When is My New Jersey Solar Array Going to Stop Producing SRECs?

Solar installed in New Jersey prior to 2017 generate SRECs for 15 years. After that time they generate Class 1 RECs. SRECs are worth $200 or more. Class 1 RECs trade for $30 today and go only as high as $50.


It is confusing as to when your system is going to convert from SRECs to Class 1 RECs. Here is what you need to do to figure this out.

  1. Look up your online date for your solar facility on GATS. This is listed under the facility and it is also on each SREC as “Vintage (month and year of commercial operation): Part 4 - Vintage Vintage (month and year of commercial operation): 07/2008
  2. New Jersey law says that a solar array generates SRECs for 15 full energy years. This means that you get SRECs for up to 15 years and eleven months, depending on what month your array went online.
  3. Energy years start in June and end in May.


Here is a Key:


If your array went online from July 2007 and up to and including June 2008 the last SREC you will mint is May 2023. Your first Class 1 REC will be your June 2023 generation.


If your array went online from July 2008 and up to and including June 2009 the last SREC you will mint is May 2024. Your first Class 1 REC will be your June 2024 generation.


If your array went online from July 2009 and up to and including June 2010 the last SREC you will mint is May 2025. Your first Class 1 REC will be your June 2025 generation.


And so on…


When you produce Class 1 RECs you sell them the same way on Flett Exchange. You can either check the price on the Flett Exchange website and transfer them on GATS to Flett Exchange, LLC or you can list them for sale on the Flett Exchange trading platform and transfer them on GATs to Flett Exchange,LLC. when you are filled. 


Since Class 1 RECs are lower priced we suggest to wait 6 months to a year to sell them in bulk. Class 1 RECs are only good for 3 energy years so do not wait too long or they will go worthless. SRECs are good for up to 5 energy years. 


It is very important to enter your meter readings within 30 days after your system gets converted to a class 1 facility. If you do not put in your meter readings within 30 days all of the months that you deserve to earn SRECs will be created as Class 1 recs. You may lose thousands of dollars!!!


GATS will send you an email that says the following:


“Your solar electric generation facility's NJ SREC eligibility period will reach the end of its qualification life within Energy Year ("EY") 2021 which ends on May 31, 202X. All generation should be entered prior to the last business day in June. Facility eligibility will be changed from Solar (SREC) to Class I (REC) on July 1, 202X. “


Flett Exchange is the largest exchange for New Jersey Solar Class 1 RECs. Many energy companies compete to purchase SRECs and Class 1 RECs on our exchange which ensures you get the going market price. 


New JerseySRECResearchSolarNJ Class 1

Maryland Geothermal REC Market

Flett Exchange operates a market for Maryland Geothermal RECs, or commonly called GRECs. Owners of certified geothermal facilities in Maryland – homes, businesses, schools, hospitals – sell their GRECs on Flett Exchange. Energy companies purchase GRECs on Flett Exchange to comply with Maryland’s Renewable Energy Portfolio. If energy companies do not purchase enough GRECs they have to submit a compliance payment to the state of Maryland. That compliance payment is $100 until 2025 and is reduced after that. See the compliance schedule decrease under “specifications”. 

Owners of geothermal facilities can register and sell their GRECs directly on Flett Exchange. Flett Exchange also offers full-service GREC management. For full-service managed clients Flett Exchange will register your system with the state of Maryland, register with the database that creates GRECS, and sell your GRECs along with all of our other GREC clients. Sellers benefit from the increased prices due to the large volume Flett Exchange transacts. 

The following are some of the main aspects of the MD GREC Market:

  1. Installation date: January 2023 cut-off. Prior to January 2023 MD geothermal facilities produced Class 1 RECs. January 2023 or later installations produce GRECs. 

  2. MD Class 1 REC price cap: $30

  3. MD GREC price cap: $100 -moving down to $65. See the schedule.

  4. Residential and non-residential geothermal facilities in Maryland qualify for GRECs differently. 

    1. Residential:

      1. installed in a residential home that is not owned by a business. The system must meet ENERGY STAR standards and not feed electricity back into the grid.

