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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.