Archive for February, 2016

New Jersey SREC Registration Program (SRP) Transition Update

Posted February 23rd, 2016 by SRECTrade.

The New Jersey Office of Clean Energy announced that, effective March 1st, 2016, all solar renewable energy credit (SREC) registration program (SRP) applications will be submitted through an online portal. This portal is anticipated to expedite the review and approval of SRP registrations and reduce the backlog that the state works with. Registrants will have opportunities to submit project specifications as well as upload supporting documentation through the portal. Although paper applications will no longer be accepted, this development will help to streamline the application process for the nation’s largest SREC market.

Office of Clean Energy representatives hosted training sessions for the online portal on February 18th and 19th. The webinars were made publicly available on the Office’s webpage and a user manual with frequently asked questions will also be developed.

The Office encourages registrants who have previously submitted a paper application to withdraw their application and re-submit it to the online portal on or after March 1st, thus expediting the application review. For applicants that choose to re-submit their registrations in the online portal, the registration date of their original submissions will be used to determine compliance with state rules.

The Office also announced that from this time forward all SRP Registration packets and Final As-built documentation should be submitted to the new address below:

New Jersey’s Clean Energy Program, SRP Processing Team, c/o Applied Energy Group
317 George Street, Suite 305
New Brunswick, NJ 08901

The Office’s phone number for inquiries, 866-NJSMART (657-6278), remains unchanged.

SRECTrade, Inc. continues to enjoy great success transacting in the New Jersey SREC market as prices have steadily risen over the last four months. For more information on the New Jersey SREC market, please visit our state webpage here.

Ohio Revisits RPS for Post-freeze Plans

Posted February 21st, 2016 by SRECTrade.

In June 2014, Ohio Governor John Kasich signed a bill that froze Ohio’s Renewable Portfolio Standard (RPS) for two years. With the freeze lifting after 2016, Gov. Kasich called upon Ohio’s Energy Mandates Study Committee in 2015 to provide guidance on how to proceed with the state’s RPS. The 12-member legislative committee released its report in September 2015, recommending that the RPS be frozen indefinitely. Now, despite having signed the bill freezing the RPS in 2014, Gov. Kasich has taken the stance that gutting the state’s renewable mandates would be “unacceptable“, positioning himself for a fight with his General Assembly on the state’s clean energy goals.

Enacted in 2008, the Ohio Renewable Portfolio Standard establishes annual benchmarks for renewable energy procurement. The RPS sets the percent of electricity that must be generated from renewable energy resources by 2027. Within the overall RPS, a percentage must be fulfilled with solar resources. This solar carve-out establishes how many SRECs must be purchased by electricity suppliers. The overall RPS and solar carve-out were originally structured to increase annually between 2009 and 2024, but were frozen at 2014 levels through 2016. The RPS is currently frozen at 2.5%, with the solar carve-out at 0.12%. In the 2014 bill, the RPS schedule was revised to resume with a two year delay after the freeze, but it is possible that Gov. Kasich and Ohio’s General Assembly will now move the RPS in another direction.

SB310, the bill enacting the freeze, also removed the in-state RPS requirement and adjusted the Solar Alternative Compliance Payment (SACP) schedule. The freeze and concurrent changes made to the RPS resulted in devaluing OH-eligible SRECs, harming those who invested in solar in reliance on the state’s commitment to clean energy. Since the bill passed in mid-2014, the value of OH SRECs has dropped from $45 to as low as $15.

While Gov. Kasich claims that the original Renewable Energy Portfolio Standard is “unpalatable“, he has vowed that he would return the program back to its original state if the General Assembly refuses to unfreeze the program. But Ohio’s mixed record on renewable energy and the recent developments on the Clean Power Plan make the future of the RPS uncertain. For now, Ohio joins many other states in the tug-of-war battle over renewable energy policies, making 2016 an important year in shaping the states’–and country’s–clean energy future.


Massachusetts SREC-II Solar Capacity Update: February 18, 2016

Posted February 18th, 2016 by SRECTrade.

On Thursday, February 18th, the Massachusetts Department of Energy Resources (DOER) provided an update to the list of SREC-II Qualified Generation Units. Notably, the DOER announced that 67.3 Megawatts (MW) of capacity remains available under the SREC-II program for systems equal to or less than 25 kW DC. The DOER has provided information on its Statement of Qualification Application webpage that clarifies the procedure and required documentation for systems equal to or less than 25 kW to obtain an Assurance of Qualification (AQ).