    2. Non-residential:

      1. At a commercial building; or

      2. At multi-family housing units that qualified as low- or moderate-income housing on the date the system was installed on the property; or

      3. At institutions that primarily serve low- or moderate-income individuals and families, including i) schools with a majority of students who are eligible for free and reduced prices meals; ii) hospitals with a majority of patients eligible for financial assistance or who are enrolled in Medicaid; and iii) other facilities that serve individuals and families where a majority of those is enrolled in Federal or State Safety Net Programs.

      4. A system with a 360,000 BTU capacity is eligible for geothermal renewable energy credits only if the Company installing the system provides for its employees:

        1. Family-sustaining wages;

        2. Employer-provided health care with affordable deductibles and co-pays;

        3. Career advancement training;

        4. Fair scheduling;

        5. Employer-paid workers’ compensation and unemployment insurance;

        6. A retirement plan;

        7. Paid time off; and

        8. The right to bargain collectively for wages and benefits


  1. Low income carve-out. Energy companies must procure 20% of the GREC obligation from low-income geothermal facilities. Low or Moderate Income (LMI) for GREC purposes is a household with an aggregate annual income that is below 120% of the area median income. The ability to qualify for the low-income tag on the GRECs may help in the future if the GREC market gets oversupplied because these may retain value longer. 

  2. New Geothermal facilities must register with the Maryland Public Service Commission and GATS. Flett Exchange will register for full-service GREC clients.


Register for either a do-it-yourself or a managed GREC account on Flett Exchange to take the first step to receive payments for your GRECs. 


MarylandPress ReleasesSRECResearchMaryland GREC

New Jersey Class 1 REC Eligibility for New Jersey Solar Facilities

All RECs registered in GATS from solar and wind facilities in PJM installed after January 1, 2003 can be used for New Jersey Class 1 compliance. Also, New Jersey Solar facilities that have outlived their SREC qualification of 15 years (or 10 years if the SRP registration for the solar project was filed on or before October 29, 2018) qualify as Class 1 RECs. These can be purchased by energy companies to satisfy their class 1 compliance. The life of the Class 1 rec is three energy years. Energy years run June to May. Compliance is done in the fall of each year.

How do I sell my Class 1 RECs?

If your New Jersey solar facility no longer qualifies for SRECs you can sell them as Class 1 RECs on Flett Exchange. It is the same process as you did with your SRECs except you sell them on the Class 1 market of Flett Exchange. If you have an account with Flett Exchange you can transfer them on GATS to the Flett Exchange account. Enter the Class 1 sell-now price published on the homepage. We will process the trade, email you a confirmation and issue payment the next day. 

New Jersey Class 1 REC Value

The range for Class 1 RECs in New Jersey is $0 to $50. $50 is the Alternative Compliance Payment (ACP), or fine, that energy companies in New Jersey have to pay if they do not procure enough Class 1 RECs. The value for Class 1 RECs is $30 at the beginning of 2024 and is expected to move up to the $40 to $45 levels during the 2025 to 2030 timeframe. This rise is expected because New Jersey law requires energy companies to either produce more renewable energy or buy more Class 1 RECs in the coming years. 

New JerseyPress ReleasesSRECResearchSolarNJ Class 1

Washington DC Revises Solar Credit Laws

Washington D.C. has passed a law (B24-0950 / L24-0314) to change its renewable energy infrastructure requirements, making the District’s climate goals more aggressive than previously anticipated.  


With the number of installs in Washington DC doubling in the past few years, The Local Solar Expansion Act aims to re-balance the supply-demand fundamentals for the market. The bill will change the current solar carve-out from 10% of all delivered electricity to 15% by the year 2041. Additionally, the SACP (Solar Alternative Compliance Payment, or “penalty price”) is being reduced from $500.00 to $480.00 starting in 2024, and then gradually coming off $20.00 each year. This penalty price provides a theoretical ceiling for the cost of Solar Renewable Energy Credits (SRECs) in any given year. With that price being altered to a more conservative ramp-down, investor confidence will remain high and allow for further investment in the district. Although it is one of the smallest SREC markets in the country, the law’s passing allows Washington remain one of the most premium. 



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Flett Exchange will continue monitoring Washington, D.C. SREC markets and provide any additional updates as they are released.   

