Posted on Jan. 21, 2022

Flett Exchange is now a market participant within the Virginia Solar Renewable Energy Credit (VA SREC) space, completing our first transactions as the new guidelines have become available.  We are now able to procure RECs and provide pricing for VA credits that have the appropriate accreditations on the GATS platform.  

While the specifics of the market rules and regulations are still coming to light, Virginia has emerged as a new and interesting space for solar development in the US.  Following the passing of the Virginia Clean Economy Act of 2020 (VCEA), both Dominion and Appalachian Power Company are now tasked with completing a Renewable Portfolio Standard on behalf of the customers they serve.  The VCEA mentions a few stipulations, but all RECs generated from 2017 and forward are eligible to be bought and sold for buyers to meet compliance. The amount of credits that both Dominion and APCo must procure to meet their compliance ramps up year over year with the hopes of incentivizing solar development within the state.  Both utilities must be 100% carbon free by the year 2050.

As it pertains to the residential customer, 1% of all RECs bought must come from facilities that are considered “Distributed Generation”, i.e. facilities that are less than 1MW in size.  This is designated by GATS by having a “D” applied to one’s Virginia State Certification Number.  

We have posted our current pricing for VA SRECS on our website under the “Virginia” tab. Like many other PJM markets, there is an Alternative Compliance Payment, or ACP, that places a “cap” on the value of each credit. The ACP is $75 for 2021 and increases 1% each year.  As we continue to monitor the amount of solar that is installed within Virginia, the price of spot market transactions will fluctuate with supply-demand fundamentals.  Any updated pricing will be reflected as such.

Flett Exchange has completed all  necessary set up to make sure that it provides liquidity and transparency to owners of the Virginia small distributed facilities.  In order to begin selling  through our exchange, register for an account on the Flett Exchange website.  We are happy to assist you with any questions you might have.

TAGS:
SRECVirginia

Posted on April 13, 2021

The Maryland legislature passed legislation that will raise the fine (Solar Alternative Compliance Payment) for power companies if they do not procure enough MD SRECs from solar owners. The current legislation sets a fine of $80 per SREC for 2021 and lowers each year to $20.35 by 2030. The bill raises that fine $15 to $20 each year. As of publication we are awaiting the Governor to sign it into law. The proposed fines are shown below.

The same bill also decreases the amount of solar that the energy companies have to procure. Taking into account the amount of solar installed in Maryland and the growth rate this should not have an effect on solar owner’s prices of their SRECs. The only way it will is if an unexpected amount of solar is installed in the next few years.

This is welcome news for solar owners in Maryland along with homeowners and businesses planning on installing a new solar array. The current SREC price caps were inhibiting solar development. We expect the rate of solar installations to increase in Maryland if this bill is passed.

Click here to view the full Amendments.

The following is the text for the Amendments to Maryland Senate bill 65 2021-2022 legislative session:
 

SB0065/773192/1                 

BY:     Economic Matters Committee   

AMENDMENTS TO SENATE BILL 65 

(Third Reading File Bill) 

AMENDMENT NO. 1

            On page 1, in line 2, strike “Qualifying” and substitute “Tier 2 Renewable

Sources, Qualifying”; in the same line, after “Biomass” insert “, and Compliance Fees”; in line 3, after the first “of” insert “altering the renewable energy portfolio standard for certain years; extending the eligibility of certain Tier 2 renewable sources for purposes of the renewable energy portfolio standard in certain years; altering the compliance fee for a shortfall from the required percentage of energy from certain Tier 1 renewable sources for the renewable energy portfolio standard in certain years;”; in line 7, after “Act;” insert “providing for the effective dates of this Act; making a conforming change;”; in line 11, strike “and” and substitute a comma; in the same line, after “(s)” insert “, and (t)”; in line 16, strike “and” and substitute “, 7–703(b)(16) through

(25),”; and in the same line, after “7–704(a)” insert “, and 7–705(b)(2)”.

AMENDMENT NO. 2

On page 1, after line 20, insert:

“Article – Public Utilities

7–701.

            (a) In this subtitle the following words have the meanings indicated.

            (t) “Tier 2 renewable source” means hydroelectric power other than pump                        storage generation.

7–703.

            (b) Except as provided in subsection (e) of this section, the renewable energy                     portfolio standard shall be as follows:

                        (16)     in 2021[,]:

                                    (I)       30.8% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least 7.5% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)                                 of this subtitle derived from offshore wind energy; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (17)     in 2022[, 33.1%]: 

                                    (I)        30.1% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [8.5%] 5.5% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

of this subtitle derived from offshore wind energy; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (18)     in 2023[, 35.4%]: 

                                    (I)        31.9% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [9.5%] 6% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

                                    of this subtitle derived from offshore wind energy; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (19)     in 2024[, 37.7%]: 

                                    (I)        33.7% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [10.5%] 6.5% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

                                    of this subtitle derived from offshore wind energy; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (20)     in 2025[, 40%]: 

                                    (I)        35.5% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [11.5%] 7% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

            of this subtitle, not to exceed 10%, derived from offshore wind energy; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (21)     in 2026[, 42.5%]: 

                                    (I)        38% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [12.5%] 8% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

of this subtitle derived from offshore wind energy, including at least 400 megawatts of Round 2 offshore wind projects; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (22)     in 2027[, 45.5%]: 

                                    (I)        41.5% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [13.5%] 9.5% derived from solar energy; and

                                    [(ii)] 2. an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy, including at least 400 megawatts of Round 2 offshore wind projects; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (23)     in 2028[, 47.5%]: 

                                    (I)        43% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [14.5%] 11% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

of this subtitle derived from offshore wind energy, including at least 800 megawatts of Round 2 offshore wind projects; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (24)     in 2029[, 49.5%]: 

                                    (I)        47.5% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [14.5%] 12.5% derived from solar energy; and

                                    [(ii)] 2. an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy, including at least 800 megawatts of Round 2 offshore wind projects; and

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES; AND

                        (25)     in 2030 and later[,]: 

                                    (I) 50% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least 14.5% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

of this subtitle derived from offshore wind energy, including at least 1,200 megawatts of Round 2 offshore wind projects; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES

7–705.

 (b) (2) If an electricity supplier fails to comply with the renewable energy portfolio standard for the applicable year, the electricity supplier shall pay into the Maryland Strategic Energy Investment Fund established under § 9–20B–05 of the State Government Article:

(i) except as provided in item (ii) of this paragraph, a compliance fee of:

1. the following amounts for each kilowatt–hour of shortfall from required Tier 1 renewable sources other than the shortfall from the required Tier 1 renewable sources that is to be derived from solar energy:

A.        4 cents through 2016;

B.        3.75 cents in 2017 and 2018;

C.        3 cents in 2019 through 2023;

D.        2.75 cents in 2024;

E.        2.5 cents in 2025;

F.        2.475 cents in 2026;

G.        2.45 cents in 2027;

H.        2.25 cents in 2028 and 2029; and

I.         2.235 cents in 2030 and later;

2. the following amounts for each kilowatt–hour of shortfall from required Tier 1 renewable sources that is to be derived from solar energy:

A.        45 cents in 2008;

B.        40 cents in 2009 through 2014;

C.        35 cents in 2015 and 2016;

D.        19.5 cents in 2017;

E.        17.5 cents in 2018;

F.        10 cents in 2019;

G.        10 cents in 2020;

H.        8 cents in 2021;

I.         6 cents in 2022;

J.         [4.5] 6 cents in 2023;

K.        [4] 6 cents in 2024;

L.        [3.5] 5.5 cents in 2025;

M.       [3] 4.5 cents in 2026;

N.        [2.5] 3.5 cents in 2027 [and 2028];

O.        [2.25] 3.25 cents in [2029] 2028; [and]

P.        [2.235] 2.5 cents in [2030 and later] 2029; and

Q.        2.25 CENTS IN 2030 AND LATER; AND

3. 1.5 cents for each kilowatt–hour of shortfall from required Tier 2 renewable sources; or

                                    (ii)       for industrial process load:

                                    1.         for each kilowatt–hour of shortfall from required Tier

1 renewable sources, a compliance fee of:

A.        0.8 cents in 2006, 2007, and 2008;

B.        0.5 cents in 2009 and 2010;

C.        0.4 cents in 2011 and 2012;

D.        0.3 cents in 2013 and 2014;

E.        0.25 cents in 2015 and 2016; and

F.        except as provided in paragraph (3) of this subsection,

0.2 cents in 2017 and later; and

                                                2.         nothing for any shortfall from required Tier 2 renewable sources.

 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read as follows:”.

 On page 4, in line 15, strike “through 2020”; in line 18, strike “2.” and substitute “3.”; in line 20, strike “3.” and substitute “4.”; in the same line, after “That” insert “Section 2 of”; and after line 22, insert:

            “SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in

Section 4 of this Act, this Act shall take effect June 1, 2020.”.

DISCLAIMER: Maryland 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.

TAGS:
MarylandSRECSolar

Posted on Dec. 10, 2019

This is a bill, not yet a law.

This bill would allow the Board of Public Utilities (BPU) to increase the cost to customers of the State’s Class I renewable energy requirement during energy years 2022 through 2024 above the current limit of seven percent of the total paid for electricity by all customers in the State, under certain conditions.

Under the bill, the BPU could only make this increase if the cost of the Class I renewable energy requirement is less than nine percent of total energy costs during energy years 2019 through 2021 (the limit set by current law). In addition, the total amount paid by customers during energy years 2019 through 2024 could not exceed the sum of: (1) nine percent of total energy costs during energy years 2019 through 2021; and (2) seven percent of total energy costs during energy years 2022 through 2024, i.e. the maximum amount allowed by current law over that six-year period.

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

https://www.njleg.state.nj.us/2018/Bills/S4500/4275_I1.HTM

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

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.

TAGS:
New JerseyPress ReleasesSREC

Posted on Nov. 15, 2019

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.