The DOER continues to sort through the applications for projects larger than 25 kW. As previously announced, on February 5, 2016, the SREC-II program reached its cap for projects greater than 25 kW. As of this update, all incomplete applications have been marked as “Returned” in the online Statement of Qualification Application. The DOER has stated that applications that have been returned have to be completed by Thursday, February 25th, to resubmit a complete application to the DOER. SRECTrade is reviewing all returned applications accordingly and will request missing information from our applicants. We will contact you directly regarding the timing of completion. All missing documentation will need to be prepared and submitted as soon as possible in advance of the DOER deadline.

All applications that are still found by the DOER to be incomplete or that are submitted after the deadline will be rejected, and applicants will be required to reapply with a new application. The DOER will provide a status update to all applicants after completing its review of applications that are resubmitted through this process.

SRECTrade will continue to monitor the current status of the program and provide updates on applications as they become available.

A summary of the current status report can be found below:


Illinois Supplemental PV Procurement Program – Application for March Solicitation – Update

Posted February 16th, 2016 by SRECTrade.

SRECTrade has extended the deadline to submit applications for Round 3 of the Illinois Supplemental PV Procurement Program.

The new application deadline is Friday, March 4th, 2016 at 5 pm CST.

All application materials must be received by this date. Incomplete applications, or applications submitted after this deadline, will not be eligible for the Round 3 Bid. To submit an application, please login or create an account on Even though the application deadline has been extended, we encourage applicants to submit their applications as soon as possible so that materials can be reviewed for completeness and accuracy in advance of the March 4th deadline.

If you have any questions about the program or the application, you can view our introduction webinar and slides online here. You can also contact us at, or call us at (877) 466-4606.

Clean Energy Jobs Act Introduced to Maryland’s General Assembly

Posted February 10th, 2016 by SRECTrade.

Since its introduction to the public on December 8th, 2015, the Maryland Clean Energy Jobs Act has made its way to the front doors of the Maryland General Assembly, with the recent introduction of the bill into the Senate under SB0921 and the upcoming introduction into the House of Delegates this coming Friday, February 12th. The Act proposes an increase to the state’s existing Renewable Portfolio Standard (RPS), which would include slight increases to the solar carve-out. The Act schedules a gradual increase in the state’s RPS obligation to satisfy 25 percent of its energy needs with Tier 1 renewable energy sources by 2020 – a significant advancement of the current goal of 20 percent by 2020. The solar carve-out is scheduled to increase incrementally from the current goal of 2.0 percent by 2020 to 2.5 percent by 2025.

Senator Majority Leader Catherine Pugh (D-Baltimore), Delegate Dereck Davis (D-Prince George’s), Senator Brian Feldman (D-Montgomery), and Delegate Bill Frick (D-Montgomery) have championed the concept of the bill since its inception months ago. The bill was first filed in the Senate by Senator Pugh, and was referred to the Finance Committee in its First Reading on February 5th. The bill’s introduction to the House will be this Friday, which will just beat the state’s House Bill Introduction Date, allowing the bill to bypass referral to the House Rules and Executive Nominations Committee.

While we monitor the progress of this bill on the House and Senate floors, we are continuing to project and analyze the impact that its passage could have on the Maryland solar renewable energy credit (SREC) market. Increasing the annual RPS obligation schedule will also increase the demand for SRECs and support prices in the market. In addition, the Act is anticipated to source $40 million from unallocated contributions from the state’s Strategic Energy Investment Fund, create an estimated 2,000 additional clean energy jobs, and help Maryland address climate change with clean energy.

For more information on the early stages of the Clean Energy Jobs Act, please reference our previous post on the topic from December 11th, 2015.

Massachusetts SREC-II Solar Capacity Update: February 5, 2016

Posted February 5th, 2016 by SRECTrade.

On Friday, February 5, 2016, the Massachusetts Department of Energy Resources (DOER) announced that the total capacity available under the SREC-II Program Capacity Cap for projects larger than 25 kW DC was reached. As of the announcement, the DOER received applications for 854 MW of capacity. This exceeds the current cap for projects greater than 25 kW by more than 193 MW. While it is unclear if all of the submitted facility applications meet the eligibility criteria to qualify under the SREC-II program, the DOER confirmed that all applications for projects larger than 25 kW DC submitted on or before February 1, 2016 were received before the program cap was reached. The DOER noted that they cannot guarantee applications received after February 1, 2016 were submitted prior to the cap being met. For more information, the DOER publicly updates the full details on capacity in SREC-II under the “Qualified Projects” section of their SREC-II current status webpage.