Washington DCResearch

New Jersey Board of Public Utilities Announces fixed $152 for TREC

The New Jersey Board of Public Utilities (BPU) announced on March 9, 2020 that the TREC will be a fixed $152 for 15 years. Prior it was set at $65 for the first three energy years and rising to $189 for the remaining 12 years.
The tiered SREC was a result of the cost cap implemented in the Clean Energy Act of 2018 limiting ratepayer costs to 9% in energy years 2019 to 2021 and then decreasing to 7% thereafter. 
On January 21, 2020 Governor Murphy signed into law amendments to the Clean Energy Act shifting the ratepayers savings potentially saved under the 9% to make up for modeled overspending when the 7% cap goes into effect in energy year 2022. The Board of Public Utilities has approved a fixed rate $152 based on the passage of the legislation and BPU staff recommendations. The amount of the $152 that a project actually receives is based on the following types of solar installations:
Landfill, Brownfield, Historic Fill = $152
Grid supply subsection (r) rooftop = $152
Net metered rooftop and carport = $152
Community Solar= $129.20 (85% of TREC value)
Ground mount (subsection r) = $91.20 (60% of TREC value)
Residential net-metered ground mount = $91.20 (60% of TREC value)
Residential net-metered rooftop and carport =  $91.20 (60% of TREC value)
Net-metered non-residential ground mount=  $91.20 (60% of TREC value)
Residential solar installers are especially pleased by this development. The new TREC program greatly decreases incentives for homeowners to invest in solar in New Jersey and the tiered incentive in the TREC would have made it especially hard for residential solar sales. 

DISCLAIMER: New Jersey SREC prices are volatile. Buyers and sellers of SRECs must do their own research. The above projections are subject to change as market dynamics change.

New JerseyResearchSolar

New Jersey AB 3723 Passage and its Effect on New Jersey SREC Prices

September 2018

In May 2018 New Jersey AB 3723 was passed which instituted major changes to the New Jersey solar incentive market revolving around SRECs.


New Jersey was one of the early leaders in providing ratepayer incentives through SRECs to solar owners. Flett Exchange launched its’ New Jersey SREC market in June of 2007 to help facilitate an open and competitive market. The SREC program was created to provide a long-term 15 year pay-back as opposed to the large up-front incentive program that existed in New Jersey. Solar installation costs dropped quicker than expected during the last decade. As of the fall of 2018 New Jersey has close to 100,000 solar installations and produces over 3% of its electricity from solar. A major market reform was instituted in 2012 which increased demand for solar. This increase in demand averted a collapse in in SREC prices which kept solar investors whole and provided demand for a few more years of new solar development which satisfied solar developers. This same change slashed the cost cap by more than 50% to protect ratepayers. By 2016 it was apparent that once again costs to install new solar dropped quicker than expected. AB 3723 was passed in May 2018.


AB 3723 major changes:

  1. Closes the current SREC program to new applicants by June 2021

  2. Mathematically attempts to close the SREC program by timing the curtailment of supply of new solar while increasing demand at the same time thus “pinning” high SREC prices for the next 10 – 15 years.

  3. Adds a 7% cost cap by 2022 that is complicated/impossible to model and relies on BPU action and will most likely not kick in for years. The cost cap favors the wind development portion of the RPS by protecting it from this cap. The solar portion will be most likely be ratcheted down through reduced solar compliance costs.

(Plain English: Bail-out legislation for current solar owners (Attempts to keep SREC prices above $200 for years) that at the same time gives solar developers 2 to 3 years to cash in on projects before a new incentive program is created. Ratepayers who pay for it will never understand it which limits/reduces political risk for passing it. Provides for costs shifting 5+ years out from solar compliance to wind compliance thus potentially reducing SREC prices at that time)

Price Projection and Risks for Sellers of New Jersey SRECs:

AB 3723 prevented the New Jersey SREC market from a collapse which was inevitable by 2019-2021 due to the pace of solar development in New Jersey which was significantly more than what the legislation called for. In all SREC markets that experienced similar events – PA, MD, OH, SREC prices dropped to $10 or less for years. It appears that SREC prices will remain at the $180 to $250 range for the next 3 to 5 years (2018 to 2020/22) Analysis for prices and hedging strategies going out 3+ years are available to our registered and active customers.

DISCLAIMER: New Jersey SREC prices are volatile. Buyers and sellers of SRECs must do their own research. The above projections are subject to change as market dynamics change.

New JerseySRECResearch