TAGS:
New JerseySRECSolar

Posted on May 29, 2019

May 29, 2019

New Law

This past weekend Maryland Governor Larry Hogan did not veto the Clean Energy Jobs Act which is now law. It requires at least 50% of the electricity in Maryland be derived from Tier 1 renewable sources which are at least 14.5% in-state solar by year 2030. It provides an immediate stimulus for solar by increasing the demand in 2019 to 5.5% up from the old requirement of 1.95%

Big Win for Owners and Investors in MD Solar

This law is a boon for owners of existing solar in MD, new investors of solar and any of the associated businesses involved in the development of solar projects.

SRECs; Then and Now In MD

SREC’s are the primary funding sources for solar in MD. Flett Exchange has run a market for MD SRECs since July of 2009. At that time the goal was to obtain 2% solar by year 2022 and SREC prices on Flett Exchange were $370 for MD SRECS. During the last 10 years the price to install solar decreased significantly and the 2% goal in MD was achieved quicker than expected. The state legislature and governor in MD were unsuccessful in putting new solar growth targets into law for a few years. This resulted in a slow-down of new solar development and the prices for SRECs decreased in response. Prices for MD SRECs dropped below $30 in 2016 and traded under $10 until recently. Due to the anticipated and eventual passage of this Clean Energy Jobs Act SREC prices have moved up above $60 as of today. We provide historical pricing on our website for your reference based on our Flett Exchange Daily Settlement price. Current owners of Solar in MD are taking advantage right now and selling their SRECs as the prices rise on the Flett Exchange MD SREC spot market via immediate delivery and payment.

What’s Next for Solar in MD?

The major take-away of this new law is that it creates a strong, long-term goal for demand for SRECs which is what solar investors look for.  As opposed to other states, it takes a well-balanced approach by protecting ratepayers by way of a lower compliance payment which starts at $100 and gradually decreases to $20.23 by year 2030. This is important in that solar investors want to be confident that the mandates are less likely not to be rolled back due to rate increases. The following is a table comparing the previous solar mandates to the new ones implemented via the Clean Energy Jobs Act:

How do you Sell SRECs if you own Solar in MD?

Flett Exchange is celebrating a decade of servicing Maryland solar owners this summer! We look forward to the next ten years and assisting our current and all future Maryland Solar investors. We offer a do-it-yourself SREC service for those who don’t mind handling the GATS meter readings and transfers. If you sign up you gain access to our exchange 24x7 for immediate transfer and payment. For those who want a hassle-free full-service brokerage we offer Flett REC Manager. We will handle all of your meter readings, SREC minting in GATS and process your sales and payments immediately upon SREC creation. We are efficient at what we do so we have low fees to match. Our goal is to help you maximize your revenues on your solar investment! Sign up for either service on our website.

www.flettexchange.com

DISCLAIMER: Maryland 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.

TAGS:
MarylandSRECMaryland Clean Jobs ActSolar

Posted on April 30, 2019

DISCLAIMER: Pennsylvania 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.

TAGS:
PennsylvaniaPress ReleasesSREC

Posted on April 9, 2019

DISCLAIMER: Maryland 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.

TAGS:
MarylandPress ReleasesSREC

Posted on March 4, 2019

DISCLAIMER: Pennsylvania 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.

TAGS:
PennsylvaniaSREC

Posted on Oct. 29, 2018

The Clean Energy Act, signed by Governor Murphy on May 23, 2018, included the following provision:

“For all applications for designation as connected to the distribution system of a solar electric power generation facility filed with the board after the date of enactment of P.L.2018, c.17 (C.48:3-87.8 et al.) the SREC term shall be 10 years.” L. 2018, c. 17, §2(d)(3).

At its agenda meeting earlier today, the New Jersey Board of Public Utilities clarified the language above as follows:

• SRP REGISTRATIONS SUBMITTED IN THE ONLINE PORTAL ON OR BEFORE TODAY’S DEADLINE1 AND DEEMED COMPLETE WILL RECEIVE A 15-YEAR SREC QUALIFICATION LIFE.

• SRP REGISTRATIONS SUBMITTED IN THE ONLINE PORTAL AFTER TODAY’S DEADLINE WILL RECEIVE A 10-YEAR SREC QUALIFICATION LIFE.

• APPLICATIONS RECEIVED BY THE BOARD FOR CONDITIONAL CERTIFICATION PURSUANT TO SUBSECTION T PRIOR TO TODAY’S DEADLINE THAT FULFILL ALL CONDITIONS ESTABLISHED BY THE BOARD SHALL RECEIVE A 15-YEAR SREC QUALIFICATION LIFE.

1 The “Deadline” is defined as 11:59:59 PM EST on October 29, 2018

Additional details are as follows:

SRP Eligibility Process

To qualify for a 15-year SREC qualification life, a registration must be submitted in the online portal (http://njcepsolar.programprocessing.com/) under the status Application Received on or before 11:59:59 PM EST on October 29, 2018 (Deadline), and:

1. Contain all the items and information identified on the SRP Checklist required to be deemed complete, or

2. Within two weeks of an email from the Program Manager/Administrator to the registrant identifying one or more minor deficiencies with the registration, successfully resolve those minor deficiencies. a. If the minor deficiencies are not successfully resolved within two weeks from the date of the email, the registration will be rejected and the registrant would be required to resubmit a new registration packet.

For the avoidance of doubt:

A. Any registrations submitted after today’s Deadline will only be eligible for a 10-year SREC qualification life.

B. Any registration submitted in the online portal under the status Application Received on or before the Deadline, but that is determined to be incomplete due to a major deficiency, will be rejected and if resubmitted after the deadline will only be eligible for a 10-year SREC qualification life.

C. Any registration submitted in the online portal under the status Application Received on or before the Deadline, but that is determined to be incomplete due to a minor deficiency, will have two weeks to successfully resolve the minor deficiencies to remain eligible for a 15-year SREC qualification life.

D. Registrations having the status Pending Uploads as of the Deadline will not be considered submitted in the online portal and therefore will not be eligible for a 15-year SREC qualification life.

 For information regarding the definition of Major/Minor Deficiencies, please see:

http://www.njcleanenergy.com/srpforms

________________________

Implementation of New Jersey 10 Year SREC term

TAGS:
New JerseySREC

Posted on Sept. 19, 2018

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:
Washington DCPress ReleasesSREC

Posted on Sept. 11, 2018

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.

History:

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.

TAGS:
New JerseySRECResearch

Posted on April 19, 2018

On April 19, 2018, the Pennsylvania Public Utility Commission published its interpretation of Act 40 of 2017 signed by Governor Tom Wolf on October 30^th 2017 in regards to the compliance eligibility of out of state solar facilities SRECs in the Pennsylvania market.  The commission ruled that unless an out of state solar facility has a binding contract for their SRECs with a renewable portfolio standard (RPS) buyer prior to October 30^th 2017 the out of state solar facility will no longer have PA state certification on their SRECs after October 30^th 2017.  The SRECs generated (month of generation) prior to October 30^th 2017 from an out of state solar facility will retain their PA state certification and the SRECs remain eligible for the full 3 compliance years.  RPS buyers that have a contracted with an out of state facility prior to the October 30^th 2017 date have 60 days to petition for qualification with AEPS.

Flett Exchange intends to clear all eligible PA certified SRECs.  Out of state PA certified solar facilities intending to sell must contact us and supply proof of certification (CSV file from PJM-EIS of intended inventory to sell) for verification.

Link to the Pennsylvania Public Utility Commission’s final implementation order of Act 40 of 2017 http://www.puc.pa.gov/pcdocs/1562754.pdf 

-Kevin Flett, Director of Operations

PENNSYLVANIA PUBLIC UTILITY COMMISSION HARRISBURG, PENNSYLVANIA 17105-3265

Tier I Solar credits. Given this lack of clarity, we issued a Joint Statement in conjunction with adoption of the TIO offering supplemental statutory interpretations to spur comments in an effort to inform the record.1

 

The Office of Consumer Advocate (OCA) succinctly states the challenge in interpreting Section 2804(2)(i) of Act 40.

 

The OCA submits that the language as written in Act 40 is unclear and the OCA is unable to discern the intent of the section as written. 2

 

Likewise, the comments of Citizens for Pennsylvania's Future (PennFuture) share similar sentiments as OCA, stating:

 Section 2804(2)(i) of Act 40 is ambiguous in regard to how and when the qualification of a facility as an alternative energy generator originates.3

 

We too agree that the language of Section 2804(2)(i) is unclear. Consequently, we are obligated, under the rules of statutory construction, to ascertain the intent of the General Assembly. The Rules of Statutory Construction at 1 Pa. C.S. § 1921(b) provide that:

When the words of a statute are clear and free from all ambiguity, the letter of it is not to be disregarded under the pretext of pursuing its spirit.

 

Since, as the OCA and PennFuture point out, the verbiage here is unclear, we must now refer to 1 Pa. C.S. § 1921(c) which provides:

When the words of a statute are not explicit, the intention of the General Assembly may be ascertained by considering, among other matters:

 (2)  The circumstances under which it wasenacted.

(3)  The mischief to beremedied.

(4)  The object to beattained.

 

(6)  The consequences of a particularinterpretation

(7)  The contemporaneous legislativehistory.

(8)  Legislativeandadministrativeinterpretationsofsuchstatute.

 

The comments filed in response to the TIO have proven instructive in regard to why the General Assembly drafted this legislation, why the Governor signed it into law, and the mischief to be remedied.

 

 

1 Joint Statement of Chairman Gladys M. Brown and Vice Chairman Andrew G. Place entered December 21, 2017 at the instant Docket.