The DOER will continue to review applications and queue them accordingly to the guidelines provided in Section 4(B) of the Assurance of Qualification Guideline. After the DOER confirms that 660.595 MW DC of capacity have been issued Statements or Assurances of Qualification, the DOER will provide further direction for applicants that submitted applications after February 1, 2016, to inform them of their queue status. At this time, the DOER will publish the Waiting List on its website.

SRECTrade, Inc. is continuing to submit applications in the order in which we received them, and will provide additional updates from the DOER as they become available. Below is the summary SREC-II capacity information made available by the DOER as of February 1, 2016.

Blog Post screenshot

We published a detailed analysis on MA SREC-II supply and demand on January 19, 2016. Click here for more information.

New Jersey SREC Update: February 2016

Posted February 4th, 2016 by SRECTrade.

The NJ SREC market has been active this week as traders gear up for tomorrow’s start to the annual BGS auction.  In the auction, electricity providers will be awarded parcels of load to be served across the state by the four major Electric Distribution Companies (EDCs) – Public Service Electric & Gas (PSE&G), Atlantic City Electric Company (ACE), Jersey Central Power & Light (JCP&L), and Rockland Electric Company (RECO) – between 2017 and 2019.  As wholesale power providers find out their future obligation for electricity production, they also begin to hedge their forward exposure to the RPS SREC obligation.  This auction has traditionally been the single biggest liquidity event of the year for the NJ SREC market so we believe this to be a timely opportunity to update our capacity models.

Our New Jersey SREC Update presentation can be found here.

The trend in build rate has kept largely in line with our October 2015 update, when we emphasized that the market is projected to be fundamentally balanced on average through 2018, with the maximum range of 10.6% undersupply to 7.3% oversupply.  The trend in 2019 and beyond, however, begins to turn towards oversupply in 2019 and 2020 as the RPS percentage growth slows.  In the medium term we expect to see NJ SREC markets trade largely in line with the average price range witnessed in spot vintages.  In the short term, however, the renewed source of demand from compliance buyers shifting their focus to 2017 and 2018 obligations should be extremely supportive for prices.

One final observation pertains to the potential impact that a steadily more risk-averse attitude towards credit exposure could have on the ability for members of the solar industry to access liquidity in both OTC and electronic SREC markets.  As many firm’s credit requirements become more stringent, we have noticed a delineation in the market where the price that is being traded between two investment-grade (IG) counterparties is growing further and further away from the levels that are accessible to non-IG solar developers and asset owners.  

As always, this document is informational in purpose to assist in explaining the focus on NJ Solar RECs over the coming weeks.


Disclaimer. This document, data, and/or any of its components (collectively, the “Materials”) are for informational purposes only. The Materials are not intended as investment, tax, legal, or financial advice, or as an offer or solicitation for the purpose or sale of any financial instrument. SRECTrade, Inc. does not warranty or guarantee the market data or other information included herein, as to its completeness, accuracy, or fitness for a particular purpose, express or implied, and such market data and information are subject to change without notice. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Any comments or statements made herein do not necessarily reflect those of SRECTrade, Inc. SRECTrade, Inc. may have issued, and may in the future issue, other communications, data, or reports that are inconsistent with, and reach different conclusions from, the information presented herein.

Copyright. This document is protected by copyright laws and contains material proprietary toSRECTrade, Inc. This document, data, and/or any of its components (collectively, the “Materials”) may not be reproduced, republished, distributed, transmitted, displayed, broadcasted or otherwise disseminated or exploited in any manner without the express prior written permission ofSRECTrade, Inc. The receipt or possession of the Materials does not convey any rights to reproduce, disclose, or distribute its contents, or to manufacture, use, or sell anything that it may describe, in whole or in part. If consent to use the Materials is granted, reference and sourcing must be attributed to the Materials and to SRECTrade, Inc. If you have questions about the use or reproduction of the Materials, please contact SRECTrade, Inc.

Massachusetts SREC-II Solar Capacity Update: February 1, 2016

Posted February 3rd, 2016 by SRECTrade.

