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Reporting Year 2025 SRECs (May 2025 and earlier) are trading $192 – up $4 in the past month. Buyers are cleaning up the balance of their compliance which is due December 1st.
Reporting year 2026 SRECs (June 2025 and later) are trading $175 – up $10 in the past month. The New Jersey legislation backed by Governor Murphy and BPU that was introduced a few months ago, which if passed would have cut SREC prices by 50% to 75% starting with June 2025 SRECs, failed to advance by the June legislative recess. It is expected that it will not be re-introduced until after the Governors election in November. Buyers have increased their bids for these SRECs because as it stands if they do not purchase SRECs this year they will still have to pay the fine of $198 each.
We suggest to sell your SRECs on a consistent basis. We believe that the only reason why the legislation to cut SREC prices did not advance is because of the upcoming November election. If the SREC incentives were cut there is a good chance that the 100,000 homeowners and over 5,000 businesses that rely on SREC payments would react at the polls. The legislation originated from the Governor Murphy’s office and the Governors’ controlled BPU. If a Democrat wins the NJ Governors race, the current BPU commissioners will remain. It is likely that they will again pursue cutting SREC incentives. If a Republican wins, there is less chance of cutting SREC payments because a cut in SRECs sends a negative signal for future investors in energy infrastructure in New Jersey. New Jersey needs a friendly environment for energy investing to satisfy growing energy needs. Either way, any new governor and the new NJ assembly members will have to grapple with the escalating electricity prices in New Jersey.
NJ ry 2026 SRECs are on trend to appreciate $5 or $10 by next spring. One reason for the discount currently is energy companies do not have to turn in 2026 SRECs in until December of 2026. With the cost of money at 4.5% this equates to about $10 a rec discount today.