such standards shall be effective as regulations immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months, and may, thereafter, be amended, adopted or readopted by the board in accordance with the provisions of the “Administrative Procedure Act.”

c. (1) The board may adopt, in consultation with the Department of Environmental Protection, after notice and opportunity for public comment, an emissions portfolio standard applicable to all electric power suppliers and basic generation service providers, upon a finding that:

(a) The standard is necessary as part of a plan to enable the State to meet federal Clean Air Act or State ambient air quality standards; and

(b) Actions at the regional or federal level cannot reasonably be expected to achieve the compliance with the federal standards.

(2) By July 1, 2009, the board shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), a greenhouse gas emissions portfolio standard to mitigate leakage or another regulatory mechanism to mitigate leakage applicable to all electric power suppliers and basic generation service providers that provide electricity to customers within the State. The greenhouse gas emissions portfolio standard or any other regulatory mechanism to mitigate leakage shall:

(a) Allow a transition period, either before or after the effective date of the regulation to mitigate leakage, for a basic generation service provider or electric power supplier to either meet the emissions portfolio standard or other regulatory mechanism to mitigate leakage, or to transfer any customer to a basic generation service provider or electric power supplier that meets the emissions portfolio standard or other regulatory mechanism to mitigate leakage. If the transition period allowed pursuant to this subparagraph occurs after the implementation of an emissions portfolio standard or other regulatory mechanism to mitigate leakage, the transition period shall be no longer than three years; and

(b) Exempt the provision of basic generation service pursuant to a basic generation service purchase and sale agreement effective prior to the date of the regulation.

Unless the Attorney General or the Attorney General’s designee determines that a greenhouse gas emissions portfolio standard would unconstitutionally burden interstate commerce or would be preempted by federal law, the adoption by the board of an electric energy efficiency portfolio standard pursuant to subsection g. of this section, a gas energy efficiency portfolio standard pursuant to subsection h. of this section, or any other enhanced energy efficiency policies to mitigate leakage shall not be considered sufficient to fulfill the requirement of this subsection for the adoption of a greenhouse gas emissions portfolio standard or any other regulatory mechanism to mitigate leakage.

d. Notwithstanding any provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the board shall initiate a proceeding and shall adopt, after notice, provision of the opportunity for comment, and public hearing, renewable energy portfolio standards that shall require:

(1) that two and one-half percent of the kilowatt hours sold in this State by each electric power supplier and each basic generation service provider be from Class I or Class II renewable energy sources;

(2) beginning on January 1, 2001, that one-half of one percent of the kilowatt hours sold in this State by each electric power supplier and each basic generation service provider be from Class I renewable energy sources. The board shall increase the required percentage for Class I renewable energy sources so that by January 1, 2006, one percent of the kilowatt hours sold in this State by each electric power supplier and each basic generation service provider shall be from Class I renewable energy sources and shall additionally increase the required percentage for Class I renewable energy sources by one-half of one percent each year until January 1, 2012, when four percent of the kilowatt hours sold in this State by each electric power supplier and each basic generation service provider shall be from Class I renewable energy sources.

An electric power supplier or basic generation service provider may satisfy the requirements of this subsection by participating in a renewable energy trading program approved by the board in consultation with the Department of Environmental Protection; 2and2

(3) that the board establish a multi-year schedule, applicable to each electric power supplier or basic generation service provider in this State, beginning with the one-year period commencing on June 1, 2010, and continuing for each subsequent one-year period up to and including, the one-year period commencing on 1[June 1, 2025] 2[June 1, 20241] June 1, 20302, that requires suppliers or providers to purchase at least the following number of kilowatt-hours from solar electric power generators 2connected to the distribution system2 in this State:

EY 2011 306 Gigawatthours (Gwhrs)

EY 2012 442 Gwhrs

1[EY 2013 596 Gwhrs

EY 2014 772 Gwhrs

EY 2015 965 Gwhrs

EY 2016 1,150 Gwhrs

EY 2017 1,357 Gwhrs

EY 2018 1,591 Gwhrs

EY 2019 1,858 Gwhrs

EY 2020 2,164 Gwhrs

EY 2021 2,518 Gwhrs

EY 2022 2,928 Gwhrs

EY 2023 3,433 Gwhrs

EY 2024 3,989 Gwhrs

EY 2025 4,610 Gwhrs

EY 2026 5,316 Gwhrs

EY 2027]

2[EY 2013 772 G whrs

EY 2014 965 Gwhrs

EY 2015 1,150 Gwhrs

EY 2016 1,357 Gwhrs

EY 2017 1,591 Gwhrs

EY 2018 1,858 Gwhrs

EY 2019 2,164 Gwhrs

EY 2020 2,518 Gwhrs

EY 2021 2,928 Gwhrs

EY 2022 3,433 Gwhrs

EY 2023 3,989 Gwhrs

EY 2024 4,610 Gwhrs

EY 2025 5,316 Gwhrs

EY 20261]

EY2013 1,020 Gwhrs

EY2014 1,264 Gwhrs

EY2015 1,450 Gwhrs

EY2016 1,680 Gwhrs

EY2017 1,987 Gwhrs

EY2018 2,180 Gwhrs

EY2019 2,368 Gwhrs

EY2020 2,510 Gwhrs

EY2021 2,709.658 Gwhrs

EY2022 2,929.164 Gwhrs

EY2023 3,166.451 Gwhrs

EY2024 3,422.96 Gwhrs

EY2025 3,700.249 Gwhrs

EY2026 4,000 Gwhrs

EY 2027 4,200 Gwhrs

EY 2028 4,400 Gwhrs

EY 2029 4,600 Gwhrs

EY 2030 4,800 Gwhrs

EY20312 , and for every energy year thereafter, at least 2[5,316] 5,0002 Gwhrs per energy year to reflect an increasing number of kilowatt-hours to be purchased by suppliers or providers from solar electric power generators 2connected to the distribution system2 in this State, and to establish a framework within which suppliers and providers shall purchase at least 2[2,518] 2,709.6582 Gwhrs in the energy year 1[2021] 2[20201] 20212 and 2[5,316] 5,0002 Gwhrs in the energy year 1[2026] 2[20251] 20312 from solar electric power generators 2connected to the distribution system2 in this State, provided, however, that 2:

(a) when the board establishes the multi-year schedule and framework for annual Statewide Gwhr requirements for Energy Years 2011 through 2031 required in paragraph (3) of subsection d. of this section, and any requirements for Energy Years thereafter, the board ensures that each such annual Statewide Gwhr requirement annually requires that a percentage of the kilowatt-hours sold in this State by each provider and supplier be purchased from solar electric power generators connected to the distribution system in this State, based on the percentage relationship that each annual Statewide Gwhr requirement has to the board’s weather-normalized projection of the number of kilowatt hours to be sold in this State by all providers and suppliers for each Energy Year, subject to adjustment pursuant to subparagraph (d) of paragraph (3) of this subsection;

(b)2 the number of solar kilowatt-hours required to be purchased by each supplier or provider, when expressed as a percentage of the total number of solar kilowatt-hours purchased in this State, shall be equivalent to each supplier’s or provider’s proportionate share of the total number of kilowatt-hours 2projected by the board to be2 sold in this State by all suppliers and providers 2;

(c) the board shall determine an appropriate period of no less than 120 days following the end of an Energy Year prior to which a provider or supplier must demonstrate compliance with the annual renewable portfolio standard;

(d) within 45 days following the period set forth in subparagraph (c) of paragraph (3) of this subsection, to the extent that the board determines that the solar Gwhrs purchased in an Energy Year by all providers and suppliers pursuant to the percentage established by the board were less than the annual Statewide Gwhr requirement specified in paragraph (3) of this subsection, the board shall add the Gwhrs that constitute the shortfall to the annual Gwhr requirement for the Energy Year that is three years after the Energy Year in which the shortfall occurs, and use the increased Gwhr requirement to recalculate the percentage of kilowatt-hours that each provider and supplier sells that are required to be purchased from solar electric power generators connected to the distribution system in this State for that future Energy Year; and

(e) providers and suppliers shall comply with the provisions of paragraph (3) of this subsection by complying with the board’s percentage requirements established pursuant to subparagraphs (a) through (d) of paragraph (3) of this subsection.

(f) No more than 24 months following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall complete a proceeding to investigate approaches to mitigate excessive SREC price and solar development volatility and prepare and submit a report to the Legislature, detailing its findings and recommendations pursuant to P.L.1991, c.164 (C.52:14-19.1). As part of the proceeding, the board shall evaluate other techniques used nationally and internationally2 .

The solar renewable portfolio standards requirements in paragraph (3) of this subsection shall automatically increase by 20% for the remainder of the schedule in the event that the following two conditions are met: (a) the number of SRECs generated 2or available for sale2 meets or exceeds the requirement for three consecutive reporting years, starting with energy year 2013; and (b) the average SREC price for all SRECs purchased by entities with renewable energy portfolio standards obligations has decreased in the same three consecutive reporting years. The board shall exempt providers’ existing supply contracts that are: (a) effective prior to the date of 2[P.L.2009, c.289] enactment of P.L. , c. (C. ) (pending before the Legislature as this bill)2; or (b) effective prior to any future increase in the solar renewable portfolio standard beyond the multi-year schedule established in paragraph (3) of this subsection. This exemption shall apply to the number of SRECs that exceeds the number mandated by the solar renewable portfolio standards requirements that were in effect on the date that the providers executed their existing supply contracts. This limited exemption for providers’ existing supply contracts shall not be construed to lower the Statewide solar purchase requirements set forth in paragraph (3) of this subsection. Such incremental new requirements shall be distributed over the electric power suppliers and providers not subject to the existing supply contract exemption until such time as existing supply contracts expire and all suppliers are subject to the new requirement 2in a manner that is competitively neutral between providers as a whole and suppliers, such that non-exempt providers are assigned the requirements that would have otherwise been assigned to the exempt providers2 .

An electric power supplier or basic generation service provider may satisfy the requirements of this subsection by participating in a renewable energy trading program approved by the board in consultation with the Department of Environmental Protection, or compliance with the requirements of this subsection may be demonstrated to the board by suppliers or providers through the purchase of SRECs.

The renewable energy portfolio standards adopted by the board pursuant to paragraphs (1) and (2) of this subsection shall be effective as regulations immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months, and may, thereafter, be amended, adopted or readopted by the board in accordance with the provisions of the “Administrative Procedure Act.”

