New Jersey

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New Jersey's SREC market is the largest in nation. In July 2012, the state passed new legislation to increase the RPS requirements beginning in the 2014 energy year to account for the substantial amount of solar capacity installed in the state. Clients are issued their state certification by the NJ Office of Clean Energy after their system is officially interconnected with the utility. Once the system certification is provided, clients may complete their SRECTrade.com applications. Note, NJ is the only SREC state in which the client and/ or installation company is responsible for obtaining the state SREC certification. Typically SRECTrade handles the certification process for its clients. For a period of time before January 2011, NJ systems were eligible to apply to the DC SREC market.

Markets for NJ systems

NJ and PA

Tracking Registry

GATS

Energy Year

June - May

Eligible System Locations

NJ

Market prices

Solar requirement

4.10% of the state's electricity usage by 2028.

Meter readings

Starting, November, 30, 2012, all solar facilities are required to have a revenue grade meter and must report meter readings in order to produce SRECs.

Eligibilty begins

Upon date of interconnection.

SACP

The Solar Alternative Compliance Payment (SACP) is the penalty price, that power providers must pay per SREC if they are unable to file the required number of SRECs at the end of the compliance period.

SREC useful life

5 years - SRECs generated from on or after July 2012 power production can be used in the energy year in which they are generated and the following 4 reporting years. SRECs produced from power generation before July 2012 are eligible for 3 years, the energy year in which they were generated and the following 2 reporting years.

Market requirements

The breakdown of the state SREC market requirements as currently set by state legislation.

Energy Year New RPS % Solar Requirement Estimated SRECs Required (MWh) SACP
2014 2.05% 1,571,424 $339
2015 2.45% 1,906,214 $331
2016 2.75% 2,171,722 $323
2017 3.00% 2,404,689 $315
2018 3.20% 2,603,476 $308
2019 3.29% 2,716,850 $300
2020 3.38% 2,833,038 $293
2021 3.47% 2,952,101 $286
2022 3.56% 3,074,099 $279
2023 3.65% 3,199,092 $272
2024 3.74% 3,327,143 $266
2025 3.83% 3,458,316 $260
2026 3.92% 3,592,676 $253
2027 4.01% 3,730,288 $250
2028 4.10% 3,871,221 $239

Source: EIA Report "Retail Sales of Electricity by State by Provider" updated 10/1/12. Projected SRECs Required utilizes the most recent EIA electricity data applying an average 1.5% growth rate per forecast year. RPS Solar Requirement is multiplied by forecast total electricity sales to arrive at Projected SRECs Required. Projected Capacity Required is based on a factor of 1,200 MWh generated per MW of installed capacity per year. Projected Capacity Required assumes the amount of capacity needed to be operational all year to meet that year's RPS requirements with only current vintage SRECs.

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