California SREC Market

Currently California does not have a viable SREC market.

In March 2010, the California Public Utilities Commission (CPUC) approved the use of tradable renewable energy credits (TRECs) in the California Renewable Portfolio Standard (RPS) program. The framework will allow parties required to meet the RPS to purchase RECs "unbundled" or separate from the associated renewable energy. Additionally, the announcement stated that the initial use of TRECs for RPS compliance would be limited to no more than 25% of a given investor owned utility's (IOUs) annual obligation. The initial price cap is to be set at $50. Both the 25% limitation and $50 price cap are to be lifted as of 12/31/11, unless the CPUC takes action to retain or modify these limitations.

In May 2010, the CPUC released a follow up announcement to the March 2010 TREC approval. The group announced that the current TREC decision would be placed on hold pending resolution of two Petitions of Modification put in place by California's IOUs (SCE, PG&E, and SDG&E) and the Independent Energy Producers Association (IEP).

In April 2011, SBX1-2 was signed into place which capped the use of TRECs at 25% for the compliance period ending December 31, 2013, and will further decrease to 10% of the utility's RPS requirment by 2017.

Pricing:
SREC Auction - Auction closing prices history

News:
California SREC Blog - Starting point for useful information regarding the state SREC market.

Other States in which California facilities are eligible:
None

Tracking Platform: WREGIS

SREC (TREC) Useful Life*: Can be traded for up to 3 years before a credit must be committed for RPS compliance.
Solar Requirement: None currently in place.
SACP*: No alternative compliance payment set for solar. Initial TREC price cap at $50.
Meter Readings: Facilities must submit monthly meter readings via the Self-Reporting Interface within WREGIS.
Eligibility Begins: Upon registration with WREGIS and CA.

*Based on March 2010 CPUC decision

Useful Links:
New to Solar? - Getting Started - The nuts and bolts of getting started generating and selling SRECs.
DSIRE: California RPS - Details on the Renewable Portfolio Standard in California.