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The prices for 2009 vintage New Jersey Solar Renewable Energy Certificates NJ SREC have moved higher in the last few weeks. Flett Exchange saw its highest trade yet on its SREC market with a trade of $550.00. The current bid / offer is $547.50 bid; $560.00 offer. The last prices reflect a 23% increase in SREC prices since the first trade of a 2009 vintage SREC on July 23rd at $425.
The high prices are attributable to a suspected shortfall of SRECs for the 2009 energy year. The cap for the 2009 SRECs is set at $711 by the Board of Public Utilities. We expect to see limited volume in the next month or so, however the $600.00 level should see a wave of sellers that have been holding off. $600 represents 85% of the $711 SCAP value. However, the energy companies never pay 100% of the cap to the solar producers due to the extra cost of procuring the SRECs as opposed to no cost associated with writing a check for $711 to the BPU. We see a realistic ceiling of $650. With that in mind selling SRECs at $600 in October and taking into account an interest rate of 6% would mean that you would have to sell higher than $625.20 in July. Either way $600 now or $625.20 in July achieves the seller 96% of the $650 realistic upside objective.
Flett Exchange LLC runs an exchange for the buying and selling of SRECs New Jersey Solar Renewable Certificates. Flett Exchange LLC also acts as a broker for NJ SRECs. Solar consultants can advertise on Flett Exchange or sponsor the Solar Credit market. Contact Flett Exchange at 201 209 0234 or mflett@flettexchange.com if you need to buy or sell SRECs
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