2 Comments ofOCA at page 5 filed February 5, 2018.

3 Comments of PennFuture at page I filed January 18, 2018.

Comments filed by Governor Tom Wolf, Senators Mario M. Scavello, Tom Killion, John

T. Yudichak, Jay Costa, John M. DiSanto, Steward J. Greenleaf, David G. Argall, Wayne D. Fontana, Guy Reschenthaler, and Representatives Michael B. Carroll, Eric M. Roe, Ronald S. Marsico, and Sue Helm are particularly insightful. As lawmakers who effectuated Act 40, these commenters are uniquely qualified to provide the Conunission with information regarding the intent of the statute. Each of the comments provided by lawmakers states that their intent to 'close the borders' for Tier I solar credit qualifications was consistent with the design utilized by a number of our neighboring states to promote economic development. This interpretation is consistent with the supplemental interpretation provided in our Joint Statement and contrary to the proposal of the Conunission in its TIO. Senators Jay Costa and John T. Yudichak descriptively summarize the sentiments and intentions of these lawmakers, stating the following:

 

The Commission's proposed interpretation under the Tentative Implementation Order published in the Pennsylvania Bulletin on January 6, 2018, would "grandfather" systems that are certified in Pennsylvania, rather than physically located in this state. We must respectfully disagree with this interpretation, which we find counter to the intentions of the General Assembly and especially of our colleagues who supported and voted in favor of this legislation.

 

Instead, the joint statement submitted by Chairperson Gladys M Brown and Vice Chairperson Andrew G. Place better reflects our intentions in approving this legislation. Please know that legislation to "close our solar borders" for the purposes of satisfying the Alternative Energy Standards Portfolio Act has been considered in recent sessions and discussions have been exclusive to the physical locations of systems.

 

While we certainly recognize the potential need to address and honor existing contracts, the long-term and primary goals set forth by this legislation have been clear. Specifically, we seek to join our neighboring states that similarly have "closed solar borders" and to advance our commitment to promoting economic and job growth within Pennsylvania's solar energy industry.4

 

In further support of interpreting Sections 2804(2)(i) and 2804(2)(ii) consistent with our Joint Statement, the Department of Environmental Protection (DEP) states that the intention of this provision was to provide certainty that solar photovoltaic energy facilities located within the Commonwealth would not be affected by the changes implemented elsewhere in Act 40.5 DEP also submits that the interpretation outlined in the TIO would essentially nullify the purpose of Act 40 by grandfathering enough currently-certified sources to prevent the law from having any environmental or other co-benefit whatsoever. Comments from the Pennsylvania Farm Bureau also echo this sentiment, stating that TIO interpretation would limit farmers' options for compliance with ever-increasing environmental protection standards.6

 

 

4 Comments of Senator John T. Yndichak and Senator Jay Costa filed on February 2, 2018.

5 Joint comments of the DEP and Governor Tom Wolf (DEP section at page 1) filed February 5, 2018.

6 Comments of the Pennsylvania Fann Bureau submitted February 5, 2018.

Further, ET Capital Solar Partners submits that the Commission's tentative interpretation of Section 2804(2)(i) would make the additional language of Section 2804(2)(ii) redundant.7 ET Capital Solar Partners states that if the legislative intent of Section 2804(2)(i) follows the Commission's tentative interpretation, there would be no need for the additional language of Section 2804(2)(ii) to further protect existing facilities that have entered into agreements with Pennsylvania electric-distribution companies (EDCs) and electric generation suppliers (EGSs) participating in the Pennsylvania markets. Therefore, ET Capital Solar Partners contends that the language of Section 2804(2)(ii) is further evidence that the legislative intent of Act 40 of2017 is to stimulate further investment in solar facilities within the Commonwealth. Again, the rules of statutory construction are guiding here. 1 Pa. C.S. § 1922(2) states the following:

 

In ascertaining the intention of the General Assembly in the enactment of a statute the following presumptions, among others, may be used:

 

(2) That the General Assembly intends the entire statute to be effective and certain.

 

Case law further clarifies the interpretation of this provision, stating that the General Assembly does not intend words to be "mere surplusage." 8

 

When reviewing the totality of comments described above, it becomes evident that Sections 2804(1)(i), 2804(1)(ii), and 2804(1)(iii) explicitly describe the qualifications for Tier I Solar facilities after passage of Act 40; Section 2804(2)(i) clarifies that all Tier I Solar facilities certified before passage of Act 40 that are located within the geographic boundaries of Pennsylvania are to be held harmless from this legislation; and Section 2804(2)(ii) enjoins the legislation from breaching existing contracts from out-of-state Tier I Solar facilities which were entered into before passage to serve the AEPS needs of Pennsylvania entities. Therefore, we believe we must support the adoption of our interpretations of Sections 2804(2)(i) and 2804(2)(ii) in a manner consistent with our Joint Statement to the TIO. These interpretations are as follows:

 

Sections 2804(2)(i) - We interpret the phrase "[a] certification originating within the geographicalboundariesofthisCommonwealth..."asafacilitylocatedwithinPennsylvania havingreceivedanAEPsTierIsolarphotovoltaic sharecertification.

 

2804(2)(ii)- We interpret this section to only permit out-of-state facilities that are (a) alreadycertifiedasAEPSTierISolarPhotovoltaicandthat(b)haveenteredintoacontractwith a Pennsylvania EDC or EGS serving Pennsylvania customers, for the sale of solar credits, to maintain certification until the expiration of the contract. We further wish to clarify that, consistentwiththecommentsprovidedbyETCapital SolarPartners,thismaintained

7 Comments of ET Solar Capital Partners submitted January 17, 2018.

8 Thomas Jefferson University Hospitals, Inc. v. Pa. Department of Labor and Industry, 162 A.3d 384, 393 (Pa.

2017), see also Holland v. March, 883 A.2d 449, 455-56 (Pa. 2005); Green Acres Contracting Comp. v. Commonwealth, 163 A.3d 1147 (Pa. Cmwlth. 2017) and Pa. State Police, Bureau of Liquor Control Enforcement v. Legion Post 304 Home Assoc., 164 A.3d 612,619 (Pa. Cmwlth. 2017) (holding that the rules of statutory constructionrequirethatcourts,wheneverpossible,giveeachwordinastatutorysectionmeaningandnottreatany word as surplusage).

certification should only be applicable to the amount of credits contractually committed to by an out-of-state certified facility to an EDC or EGS.9 EDCs and EGSs seeking to qualify credits under this provision are required to file a Petition within 60 days of the entry date of this order. Procedures for the 2804(2)(ii) contract approval process will be provided by the Commission at this docket.

 

Given this interpretation, we are also required to provide implementation procedures associated with banked credits. The AEPS Act permits EDCs and EGSs to bank, or place in reserve, credits produced in one reporting year for compliance in the next two reporting years.10 Implementation procedures are necessary to address handling of a credit generated by an out-of­ state Tier I solar qualified facility before October 30, 2017, and not retired in PJM's Generation Attribute Tracking System before October 30, 2017. Since Act 40 omits any directive expressly empowering the Commission to modify the attributes of such credits, we believe that these credits should retain the tier attribute assigned at the time the credit was generated. To do otherwise would appear to modify the legal status, or tier attribute, of a credit without explicit statutory authority. The Statutory Construction Act does not presume retroactive effect of statutes. 1 Pa. C.S. § 1926 provides:

 No statute shall be construed to be retroactive unless clearly and manifestly so intended by the General Assembly.

 

Further, the Commonwealth Court case provides guidance here when it determined the following:

 

A retroactive law is one which relates back to and gives a previous transaction a legal effect different.from that which it had under the law in effect when it transpired. This Court has held that "[a} law is given retroactive effect when it is used to impose new legal burdens on a past transaction or occurrence. " R & P Services, Inc. v. Commonwealth, Department of Revenue, 541 A.2d 432, 434

(Pa.Cmwlth.1988).However,section1926oftheStatuto1yConstructionAct providesthat"nostatutemaybeconstruedtoberetroactiveunlessclearlyand manifestlysointendedbythe GeneralAssembly."  1 Pa.CS.§19261.1

 

Therefore, given Act 40's omission of any directive to change the attribute of these banked credits, we submit that any out-of-state Tier I solar credit generated before October 30, 2017, should retain its Tier I solar attribute for the banking life span enumerated in AEPS. This interpretation is supported by the comments of the Retail Energy Supply Association, who states that EGSs may elect to procure varying vintage credits for use in future years in accordance with the prevailing banking rules, thus, the ability to rely on banked credits is an important component necessary for EGSs to effectively manage and satisfy their AEPS Act obligations.12

 

 

9 For purposes of implementation, any alteration, such as a change, update, or extension to a contract applicable

under this provision, and, entered into after October 30, 2017, would not be recognized under 2804(2)(i).

10 The Alternative Energy Portfolio Standards Act of 2004, 73 P.S. §§ 1648.3(e)(6)

ll Kuziakv. Borough of Danville, 125 A.3d470 (Pa. Cmwlth. 2015).

12 Comments of the Retail Energy Supply Association at 7.

In conclusion, we submit that the interpretations provided herein are necessarily required by this Commission consistent with the rules of statutory construction enumerated supra and also consistent with 1 Pa. C.S. § 1921(a), which provides that:

 The object of all interpretation and construction of statutes is to ascertain and effectuate the intention of the General Assembly. Every statute shall be construed, if possible, to give effect to all its provisions.

With this Order we begin the process of implementing Act 40, while recognizing that there are complexities in implementing and complying with the Act that may reveal issues which require further Commission action. The Commission will address any such issues, at this docket, and in a manner that provides all interested parties appropriate notice and opportunity to be heard.

 THEREFORE, WE MOVE THAT:

(1) ElectricDistributionCompaniesandElectricGenerationSuppliers seeking to qualify credits under Section 2804(2)(ii) of Act 40 are requiredtofileaPetitionwithinsixty(60)daysoftheentrydateof thisorder,thespecificprocedures forwhichwillbeoutlinedatthis docket

 (2)  TheLawBureauandtheBureauofTechnicalUtilityServicesprepare a Final Implementation Order consistent with thisMotion.

