Activity in the NJ SREC market has recently picked up. Producers have now produced approximately 70% of their 2008 SRECs. The production period ends on May 31 for the 2008 generation year.
Electricity Providers in New Jersey are also actively satisfying their requirements. They have until August 31 to procure enough SRECs for the 2008 reporting period.
SREC producers are actively selling their SRECS to avoid the possibility of them going worthless as they did at the end of the 2007 reporting year. Some producers waited too long last year. This year they may not risk making another $10 per SREC and letting the price get away. See our chart on the SREC market home for the price action at the end of the 2007 vintage period.
There is also the view by most others that demand is tight and the Buyers will be forced to pay the $300 SCAP payment if there are not enough 2008 SRECS.