The renewable energy portfolio standards adopted by the board pursuant to paragraph (3) of this subsection shall be effective as regulations immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 30 months after such filing, and shall, thereafter, be amended, adopted or readopted by the board in accordance with the “Administrative Procedure Act”; and

(4) within 180 days after the date of enactment of P.L.2010, c.57 (C.48:3-87.1 et al.), that the board establish an offshore wind renewable energy certificate program to require that a percentage of the kilowatt hours sold in this State by each electric power supplier and each basic generation service provider be from offshore wind energy in order to support at least 1,100 megawatts of generation from qualified offshore wind projects.

The percentage established by the board pursuant to this paragraph shall serve as an offset to the renewable energy portfolio standard established pursuant to paragraphs (1) and (2) of this subsection and shall reduce the corresponding Class I renewable energy requirement.

The percentage established by the board pursuant to this paragraph shall reflect the projected OREC production of each qualified offshore wind project, approved by the board pursuant to section 3 of P.L.2010, c.57 (C.48:3-87.1), for twenty years from the commercial operation start date of the qualified offshore wind project which production projection and OREC purchase requirement, once approved by the board, shall not be subject to reduction.

An electric power supplier or basic generation service provider shall comply with the OREC program established pursuant to this paragraph through the purchase of offshore wind renewable energy certificates at a price and for the time period required by the board. In the event there are insufficient offshore wind renewable energy certificates available, the electric power supplier or basic generation service provider shall pay an offshore wind alternative compliance payment established by the board. Any offshore wind alternative compliance payments collected shall be refunded directly to the ratepayers by the electric public utilities.

The rules established by the board pursuant to this paragraph shall be effective as regulations immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months, and may, thereafter, be amended, adopted or readopted by the board in accordance with the provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).

e. Notwithstanding any provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the board shall initiate a proceeding and shall adopt, after notice, provision of the opportunity for comment, and public hearing:

(1) net metering standards for electric power suppliers and basic generation service providers. The standards shall require electric power suppliers and basic generation service providers to offer net metering at non-discriminatory rates to industrial, large commercial, residential and small commercial customers, as those customers are classified or defined by the board, that generate electricity, on the customer’s side of the meter, using a Class I renewable energy source, for the net amount of electricity supplied by the electric power supplier or basic generation service provider over an annualized period. Systems of any sized capacity, as measured in watts, are eligible for net metering. If the amount of electricity generated by the customer-generator, plus any kilowatt hour credits held over from the previous billing periods, exceeds the electricity supplied by the electric power supplier or basic generation service provider, then the electric power supplier or basic generation service provider, as the case may be, shall credit the customer-generator for the excess kilowatt hours until the end of the annualized period at which point the customer-generator will be compensated for any remaining credits or, if the customer-generator chooses, credit the customer-generator on a real-time basis, at the electric power supplier’s or basic generation service provider’s avoided cost of wholesale power or the PJM electric power pool’s real-time locational marginal pricing rate, adjusted for losses, for the respective zone in the PJM electric power pool. Alternatively, the customer-generator may execute a bilateral agreement with an electric power supplier or basic generation service provider for the sale and purchase of the customer-generator’s excess generation. The customer-generator may be credited on a real-time basis, so long as the customer-generator follows applicable rules prescribed by the PJM electric power pool for its capacity requirements for the net amount of electricity supplied by the electric power supplier or basic generation service provider 2[. The board may authorize an electric power supplier or basic generation service provider to cease offering net metering whenever the total rated generating capacity owned and operated by net metering customer-generators Statewide equals 2.5 percent of the State's peak electricity demand]2;

(2) safety and power quality interconnection standards for Class I renewable energy source systems used by a customer-generator that shall be eligible for net metering.

Such standards or rules shall take into consideration the goals of the New Jersey Energy Master Plan, applicable industry standards, and the standards of other states and the Institute of Electrical and Electronic Engineers. The board shall allow electric public utilities to recover the costs of any new net meters, upgraded net meters, system reinforcements or upgrades, and interconnection costs through either their regulated rates or from the net metering customer-generator; and

(3) credit or other incentive rules for generators using Class I renewable energy generation systems that connect to New Jersey’s electric public utilities’ distribution system but who do not net meter.

Such rules shall require the board or its designee to issue a credit or other incentive to those generators that do not use a net meter but otherwise generate electricity derived from a Class I renewable energy source and to issue an enhanced credit or other incentive, including, but not limited to, a solar renewable energy credit, to those generators that generate electricity derived from solar technologies.

Such standards or rules shall be effective as regulations immediately upon filing with the Office of Administrative Law and shall be effective for a period not to exceed 18 months, and may, thereafter, be amended, adopted or readopted by the board in accordance with the provisions of the “Administrative Procedure Act.”

f. The board may assess, by written order and after notice and opportunity for comment, a separate fee to cover the cost of implementing and overseeing an emission disclosure system or emission portfolio standard, which fee shall be assessed based on an electric power supplier’s or basic generation service provider’s share of the retail electricity supply market. The board shall not impose a fee for the cost of implementing and overseeing a greenhouse gas emissions portfolio standard adopted pursuant to paragraph (2) of subsection c. of this section, the electric energy efficiency portfolio standard adopted pursuant to subsection g. of this section, or the gas energy efficiency portfolio standard adopted pursuant to subsection h. of this section.

g. The board may adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), an electric energy efficiency portfolio standard that may require each electric public utility to implement energy efficiency measures that reduce electricity usage in the State by 2020 to a level that is 20 percent below the usage projected by the board in the absence of such a standard. Nothing in this section shall be construed to prevent an electric public utility from meeting the requirements of this section by contracting with another entity for the performance of the requirements.

h. The board may adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), a gas energy efficiency portfolio standard that may require each gas public utility to implement energy efficiency measures that reduce natural gas usage for heating in the State by 2020 to a level that is 20 percent below the usage projected by the board in the absence of such a standard. Nothing in this section shall be construed to prevent a gas public utility from meeting the requirements of this section by contracting with another entity for the performance of the requirements.

i. After the board establishes a schedule of solar kilowatt-hour sale or purchase requirements pursuant to paragraph (3) of subsection d. of this section, the board may initiate subsequent proceedings and adopt, after appropriate notice and opportunity for public comment and public hearing, increased minimum solar kilowatt-hour sale or purchase requirements, provided that the board shall not reduce previously established minimum solar kilowatt-hour sale or purchase requirements, or otherwise impose constraints that reduce the requirements by any means.

j. The board shall 2[determine an appropriate level of solar alternative compliance payment, and establish a 15-year solar alternative compliance payment schedule, that permits] permit2 each supplier or provider to submit an SACP to comply with the solar electric generation requirements of paragraph (3) of subsection d. of this section. 2The value of the SACP for each fiscal year shall be at least:

EY 2013 $437

EY 2014 $422

EY 2015 $407

EY 2016 $393

EY 2017 $377

EY 2018 $362

EY 2019 $347

EY 2020 $334

EY 2021 $320

EY 2022 $307

EY 2023 $298

EY 2024 $289

EY 2025 $281

EY 2026 $272

EY 2027 $270

EY 2028 $265

EY 2029 $260

EY2030 $255

EY2031 $2502

The board may initiate subsequent proceedings and adopt, after appropriate notice and opportunity for public comment and public hearing, an increase in solar alternative compliance payments2[, provided that the] . The board shall initiate a proceeding and may adopt, after appropriate notice and opportunity for public comment and public hearing, an increase in solar alternative compliance payments if the 30 percent federal business energy tax credit available pursuant to 26 U.S.C. s.48 is not extended by June 30, 2015. The2 board shall not reduce previously established levels of solar alternative compliance payments, nor shall the board provide relief from the obligation of payment of the SACP by the electric power suppliers or basic generation service providers in any form. Any SACP payments collected shall be refunded directly to the ratepayers by the electric public utilities.

k. The board [may allow] shall require electric public utilities to offer long-term contracts through a competitive process and other means of financing, including but not limited to loans, for the purchase of SRECs and the resale of SRECs to suppliers or providers or others, provided that after such contracts have been approved by the board, the board’s approvals shall not be modified by subsequent board orders. On and after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the number of SRECs offered under this subsection shall include solar electric power generators of 2MW or less and shall comprise at least 30 percent of the annual Gwhrs under the solar renewable energy portfolio requirements under subsection d. of this section to assist in managing the marketplace until such time as the board determines that such requirements are no longer necessary to support development of the solar industry in this State. Of the SRECs approved by the board and offered under this subsection by electric public utilities, no more than 20 percent shall be set aside for residential and small commercial projects of 20 kilowatts or less, and such SRECs shall be offered through a similar competitive process.

l. The board shall implement its responsibilities under the provisions of this section in such a manner as to:

(1) place greater reliance on competitive markets, with the explicit goal of encouraging and ensuring the emergence of new entrants that can foster innovations and price competition;

(2) maintain adequate regulatory authority over non-competitive public utility services;

(3) consider alternative forms of regulation in order to address changes in the technology and structure of electric public utilities;

(4) promote energy efficiency and Class I renewable energy market development, taking into consideration environmental benefits and market barriers;

(5) make energy services more affordable for low and moderate income customers;

(6) attempt to transform the renewable energy market into one that can move forward without subsidies from the State or public utilities;

(7) achieve the goals put forth under the renewable energy portfolio standards;

(8) promote the lowest cost to ratepayers; and

(9) allow all market segments to participate.

m. The board shall ensure the availability of financial incentives under its jurisdiction, including, but not limited to, long-term contracts, loans, SRECs, or other financial support, to ensure market diversity, competition, and appropriate coverage across all ratepayer segments, including, but not limited to, residential, commercial, industrial, non-profit, farms, schools, and public entity customers.

n. For projects which are owned, or directly invested in, by a public utility pursuant to section 13 of P.L.2007, c.340 (C.48:3-98.1), the board shall determine the number of SRECs with which such projects shall be credited; and in determining such number the board shall ensure that the market for SRECs does not detrimentally affect the development of non-utility solar projects and shall consider how its determination may impact the ratepayers.

o. The board, in consultation with the Department of Environmental Protection, electric public utilities, the Division of Rate Counsel in, but not of, the Department of the Treasury, affected members of the solar energy industry, and relevant stakeholders, shall periodically consider increasing the renewable energy portfolio standards beyond the minimum amounts set forth in subsection d. of this section, taking into account the cost impacts and public benefits of such increases including, but not limited to:

(1) reductions in air pollution, water pollution, land disturbance, and greenhouse gas emissions;

(2) reductions in peak demand for electricity and natural gas, and the overall impact on the costs to customers of electricity and natural gas;

(3) increases in renewable energy development, manufacturing, investment, and job creation opportunities in this State; and

(4) reductions in State and national dependence on the use of fossil fuels.

p. Class I RECs 2and ORECS2 shall be eligible for use in renewable energy portfolio standards compliance in the energy year in which they are generated, and for the following two energy years. SRECs 2[and ORECs]2 shall be eligible for use in renewable energy portfolio standards compliance in the energy year in which they are generated, and for the following 2[two] four2 energy years.

