New Hampshire SREC Market

The New Hampshire Public Utilities Commission (PUC) has created the basis for an SREC market in New Hampshire beginning in 2010. The Electric Renewable Portfolio Standard Act specifies that Load Serving Entities (LSEs) must create .04% of their total power through solar generation, or buy an equivalent amount of SRECs to compensate. Each SREC is a marketable/tradable entity that represents one megawatt hour (1,000 kWh) of power generation from a solar energy source.

The Alternate Compliance Penalty for not procuring enough SRECs is set at $160.01 for 2010 and will continue to rise with inflation. This represents the price ceiling for SRECs in a competitive market. SREC owners can expect their SRECs to sell at a price between $0 and $160 depending on market conditions. However, the total solar requirement in the RPS increases each year until it settles at 3% in 2014, so demand for SRECs will continue to rise as the requirement rises.

The challenge with the New Hampshire market is the prohibitive requirement to have an independent monitor verify meter readings on-site in order to report generation for SREC creation. All other states allow solar owners to self-report generation and uses PV Watts calculations to flag readings that deviate significantly from the estimates.  New Hampshire requires that a costly ($50-$120 depending on distance travelled), licensed technician drive to the facility to take each reading.  With SREC values under $160, it is not economically viable for a residential solar facility or small commercial facility to participate in this program. 

Pricing:
SREC Auction - Auction closing prices history

States in which New Hampshire facilities are eligible:
NH Facilities only eligible in NH.

States Eligible for NH Market: Solar source within New England area or in a NE control area adjacent to NE. Any solar technologies installed after Jan. 1, 2006.
Eligibility Period:  No defined period of years in which a facility is eligible to generate SRECs
Energy Year: January 1 to December 31
Tracking Platform: NE-GIS
SREC Useful Life: 2 years - a 2010 SREC can be counted towards either the 2010 or 2011 RPS
Solar Requirement: Set at .04% of total power in 2010. Each year the requirement will increase until it levels off at .3% in 2014. The goal is to have 25% of NH power produced with renewable (not just solar) technology by 2025.
SACP: Set at $160.01 for 2010 and will be adjusted for inflation each year. There is no fixed price floor.

Useful Links:
New to Solar? - Getting Started - The nuts and bolts of getting started generating and selling SRECs
New Hampshire Blog - Useful information regarding the New Hampshire SREC market
DSIRE: New Hampshire Renewable Portfolio Standard - Details of the RPS