Pennsylvania Alternative Energy Portfolio Standard (AEPS) Expansion Legislation Introduced

Posted April 5th, 2021 by SRECTrade.

On Friday, March 26th, Pennsylvania State Senators Art Haywood (D-Montgomery/Philadelphia) and Dan Laughlin (R-Erie) introduced legislation that would amend PA’s Alternative Energy Portfolio Standards (AEPS) Act of 2004 and increase the state’s Tier I requirement from 8% to 18% by 2026. In addition, the legislation would increase the state’s solar carve-out from 0.5% at present to 5.5%, with 3.75% of the carve-out being sourced from in-state utility-scale solar (projects larger than 5 MW) and 1.75% from in-state distributed solar (smaller, interconnected residential and commercial projects). Notably, the legislation would also establish a limit on the cost of alternative energy credits (AECs, PA’s renewable energy credits) and facilitate long-term contracting in an effort to help minimize ratepayer impacts. Lastly, the legislation would also initiate a study on renewable energy storage in the state. The proposed legislation is expected to help address the state’s current economic crisis due to COVID-19 by inspiring renewable energy investment and creating jobs.

This legislation was introduced just days after PA Governor Tom Wolf’s announcement on March 22nd that 50% of the Pennsylvania government’s electricity will come from solar energy by 2023. The governor’s initiative, named PULSE (Project to Utilize Light and Solar Energy), represents the largest state government solar energy commitment in the nation. PULSE includes seven new solar arrays totaling 191 MW that will be built around the state.

While a number of steps in the legislative process must still be completed before the AEPS expansion would be passed into law, its introduction represents a continued step forward in PA’s renewable energy transition. SRECTrade will continue to monitor the legislation’s development and provide updates.

No one should be afraid to go outside.

Posted April 1st, 2021 by SRECTrade.

It is horrific, heartbreaking, and saddening to see members of our communities and neighborhoods killed, attacked, and abused. We stand in solidarity with the Asian American and Pacific Islander (AAPI) communities during the continued increase in xenophobic, racist anti-Asian American violence across the United States. 

No one should live in fear in their own country. No one should see their loved ones killed or attacked. No one should be afraid to go outside. 

We acknowledge to the AAPI members of our community – team members, partners, stakeholders, and beyond – that we will continue to commit to doing our part to combat the structural racism and fear-mongering that is degrading the safety of our communities. It remains very important that we acknowledge this violence and recognize that this continues to be a daily reality for many others including Black, Latinx, Indigenous, and LGBTQ+ communities across our country. 

These moments and events are a constant reminder that as a company and individuals we need to recommit to the work of supporting cross-racial unity and work towards a future where our communities are free of hate and violence. 

To demonstrate our immediate support, we have donated $5,000 to Asian Americans Advancing Justice (AAJC) and $5,000 to the Asian Pacific Environmental Network (APEN).

Additionally, below are some resources to help support each other, create awareness, and further educate ourselves. 

We stand in solidarity with AAPI communities and condemn hate in all its forms.

Virginia Market Update

Posted March 30th, 2021 by SRECTrade.

Last October, SRECTrade provided information regarding the passage of the Virginia Clean Economy Act (VCEA). This Act mandates a Renewable Portfolio Standard (RPS) for Dominion and Appalachian Power Company. This update will present information regarding the progress of the RPS implementation and current REC transaction options for Virginia-sited systems.

Since the Act’s passage, utilities and other solar stakeholders have participated in public proceedings held by the Virginia State Corporation Commission (SCC). The SCC is currently reviewing the information that was presented throughout the process and will provide RPS implementation details later this spring. The SCC will be providing guidance regarding REC procurement, eligibility requirements, and the solar facility certification process.

In the meantime, Virginia-sited systems are eligible to register in the Pennsylvania Tier I REC market. Upon registration in this market, solar facilities will be issued a Virginia Certification number as part of the PJM GATS registry approval process. It is likely that these VA-certified systems and RECs will be eligible when the Virginia REC market opens.

We encourage anyone with an eligible solar system located in Virginia to begin the registration process now. To start a Pennsylvania Tier I application, please log in to your SRECTrade account and select the link to “Apply to sell SRECs”. There is currently no application fee for Virginia-sited solar assets.

SRECTrade will monitor program updates and will trade Virginia-generated RECs when the market opens. Please contact SRECTrade with any questions.