1[q. Notwithstanding any provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the board shall adopt, after notice, provision of the opportunity for comment, and pubic hearing, regulations that require contracts entered into by non-utility load serving entities for the purchase of SRECs after the effective date of P.L. , c. (C. ) (pending before the Legislature this bill) to be long-term contracts that extend for a term of 15 years or longer.

As used in this subsection, a "non-utility load serving entity" means any entity, other than an electric public utility, or the duly designated agent of such an entity, that serves the electric power needs of end-users within the PJM region, and that has been granted the authority or has an obligation pursuant to State or local law, regulation, or franchise to sell electric power to end-users within the PJM electric power pool region.]1

2q. Notwithstanding any provisions of the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the board shall initiate a proceeding to evaluate energy efficiency portfolio standards, and after notice, provision of the opportunity for comment, and public hearing, may adopt such competitively neutral energy efficiency portfolio standards that require each electric power supplier and each basic generation service provider to purchase a specified number of EE certificates from eligible energy efficiency and energy conservation programs. The board shall permit an electric power supplier or basic generation service provider to satisfy the requirements of this subsection by participating in an energy trading program approved by the board in consultation with the Department of Environmental Protection.

The board shall exempt suppliers and providers’ existing supply contracts that are effective prior to the date of a board decision approving a rule adoption pursuant to this subsection. Any purchases that would have otherwise been required from exempt suppliers or providers in the absence of such exemption may be distributed over suppliers and providers not subject to the existing contract exemption until such time as existing supply contracts expire and all suppliers and providers are subject to the new requirement.

r. A proposed solar facility that is greater than 10 megawatts in capacity and either not net metered or not an on-site generation facility, may be considered “connected to the distribution system” only upon designation as such by the board, after notice to the public and opportunity for public comment or hearing. A proposed solar facility seeking board designation as “connected to the distribution system” shall submit an application to the board that includes for the proposed facility: the nameplate capacity; the estimated energy and number of SRECs to be produced and sold per year; the estimated annual rate impact on ratepayers; the estimated capacity of the generator as defined by PJM for sale in the PJM capacity market; the point of interconnection; the total acreage and location; the current land use designation of the property; and the type of solar technology to be used.

The board shall approve the designation of the proposed solar facility as “connected to the distribution system” if the board determines that:

1) the SRECs forecasted to be produced by the facility do not have a detrimental impact on the SREC market or on the appropriate development of solar power in the State;

2) the loss of tillable acreage that would result from the approval of the designation of the proposed facility, together with the tillable acreage of all other facilities approved pursuant to this subsection, would be a loss of less than two percent of the total tillable acres of farmland in the State on the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), pursuant to information provided by the State Department of Agriculture; and

3) the impact of the designation on electric rates and economic development is beneficial.

The board shall act within 90 days of its receipt of a completed application for designation of a solar facility as “connected to the distribution system,” to either approve or disapprove such an application. If the board fails to either approve or disapprove such an application within 90 days, the application shall be deemed approved, and the solar facility submitting the application shall be considered “connected to the distribution system.” If the proposed solar facility does not commence commercial operations within two years following the date of the designation by the board pursuant to this subsection, the designation of the facility as “connected to the distribution system” shall be deemed to be null and void, and the facility shall thereafter be considered not “connected to the distribution system.”

Notwithstanding the provisions of this subsection, a solar facility for which a System Impact Study by PJM was issued prior to March 31, 2011, shall be considered “connected to the distribution system.” If such solar facility does not commence commercial operations within two years following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the designation of the facility as “connected to the distribution system” shall be deemed to be null and void, and the facility shall thereafter be considered not “connected to the distribution system.”

Notwithstanding the foregoing provisions of this subsection, a solar facility that would otherwise be subject to the provisions of this subsection, but that is located on a closed landfill or quarry, shall be considered “connected to the distribution system” and shall not require such designation by the board.

s. No more than 180 days after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the board shall complete a proceeding to establish a registration program. The registration program shall require solar projects greater than one megawatt of nameplate capacity to make periodic milestone filings with the board in a manner and at such times as determined by the board to provide full disclosure and transparency regarding the overall level of development and construction activity of solar projects statewide. The registration program shall also include a registration program filing fee, which shall be $2,500 for each facility with a nameplate capacity below five megawatts and an additional fee of $2,500 for every megawatt in excess of five megawatts of nameplate capacity. The registration program filing fee shall be reimbursed to the registrant in full upon the proposed solar project entering commercial production.2

(cf: P.L.2010, c.57, s.2)

RENUMBER SECTION 2 AS SECTION 3

REPLACE SYNOPSIS TO READ:

Makes changes to solar renewable energy programs and requirements, concerns energy efficiency and renewable energy requirements.
 
More on Flett Exchange:
 
Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Our knowledgeable staff is also available to assist you in selling your SRECs for you. Over 3,500 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers. Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 
Flett Exchange also brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-5 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services. 201-209-0324

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Press ReleasesSREC

Flett Exchange Public SREC Auction Results for Multiple Schools and MUAs

Flett Exchange is pleased to announce the results of today’s public auction. The clearing price was $296.00for 752 New Jersey Solar Renewable Energy Certificates SREC. This clearing price is the highest price achieved for the Sale of energy year 2012 SRECs since last July. The sale was conducted for The Mount Laural MUA, Bordentown Regional School District, Town of Morristown, Borough of Waldwick and Sparta Township.

Prices for New Jersey SRECs have appreciated in the last month in anticipation of potential changes in legislation. The legislation may require electric companies to procure more SRECs. The State of New Jersey has experienced a tremendous influx of investment in solar in the last twelve months. This investment has outstripped the requirements for electric companies to purchase SRECs for the next 2 years by an estimated 40%. The SREC market is designed to protect the ratepayer from an overinvestment of solar and has dropped accordingly.

The sale was conducted on the Flett Exchange trading platform. Public officials choose to utilize the Flett Exchange auctions to ensure that the price they receive for SRECs is competitive and transparent. The sales are all conducted on the Flett Exchange Internet Platform and is viewable to the public in real-time during the sale. Flett Exchange advertises the sales to all of the electric companies that are required by law to procure SRECs for renewable portfolio standards.

Town Managers can schedule to sell their SRECs in an easy and transparent fashion by filling out the Public Auction Request form or calling us at our Jersey City office.

201-209-0234

http://www.flettexchange.com/index.php?page=schedule

Not only is it transparent, it is FREE for sellers! Flett Exchange charges a nominal $5 per SREC fee to the buyers.

More on Flett Exchange:

   
     Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Our knowledgeable staff is also available to assist you in selling your SRECs for you. Over 3,500 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers. Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 
     Flett Exchange also brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-5 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services. 201-209-0324

 

TAGS:
New JerseyPress ReleasesPublic AuctionsSREC

Has the Pennsylvania SREC Market Found Support?

   Pennsylvania Solar Renewable Energy Certificates (SRECs) or Alternative Energy Credits (AECs) seem to have found support in the $80 range. Over the past year the Pennsylvania SREC market has experienced a precipitous decline, dropping from $300 to $80. This 73% price correction was due to an oversupply of PA SRECs and outdated legislation. If state officials are serious about solar energy development, they will need to address the legislative flaws in Pennsylvania’s Renewable Portfolio Standard (RPS) and implement restrictions that deter extreme SREC volatility. By upgrading the RPS and creating a stable SREC market, Pennsylvania can attract more investment capital, create sustainable in-state jobs, and expand renewable energy development throughout the Keystone State.


 
Oversupplied SREC Market
 
     There are various factors which have led to an oversupply of SRECs in Pennsylvania. One of these factors is the ability for out-of-state SRECs to be used for Pennsylvania compliance. The PA SREC market is unique in that it allows PJM region states to register and sell their SRECs in Pennsylvania. PJM is the Eastern Regional Transmission Interconnection. This renewable energy region consists of all or part of 13 US States and Washington DC. (Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia comprise the PJM region.) Some PJM regional states do not have a RPS or a viable SREC market, but can still register and sell their SRECs into Pennsylvania. Allowing out-of-state solar installations to sell their SRECs into the PA SREC market is disenfranchising Pennsylvania solar installations. Instead of rewarding instate solar generators Pennsylvania legislation is diluting their investment by allowing out-of-state installations to flood the PA market with SRECs. For Energy Year 2011 (June 1st-May 31st) 18 MWs needed to be purchased by Load Serving Entities (LSEs) or Competitive Electricity Suppliers (CESs) who serve electricity load into Pennsylvania. This meager SREC demand was met by an overwhelming SREC supply of 72 MWs registered, thus creating an oversupply of 54 MWs or approximately 60,000 SRECs.
 
     Other PJM states like New Jersey have a closed SREC market. New Jersey does not allow other PJM region states to register and sell their SRECs into their home state. This type of legislation helps New Jersey grow its solar renewable energy markets internally, create in-state jobs, and does not force ratepayers to fund outside state solar projects. New Jersey legislators also passed a law in 2010 that deals directly with an oversupplied SREC market. If NJ SRECs decline three consecutive energy years in a row, solar requirements will automatically increase by 20% each year. This law acts as a circuit breaker to keep the market from collapsing and ensures that the NJ SREC market is a viable mechanism for years to come.
 
     Another way for Pennsylvania to control the amount of SRECs that are being registered and sold into its market is to institute a megawatt cap on solar installations. Megawatt caps inhibit large solar farms from dominating a developing market. In essence, they protect the RPS from being satisfied too quickly and flooding the state with SRECs. New Jersey was successful in implementing a 2 MW cap for net-metered systems. The New Jersey Board of Public Utilities (BPU) allowed the SREC market to develop slowly. Once the market was well established and operating efficiently, state officials lifted the 2 MW cap (January 2010) and New Jersey grew into the largest and most active SREC market in the United States. Capping the size of solar facilities creates an even playing field. It encourages distributed generation and allows various entities to participate in developing solar, instead of having the market dominated by a few utility-scale solar facilities.
 
A Stronger Renewable Portfolio Standard (RPS) is Needed
 
     Pennsylvania’s RPS needs to be updated. “When we created the Alternative Energy Portfolio Standards Legislation in 2004, the solar energy requirements were carefully constructed to start low and increase very gradually over the first 10 years.” (Representative Chris Ross, “Proposed Legislation-Solar Renewable Energy Certificates” to the House of Representatives, 5/16/2011). However it has been seven years since state officials have critically reviewed Pennsylvania’s RPS and its effect on the SREC market. Like any other developing market, the PA SREC market and RPS need to be supervised and frequently upgraded for the betterment of its participants. By taking a proactive stance on the RPS and implementing SREC market circuit breakers, Pennsylvania can reduce renewable energy boom and bust cycles.
 