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:
PennsylvaniaSREC

Posted on April 13, 2018

The following is a write-up by Michael Flett – President of Flett Exchange, LLC in response to the passage of A-3723 in the New Jersey legislature and now on the desk of Governor Murphy to sign into law.

Renewable energy in America affects everyone today. The societal benefits are obvious - less pollution and infinite energy. In New Jersey, solar energy production is subsidized by the public either as a taxpayer through federal or state incentives or as a regular electricity consumer. They need to be part of the conversation.

Where is the support for this bill?

Due to the widespread benefits and costs one would assume that when crafting solar legislation it would include any and all stakeholders. That was not the case here in New Jersey where a renewable energy bill was quietly folded into a three bill package that included a nuclear subsidy bill and a health care insurance bill!  The environmental community, who you would think, strongly supports renewable energy called for the process to slow down for a more deliberative process in order to create a long term program that would include community solar, not just a “pilot” program. That was certainly not the case with this bill. A small group of solar owners along with financial solar dealers spearheaded the quick passage of this bill in Trenton. If enacted, this law would close the successful free-market SREC program for all future solar development after 2021. As written, it will come at a multibillion dollar cost to ratepayers and divert future payments away from new solar development.  All coming about without the widespread support and dialogue with environmentalists, ratepayers, business owners or even the majority of the homeowners or businesses that invested on solar on their homes and businesses. Flett Exchange has thousands of customers who own solar in New Jersey. These investments were made because of the SREC program and this bill extinguishes that program and causes uncertainty.

SREC = Competition = Fairness

New Jersey has been a nationwide leader for 15 years in solar development. The reason for this success is the open and competitive nature of our incentive program based on the SREC. New Jersey, in its wisdom over a decade ago, made the decision to let the market decide the most economical price for solar to bring in investment and at the same time protect the ratepayer.  Due to the rapid reduction in cost of solar, an adjustment in the states’ law around solar was made in 2012. It worked beautifully. Solar was built. State renewable goals were met. The price to the ratepayer dropped as well. There was absolute freedom for homeowners and business to compete and install solar and earn SRECs.

Due to the success of the SREC program, New Jersey achieved all of its solar build-out goals and under budget. Now, like in 2012, the laws need to be adjusted to bring in the next phase of investment in New Jersey. Consistency needs to be maintained to maintain investor confidence, protect the ratepayer, protect past investments in solar infrastructure and bring more solar to everyone. The open and free SREC market is that tool. It allows for the freedom to compete and allow homeowners and business to install solar. It ensures that if prices drop for solar energy technology in the future, the public who pays for it with their electricity bill, will not be stuck for decades with long term contracts.  The proponents of this bill are only interested in maximizing their rate of return when it comes time to selling their solar projects. They do not have the public’s interest at heart. We can do better.

Now, like in 2012, the cost to install solar has again plummeted.  The state law can be adjusted to bring in the next phase of investment in NJ based on a free and open market called the SREC. The current bill phases out the tools that made New Jersey a solar leader.

Why Remove Fairness from a Successful Program?

Why? Because by closing the SREC program large solar owners will land a multi-billion dollar payday.

Here’s how:

There are over 2,000 Mw of solar installed statewide. There are a few owners with control of 100 Mw each. Based on current free market SREC prices, the typical owner of 100 Mw of solar will earn $50 to $70 million dollars over the next 10 years in SREC payments. (This revenue is based on the forward 10 year curve of SREC prices in a freely traded SREC market prior to the run-up in prices due to this bill)

A-3723, as written, abolishes the SREC market and maximize payments. Those same large owners will earn $250 million in the next 10 years – a $180 to $200 million windfall – each. (The back-end of the SREC curve moves up due to the artificial demand created by this bill) If you add up the total amount for all 2000 Mw installed in New Jersey the cost to the ratepayer over 10 years is $8.5 billion – up from $1.4 to $2.8 billion based on the freely traded SREC. This bill as written will cost the ratepayers of New Jersey $5.7 to $7.1 billion more over 10 years! The majority of this money builds NO new solar! These projects will be sold quickly and when the real costs materialize the public will demand action. To put this in perspective, $6 billion would build an additional 3,000 Mw of new solar at an install cost of $2 a watt. $2 a watt is a fair install price for new solar for medium sized distributed systems that would benefit typical small business’ and homeowners in New Jersey.

The proponents of the legislation have provided one sided cost analysis. All the press releases and articles actually mention that it will save money which is only attainable in economic models in which the inputs are misleading and statistically near impossible.

How do we Maintain Fairness?

The New Jersey legislature and governor need to address solar development today as it was addressed in 2012. All stakeholders have to be heard. The cost analysis needs to be vetted. A clear path forward for the cost of solar development in the future needs to be planned. Plain and simple the path is:

• Maintain open and free access to solar for all investors - SRECs
• Maintain the competitive nature of the SREC market to protect ratepayers
• Increase solar requirements – increase RPS
• Decrease costs- (solar is cheaper now) – decrease the SACP
• Introduce community solar
• Maintain and grow the solar labor market

A-3723 demands closure of the SREC market and re-direction of ratepayer funds away from long term new solar build-out that we have today. A clear reversal of past success.

The passage of A-3723 deviates from all of the success of the market based program that is responsible for the financing of over 80,000 solar installations in New Jersey. If enacted the bill will result in a quick short-term boost in SREC payments to investors of solar in New Jersey. This has happened already in the run-up in prices from $170 to $240 in the past 6 months because of the prospect of the legislation being passed. In reality, owners of solar are being duped into supporting this legislation because of the short-term run-up in prices. In the long term it puts all solar investment in New Jersey at risk by replacing free-market mechanisms by a law that is vague in its long-term support of solar. It de-links past investment in solar from future long-term solar build out. This is a dangerous proposition for those who own solar and rely on SRECs to pay back their investment in the clean energy future of New Jersey.

Short-Term Flips – No Long-Term Path – Sorry, New Jersey

Not one segment wins in the passage of this law except for a few select solar financers. In the next few years they will be able to flip projects for huge profits to unsuspecting investors who will get caught holding the bag in the long term. New Jersey homeowners and businesses who invested in solar and relying on SRECs will be in limbo without the continuation of the SREC program. Finally, and most importantly, the environment loses, the ratepayer loses, labor loses, and the new Investor in solar loses. When the costs are calculated in the next few years it will be apparent at the magnitude of ratepayer funds that were squandered and could have been used in an efficient manner to build out our renewable energy future. The right choice is to continue with a competitive and free incentive SREC market for the benefit of everyone in New Jersey as outlined above.

This bill is not law until Governor Murphy signs it. He can also significantly change it so it retains SRECs, maintains competition, and protects current solar investors and ratepayers or veto it and start over. Most importantly, the bill needs to be changed so that ratepayer funds are used in the most efficient manner to achieve our renewable energy goals. 

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 JerseySREC

Posted on July 27, 2017

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, 31^st.

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.

TAGS:
New JerseyPress ReleasesSREC

Posted on April 4, 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

Posted on Nov. 3, 2016

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

Posted on Aug. 16, 2016

After reaching a four year high price of $290.09 on June 13^th 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

Posted on April 27, 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.

TAGS:
MarylandPress ReleasesSREC

Posted on March 8, 2016

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

Posted on Jan. 6, 2016

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

Posted on Nov. 3, 2015

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

Posted on Aug. 5, 2015

NJ_Solar_Market_Update_06_30_2015-3-3 pdf

TAGS:
New JerseySREC

Posted on Aug. 5, 2015

 
New Jersey SREC update August 2015:
 
The first of the energy year 2016 SRECs were minted on July 31st. Prices continue to remain strong in the mid $220s. It appears that there is still active buying by electric companies for their 2015 compliance which is due this fall.
 
Sellers continue to sell at these high prices and volume has been robust. Most sellers that have accumulated SRECs are selling which is why the exchange has seen selling activity in all energy years – 2013, 2014, 2015 and now 2016.
 
SREC Prices Remain High on Lower New Solar Installations
 
On July 23rd the NJ Office of Clean Energy released their NJ_Solar_Market_Update_06_30_2015-3 of how much solar was installed in June. There were 14.4 Mw installed bringing the statewide total capacity to 1,500.7 Mw. This is another relatively light month of new solar installations. The average amount of new solar installed during the last six months was only 11.5/Mw. These low monthly installation reports continue to have a bullish effect on the SREC prices. (We feel there is some type of disconnect and that a large amount of projects will hit at any month.)
 
BPU Auction Clears at $246.42
 
The BPU conducted an auction for 42,000 SRECs on July 14th and the clearing price was $246.42. This was more than $10 over the price traded in the market which may indicate that there were a few buyers that were being forced to pay up to make compliance for energy year 2015. Prices have been $15 to $20 below that level since the auction.
 

Where are prices going from here?
 
As long as buyers need SRECs for their ry 15 compliance due this fall the prices will remain strong. Once they are done we expect the market to pull back to $200 or less this fall. We also expect a very large new solar installation number to hit in the next few months. It just does not make sense that solar installations are so low on a monthly basis while the economics (low installation costs and high SREC prices) are so favorable. If new installations are being withheld they will have to hit the states reports at some time. In the meantime the current numbers from the state indicate a continually strong SREC market.

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 JerseySREC

Posted on March 12, 2015

SREC prices have risen 29% to $214.72 average in February 2015 compared to $166.30 in February 2014. Prices are currently trading $200 for new SRECs for immediate payment and delivery on the Flett Exchange trading platform. This is off from 3 year highs of $220 reached last month.
 
