The New Jersey SREC market has just reached a five month high of $275.00! The market has moved up because of the release of the final version of the New Jersey Energy Master Plan and the anticipation of introduction and possible passing of solar legislation. We think there is a very high chance for market volatility in the next few weeks. I just wish I could tell you which way it will go!
The energy master plan, released last week, suggested increasing the amount of SRECs purchased by electricity providers to correct the recent overbuild and subsequent dropping SREC values. The solar legislation that is expected to be introduced this month will most likely mandate an increase in SRECs purchased.The state legislature and Governor will have to approve it first. It is expected that if the legislation increases costs too much it will not be signed by the Governor.
We see three potential scenarios:
- No Legislation: The SREC market will most likely drop under $150 and stay low for years unless there are new laws in the future.
- Legislation with slight increase in RPS: SREC prices may stabilize between $250 and $350 with potential spikes higher
- Legislation with large increase in RPS: SREC prices will most likely rise to $400+ for current year
What you may want to do if you have SRECs to sell:
- If you don’t want to take the risk of the market dropping, sell now and take advantage of the $125 rise over August lows.
- Place orders above the market to sell at levels $20 to $70 above the market to take advantage of a “pop” in the market that does not maintain momentum and later drop off.
- If you think the legislation is going to be strong, wait for it to come out and try to maximize your profits if the market continues to rally.
More on Flett Exchange:
Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Our knowledgeable staff is also available to assist you in selling your SRECs for you. Over 3,500 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers. Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
Flett Exchange also brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-5 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services. 201-209-0324