     A sobering exercise is to compare New Jersey’s RPS Requirement in SRECs to that of Pennsylvania’s. The following diagrams illustrate how New Jersey’s RPS is significantly greater than Pennsylvania’s from Energy Years 2011-2016. This is backwards legislation, since Pennsylvania uses the most electricity in the PJM region. Last quarter alone Pennsylvania used 22.44% of PJM region electricity; Virginia was second at 16.62%, Illinois was third at 14.06%, and New Jersey was fourth at 10.92% (Monitoring Analytics). The obvious solution would be for Pennsylvania to increase its RPS and promote renewable energy technologies to reduce the strain on the electricity grid, deter climate change, and purify air quality.
 

 


New Jersey SREC Market

 

 

Energy Year RPS Requirement
(in SRECs)
SACP
EY 2011 306,000 $675
EY 2012 442,000 $658
EY 2013 596,000 $641
EY 2014 772,000 $625
EY 2015 965,000 $609
EY 2016 1,150,000 $594

Pennsylvania SREC Market

 

 

Energy Year RPS Requirement
(in SRECs)
SACP
EY 2011 33,000 TBD 12/2011
EY 2012 53,000 TBD 12/2012
EY 2013 85,000 TBD 12/2013
EY 2014 140,000 TBD 12/2014
EY 2015 245,000 TBD 12/2015
EY 2016 435,000 TBD 12/2016

 
     Interestingly enough, in May of 2011, Pennsylvania State Representative, Chris Ross (Chester County) introduced new legislation that could assist the PA solar industry and SREC market. Ross is proposing legislation that would increase the amount of SRECs that utilities would need to purchase through 2015. His bill would also make Pennsylvania a closed SREC market, disallowing out-of-state generators the ability to register and sell there SRECs in Pennsylvania.
 

Click Here to Download a Draft Copy of HB1580


 
Defined Solar Alternative Compliance Payment (SACP)
 
     Pennsylvania should also enact a competitive and clearly defined Solar Alternative Compliance Payment (SACP). The SACP is a penalty that utilities and electric distribution companies (EDCs) pay if they do not procure enough SRECs in the open marketplace. Unlike other PJM region states which have clearly defined SACPs (DE, NJ, MD, OH and Washington D.C.), Pennsylvania takes a different approach to setting their SACP. Pennsylvania’s SACP is 200% of the average market value of SRECs sold in that energy year and is not disclosed until six months after the close of the energy year. Pennsylvania’s back dated SACP does not help solar development. The state’s “wait and see” approach for reporting their SACP does not bring certainty to a developing solar market. On the other hand, New Jersey provides its solar market with a forward projecting eight year SACP (EY 2009-EY 2016). New Jersey’s SACP is set at $711 in 2009 and gradually declines 2.5% to $594 in 2016. This clearly defined penalty schedule is valuable to solar developers, debt lenders, and equity investors. It allows them to model out forward SREC projections on a percentage basis of the SACP and assume tight, balanced, and oversupplied SREC scenarios. SRECs are the key financial component for successful solar development and a future SACP should be available to the marketplace to allow investors to quantify their risk.
 
Forward Pennsylvania SREC Market Conditions
 
     The PA SREC market is in a contango market. Contango is a commodities term which means that the forward energy years are trading at a premium to the spot energy year. As one goes out on the forward PA SREC curve, future SREC generation can trade at a premium to discounted spot SRECs. This could be happening for few reasons:
 

  1. 1.Pennsylvania’s RPS increases incrementally in the future.
  2. 1.The 73% crash in EY 2011 PA SRECs has stranded and discontinued many Pennsylvania projects. The inability to bring projects to market could diminish the SREC overhang and buyers could be seeking value in lower SREC prices.
  3. 1.After the fall of HB 2405 and HB 1128, State Representative, Chris Ross is proposing legislation that could make Pennsylvania a closed SREC market and increase its RPS for 2013, 2014, and 2015. The market could be viewing this news as a “call option” and purchasing SRECs in hope of legislation being passed and SREC prices increasing in future value.

 

Year 2011 2012 2013 2014 2015
Offers $105 $110 $150 $160 $160
Bids $100 $105 $145 $150 $150




 
     Pennsylvania has the right environment for solar development. Deregulated electricity caps are coming off, which could drive up the price of electricity. Solar energy significantly reduces or neutralizes electricity costs. However Pennsylvania legislators need to implement regulations that stabilize and entice parties to invest in solar. By increasing Pennsylvania’s RPS and closing state boarders to outside solar generators, Pennsylvania can demonstrate that it is serious about renewable energy and the growth of it’s SREC market.
 

Risk Disclaimer:


     Flett Exchange, LLC discloses that there risks associated with the buying and selling of Solar Renewable Energy Certificates (SRECs). SRECs can fluctuate in price, be volatile in nature and there is no guarantee that SREC prices will appreciate or decline over time. SRECs are sensitive to economic, political, legislative, regulatory and other unforeseen factors and can experience periods of illiquidity.
 
     Flett Exchange, LLC is an environmental exchange, brokerage and consulting firm. Flett Exchange, LLC facilitates the transaction and monetization of SRECs. Under no circumstances can Flett Exchange, LLC be held responsible for the actions, expectations or decisions of participating parties. All parties act on their own accord, cost and expense. All parties agree not to hold Flett Exchange or its officers, employees, subsidiaries or affiliates responsible for any wrongdoings. All parties forgo their right to claims, demands, disputes, controversies, complaints, suits, actions, proceedings and past, present or future allegations against Flett Exchange, LLC. This is not a solicitation to buy, sell, or trade SRECs , nor is it a solicitation to buy a solar array or generation facility of any kind.

 

 
More on Flett Exchange:
 
Flett Exchange is largest volume SREC exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Over 2,800 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers (its simple sell a SREC and receive a check!) Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 
Flett Exchange brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-5 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services.

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PennsylvaniaPress ReleasesSREC

New Jersey SREC Prices for this Summer Dip below $500

Prices for Solar Renewable Energy Credits SRECs in New Jersey starting this summer (energy year 2012 – June 2011 to May 2012) drop below $500. This is a sharp contrast to the $658.99 settlement for SRECs being traded on the Flett Exchange spot market. This is due to the perception that solar is being built at too quick of a pace and will oversupply the utilities needs for the next energy year.
 
The drop in SREC prices will filter out all of the high priced solar projects in the State.
 
Flett Exchange brokers long term SREC contracts for solar customers. Our customers have been locking in forward prices for SRECs to protect against an oversupply situation like this. The active market to lock in forward prices is currently 1, 2 and 3 year contracts.
 
More on Flett Exchange: 
 
         Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Over 2,500 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers (it’s simple sell a SREC and receive a check!) Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 
         Flett Exchange brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-7 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services.

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New JerseyPress ReleasesSREC

Atlantic County Utilities Authority, New Jersey SREC Public-Auction Results

April 20, 2011 – Flett Exchange is pleased to announce the results of the Atlantic County Utilities Authority (ACUA), New Jersey Solar Renewable Energy Certificate (SREC) public-auction. 101 New Jersey 2011 SRECs were sold at a clearing price of $655.00. The sale was conducted on Flett Exchange’s online, transparent environmental exchange under its “Public-Auction SREC Market” and total market proceeds equaled $66,155.00. Qualified buyers and the public could participate and/or observe the bidding in real time by logging in to Flett Exchange.
 
     The $655.00 clearing price is 97% of the $675 Solar Alternative Compliance Payment (SACP). The SACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.
 
More on Flett Exchange: 
 
     Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Over 2,500 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers (it’s simple sell a SREC and receive a check!) Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 
     Flett Exchange brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-7 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services.

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New JerseyPress ReleasesPublic Auctions

Mt. Laurel Township Municipal Utilities Authority, New Jersey SREC Public-Auction Results

  April 19, 2011 – Flett Exchange is pleased to announce the results of the Mt. Laurel MUA, New Jersey Solar Renewable Energy Certificate (SREC) public-auction. 191 New Jersey 2011 SRECs were sold at a clearing price of $655.00. The sale was conducted on Flett Exchange’s online, transparent environmental exchange under its “Public-Auction SREC Market” and total market proceeds equaled $125,105.00. Qualified buyers and the public could participate and/or observe the bidding in real time by logging in to Flett Exchange.
 
     The $655.00 clearing price is 97% of the $675 Solar Alternative Compliance Payment (SACP). The SACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.
 
More on Flett Exchange: 
 
     Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Over 2,500 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers (it’s simple sell a SREC and receive a check!) Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 
     Flett Exchange brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-7 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services.

TAGS:
New JerseyPress ReleasesPublic AuctionsSREC

Jersey City, NJ Public Schools SREC Public-Auction Results

March 29th, 2011 – Flett Exchange is pleased to announce the results of the Jersey City, NJ Public Schools Solar Renewable Energy Certificate (SREC) public-auction. 277 New Jersey 2010 SRECs were sold at a clearing price of $643.50 and 285 New Jersey 2011 SRECs were sold at a clearing price of $655.00 The sale was conducted on Flett Exchange’s online, transparent environmental exchange under its “Public-Auction SREC Market” and total market proceeds equaled $364,924.50. Qualified buyers and the public could participate and/or observe the bidding in real time by logging in to Flett Exchange.
 
The $655.00 clearing price is 97% of the $675 Solar Alternative Compliance Payment (SACP). The SACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.
 
More on Flett Exchange:
 
Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Over 2,500 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers (it’s simple sell a SREC and receive a check!) Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 
Flett Exchange brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-7 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services

TAGS:
New JerseyPress ReleasesPublic AuctionsSREC

Atlantic County Utilities Authority SREC Public-Auction Results

Flett Exchange is pleased to announce the results of the Atlantic County Utilities Authority (ACUA) Solar Renewable Energy Certificate (SREC) public-auction. 145 New Jersey 2011 SRECs were sold at a clearing price of $660.00. The sale was conducted on Flett Exchange’s online, transparent environmental exchange under its “Public-Auction SREC Market” and total market proceeds equaled $95,700.00 Qualified buyers and the public could participate and/or observe the bidding in real time by logging in to Flett Exchange.

The $660.00 clearing price is 98% of the $675 Solar Alternative Compliance Payment (SACP). The SACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.

More on Flett Exchange:

Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Over 2,200 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers (it’s simple sell a SREC and receive a check!) Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.

Flett Exchange brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-7 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services.