Prices rose in January and February due to the active hedging leading up to and after the BGS auction in which energy providers contract to sell electricity to New Jersey customers who do not choose a 3rd party supplier. The auction winners competitively manage their SREC obligations by buying spot and long term contracts from solar owners and shovel-ready solar projects. In another closely watched auction Electric Distribution companies of New Jersey sold 32,766 SRECs yesterday at a clearing price of $211.01. (Larger volumes tend to get a premium on the auctions)
 
The New Jersey Office of Clean Energy reported that 17.8 Mw of solar was installed in February bringing the total up to 1,456 Mw of operating solar. This amount of solar almost exactly matches the average amount of solar installed during the past 6, 12 and 24 months. It appears that the solar development in New Jersey is under control and is developing in line with state growth goals set out by legislation.
 
Prices for SRECs may drop in the future if the development exceeds the state mandates which is why we monitor the monthly build rates. We suggest to sell your SRECs on a consistent basis when prices are high like they are now.
 
The following is a chart showing SREC prices compared to monthly install rates.
 

New Jersey Solar - SREC Prices and Mw Installation Rates - February 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 JerseySREC

Posted on Jan. 8, 2015

New Jersey SREC Prices Reach 3 Year Highs!
 
New Jersey SREC prices have rallied to the highest level seen since January 2012! SRECs are trading above $200 for both 2014 and 2015 energy years.
 
Prices have rallied for a few reasons:
 
1. Legislation passed by the Democrats and signed into law by Governor Christie in the summer of 2012 to save the solar market is working.
 
2. The new solar installations have been very light on a monthly basis as reported by the New Jersey Board of Public Utilities. Only 7.7 Mw were installed in November.
 
3. Prices have rallied in prior years at this time of the year due to energy companies buying SRECs for hedging purposes.
 
4. There are not as many SRECs available for sale on the spot market the first half of the energy year because many of the large installations use their first SRECs to deliver against long term contracts.
 
We expect the rate of solar installations to pick up in the coming months due to the favorable economics of solar investing in New Jersey – low panel prices coupled with higher SRECs and historically high electricity prices in New Jersey. If there are high installation rates on a continual basis it will lead to lower SREC prices in the future. In the meantime prices seem to be on an up-trend.
 

If you would like to take advantage of the higher prices and sell any of your SRECs you have a few options at Flett Exchange:
 
1. Log into your account on the Flett Exchange Trading Platform to list your SRECs for sale at any price you like.
 
2. Check our ” Sell Now Price” on our Website and transfer your SRECs to Flett Exchange LLC on GATs.
 
3. Call our trading desk at 201-209-0234 and speak to one of our brokers who can help you with GATs transfers.
 
4. Large volume sellers can call our brokerage desk (201-209-0234) for direct OTC spot and forward bilateral contracts.
 
As always, we remit payment within 24 hours for spot transactions.

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 JerseySREC

Posted on Aug. 6, 2014

The first of the new 2015 Energy Year SRECs were minted in GATS last Friday. Prices for spot SREC sales during the last year rallied in all of the major SREC markets covered by Flett Exchange. This was mostly due to new solar development being under control along with successful legislative action taking effect in New Jersey. Solar owners were able to sell their SRECs at higher prices in all markets compared to the previous year.
 
Here are some pricing highlights:
 

RY 2013 RY 2014
 
New Jersey: $100.70 $155.65
 
Pennsylvania: $14.05 $35.66
 
Maryland: $126.15 $131.56
 
DC: $433.22 $466.60
 

(These prices are the average daily Flett Exchange settlement prices for both energy years. A listing of settlement prices back to 2007 can be found at
 

http://markets.flettexchange.com/new-jersey-srec/ 
 
The market price for SRECs for the next 12 months will be determined by 3 major factors:

 
1. The rate and cost of new solar installed
 

2. The buying/hedging activity of the electric companies
 

3. Legislative changes or new government incentives/policies
 

We suggest to our customers to sell on a consistent basis – especially if prices are at the higher end of the range. The current prices in New Jersey, which are in the $155 to $165 range, represent a subsidy of 15 to 16 cents per kilowatt hour which is almost what you would pay without solar! Remember, the idea of an SREC market is to encourage new solar development while financing previous development. It is a delicate balance subject to open competition. If solar becomes less expensive, and it has, SREC prices over the long term will continue to drop. The open and competitive aspect of SRECs allows new entrants to invest and install new solar. If the cost of installing new solar becomes less expensive (this is the reason why SREC prices have dropped over the years) new solar investors will be willing to accept a lower SREC price – even if you do not.
 

Flett Exchange customers can log into their personal account to sell and see the following information:
 

• Historic SREC charts back to 2006
• Personal SREC sales and revenue charts for all Flett Exchange transactions (you can export to PDF or excel for your accountant or your own records)
• Live SREC prices
• Sell your SRECs like you would sell a stock on our market with over 6,500 other solar owners and dozens of electric company buyers

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 JerseySREC

Posted on June 30, 2014

New Jersey SREC prices have been strong this year and are currently at the $180 level for the 2014 vintage SRECs. Prices have been strong due to compliance buying by energy providers. After the buying for this years’ compliance is done we expect SREC prices to drop back down. Prices could drop to $120 or lower by this fall/winter. We suggest to our sellers that you sell any accumulated SRECs into this price rally.
 
There is a chance that prices could continue to move up a little more this summer however, we suggest to take advantage of these high prices in case they drop. In the past we have found that sellers that miss selling at the high prices tend to hold SRECs for over a year and resort to hoping and praying for prices to recover. If trends continue as they have during the past few years solar will continue to become cheaper and a lower SREC value will be needed to convince new investors to build more solar.
 
CHECK YOUR GATS ACCOUNT FOR OLDER SRECS BEFORE THEY EXPIRE!
 
Some solar generators hold SRECs for many years. If you have old Energy Year 2012 (generated from June 2011 to May 2012) solar credits sitting in your GATs account you must sell them because if you do not they will lose significant value soon! Energy companies cannot use these SRECs for solar compliance after this fall. Prices for these older SRECs trade at a slight discount at this time. Prices are listed in real time on our Flett Exchange trading platform and also on our website. If you have any of these older SRECs sell them on our platform or call us and we can walk you through the sales process. We have found energy companies willing to purchase these SRECs at this time.
 
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 Sell Now Price (for the correct SREC year) on our website and send the SRECs to us on GATS
 
3. Do it all on-line by accessing our trading platform.
 
We will process your payment the same day. Customers can also place orders to sell SRECs at higher prices by either calling our trading desk at 201 209 0234 or by logging on to their Flett Exchange account and placing their orders themselves. Checks go out the same day. Established customers can request EFT.

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 JerseySREC

Posted on March 5, 2014

It has been 3 months since our last New Jersey SREC market update. During that time SREC prices moved up from the $145 area in December 2013 to a high of $185 in February 2014 and have moved back down to the mid to high $150s. $185 was the highest price for New Jersey SRECs since May 2012. Many of our customers who have been holding off for higher pricing participated on this move and sold many banked SRECs.
 
Upward price movement and market firmness can be attributed to the compliance requirement of close to 1,600,000 SRECs due this fall. This requirement is significantly higher than last year’s requirement of 596,000. It is the first compliance year covered under the solar legislation passed in 2012.
 
There will be more than enough SRECs minted and available in GATS to satisfy this fall’s requirement. Here are the existing and expected SRECs:
 
2012 in GATS= 45,860
2013 in GATS = 763,487
2014 in GATS = 790,029 (June 2013 to Jan 2014 production)
 
Balance of 2014= 450,000 (estimate of Feb to May 2014 production with Feb light due to snow)
 
SREC supply for 2014 compliance= 2,049,376 (Estimated available)
 
Estimated ry 2014 SREC demand= 1,600,000 (based on 78 Gigawatt hours of NJ electric consumption)
 
Estimated ry 2014 oversupply= 449,376
 
Based solely on the estimated available SRECs above, it would appear that the market should remain stable to weak as the spring and summer arrive and buyers finish their SREC purchases. However, there are a host of other factors that can have market-moving effects. The following is a list of bullish and bearish factors that may have an impact on pricing in the next 6 to 7 months as we approach compliance:
 
BULLISH FACTORS:
 
1. It is hard to buy SRECs in bulk in a short amount of time. If some buyers wait until the end of the year to finish buying for their 2014 compliance they may push the market higher in search of SRECs.
 
2. Buyers hedging for future years purchase SRECs in the spot market and hold them for future compliance years. This reduces the pool of available SRECs for buyers that need them for the October 2014 deadline.
 
3. 100% of the SRECs are never sold each year. There are a variety of reasons why. Some buyers feel they are worth more so they don’t sell, some don’t enter meter readings in time and some altogether forget about them (it is hard to believe but some people or businesses don’t need the money right away- must be nice!)
 
4. Speculative buyers may purchase SRECs from solar owners and force compliance buyers to pay higher prices as the compliance deadline approaches.
 
BEARISH FACTORS:
 
1. If prices go up too much compliance buyers who have bought spot SRECs for future compliance years may choose to use those SRECs for this compliance year or sell them to other compliance buyers to do the same.
 
2. SREC markets are based on law and confidence in the law. If there is any potential change in law that may possibly reduce the need to purchase SRECs in future years then buyers will not buy any more SRECs from solar owners other than what they need immediately.
 
3. If it appears that a dramatic increase in solar installations may happen like it has in the past, (due to overdevelopment) then buyers will back off of the spot market once they have procured their 2014 compliance needs. (no risk EDC contracts, large grid connect permissions from the BPU and a steady increase in lease installations have a good chance of oversupplying the market)
 
As you can see, there are many factors that can come into play in the pricing of SRECs going into compliance. We try to give our customers, both buyers and sellers, as much information as possible. You can always see our live pricing on our website along with historical pricing going back to 2007. If you log into your Flett Exchange account you can transact SRECs 24 hours a day, see all of your sales history along with historical graphs. Also, feel free to call us directly with any questions or if you need help transferring SRECs on GATS. As always our sellers are paid the same day via check or EFT – your choice!

