Owners of Solar in New Jersey were shocked at the lower prices they are receiving for their Solar Renewable Energy Certificates SRECs. The new Energy Year started in June of 2011. Those SRECs were made available for transfer on the State website (GATS) on July 29th. The market price on the new energy year is 50% lower than the previous energy year. Prices as of 8am on Flett Exchange’s Internet trading platform are $276.
The Drop in prices is directly correlated to the potential of an oversupply of SRECs for the 2012 Energy year. There has just been too much solar installed too quickly compared to the mandates put on the electric producers. Electric Producers in New Jersey are required by law under the Renewable Portfolio Standard to purchase 442,000 SRECs from solar owners during the June 2011 to May 2012 time period (energy year 2012). There is currently almost enough solar installed to produce that amount of SRECs. The oversupply is coming from the rate that solar is being installed. In June of 2011 alone there was 40 Mw of solar installed in NJ. This was more than 10% of all the solar ever installed since the inception of the program in 2004. At this rate there may be more than a 100,000 oversupply of energy year 2012 SRECs.
The SREC market is designed to fluctuate with supply and demand. The lower SREC prices are designed to throttle back development and only let the cheapest installations go forward. In the end the ratepayers will receive the best value based on competitive prices.
Flett Exchange customers can view prices in real time on the Flett Exchange Internet trading platform. They can sell at current prices or place an order to sell above the market if they think prices will rebound.
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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). Over 3,000 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 brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-7 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.