TAGS:
New JerseyPress ReleasesPublic AuctionsSREC

Lawrence Township Public Schools SREC Public-Auction Results December 1

Flett Exchange is pleased to announce the results of the Lawrence Township Public Schools Solar Renewable Energy Certificate (SREC) public-auction. 119 New Jersey 2010 SRECs were sold at a clearing price of $649.00 and 415 New Jersey 2011 SRECs were sold at $655.00. The sale was conducted on Flett Exchange’s online, transparent environmental exchange under its “Public-Auction SREC Market” and total market proceeds equaled $349,056.00. Qualified buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
 
The $655.00 clearing price is 97% of the $675 Solar Alternative Compliance Payment (SACP). The SACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.
 
More on Flett Exchange:
 
Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Over 1,800 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers (it’s simple sell a SREC and get a check!) Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 
Flett Exchange brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-7 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services.

TAGS:
New JerseyPress ReleasesPublic AuctionsSREC

Michael Flett to Speak at Carbon TradeEx America on September 28th -29th


Michael Flett, President and CEO, of Flett Exchange is speaking at the Carbon TradeEx America on September 28th -29th, 2010 in Chicago. This is a leading Trade Show and Conference in North America serving international business, finance, technology, venture capital, government communities in abatement, trading, monitoring, crediting and compliance of emissions. The conference is organized by Koelnmesse, Carbon Markets & Investors Association, Environmental Markets Association, and Bloomberg New Energy Finance. Industry, technology, and service providers in the environmental business as well as government agencies from developing countries will be among the exhibitors. Attendees will be Emission Traders and Broker, Utilities, Financial Institutions, Corporate Representatives, Venture Capital Funds, Project Developers, Technology Providers Research & Development Departments, Science Institutes and Universities.
 
         The Carbon TradeEx America is designed to be a “hands on” program for professionals in environmental management positions working on strategic planning and investing, energy efficiency improvements, compliance programs, performance benchmarking and market and finance monitoring. The inclusion of EMA into this event has broadened the platform for this event as it now addresses not only Carbon but all environmental markets including SO2, NOx, RECs and GHG.
 

  • “Investment Opportunities” will focus on subjects such as investment risk in climate change, success stories in voluntary offsets projects, the correct use of market standards, and an insight how renewables match against other energy sources.
  • “Market Insight” will examine the role of forestry and agricultural offsets, provide an outlook on the NAFTA offsetting scheme and insights into current business opportunities in existing environmental markets.
  • “Business Strategies”, a new conference track added for the first time, will examine strategies of the transport sector, the effects of Clean Air Interstate Rule (CAIR) replacement rule, EPA newest proposals on regulating GHG, SO2 and NOx emissions and the impact of the RPS on the renewable industry.

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Press Releases

Congress, Don't Send the U.S. Solar Industry on an Extended Vacation

It’s that time of year when many Americans are just returning from a summer vacation.
 
During their travels, most of those vacationers probably passed by some of the many solar projects, large and small, being installed across the country. However, they probably didn’t know that while they were on holiday, smart policies were at work speeding up deployment of solar projects. From PV farms to solar water heating systems, solar is having a record growth year and is creating stable, well-paying American jobs.
 
One of the main drivers of solar’s robust growth has been the Treasury Grant Program (TGP), an initiative created in the Recovery Act which provides a cash grant in lieu of the 30 percent solar investment tax credit for companies that lack access to private tax equity financing due to the poor economy. Research by Lawrence Berkeley National Laboratory found the TGP “has provided significant economic value” and more than 40 states have solar projects that were stimulated by the TGP.
 
Vacationers who hit the beaches of Southeast Florida were sunbathing near the DeSoto Next Generation Solar Energy Center, a 25-megawatt solar power plant that is the largest photovoltaic plant in the country. It provides clean, safe, reliable electricity to about 3,000 homes and created around 400 construction jobs. Almost 900 other solar projects nationwide have been built because of the TGP.
 
Tourists sending postcards from the National Cherry Festival in Michigan may have noticed a revival in America’s manufacturing sector. The Upper Midwest is one of the regions hardest hit by the recession. In Michigan, where unemployment hovers around 10 percent, the TGP has supported thousands of jobs in the manufacturing plants producing solar products. American-made solar components from these plants will be sold across the U.S. and exported around the world.
 
Elvis fans making the pilgrimage to Graceland may have been all shook up to see how the TGP is creating jobs for local solar installers, contractors and distributors. Memphis, Tennessee-based Unistar-Sparco was able to cut their energy costs by one-third by going solar with the help of the TGP.
 
While we were on vacation, the TGP was hard at work and there’s more that it can do. According to independent research, extending the TGP by two years would help the solar industry create more than 65,000 American jobs over the next five years. Many of these jobs are in the trades hardest hit by the recession, like manufacturing, construction, plumbing, and electrical contracting. The study also found the TGP would add 5,100 megawatts of clean energy, enough to power more than 1 million homes.
 
Unfortunately, this successful stimulus program is headed for a permanent vacation at the end of the year if Congress and the President don’t extend it.
 
Inaction on the TGP is bad enough, but Congress also raided $3.5 billion from another promising stimulus programs for creating clean energy jobs: the Department of Energy’s (DOE) renewable energy loan guarantee program. The Loan Guarantee Program offers a federally guaranteed loan to solar developers and manufacturers.
 
This troubling decision will harm our economy and our climate by taking away a potential $35 billion in financing authority for renewable energy investments.
 
It is imperative that this mistake be fixed.
 
There are currently more than 23 gigawatts of utility-scale solar power projects in the development pipeline. That’s enough to power more than 4.6 million homes and create tens of thousands of jobs. These projects, and the jobs they will create around the country, will remain in a state of uncertainty – and in some cases risk being scrapped – with the TGP and Loan Guarantee Program in limbo.
 
Additionally, Congress can resurrect our nation’s manufacturing sector by extending the current investment tax credit it provides to solar projects to cover solar manufacturing as well. This will help keep solar manufacturing in the U.S.
 
The TGP, Loan Guarantee Program and strong incentives for solar manufacturing are a critical trifecta for enabling solar to compete with heavily subsidized fossil fuels. These programs provide the specific guarantees investors look for when deciding to finance energy projects.
 
Like the rest of us returning to the office, Members of Congress are finishing vacations and visits back to their hometowns to return to Washington. We hope they’ll consider the many Americans who weren’t able to travel this year because of the economy or couldn’t vacation at all because they don’t have a job. We’re sure many of them would love a good job in the solar industry. But if Congress and the President don’t act quickly to extend the TGP, replenish the Loan Guarantee Program and expand solar manufacturing incentives, the U.S. solar industry may go on an extended vacation and we will lose more ground to nations like China and Germany who are pouring investment and policy support into the new cleantech economy.

Original Source:Renewable Energy World, republished with permission from the author.

TAGS:
Federal GrantsPress ReleasesSREC

Solar Energy for New Jersey Business

Michael Flett, President and CEO, of Flett Exchange recently spoke at the Solar Energy for New Jersey Business-Developing and Financing Your Own On-Site Solar Facility conference on Thursday, August 19th, 2010. The solar forum was hosted by the law firm Gibbons P.C. and CPA firm Eisner Amper LLP. More than 500 business owners, senior executives, and industry representatives attended the conference, which provided a comprehensive overview of solar development, regulatory compliance, and innovative financial structures. The clean energy economy is growing and thriving in the Garden State. New Jersey is the second most active state for solar power installations and the seventh for venture capital investments in clean energy projects. With millions of dollars available from private equity, venture capital funds, and Federal and State agencies, corporations have the incentive to enter this growing marketplace.
 
Some of the state’s leading authorities on solar energy discussed:

  • The business case for solar projects
  • Federal and State incentives
  • Choosing between rooftop, ground mount, or carport structures
  • Analyzing the risks, costs and benefits of solar energy projects
  • Project development from financing and assembling a team through design, operation, and maintenance

 
Keynote Speaker:

  • Upendra Chivukula, New Jersey State Assemblyman

 
Executive Panelists:

  • Michael Flett, President and CEO, Flett Exchange LLC
  • Rich Cleaveland, Partner, Amper, Politziner & Mattia
  • Al Bucknam, CEO SunDurance Energy
  • George Cruden, Director of Market Operations, Power & Communications Market Team, Clough Harbor Associates
  • Doug Janacek, Co-Chair, Real Property & Environmental Department, Gibbons P.C.
  • Valerie Montecalvo, President, Bayshore Recycling Corp.
  • Steve Morgan, President and CEO, American Clean Energy, LLC, and past senior executive of First Energy Corporation including CEO and Chairman of Jersey Central Power & Light
  • Anthony DiGiacinto, Amper, Politziner & Mattia
  • Paula Durand, Senior Venture Officer, Clean Technology, New Jersey Economic Development Authority
  • Kurt Fuoti, TD bank
  • Ronald Reisman, Manager of Business Outreach, New Jersey Board of Public Utilities
  • James Rice, CEO, Nautilus Solar Energy, LLC
  • Govi Rao, President and Chief Executive Officer, Noveda Technologies, Inc.

 
Gibbons P.C. and Eisner Amper LLP look forward to identifying solar opportunities and working together with qualified corporations to enhance the evolution of the New Jersey solar marketplace.
 

TAGS:
New JerseyPress ReleasesSREC

Public SREC Auction Results for Sparta Township, NJ

Flett Exchange is pleased to announce the results of the Sparta Township Solar Renewable Energy Certificate (SREC) sale. 40 energy year 2010 New Jersey SRECs were sold at a clearing price of $679.00 on Flett Exchange Friday, August 13th 2010. The sale was conducted on Flett Exchange’s electronic marketplace under its Public SREC Auction and total market proceeds equaled $27,160.00 Registered buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
 
The $679.00 clearing price is 98% of the $693 Solar Alternative Compliance Payment (SACP). The SACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. The auction was oversubscribed and there was strong participation by Load Serving Entities (LSE’s) trying to procure SRECs. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.

TAGS:
New JerseyPress ReleasesPublic AuctionsSREC

Public-Auction Results for ACUA SREC Sale June 22

Flett Exchange is pleased to announce the results of the Atlantic County Utilities Authority (ACUA) Solar Renewable Energy Certificate (SREC) sale. 244 energy year 2010 New Jersey SRECs were sold at a clearing price of $683.00, which is a Flett Exchange contract high! The sale was conducted on Flett Exchange’s electronic marketplace under its Public-Auction SREC Market and total market proceeds equaled $166,652.00. Registered buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
 
The $683 clearing price is 98.5% of the $693 Solar Alternative Compliance Payment (SACP). The SACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. The auction was oversubscribed and there was strong participation by Load Serving Entities (LSE’s) trying to procure SRECs. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.
 
 

 

 
More about the ACUA: “The Atlantic County Utilities Authority is responsible for enhancing the quality of life through the protection of waters and lands from pollution by providing responsible waste management services. The Authority is an environmental leader and will continue to use new technologies, innovations and employee ideas to provide the highest quality and most cost effective environmental services.”
 