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 JerseySREC

Posted on Dec. 16, 2013

The rate of new solar installations in New Jersey has been dropping for over a year. This low build rate coupled with the increasing SREC demand put in place by legislation over a year ago is why SREC prices are up 100% from a year ago. Prices for new SRECs are currently in the $140s.
 
There were only 13 Mw of new solar installed in New Jersey for the month of November. This marks 6 months in a row of low installations. As we have mentioned before, a monthly build rate of 15 to 17Mw a month over the next few years will keep the New Jersey SREC market “balanced”. The average build rate for the last 6 months was only 11.6 Mw.
 
Why is there less new solar being built in NJ now?
 
The low build rates today can be attributed to the low SREC prices last year. The projects being turned on now were in the planning phases about a year ago. Since SREC prices were under $100 very few projects were financeable. We can expect the build rate to increase in the next 6 to 12 months because of the higher SREC prices that we are seeing now.
 
The amount of new solar is likely to increase next year.
 
There will be an increase of installations due to another round of EDC (Electric Distribution Company) fixed rate SREC solicitations next year. These solicitations shift SREC risk away from solar developers and onto the ratepayers. Since there is no financial risk these programs are guaranteed to be oversubscribed.
 
Over the next 3 years there will also be a number of large grid connect projects installed. These projects are typically 7Mw each and will produce thousands of SRECs a year. The solar legislation that passed in the summer of 2012 allowed for a limited amount of grid connect solar to be installed. A limit was passed on new grid connect solar to help prevent a quick oversupply like the one that led to a collapse 2 years ago.
 

Where are Prices going?
 
New Jersey SREC prices should stay stable going into the New Year. Many sellers have been attempting to sell at $150 and it appears that it may happen again soon. The trend is slightly higher; however, it will be limited as buyers are offered multi-year contracts by new solar installations. Most new solar can be installed with a 3 to 5 years price in the $140 range. This shift from spot markets to multi-year contracts should limit the ultimate upside of the spot SREC market.
 
The SREC market is still oversupplied for the current year; however, the new SREC requirements put into place by legislation are just starting to kick in. Electricity companies in New Jersey will need to procure over 1,400,000 SRECs going forward each year compared to only 770,000 last year.
We recommend to sell SRECs on a continual basis, especially as prices move up. If you have a large facility (250kw or larger) we recommend that you lock into a long term contract as the prices rise. Flett Exchange brokers long term contracts for its customers directly with energy companies.
 
If you would like to sell any SRECs before the end of the year feel free to log on and sell or give us a call.

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 JerseySREC

Posted on Oct. 22, 2013

Prices for New Jersey solar renewable energy certificates (SRECs) have risen in the past few months. On October 4th the 2014 energy year SRECs settled at $149.63 on the Flett Exchange Trading Platform. This is the highest price yet for the 2014 SRECs on the spot market, 30% higher than the low price of $115 on July 16th and significantly higher than the $60 all-time low SREC price last October. The Electric Distribution Companies (PSE&G, Atlantic City Electric, Jersey Central Power & Light and Rockland Electric) conducted a large SREC auction on October 17th for 76,417 energy year 2014 SRECs. It cleared at $147.00 per SREC. Prices as of this publication are slightly lower.

SREC prices are steady now because of 2 factors:

1. Legislation passed in July of 2012 dramatically increased the amount of SRECs that the energy companies need to procure on a yearly basis. Demand for SRECs this energy year will be close to 1.5 million SRECs which is up from the previous legislation which required 772,000.

2. The pace of solar development was slow in the past year due to the lower SREC prices. There were only 8 Mw of new solar activated per month in August and September. The average amount of solar in the last 6 months was only 14.9 Mw per month compared to 28.5 Mw a month at this time last year. It is estimated that 15-17 Mw is needed per month to achieve a perfectly “balanced” market.

The stable and upward pricing should be tempered eventually by the following:

1. It is expected that the monthly install rate should increase next year due to the rising SREC prices.

2. The New Jersey Board of Public Utilities approved another round of Solar Loans and fixed rate Electric Distribution Company SREC contracts for the next year. These contracts shift all risk away from solar developers and onto the rate-payers so it is virtually guaranteed that the build-rate will increase during the next year.

We don’t expect spot SREC prices to experience a new downtrend much at all during the next 8 to 10 months. SREC demand should remain strong due to hedging activity on the part of the energy companies.

We expect there to be periodic, short-lived rallies during the year. With that in mind, we suggest that SREC producers sell every time the market moves up. In the past, rallies in the SREC market only last a few days because it is usually a result of a buyer procuring large volumes. We suggest that if you have a price that you would like to sell your SRECs you should list them for sale on the Flett Exchange trading platform or call us 201-209-0234 to list them for you. This will ensure that you do not miss the selling opportunities.

The stable SREC prices right now will invoke developers to install solar at an increasing rate so it is highly unlikely for the SREC market to stay at high prices for a prolonged period of time. If the spot SREC prices get too high energy companies will contract directly with new solar developers for their next few years of SRECs. The cost to install solar is very low and new solar can be installed with SREC prices in the mid $100s on reasonably priced projects if the developer can get a 3-5 year contract. If prices move too high in the spot market buyers will hedge in the 3- 5 year market as they have in the past. We highly doubt we will see another 80 mw installed in one month like we did in February of 2012 due to the constraints put on large solar farms but it is relatively easy to maintain 20 to 25 Mw per month. That level of new solar installations on a monthly basis should appear again in about eight months to a year and may reverse this stable SREC market.

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 JerseySREC

Posted on Aug. 20, 2013

The New Jersey Office of Clean Energy released the July solar installations last week. There are now 23,076 solar installations in the state with a total capacity of 1,106 Mw. There were only 11.5 Mw installed in July. This is the lowest amount of solar installed in one month since May of 2011. A continued trend of low installation months such as this should support the SREC market.

The amount of solar installed on a monthly basis is one of the most important tools used by market observers to determine if the New Jersey solar market will be overdeveloped compared to goals set by solar legislation. In previous years development outpaced sate goals. It is estimated that an average of 15 to 17 Mw a month is the pace of development needed. If more solar is installed than needed the SREC market can crash as it has in the past. If the pace of installation declines the SREC market will increase to encourage more solar development.

As shown by the chart above, the monthly rate of installations has been steadily decreasing.  The 6 and 12 month moving averages are close at 21.5 mw per month. In early 2012 the 6 month average was as high as 47Mw per month!

SREC pricing has been steady this year. We attribute this to 2 main factors. The first is the controlled pace of development and the second is electric suppliers hedging activities in preparation for the increase of SRECs required for energy year 2014. SREC demand increases over 140% from 596,000 in energy year 2013 to approximately 1,440,000 in energy year 2014. Energy year 2014 just started in June.

 

Legislation signed into law last year rescued the New Jersey solar market from collapse in both solar jobs and values of SRECs used by investors in solar projects. Those investors are homeowners, businesses and schools in New Jersey with solar. Ratepayers without solar who are obligated to buy SRECs due to previous commitments set forth by the BPU also benefitted from the legislation.

In previous years the fall has been a time of light SREC volume due to weak SREC prices. We do not expect the market to drop this fall anywhere close to the $60 level that it had last year due to the above factors. Electric suppliers have been active in the spot market hedging forward production due to the fact that SRECs now have a 5 year life. They will most likely continue to procure SRECs at a steady pace in the spot market. We expect there to be an increased interest in buyers procuring 2 and 3 year contracts from large solar facility owners. (Flett Exchange is active in brokering both spot and forward contracts directly between electric companies and solar owners)

As always, we encourage solar owners to sell consistently during the year. If prices increase you should sell your production forward for 2 to 3 years.

If you have a large volume (100, 500, 1,000) of spot SRECs to sell call us directly on the trading desk. For large volume the prices are typically a few dollars over our spot price on the screen, we do not charge you commission, you get paid the same day and you do not have to execute pages of contracts.

We would like to thank all of our customers for your business. Use of our exchange helps us bring market transparency to the New Jersey SREC market. This helps both buyers and sellers make the market more efficient thus bringing more solar to New Jersey!

TAGS:
New JerseySREC

Posted on April 23, 2013

The New Jersey Office of Clean Energy reported that 18 Mw of solar was installed during the month of March. This brings the installed capacity of solar in New Jersey to 1,026Mw. There are now 20,887 solar arrays in operation statewide.

NJ Solar - Mw Installed - March 2013

The installation of 18 Mw in March reinforces the downward trend of solar installations in New Jersey. The average rate of installations need to be in the 15 to 17Mw per month range to match goals set out by the state. If the installation rate stays at this level it is expected that the SREC market will continue to stabilize.

Upon the release of this news by the New Jersey Office of Clean Energy the SREC market moved up $5. Prices for immediate delivery of SRECs are now $110 on the Flett Exchange marketplace.

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 5,000 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, 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 JerseySREC

Posted on March 21, 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

Posted on Feb. 11, 2013

The New Jersey SREC market rallied up in the last week. Prices for energy year 2013 SRECs broke above $120 briefly on Monday, February 4th on the Flett Exchange SREC marketplace. This is up significantly from the low of $60 in October. As of this writing bids were $110 for energy year 2013 SRECs and $100 for the older 2012 vintage SRECs.

The market has trended higher as the rate of new solar installations in New Jersey have ratcheted back down during the last six months. Also, the first effects of the new legislation that was passed in July are also being felt. This past week there was a very large electricity auction (the BGS or the Basic Generation Services Auction) in which the winners win the ability to supply electricity for a period of 3 years in New Jersey. These 3 years correspond with the increase in SREC demand that was included in that new law. Electric companies have to procure a larger amount of SRECs and as a result this has supported SREC prices recently. This accounted for the quick jump in prices during the past week.

