New Jersey SREC Alert!

The first New Jersey SRECs for the 2011 Energy Year (vintage) will be created by PJM-GATS on Friday, July 30, 2010. New Jersey SRECs are generated on an energy year basis which runs from June 1 to May 31. Values for 2010 vintage SRECs differ from the values of 2011 SRECs. Valuation differentials between specific vintage SRECs are attributable to two factors: 1) the penalty or Solar Alternative Compliance Payment (SACP) decreases 3% per year. 2) SRECs are now valid for RPS compliance for the year generated and the following 2 years. 2010 SRECs are currently good for 2 years and may be good for 3 if the New Jersey Board of Public Utilities (BPU) approves it. This will most likely make newer energy years worth slightly more due to the longer “bank ability”. Sellers will have to check which energy year SRECs they have before they sell them on Flett Exchange. Prices for the next 30 to 45 days for 2010 EY SRECs will remain $30 to $50 higher than the new 2011 SRECs created. After qualified buyers have finished buying 2010 vintage SRECs and start their compliance filing which is due at the end of September, the prices for 2010 SRECs will trend closer to the 2011 vintage value. It is estimated that the EY 2011 SRECs will start trading in the $620 to $640 range.
 
The Flett Exchange trading platform allows for the simultaneous listing of multiple SREC vintages. Our transparent and competitive trading platform ensures that our buyers and sellers achieve the market value for their SRECs at the most competitive rate in the industry. Our brokers are available to answer any questions that you have at 201-209-0234.

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