SRECTrade Massachusetts Class I Application Updated and Open!

Posted March 11th, 2021 by SRECTrade.

March 24, 2021 EDIT: Removed the text, “There is no requirement in MA Class I for projects to utilize a revenue grade meter, regardless of size.” See the added “Minimum Meter Accuracy” table from Section 2.1 e) of the NEPOOL GIS Operating Rules below for revenue grade meter requirements.

SRECTrade’s MA Class I application is now fully updated and live on our website. This update includes streamlining our online application to only require fields that are necessary for obtaining MA Class I certification.
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To start an MA Class I application, please log in to your SRECTrade account and select the link to “Apply to sell SRECs”.

Below is more info about the MA Class I REC Market parameters:

  • Any solar PV project interconnected to the New England ISO is eligible to sell MA Class I RECs.
  • As of the time of this post, the current MA2020 Class I spot market price is approximately $40.00 (per MWh).
  • There are no REC factors in the MA Class I market as there were in MA SREC-II; one Class I REC is generated per 1 MWh of production.
  • Qualified MA Class I projects are not limited to 40 quarters of REC transactions like in the past MA SREC markets; they are eligible to transact in perpetuity.
  • All MA Class I projects are required to utilize an Independent Verifier for production reporting. If you have questions about whether your solar inverters/meters qualify, please view the approved NEPOOL Independent Verifiers List (current as of the time of this post).
  • SRECTrade’s MA Class I Market page will have more information added to it in the near future.
  • Metering requirements are as follows:
“Minimum Meter Accuracy” table in Section 2.1 e) of the NEPOOL GIS Operating Rules.

Regarding fixed-price contract opportunities, 5- and 10-year forward contract links will be emailed on a quarterly basis to interested parties. Please email installers@srectrade.com to indicate your interest in this mailing list.

As always, please contact SRECTrade with any questions and we look forward to working with you in the MA Class I market.

LCFS Market Update – February 2021

Posted February 23rd, 2021 by SRECTrade.

Throughout the fourth quarter of 2020, the California Low Carbon Fuel Standard (CA LCFS) market demonstrated steady credit prices between $193 – $199 per credit. On January 29 the California Air Resources Board (CARB) released the Q3 2020 credit and deficit report. There was an overall increase in deficits and credits generated in Q3 2020 as well as a 1.5% increase in the cumulative bank. SRECTrade has been engaged with new clean fuel programs that are considering legislation across North America. The enclosed update provides highlights on news impacting the market, a recent price trend overview, clean fuel program updates, and a closer look at the Q3 2020 credit and deficit report.

SRECTrade helps you get paid on the use of zero-emission vehicles and fueling equipment that you already own, such as electric light-duty vehicles, forklifts, trucks, and charging stations. The regulations are complex and the benefits are hard to access – we make it easy for you. SRECTrade is the largest agent manager of EV assets for California’s Low Carbon Fuel Standard (LCFS) and the trusted partner across North America for similar programs already redefining equipment plans and budgets. With 150,000+ assets on its tech platform, SRECTrade manages 20 traded products in 10 regulated markets with > 99% client retention. Through SRECTrade you get paid and accelerate deployment of clean energy and transportation equipment, while minimizing time, cost, and risk of complex and diverse regulatory programs.

SRECTrade WRISE 2021 Leadership Forum General Sponsor

Posted February 19th, 2021 by SRECTrade.

SRECTrade was thrilled to sponsor and send seven team members to the Women of Renewable Industries and Sustainable Energy (WRISE) 2021 Leadership Forum. Even virtually, the Forum remained thoughtfully put-together with its workshops, networking events, keynotes, and professional development one-on-one opportunities. SRECTrade applauds WRISE’s commitment to building a diverse workforce for the success of the renewable energy economy for all, especially those who are historically left out of the conversation.

More information on WRISE and how to support the work that the organization is doing can be found here.

Happy Holidays from the SRECTrade Team

Posted December 23rd, 2020 by SRECTrade.

As we near the end of 2020 and look to celebrate the holiday season, it is a good time to take a step back and reflect on the ups and downs of the year. With all elements of our personal, social, and professional lives impacted by unprecedented global events, I am thankful that SRECTrade has been able to forge ahead and cross new milestones. I regularly remind myself that many individuals and companies haven’t been as lucky.