Increased demand should keep a floor under the market however; a prolonged rally will most likely be muted because of the very low price of new solar installations. New solar installations are only half of the cost that they were as recently as 2 years ago. Some installations in New Jersey are reportedly being built for $2 to $2.50/watt. The low cost of installation means that SREC prices do not have to be much higher than $120 to $150. If SREC prices go much higher than that a large amount of new solar will be built which will in turn depress SREC prices again.

It is also expected that the next round of selling from the Electricity Distribution Companies (EDC’s) will be announced soon. The last auction was in October. This auction may have as many as 70,000 to 90,000 SRECs. It is likely that buyers will temper their bids in the spot market until after the large auction.

As we have suggested in the past, we recommend selling your SRECs on a consistent basis to average out the prices during the year.

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 Sell Now Price http://markets.flettexchange.com/new-jersey-srec(for the correct SREC year) on our website and send the SRECs to us on GATs (below is a walkthrough)

GATS Transfer Walkthrough: http://www.flettexchange.com/index.php?page=SREChelp

3. Do it all on-line by accessing our trading platform.

We will process your payment the same day. Customers can also place orders to sell SRECs at higher prices by either calling our trading desk at 201 209 0234 or by logging on to their Flett Exchange account and placing their orders themselves.

You can always ask us a question at:

info@flettexchange.com

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 JerseySREC

Posted on Jan. 14, 2013

The New Jersey Office of Clean Energy reported a build of 9Mw for the month of December. (This is a preliminary number as of January 7th). If this is actually close to the final number, it indicates that the solar industry in New Jersey is finally starting to develop within the goals of the Renewable Portfolio Standard RPS set out by law.
 

In the previous two years solar development has been in excess of the RPS goal and caused a glut of solar credits. The ratepayers in New Jersey are protected from over-development by a competitive solar credit market based on supply and demand.
 

The following is a chart which shows the monthly build rates of solar compared to the RPS goals set out by law. We ran a 6 and 12 month moving average as well. There is an overlay of the SREC pricing (a monthly average of Flett Exchange daily SREC settlement prices) which demonstrates the supply-

demand relationship.

 
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 JerseySREC

Posted on Dec. 10, 2012

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

Posted on Oct. 22, 2012

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.

TAGS:
New JerseyPress ReleasesSREC

Posted on Aug. 21, 2012

Solar renewable energy certificates settled at $97.75 today on the Flett Exchange SREC marketplace. This price is for immediate delivery and payment for the 2012 reporting year SRECs. The new 2013 reporting year SRECs settled at $100. This is the first time that prompt year New Jersey SRECs have settled under $100 for since May 1, 2012. The energy year 2012 SRECs traded as low as $95 during the session.
 
Prices have dropped because developers installed more solar than the aggressive solar mandates in New Jersey. Reporting year 2012 compliance called for 442,000 SRECs to be purchased by electric providers. Solar installations generated 689,550 SRECs, or 56% more than needed.
 
Buyers are still buying for their energy year 2012 compliance which ends in a few weeks. Prices do have a chance of spiking up if they have not yet purchased all they need. Flett Exchange customers can place orders above the market to take advantage of upward price spikes.
 
The requirements were increased significantly with the passage of the new bill last month. However, the excess SRECs do not need to be turned in until the Fall of 2014. Electric companies who need to buy SRECs are most likely waiting to see if installations over the next year stay in line with the State requirements. Developers installed 21 mw in July. This is a decrease from previous months. Installation totals will need to stay at this level or lower to decrease the likelihood of another oversupply.
 
Flett Exchange customers have access to the SREC market 24 hours a day via its trading platform and also broker assisted trades Monday to Friday 8am to 5pm. Sellers on Flett Exchange have sold SRECs as high as $160 since the beginning of July.
 

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 JerseySREC

Posted on July 23, 2012

Trenton, NJ: Governor Chris Christie signed S1925 / A2966 into law today. This law makes adjustments to the solar incentive program in New Jersey.
 
     As most of our customers know by now, solar development in NJ during the past 2 years has exceeded State mandates for solar. Since the payments for solar production are based on a market structure called the Solar Renewable Energy Certificate (SREC), the overbuilding of solar in relation to State mandates has resulted in lower SREC prices. This had a negative effect on investors who have already installed solar and those who would like to install solar now. On the other hand, ratepayers have benefited from the low SREC payments.
 
     Since the passage of the last solar legislation over two years ago, there were two major changes in solar that required this new legislation. First, the cost of solar panels has dropped significantly and second, the solar industry in New Jersey has increased in size and has become a job creator.
 
     These events created a unique opportunity for lawmakers to adjust the program for the benefit of both ratepayers and solar investors. Simply put, reduce cost exposure for ratepayers over the long term while increasing solar development in the short term.
 
     It is encouraging to see that the Christie administration and the Democratic Controlled State Senate and Assembly came to agreement on a bill that takes advantage of external changes in the solar industry (declining solar costs coupled with an increasing willingness of investors to invest in NJ solar) and brings those advantages to ratepayers and solar investors alike. With an estimated 3 billion dollars invested so far in New Jersey solar infrastructure, political stability is the most important factor in attracting cheap capital to build out the remainder of the solar capacity mandated by State Law.
 
Here are some of the changes implemented by the new legislation:
 

1. Increase RPS: (Renewable Portfolio Standard) Increase the amount of SRECs that need to be purchased in the short term to absorb the oversupply and maintain a higher build rate
2. Decrease the SACP: (Solar Alternative Compliance Payment) Lower the fine level from $600+ to $339 and lower to protect ratepayers.
3. Limit solar farm development
4. Incentivize solar development on landfills, brownfields and large net metered projects.
5. Aggregated net metering for electricity consumption by certain governmental bodies and school districts.

 
     Investors new and old in New Jersey solar still have to keep in mind the risk of overbuilding in the future still exists. Many solar developers lobbied for throttle mechanisms to help guarantee profits to solar owners by crowding out future development of solar in case of an overbuild situation again. This approach was rejected. Instead, land use and consideration for net benefits for net metered projects took precedent. These were all alluded to in the Energy Master Plan put out by the Christie Administration late last year. Many people in New Jersey have started to complain about solar farms and the legislature and Governors office has heard them.
 
The following have had instrumental input in either creating this legislation or influencing its outcome:
 
Governor Chris Christies’ office
Stephen M. Sweeney – Senate President
Senator Bob Smith – Environment and Energy Committee
Assemblyman Upendra Chivukula – Telecommunications and Utilities Committee
Stefanie A. Brand, Esq – Director, Division of Rate Council – State of New Jersey
 
     New Jersey Renewable Energy Coalition – a coalition of industry investors, headed by Tony Pizzutillo, was able to marry the objectives of both the Governor’s Energy Master Plan with Legislative leadership. Also, the Coalition successfully identified statewide labor organizations as proponents of the industry.
 
     There are many other renewable energy coalitions, environmental groups, electricity companies, large electricity consumer advocates, labor organizations along with New Jersey business owners and individuals who worked tirelessly over the past year to advance this legislation. I don’t feel that any one group got exactly everything they wanted but in the end it is a good piece of legislation.
 
     The only guarantee is that inputs will change as the years go on. If they are as extreme as they have been in the past two years future “tweaks” will be needed. I look forward to adding whatever information I can about SREC market structure, investors in solar and electric company interaction with RPS requirements.
 
This is a good day for all in New Jersey!

TAGS:
New JerseySREC

Posted on June 26, 2012

The following are two articles recapping the NJ solar bill that was passed by the New Jersey Legislature. It is awaiting Governor Christies’ signature. The legislation is geared to support the Solar Renewable Energy Credit SREC market, sustain solar development in the Garden State and protect ratepayers.

SREC prices have firmed up in recent weeks in anticipation of passage of the bill. Prices rallied from $130 two weeks ago to $150 today for spot sales of energy year 2012 SRECs.

Greentechmedia

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 JerseySREC

Posted on June 26, 2012

The New Jersey Legislature passed a bill A2966 on June 25, 2012 aimed at supporting solar development in New Jersey. It is now up to Governor Christie to sign the bill into law. He has 45 days to do so.

Solar development in New Jersey during the past year exceeded the State mandates by over 300%. The result was a collapse of the prices of Solar Renewable Energy Certificates. Without a fix, solar installations would have stopped and people who invested in solar would have experienced a few years of SREC prices in the $40 to $60 range until state mandates caught up.

SREC prices for spot delivery were trading $146.56 before the bill passage and experienced a small move up after passage. Forward pricing for energy years 2013 to 2015 were trading $150 to $160 before bill passage and were “talked” up to $180 – $190 in the morning after passage. We will see if actual trading in the forwards transpires at these levels and holds.

Solar development during the next 6 – 9 months will dictate what energy providers are willing to pay for spot and forward contracts. The new State mandates are geared for a 25mw a month build compared to the old mandates which allowed for 10mw a month to be built before the market became oversupplied. The past 12 months experienced a 37mw a month build.

Electric companies are buying their last SRECs for this Septembers’ compliance period right now. If the new bill is signed into law the electric companies will need to turn in over approximately 1,600,000 SRECs in September of 2014 compared to the current requirement for the same period of 772,000. The higher mandate decreases the likelihood that SRECs will be oversupplied as they are now and allows for a quicker adoption of solar in New Jersey.

Pricing for energy year 2012 SREC are expected to stay under $200 unless solar development in the state decreases substantially over the next few months.

Ratepayers are protected in this bill by the lowering of the fine levels levied against power suppliers in the case of a shortage of SRECs. Fine levels are being reduced from $600+ to $339 starting in energy year 2014. For the most part solar development risk will still rest on developers with ratepayers reaping the benefit of decreasing solar costs and increased competition in the solar industry as they have in the past in New Jersey.

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 JerseySREC

Posted on June 14, 2012

During a town hall meeting in Haddonfield on Tuesday, June 12, Governor Christie commented on the Senate and Assembly bills aimed at stabilizing the solar industry in New Jersey.