Monday, February 1, 2016, the Massachusetts Department of Energy Resources (DOER) provided an update on the current status of the Solar Carve-Out II program (SREC-II). At the time the Small Generation Unit set aside was formally announced in early January 2016, there was roughly 371.1 MW of capacity left under the SREC-II program – 120 MW for Small Generation Units under 25 kW, and roughly 250 MW for projects greater than 25 kW.

Since this announcement, a significant amount of capacity has been filled in both the small and large generation unit categories. The  recent DOER update indicated that 94.6 MW of capacity still remains to be filled for Small Generation Units, while only 22.8 MW of capacity is still remaining for larger projects.

In the DOER’s report, they acknowledged that 2.8 MW of applications are “Under Review” for Small Generation Units, while 119.5 MW of applications are “Under Review” for larger projects. This status indicates that these applications have not received full approval from the DOER and are still in their processing queue. The summary made available by the DOER is shown below:


For further information, the DOER provides the full details on capacity in SREC-II under the “Qualified Projects” section of their SREC-II current status webpage.

We published a detailed analysis on MA SREC-II supply and demand on January 19, 2016. Click here for more information.

PJM Solar – Registered Capacity Update as of February 2, 2016

Posted February 3rd, 2016 by SRECTrade.

The following post is a monthly update outlining the megawatts of solar capacity certified to create SRECs in the PJM Solar REC markets SRECTrade serves. All data is based on the information available in PJM GATS as of the date noted.


The chart above represents the megawatts registered in PJM GATS as of February 2, 2016 (the blue bar) vs. the estimated RPS solar MWs needed to be operational all year long, in the current reporting year, to meet each market’s RPS targets (the green bar). Note, the Estimated RPS MWs does not take into consideration SRECs eligible from previous reporting years and is only used as an estimate relative to the current MWs registered in GATS. All actual RPS requirements are represented in megawatt hours (i.e. SRECs) required per year. The installed capacity operational over that time will produce SRECs, in addition to any eligible SRECs from previous periods, to end up with the final supply relative to that reporting year’s demand. For estimates on required number of SRECs per reporting year across the SREC markets SRECTrade covers, please visit our state market summary pages.

The NJ PJM GATS Registered MW shown above is representative of the installed solar capacity as of 12/31/2015 as reported by the NJ Board of Public Utilities and Office of Clean Energy on January 25, 2016. For the full report click here.

Additionally, please note the following in the figures presented above:

OH2016: Represents all OH eligible solar facilities and includes some facilities that are cross registered in PA. If any systems were eligible in higher priced markets, such as DC, the capacity was excluded from OH eligibility as it could be sold at a higher price in DC.

DE2015: Represents all solar facilities eligible for the DE solar RPS requirement. Some facilities registered in DE are also eligible in PA and could impact that market’s supply.

DC2016: Includes all systems eligible for the DC SREC market. If a system was eligible in another market, it was not included there given the current pricing for DC SRECs.

PA2016: Represents all solar facilities eligible for the PA SREC market. Some systems are cross registered in OH as well. If a system was eligible in any higher priced markets (i.e. NJ or MD sited systems that cross registered in PA) they were not included in the total MW balance displayed above.

MD2016: Includes all MD eligible solar capacity registered in GATS as of the date noted. If projects were cross registered in Washington D.C., the capacity was not allocated to Maryland’s eligible MW total.

NJ2016: The balance noted above represents the 12/31/15 MWs installed reported by the NJ BPU on 1/25/2016.

PJM GATS Registered Solar Projects Summary

There are 76,572 facilities across 2,553.2 MW registered in GATS as of 2/2/2016.

347 projects are 1 MW or larger in capacity, representing 1,136.3 MW or 44.5% of the qualified capacity. There are 66 projects that are 5 MW or larger. These make up 23.7% of all qualified capacity, 604.2 MW total, in PJM.

Note: SREC requirements for markets without fixed SREC targets have been forecast based on EIA Report “Retail Sales of Electricity by State by Provider”. Projected SRECs required utilizes the most recent EIA electricity data applying an average 1.0% growth rate per forecast year. The state’s RPS Solar requirement is then multiplied by forecast total electricity sales to arrive at projected SRECs required. Projected capacity required is based on a factor of 1,200 MWh, in PJM states, generated per MW of installed capacity per year.