The ACUA generated these Solar RECs from a solar facility located on their waste water treatment plant.

TAGS:
New JerseyPress ReleasesPublic Auctions

Township of Verona SREC Public-Auction Results

      Flett Exchange is pleased to announce the results of the Township of Verona Solar Renewable Energy Certificate (SREC) public-auction. 79 Energy Year 2010 New Jersey SRECs were sold at a clearing price of $675.00. The sale was conducted on Flett Exchange’s online, transparent environmental exchange under its “Public-Auction SREC Market” and total market proceeds equaled $53,325.00. Qualified buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
      The $675.00 clearing price is 97.4% of the $693 Alternative Compliance Payment (ACP). The ACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.

TAGS:
New JerseyPress ReleasesPublic AuctionsSREC

Lawrence Township Public Schools SREC Public-Auction Results

Flett Exchange is pleased to announce the results of the Lawrence Township Public Schools Solar Renewable Energy Certificate (SREC) public-auction. 238 Energy Year 2010 New Jersey SRECs were sold at a clearing price of $678.10. The sale was conducted on Flett Exchange’s online, transparent environmental exchange under its “Public-Auction SREC Market” and total market proceeds equaled $191,902.30. Qualified buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
The $678.10 clearing price is 98.7% of the $693 Alternative Compliance Payment (ACP). The ACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.

TAGS:
New JerseyPress ReleasesPublic Auctions

New Jersey BPU Halts Solar Rebate Applications

 

The New Jersey Board of Public Utilities (NJBPU) stopped accepting applications for rebates under the Renewable Energy Incentive Program (REIP) for solar installations this month. The surge in April applications has outstripped all allocated funds. The REIP provides rebate checks for solar installations in New Jersey. These grants are available for home systems and small commercial systems that are 50kW and less.

The flood of applications can be attributed to the reduction of state incentives and growing interest for installing solar. The reduction rumor began with the change of administrations as Republican Governor Chris Christie replaced former Democrat Governor John Corzine. Governor Christie inherited a budget deficit and is proactively cutting state spending in all segments of New Jersey Government. Shortly after his election the incentives for the REIP program were reduced from $1.75 per watt to $1.35 for residential installations and $1.00 per watt to $.80 cents for commercial installations. Installers across the Garden State quickly accelerated sales and were seen lining up at state offices to submit their applications for the second funding cycle.

At the last Renewable Energy Committee meeting in Trenton, New Jersey, the Office of Clean Energy asked for stakeholder suggestions on how to administer the third round of applications in September. Suggestions like entity caps are now being considered. The prospect of increasing funding was abruptly dismissed by NJBPU staff citing that adequate funds are currently not available at this time.

According to an article published by Associated Press/1010 WINS on May 12, 2010, BPU spokesman Greg Reinert said, “the BPU decided not to take any more applications until the next funding cycle begins Sept. 1.But all the eligible projects that were submitted will still get the rebates, he said, even if the amount surpasses the $6 million set aside for them. Money could be transferred from another fund, he said.” This information was not available at the Renewable Energy Committee meeting that day since many participants were complaining about waiting on line and missing the deadline. However, it appears this topic could be addressed in more detail at the next BPU board meeting on June 7, 2010 and there is approximately $8 million in CORE projects that could alleviate funding draw downs.

The discontinuing of REIP rebate checks could potentially hurt the future of residential and small business solar installations. In the past, the NJBPU has been vigilant for making solar democratic process; homeowners and small business were given incentives to keep them competitive with larger utility, government, and large corporate projects. This has created a more diverse and distributed mix of solar thus generating a macro benefit to all electricity users through less impact on the grid. Residents and small business in New Jersey were given a fair chance to participate in renewable energy projects through the REIP rebates.

Solar Renewable Energy Certificates (SRECs) are now coming to the aid of the New Jersey solar market. Over the past five New Jersey has weaned itself off of an incentive based program and SRECs have evolved into reliable income stream. If this transition had not been achieved, solar investors would be at the mercy of rebates and the market would virtually shut down. Instead, the market is busier than ever. Mid scale projects in the 200kW-500kW range are leading the way for NJ solar development. Solar investors use the SREC revenue to pay down the cost of the system. In a market in which regulatory risk is just as high as supply/demand risk, investors feel more confident in a market based SREC program instead of relying on politicians who could discontinue a program at any time.

The buoyant price of New Jersey SRECs is an attractive incentive to solar investors.
Daily settlement prices on the Flett Exchange spot SREC exchange have been consistently 95% to 97% of the Solar Alternative Compliance Payment (SACP) for the second half of 2010.

TAGS:
New JerseyPress Releases

Public-Auction Results for Town of Morristown SREC Sale

Flett Exchange is pleased to announce the results of the Town of Morristown Solar Renewable Energy Certificate (SREC) sale. 190 energy year 2010 New Jersey SRECs were sold at a clearing price of $676.25. The sale was conducted Flett Exchange’s electronic marketplace under its Public-Auction SREC Market and total market proceeds equaled $128,487.50. Registered buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
 
The $676.25 clearing price is 97.5% of the $693 Alternative Compliance Payment (ACP). The ACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.
 
The Town of Morristown generated these Solar RECs from a solar facility located on their waste water treatment plant.

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New JerseyPress Releases

Public-Auction Results for Most Recent ACUA SREC Sale

Flett Exchange is pleased to announce the results of the Atlantic County Utilities Authority (ACUA) Solar Renewable Energy Certificate (SREC) sale. 100 energy year 2010 New Jersey SRECs were sold at a clearing price of $676.25. The sale was conducted on Flett Exchange’s electronic marketplace under its Public-Auction SREC Market and total market proceeds equaled $67,625. Registered buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
 
The $676.25 clearing price is 97.5% of the $693 Alternative Compliance Payment (ACP). The ACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. The auction was oversubscribed and there was strong participation by Load Serving Entities (LSE’s) trying to procure SRECs. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.
 

More about the ACUA: “The Atlantic County Utilities Authority is responsible for enhancing the quality of life through the protection of waters and lands from pollution by providing responsible waste management services. The Authority is an environmental leader and will continue to use new technologies, innovations and employee ideas to provide the highest quality and most cost effective environmental services.”
 
The ACUA generated these Solar RECs from a solar facility located on their waste water treatment plant.

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Solar Financing

olar energy is attracting investment dollars. Competitive returns, lower barriers of entry, state and federal incentives, SREC revenue streams, and progressive Renewable Energy Portfolio Standards (RPS) are advancing solar to the forefront of renewable energy world. As the solar market evolves, so are the financial structures that are assisting investors in financing and completing projects. This article will examine various financing strategies, the risks and rewards associated with them, and the incentives involved with solar investing.

  • Self Financed (Most Risk/Most Reward)– Self financed solar facilities are for residents and entities who want control of their solar destiny. These parties absorb the upfront costs for developing solar and the challenges of operating and maintaining their solar facility. This is the most capital intensive structure and poses the most risk and reward. The risk lies in the development of the project, the failure in properly monitoring and maintaining the facility, and the price associated with the Solar Renewable Energy Certificates (SRECs). The rewards are a reduced rate of electricity for as long as the facility can generate solar energy, declining installation costs, and a revenue stream generated by SREC monetization. Self-financiers take the risk of developing solar because there is the potential for them to payoff the facility in a shortened period of time and realize increased upside profit potential.
  • Solar Lease Financing (Moderate Risk/Moderate Reward)– Solar lease financing structures are being executed in both the residential and commercial markets. The concept is simple, straightforward, and similar to an equipment or automobile lease. Instead of self financing your solar facility, parties can enter into a leasing contract and agree to make monthly lease payments on their solar installation. Similar to a PPA contract the client does not incur the expensive upfront installation costs or the responsibility of operating and maintaining the solar facility. In a best case scenario the lessee can take advantage of higher SREC values and an option to buy out the system in six years, while the lessor obtains the ITC and accelerated depreciation of the system. A solar lease structure is also an alternative to a PPA contract for non-profit organizations who want to take on SREC risk for potential reward, while the lessor passes on the ITC and accelerated depreciation indirectly through a lower lease payment. Solar leasing firms have a set of criteria that clients need to meet in order to participate in their solar leasing program: commercial clients may need to submit audited financial statements and residents may need to have a FICO score of 700 or greater to be considered. However there are also risks associated with solar leases. One risk is that a lessee could go upside down on their contract. This happens when the solar lease is more expensive than the SRECs being monetized. Another risk is the future price of electricity. Lessees could potentially pay more for solar electricity than basic generated electricity if demand diminishes. The financial crisis of 2008-2009 was a reminder that electricity prices do not always go up and that electricity demand could decline during lean economic times. Solar lease financing is becoming more popular because it is affordable, convenient, environmentally responsible, and lowers your electricity bills. However, interested parties should weigh the risks and rewards associated with solar leases and learn more about the leasing company before signing an extended contract.
  • PPA Financed (Less Risk/Less Reward)– A Power Purchase Agreement (PPA) is a contract between a solar electricity generator and a client seeking solar energy. This financial structure is designed to provide the client with a reduced rate of electricity for an extended period of time (10-20 years), no upfront installation cost, and the option to purchase the solar facility at the end of the contract. The PPA Provider designs, develops, operates, maintains, and owns the solar facility located on the client’s property. In turn the client pays the PPA Provider for the electricity generated from the solar facility. PPA Providers enter into these agreements because there is a profitable margin between where solar can be developed and what electricity can be sold for. The PPA Provider can also take advantage of the Investment Tax Credit (ITC) and accelerated depreciation. PPA Providers gain ownership of the SRECs which are generated from the solar facility and can monetize them on the Flett Exchange live markets. This solar structure is popular with non-profit organizations that cannot take advantage of the ITC and realize the accelerated depreciation of their solar facility.

Many solar projects are contingent on tax benefits, rebates, and long-term SREC contracts. Without these incentives and risk mitigation strategies solar projects can be difficult to finance and pose significant risk to investors. Let’s examine some of the incentives and strategies that are allowing the solar market to flourish.