As for the Solar bills he said: “If they pass I will sign them”. He commented that the bills “will help to continue to support the solar industry which is a big job creator in this State”.

The Governor was referring to the Senate bill S1925 with primary sponsors Senator Bob Smith and Senate President Stephen Sweeney and Assembly bill A2966 with Assemblyman Upendra Chivukula as that bills primary sponsor. A bill is expected to be presented to the Governor for signature this month.

The spot SREC market has been trading between $130 and $140 during the past week. Without the potential passage of this bill, the SREC market would have most likely been trading below the $85 low experienced a month ago. The bill calls for significant increases in SREC purchases from energy providers, but not until the fall of 2014.  Long-term SREC prices will be less volatile with upper limits reduced.  SREC price caps are being reduced from the $600+ range to $339 and less starting in energy year 2014. The short term upward price movement due to bill passage should be limited due to the oversupply of SRECs this year and the next year. The oversupply will presumably be used for compliance in the fall of 2014.

Power producers, who are required by law to buy SRECs, will watch the pace of solar development over the next 6 months to determine if the market will be oversupplied once again. If developers throttle back to 20 mw /month or less the SREC market should stabilize and forward 3 year pricing should be in the upper $100s to low $200 range.

During Governor Chris Christies’ speech he commented on the expected closure of the Oyster Creek Nuclear plant, which is the countries oldest, in eight years. The expansion of solar along with the addition of “3 new natural gas fired power plants will be built in New Jersey in the next 5 years” should help keep power in New Jersey “cleaner and more affordable”.

Mark Incolllingo, a volunteer member of Haddonfield’s Sustainable NJ Green Team, asked the question in the following link to a video of a town hall meeting.

Here is a link to the video posted on the Star Ledger website on NJ.com:

http://videos.nj.com/star-ledger/2012/06/governor_responds_to_audience.html

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.

TAGS:
New JerseySREC

Posted on June 5, 2012

Solar owners in New Jersey who rely on estimates to earn Solar Renewable Energy Certificates (SRECs) will be required to have a production meter by November 30, 2012 or they WILL NOT earn SRECs starting with December 2012 generation.

Solar owners in New Jersey with arrays that are 10kw and less were given the option to rely on estimates or they could read the actual electric generation off of a meter. The electric production of a solar array is needed to generate SRECs.

Many solar owners that have relied on estimates do not have the required production meter (ANSI) Standard C12.1-2008 compliant productions meter) and will need to have one installed by a licensed electrician. Most meters on the inverters are not acceptable. Also, the net meter provided by the electric distribution companies are not capable of providing gross data for the purposes of generating SRECs.

We recommend that you call your solar installer first to find out if you have a production meter already. In some instances solar owners may void the installer warranty if they have another entity work on the array.

Solar owners who rely on estimates can still sell their SRECs on Flett Exchange or they can subscribe for Flett REC Manager Services. With Flett REC Manager Services our customers send their meter reading to Flett Exchange and we sell the SRECs automatically. It is easy!

Click on Services on the top of this page and select “managed SREC services” or fill out the forms below and email or fax them back to flett exchange.

www.flettexchange.com/pdf/Flett_Exchange_REC_Manager.pdf

www.flettexchange.com/pdf/Schedule_A.pdf

Here is the announcement by the New Jersey Board of Public Utilities:

RE, Small Wind and NM/INX List Members:

The Chapter 8 readopted regulations with amendments approved by the Board on May 23, 2012 were published in today’s New Jersey Register.  The readopted portions of the regulations were effective on May 1, 2012 and the amendments, new rules, repealed rules and recodification became effective today with their publication in the New Jersey Register.  As a result, two important provisions of the amendments with transition or grace periods were triggered.

1. SREC Registration Requirements

Within the NJ Renewable Portfolio Standard (RPS) regulatory amendments, at N.J.A.C. 14:8-2.4 Energy that qualifies for an SREC; registration requirement – under subsection (c) “June 4, 2012” was inserted for the placeholder language in the rule proposal; “effective date for this new rule”.  Likewise, under subsection (c) 1. ii “June 4, 2012” was inserted replacing the “effective date for this new rule” placeholder language and the deadline for submittal of an initial registration package was updated to “July 4, 2012” replacing the placeholder language; “30 days after the effective date of this new rule”.

2. Production Meter Requirements for Solar Electricity to be eligible for SRECs in NJ’s RPS

Within the NJ Renewable Portfolio Standard (RPS) regulatory amendments, at N.J.A.C. 14:8-2.9 Issuance of RECs and SRECs  - subsection (c) the date “ December 4, 2012” was inserted replacing placeholder language in the rule proposal which previously stated; “six months after the effective date of this amendment”.  The effect of this new rule will be that beginning December 4, 2012 all solar facilities connected to the distribution system in New Jersey seeking eligibility to create SRECs eligible for use in NJ’s RPS must have a production meter capable of measuring generation.

The NJ RPS has historically required solar systems greater than 10 kW to submit metered production data from meters compliant with the American National Standards Institute (ANSI) Standard C12.1-2008.  And NJ’s SREC Registration Program and its predecessor SREC Only-Pilot Program required all solar systems to have an ANSI compliant production meter installed regardless of system size.  However, the RPS regulations had allowed solar systems less than 10 kW to create SRECs from engineering estimates and the NJCEP rebate programs did not require ANSI compliant production meters to be installed.  The net meter installed by the Electric Distribution Companies are NOT capable of providing gross generation data useful for purposes of SREC creation.

As a result of the regulatory change and a lack of production metering, some solar systems less than 10 kW may require the installation of ANSI Standard C12.1-2008 compliant productions meter.  The practical implications from the new regulation’s effective date of June 4 which triggers the December 4, 2012 commencement of the requirement and the processes for SREC creation at the PJM-EIS GATS tracking system require that solar electric systems lacking production meters must have them installed by November 30, 2012 to ensure that solar electric generation in December 2012 be eligible for SRECs.  Board staff is working with our RE Market Managers and the staff at PJM-EIS GATS to further inform stakeholders of these changes, to provide links to lists of eligible ANSI-compliant SREC production meters, and solar installers or licensed electricians able to install them.

TAGS:
New JerseySREC

Posted on May 16, 2012

The long awaited legislation to fix the solar market in New Jersey has been introduced! Senator Bob Smith and Senate President Stephen Sweeney introduced Senate bill S-1925 on May 14, 2012. Here are the main points:

1. Increase the RPS starting in Energy Year 2014. (this is the amount of SRECs that the power companies are required to purchase)
2. Lower the SACP (this is the fine that power companies must pay if they cannot purchase SRECs.)
3. Switch the RPS to a percentage from a fixed number.  (this makes it easier for power companies to plan SREC purchases and also protects ratepayers in case overall power consumption drops statewide in the future)
4. Limit solar farm (grid connected solar) development to 100mw per year for 3 years.
5. Requirement for solar farms to obtain BPU approval to receive SRECs in the future. (this will help prevent large solar farms from overbuilding and give latitude to the BPU to approve projects that meet certain criteria)
6. Introduction of net-metering for schools and municipalities. (this allows for these public entities to site solar in a 3 square mile radius from buildings and net-meter)
7. Establishes a Solar Registration Program for new projects. (this will provide a much needed insight into the pipeline of solar projects in development)

The bill addresses the recent overbuilding in solar in New Jersey and attempts to bring the SREC market back into equilibrium. It also increases the amount of solar development for the next few years to provide a robust labor market for the solar installation community. The fine levels that power companies used to have to pay have been ratcheted down to $350 from the previous $600+ range. The reduced cost of solar in the past few years has enabled the NJ program to reduce SACP levels AND increase the amount of solar installed in the short term. Depending upon the final numbers, ratepayers will realize over 3.5 billion dollars in savings, or over 1 billion dollars in NPV.(8.37%) during the course of the program out to year 2028.

The bill is a result of continuous negotiations between the Democratic legislature who sponsored the bill, union leaders, and the Governors Office with technical guidance by the BPU staff. Various segments of the solar installation community along with solar investors have been lobbying hard as well. The State of New Jersey Division of the Rate Counsel set a high bar early on in negotiations creating an “anchor” savings number of 1 billion dollars in NPV for ratepayers.

We should expect some minor revisions to the bill, especially the SACP and RPS numbers (both of which need to increase slightly), as it works its way through the legislative process. The bill will have vulnerability if any special interests try to insert last minute additions.

Needed adjustments to this bill:

SACP numbers should be moved closer to the $400 level from the proposed $350. Low SACP numbers inhibit the medium term SREC market of 2-3 years. Solar investors will be looking to sell 3 year strips in the low to mid $200 range. If the SACP is $350 or lower then electric companies will not enter into these contracts because there is no upside since a low SACP acts as their hedge. A $400 SACP gives buyers an incentive to enter into 3 year contracts in the low $200 range. Since the NJ SREC market will be working off a 600,000 oversupply of SRECs that will not need to be turned in until September of 2014 it is imperative that a 2-3 year SREC market is vibrant. There is also an increasing probability that solar panels may rise in price in the next year due to Anti-dumping tariffs against Chinese solar panels by the US Department of Commerce DOC. There is talk of a proposal that may require 70% US made parts in Chinese solar panels to qualify for the Federal investment tax credit ITC. New York State Senator Charles Schumer mentioned “China’s unfair trading practices” recently when speaking about Solar. New York State is gearing up for a solar market that will compete with New Jersey in the next few years. Too low of an SACP may drive investment dollars from NJ to NY. These are strong arguments for a $400 SACP.

The proposed increase in the amount of SRECs required to be purchased by electric companies RPS should also be increased slightly. The proposed schedule is a start but slight increases in energy years 2014 -2018 may be enough to balance the market and sustain growth.

Here is the bill:

(go to the bottom for a summary of the bill)

TAGS:
New JerseySREC

Posted on May 3, 2012<