Valuing Vintage year 2009 SRECs on Flett Exchange

Flett Exchange saw its first Vinetage 2009 Solar Renewable Energy Certifiacte (NJ SREC) trade yesterday afternoon at $450. This along with news of a contact locking a full years a production from an outside source at $500 an SREC with terms “payed as produced” currently values the market around the $500 level.

Although volume has been light Flett Exchange have seen moderate interest on the sell side as individuals will look to profit from the recently increased Solar Alternative Compliance Payment (SACP). If the current market price holds up SREC producers can expect to receive a 150% premium over Vintage year 2008 SRECs and considering SRECs generated after July 5th will carry a life of two years oppose to a previous one year lifetime producers will have the option to bank their SRECs in hopes of a higher price in the future. However, producers banking their SRECs hoping to benefit from future price spikes will remain subject to full market risk.

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