  • Tax Benefits- At this juncture, tax incentives are an integral part of solar financing. The Investment Tax Credit (ITC) returns over 30% of a solar project’s capital cost to investors in the form of a tax credit. Sophisticated investors are utilizing solar as a tax-equity investment vehicle because tax credits can offset tax liability. Section 1603 of The American Recovery and Reinvestment Act of 2009 (Stimulus Bill) also allows investors to receive a grant in lieu of tax credit when the “specified energy property” is submitted to the “grant program.” This program runs out at the end of 2010, and the SEIA www.seia.org is lobbying to have it extended. Both the credit and grant programs promote renewable energy on the institutional level and help incentivize solar development.
  • Accelerated Depreciation- Developers of commercial projects can realize additional tax benefits from the depreciating cost of their solar facility. An entity “can depreciate the installed cost of the system minus 50% of the business Investment Tax Credit (ITC) over the first five years of ownership (SEIA 2008) using the modified accelerated cost recovery system (MACRS) (DSIRE 2008). According to a report by Lawrence Berkley National Laboratory, the tax benefit of this depreciation is equivalent to 26% of the installed cost of the system, 12% of which comes from the ability to accelerate it over a five year period (Bolinger 2009).” –National Renewable Energy Laboratory, “Solar Leasing for Residential Photovoltaic Systems.”
  • Long-Term SREC Contracts- are helpful in financing proposed solar projects. Flett Exchange brokers long-term SREC contracts between qualified institutional counterparties. Our ability to facilitate and streamline long-term SREC contracts is value-added to both buyers and sellers. Buyers gain direct access to large pools of SRECs at a discounted price to satisfy their RPS, while sellers have the ability to mitigate risk and lock-in profits. Counterparty credit risk is paramount in this market. Buyers and sellers enter into bilateral contracts to secure price, quantity, and term of the SREC contract. Counterparties agree to pay or delivery SRECs at a specified future date. Flett Exchange augments this process by employing a stringent vetting process and presenting quality and creditworthy solar projects to the market. Flett Exchange is currently brokering 1-7 year SREC contracts in the open market and growing our ability to facilitate longer term deals for eligible commercial entities.

As the solar markets continue to evolve new and innovative thinking will be the most prized commodity. The emergence of banks, lenders, financial institutions, and new financial structures will be welcomed and as solar makes the transition form a subsidized market to a self-sustaining market.

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Why Investors are Attracted to Solar

Solar energy is gaining momentum in the renewable energy world. It is being heralded as a smart investment due to growth prospects, favorable market conditions, federal and state incentives, and more stringent Renewable Portfolio Standards (RPS). Individual and institutional investors are committing capital and taking risk because of potential profits and tax benefits that are associated with developing solar. Existing and newfound factors are driving solar energy to become a more mainstream investment. This article will examine these factors and demonstrate how they are contributing to solar energy’s success.

  • Growth- Over the past decade, technological advancements have made solar energy more affordable, more reliable and less obtrusive. Lower barriers of entry have allowed solar installers, integrators, and developers to offer competitive pricing on residential and commercial facilities and reduce their installed cost per watt.
  • Value- Solar energy is a potential hedge against higher electricity prices. It is estimated that electricity prices could conservatively increase by 3.0% a year. Solar energy is a wise alternative to higher electricity bills and can provide clean, green, and cheaper power. Self-Financing, Solar Lease Financing, and Power Purchase Agreement (PPA) Financing are all financial structures that can accomplish reduced electricity costs.
  • Tradable SREC Markets- Solar Renewable Energy Certificates (SRECs) are environmental attributes that can be transacted and monetized. SRECs are the driving financial component that makes solar economically feasible. SRECs are generated from the production of solar energy and can be monetized on Flett Exchange’s live SREC markets. SRECs are market based. Unlike feed-in tariffs SRECs pass savings on to ratepayers over time, if overdevelopment occurs or if solar becomes less expensive.
  • State Mandated Markets- SREC markets are state mandated. State governments are establishing stringent Renewable Portfolio Standards (RPS) and increasing their solar carve-outs. Electric suppliers need to procure SRECs to meet their RPS. If electric suppliers cannot procure enough SRECs in the open marketplace to satisfy their RPS they are subject to a Solar Alternative Compliance Payment (SACP) which is a penalty payment and can be considerably higher then the spot SREC market.
  • Tax Benefits- Many solar projects are candidates for federal tax incentives and state rebates. The Investment Tax Credit (ITC) returns over 30% of a solar project’s capital cost to investors in the form of a tax credit. Section 1603 of The American Recovery and Reinvestment Act of 2009 (Stimulus Bill) also allows investors to receive a grant in lieu of tax credit when the “specified energy property” is submitted to the “grant program.” State rebates may also be available for residential and commercial solar installations. Rebate programs can differ from state to state and exist on a sliding scale depending on the size of the proposed solar facility.
  • Escalating Fossil Fuel Demand- Global demand for fossil fuels is increasing while supplies are diminishing. Developed and emerging nations are competing for fossil fuels and all petroleum products come with political and environmental risk. Solar energy, on the other hand, is limitless, does not emit harmful emissions, and can be achieved without any political risks. Also if the US Dollar continues to depreciate the price of foreign fuel could continue to rise.
  • Climate Change- Private and public corporations, organizations, agencies, and municipalities are implementing clean energy programs. Climate change is a growing social and political issue, both domestically and internationally. Insightful entities understand the benefits of renewable energy and the risks associated with not staying ahead of the climate curve. These players are implementing clean energy programs and are well positioned if climate legislation gets passed. The recent US healthcare decision demonstrates that political winds can shift momentarily and legislation can be passed swiftly. Renewable energy strategies and sustainability teams are becoming more conventional, as private and public entities recognize their social responsibilities to the environment and potential legislative risk.

Solar energy is a favored renewable energy source. Solar is easy to install, is a hedge against higher electricity prices, generates a SREC revenue stream, and is beneficial to the environment. So far advantageous market conditions have attracted investors to solar.

However the future of the solar market also comes with challenges and risks. Increased competition could create an overpopulated market. Inexperienced players who are attracted by favorable market conditions could sacrifice engineering and construction quality for short term monetary gains. The reduction of federal and state incentives could make solar less appealing. As the solar market evolves it will be interesting to see if it could sustain itself and emerge as an established renewable energy source.

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SREC Public-Auction Results for Lawrence Township

Flett Exchange is pleased to announce the results of the Lawrence Township Public Schools Solar Renewable Energy Certificate (SREC) public-auction. 533 Energy Year 2010 New Jersey SRECs were sold at a clearing price of $674.40. The sale was conducted on Flett Exchange’s online, transparent environmental exchange under its “Public-Auction SREC Market” and total market proceeds equaled $359,455.20. Qualified buyers and the public could observe the bidding in real time by logging in to Flett Exchange.

The $674.40 clearing price is 97.3% of the $693 Alternative Compliance Payment (ACP). The ACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.

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New JerseyPress Releases

February 16th, 2011: Flett Exchange to present at NJ BIZ Solar Energy Symposium

Save the date, February 16th, 2011: Flett Exchange will be presenting at this year’s NJBIZ Solar Energy Symposium. Solar installers, investors, utility companies, and industry insiders across the Garden State will all be in attendance. The Solar Energy Symposium will discuss a diverse range of topics, such as the state of the solar industry in New Jersey, federal and state incentives for renewable energy, spot and long-term SREC contracts, advanced tax and finance issues, power-purchase agreements, risk management, and many others. The keynote address will be delivered by New Jersey State Assemblyman Upendra J. Chivukula (D), Deputy Speaker of the NJ General Assembly and Chair of the Telecommunications & Utilities Committee.

Michael Flett, President and CEO, of Flett Exchange, will be a panelist for the “State of the Solar Industry in New Jersey.” The panel will discuss the latest technologies emerging in solar and their impact on the industry, the updated federal and state incentives, where projects are planned, where they are under construction, and where they are already up and running. The panel will be moderated by Steve Morgan, CEO of American Clean Energy and former CEO/Chairman of Jersey Central Power and Light. Between discussions, the Flett Exchange management team will be available; fielding questions, networking with clients, and providing valuable SREC market information. Come down to our booth and pay us a visit, we hope to see you there!

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Press Releases

Public-Auction Results for Morristown, NJ SREC Sale

Flett Exchange is pleased to announce the results of the Town of Morristown Solar Renewable Energy Certificate (SREC) sale. 293 energy year 2010 New Jersey SRECs were sold at a clearing price of $672.00. The sale was conducted Flett Exchange’s electronic marketplace under its Public-Auction SREC Market and total market proceeds equaled $196,896. Registered buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
 
The $672 clearing price is 97% of the $693 Alternative Compliance Payment (ACP). The ACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. The auction was oversubscribed by over 300% and there was strong participation by Load Serving Entities (LSE’s) trying to purchase SRECS. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.
 
The Town of Morristown generated these Solar RECs from a solar facility located on their waste water treatment plant.

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New JerseyPress ReleasesPublic Auctions

Public-Auction Results for ACUA SREC Sale

Flett Exchange is pleased to announce the results of the Atlantic County Utilities Authority (ACUA) Solar Renewable Energy Certificate (SREC) sale. 197 energy year 2010 New Jersey SRECs were sold at a clearing price of $667.00. The sale was conducted on Flett Exchange’s electronic marketplace under its Public-Auction SREC Market and total market proceeds equaled $131,399. Registered buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
 
The $667 clearing price is 96.2% of the $693 Alternative Compliance Payment (ACP). The ACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. The auction was oversubscribed by over 400% and there was strong participation by Load Serving Entities (LSE’s) trying to procure SRECs. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.
 

More about the ACUA: “The Atlantic County Utilities Authority is responsible for enhancing the quality of life through the protection of waters and lands from pollution by providing responsible waste management services. The Authority is an environmental leader and will continue to use new technologies, innovations and employee ideas to provide the highest quality and most cost effective environmental services.”
 
The ACUA generated these Solar RECs from a solar facility located on their waste water treatment plant.

 

Click Here To View Our Upcoming Public Auction Schedule

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New JerseyPress Releases

SREC Transparency a Top Priority

Transparency in SREC markets is top priority at Flett Exchange. Before Flett Exchnage, SREC markets were opaque, fragmented and un-standardized. For the last three years Flett Exchange has developed and operated SREC markets and enhanced the way SRECs are transacted and monetized.
 
Our established online SREC trading platform offers transparency, price discovery and liquidity for spot and long-term SREC markets. Flett Exchange clients can negotiate price, quantity and specific details of SRECs on a live and actionable exchange. We also post a daily SREC settlement price so the solar industry can manage risk in real time. Apply for a free account today and join over 850 clients who have discovered the most efficient and cost-effective way to transact and monetize SRECs.

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Press Releases

Flett Exchange launches New Jersey Class 1 REC Market

Flett Exchange launched the New Jersey Class 1 REC market on its Internet Trading Platform. The market enables generators of Class 1 RECs to sell directly to electric generators who need to buy for their RPS. Sellers transfer the RECs on the PJM GATS platform and receive payment immediately via wire transfer or check.

Flett Exchange operates a Micro Exchange for the spot buying and selling of precious metals and renewable energy certificates such as New Jersey Class 1 REC and New Jersey solar renewable energy certificats SREC. Flett Exchange also publishes daily settlement prices for its markets on its website. Customers can either execute on the Flett Exchange trading platform or speak to one of its brokers. www.flettexchange.com 201 209 0234 15 Exchange Place, suite 710 Jersey City, NJ 07302

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New JerseyPress ReleasesSREC

New Jersey Solar Renewable Energy Certificates (SRECs) Trade $671.00 on Flett Exchange

New Jersey Solar Renewable Energy Certificates (SRECs) Trade $671.00 on Flett Exchange. SRECs traded at an all time high of $671 on January 21, 2009 on the Flett Exchange trading platform. An expected shortage of SRECs for the 2009 energy year has LSE’s racing to buy SRECs below the $711 compliance payment.

Solar producers who would like to sell their SRECs can sign up for an account at www.flettexchange.com . Over 425 individuals and corporations who have solar panels in
New Jersey conveniently sell their SRECs on Flett Exchange. Our Micro Exchange is based on absolute transparency. We assist and educate our customers in how to convert their SRECs to cash. All Flett Exchange account holders can view all bids, offers and past sales along with placing buy or sell orders. Users have direct access to our internet-based markets 24 hours/7 days/365 days a year. This flexibility allows users to participate in our SREC market at their leisure. Sellers’ checks are mailed out on the same day as the sale of the SRECs.

Flett Exchange SREC brokers are available at (201) 209-0234 weekdays to assist clients.

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New Jersey SRECs trade at a record $600 on Flett Exchange!

NJ SRECs traded at $600 today on Flett Exchange. This is the highest recorded price to this date for SRECs in New Jersey. The current market is $560 bid, $625 offer.

The cap for the SRECs for the 2009 energy year is $711.

Buyers and sellers of New Jersey SRECs can access the Flett Exchange market via the internet 24x7x365. There are over 400 registered users who have bought or sold SRECs on Flett Exchange with over 50 new customers registering every month. The Flett Exchange SREC market has had a continuous market for SRECs for the past year and a half. Sellers can observe where others are selling SRECs, place and move their order at will. If you sell your SRECs the check is sent out the same day as the seller transfers the SRECs into escrow on the NJCEP website.

 Sellers can also use our brokers Monday through Friday 7am to 5pm or email their order at any other time. (201) 209-0234 or email srec@flettexchange.com

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Flett Exchange NJ SREC prices are $181.47 higher than those reported by the New Jersey Clean Energy

The trading statistics for NJ SRECs reported by the New Jersey Office of Clean Energy are misleading. They reported that the cumulative weighted average trading price ($/MWh) for SRECs in Energy Year 2009 is $331.62 for transactions to the end of  September. Prices on the Flett Exchange, which represents a competitive and transparent marketplace, during the same period averaged $513.09. Flett Exchange cumulative weighted FY2009 SREC prices are  $181.47 which is 64% higher.

This difference in price is because  the New Jersey Office of Clean Energy uses the prices attached to every transfer going through its tracking system run by Clean Power Markets. Flett Exchange only uses the prices and quantities established by its transparent marketplace. The Flett Exchange is used by over 400 solar owners and more than 5 of the LSEs and a number of other buyers. Flett Exchange is policed by its customers along with staff who determines if trades are done in a competitive manner. If a trade is done in error off of the market Flett Exchange will break the trade and not allow the data to go in. If participants bid too high or offer too low the buyers and sellers quickly correct and bring the market back to equilibrium. We do only spot transactions, not long term contracts.

Flett Exchange prices reflect the true value of NJ SRECs on the spot market. Prices reported by the New Jersey Office of Clean Energy reflect a large number of long term contracts. The prices of these long term contracts further distort the price due to double counting. This double counting is attributed to aggregators taking delivery of NJ SRECs and reselling at the same low long term contract prices. This dilutes the lesser quantity that are transacted at current spot prices.

Entities looking to install solar in New Jersey should not rely on the New Jersey Office of Clean Energy data because it does not represent the current market conditions. At this point the prices are skewed to the downside.

The New Jersey Office of Clean Energy emailed their NJ SREC trading statistics today and the data can be viewed at http://www.njcleanenergy.com/renewable-energy/programs/solar-renewable-energy-certificates-srec/pricing/pricing

The State of New Jersey is doing its best to get investment into renewable energy. Investment is only possible if there is an accurate reporting of prices of SRECs since these are the instruments used to pay back loans backing the renewable energy projects.

Most of the turmoil on Wall Street can be directly linked to lack of transparency. This lack has been to the detriment of investors. The State of New Jersey can say it is green and build a green future but it will not last if the underlying prices of its SRECs are mispriced. An SREC program built on the laws of supply and demand should have its published prices reflect just that.

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New JerseyPress ReleasesSREC

Srec Trade.com Auction Clearing Price Clears at $526.23

Srectrade.com, which offers a  monthly auction for New Jersey SRECs (Solar Renewable Energy Certificates), conducted an auction on October 10. The clearing price was $526.23. Buyers pay a commission of 3% which puts the buyers cost at $542.02. The volume auctioned off was not advertised on the site.

The market for SRECs on Flett Exchange was $542 bid, at $575 with trades on the auction day conducted at $542.50. Flett Exchange charges buyers and sellers a flat rate of $2.50 per SREC which translates to less than 1/2 of 1% per side.

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New JerseyPress ReleasesSREC

SREC MARKET UPDATE Sep 30th 2008

The market for New Jersey Solar Renewable Energy Certificates SRECs has moved up significantly in the last month. Prices on Flett Exchange for the 2009 vintage SRECs reached a record price of $545.00 per SREC on September 22. The current market is $523 bid, $547.50 offer with a trade done today at $540.00. This represents the immediate purchase and transfer of SRECs via the New Jersey Clean Energy Program website.

Prices for SRECs generally trend upwards during the energy year which runs June to June. This year has been particularly interesting since the SRECs generated now apply to the first year in which the New Jersey Board of Public Utilities has made major changes the program. When the SREC program was first introduced a few years ago the State of New Jersey gave out money to entities who installed solar. The money was in the form of a rebate and it funded somewhere in the range of 60% to 70% of the installation cost. These entities were also eligible to sell SRECs with a cap of $300.

 The Board of Public Utilities transitioned the SREC program away from relying on rebates and SRECs to SRECs only for the energy years 2009 going forward. To ensure a continued investment into solar in New Jersey they raised the cap to $711 in 2009.

The rise in value during the first 2 months of trading in the 2009 vintage SRECs is in the right direction. During the planning of the SREC program and the establishment of the new cap of $711 it was estimated that prices of SRECs would need to rise to at least above $500 with a goal of approximately $611 to keep solar installations on track.

The SREC program in New Jersey is a result of a tireless effort on the part of the Board of Public Utilities. The BPU staff spent years and countless hours in designing rules to ensure solar power generation in New Jersey at the lowest cost to the consumers.

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New JerseyPress ReleasesLong Term SREC ContractsSREC

Flett Exchange featured in recent Biz4NJ.com Article

Recently Flett Exchange, LLCs Founder and President Michael Flett was featured in a extensive article covering the nature of Flett Exchanges role as an unregulated commodities trading platform and their dominating presence in the New Jersey Solar Renewable Energy Certificate (“NJ SREC”) program. Biz4NJ.com a provider of business related news in NJ featured the recent article covering the theory imbedded in Flett Exchanges business model and the passion for excellence that has established Flett Exchange, LLC as one of the main providers of market transparency, informational postings, and blog rolls in the NJ SREC market. The article also investigates the technology behind the exchange and the true meaning of the Flett Exchange motto” Trade Everything”.

To read the full article please follow the link provided below or navigate to www.biz4nj.com and look for the article titled “The Future with Flett”

 

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Press Releases

Flett Exchange signs up 250th Customer

Flett Exchange, LLC. Recently signed up its 250th Customer equating to a 40% increase since April 21st when it reached the 150th mark. This growth signifies a growing interest in Flett Exchanges’ bilateral trading platform which allows buyers and sellers to interact in an open market environment while placing real time bids and offers for New Jerseys Solar Renewable Energy Certificates (NJ SRECS).

Flett Exchange has become a market wide resource providing market transparency, analysis, and up to date news focusing on regulatory and market related changes that affect all participants within New Jerseys’ Solar Renewable Energy Market. Further more as New Jerseys’ Renewable Energy Market continues to grow be assured that Flett Exchange will provide the market with pricing transparency and up to date news and blog releases as changes occur.

For questions, comments, or to open an account with Flett Exchange, LLC Please call 201 209 0234, visit www.flettexchange.com, or email sproft@flettexchange.com

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Press Releases

Valuing Vintage year 2009 SRECs on Flett Exchange

Flett Exchange saw its first Vinetage 2009 Solar Renewable Energy Certifiacte (NJ SREC) trade yesterday afternoon at $450. This along with news of a contact locking a full years a production from an outside source at $500 an SREC with terms “payed as produced” currently values the market around the $500 level.

Although volume has been light Flett Exchange have seen moderate interest on the sell side as individuals will look to profit from the recently increased Solar Alternative Compliance Payment (SACP). If the current market price holds up SREC producers can expect to receive a 150% premium over Vintage year 2008 SRECs and considering SRECs generated after July 5th will carry a life of two years oppose to a previous one year lifetime producers will have the option to bank their SRECs in hopes of a higher price in the future. However, producers banking their SRECs hoping to benefit from future price spikes will remain subject to full market risk.

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New JerseyPress ReleasesSREC

2008 Vintage New Jersey SREC prices drop slightly

The prices for 2008 New Jersey SREC (Solar Renewable Energy Certificates) dropped slightly on Flett Exchange in mid-May compared with prices traded in April. The average price for an SREC traded on Flett Exchange in April was $257.07. The Average price as of May 16, 2008 was $ 255.71. That is a drop of $1.36 per SREC.

This may not reflect the prices of SRECs traded in the cash market between producers and aggregators. Flett Exchange saw a drop in volume on its platform during the second week of May. We believe this is attributed to higher prices found off of the Exchange. A few customers reported receiving higher bids over the phone via aggregators than bids shown on the Flett Exchange SREC internet based market. The higher bids seem to have corresponded with larger SREC offers. Sellers with 30 to 50 SRECs reported higher bids for their SRECs . Talk of $260 for a block of 34 and a block of 50 SRECs were reportedly done in the second week of May.

Flett Exchange still has a block order for one of its buyers willing to pay $265.00 per SREC however, the minimum volume is 200 with a maximum volume of 1200 SREC.

Flett Exchange has a bid of $258.00 for SRECs with no minimum volume as of Monday May 19th. SREC buyers and sellers can open an account with Flett Exchange by emailing SREC@flettexchange.com or calling 201 209 0234.

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