Thank you to our clients and partners for continuing to work with us as we expand our business and services. With you, we have been able to continue our mission to accelerate the sustainable adoption of clean energy assets while focusing on making carbon reduction a reality.

Lastly, thank you to the ever-growing SRECTrade team! We’ve recently surpassed 40 employees and look forward to more growth in 2021. We have a very special group of dedicated and passionate people. Across the entire organization, the team is working hard every day to ensure we are providing high quality services and technology to make efficient access to our markets possible.

We wish everyone a happy and healthy holiday season. Stay safe and be well. We look forward to working with you in 2021 and beyond!

All the best,

Steven & the SRECTrade team

Steven Eisenberg / CEO / SRECTrade, Inc.

Maryland SREC Market Update

Posted December 15th, 2020 by SRECTrade.

Many SREC markets have been subjected to unprecedented impacts this year from the worst international pandemic in recent history, COVID-19, and Maryland is no exception. Despite some companies having to re-imagine their solar sales and installation processes, the Maryland Clean Energy Jobs Act (CEJA) continues to have a profound impact on the state’s SREC market. CEJA increased Maryland’s Renewable Portfolio Standard (RPS) to 50% by 2030 with a solar carve-out of 14.5% by 2028, more than doubling the 2020 solar requirement in the process. On the other hand, CEJA established a declining solar alternative compliance payment (SACP) schedule set at $100.00 this year but decreasing by $20.00 in 2021 and 2022 and by lower magnitudes thereafter.

In part due to the challenges posed by COVID-19, the MD market saw a decrease in solar build rates. The past 12-month average build rate from Nov. 2019 – Oct. 2020 was 7.79 MW/mo, 23.4% less than the average of 9.61 MW/mo from the 12 months prior.

The estimated 2020 electric load is also down from 2019 totals due to decreases in the commercial and industrial sectors, while residential electricity usage saw a slight increase. Our enclosed analysis projects the 2020 market to be oversupplied while forward years will see an increasingly undersupplied market – an indication that build rates must show a significant increase in order to keep up with the current RPS. The final 2020 MD SREC production, final 2020 MD load figures, and actual grandfathered load could impact the degree of oversupply in 2020 and undersupply in forward years.

LCFS Market Update – November 2020

Posted November 22nd, 2020 by SRECTrade.

The California Low Carbon Fuel Standard (CA LCFS) market exhibited steady credit prices in the third quarter of 2020. Throughout the quarter, credit prices remained steady around ~$195 per credit. On October 31 the California Air Resources Board (CARB) released the Q2 2020 credit and deficit report. There was an overall drop in deficits and credits generated in Q2 2020 as well as a smaller draw upon the cumulative bank most likely due to impacts of COVID-19. The enclosed update provides highlights on news impacting the market, a recent price trend overview, and a closer look at the Q2 2020 credit and deficit report.

SRECTrade offers LCFS credit management and brokerage services to electric vehicle (EV) fleet operators, OEMs, EV charging station owners, and other clean fuel asset owners. We help our clients navigate the entire LCFS process including asset registration, ongoing reporting requirements, transacting, settlement, and remittance of funds. Our domain expertise in environmental commodity markets allows us to provide our clients with industry leading regulatory and market knowledge. Please reach out to cleanfuels@srectrade.com or (415) 763-7732 x 4 for more information.

Washington, D.C. SREC Market Update

Posted November 17th, 2020 by SRECTrade.

The SREC market in Washington D.C. has seen a change in trends due to changing market conditions associated with COVID-19. Our enclosed analysis provides an update on these market conditions and evaluates future market dynamics.

Compared to our last market update – posted on May 22, 2020, we project a greater oversupply in 2020 & 2021 and our new analysis shows 2022 now slightly oversupplied in high build rate scenarios.  Despite this, we expect the market to flip to undersupplied in 2023, or sooner in low build rate scenarios.

This change in dynamic can be attributed to several factors including:

  • COVID related decline in electricity sales resulting in lower SREC demand
  • Higher build rates resulting in higher forecasted SREC production 
    • 1.65 Last Twelve Month Avg. (MW/mo) (May Analysis) vs.
    • 2.49 Last Twelve Month Avg. (MW/mo) (Current Analysis)

In this time of uncertainty, there are several fundamental considerations that could impact the final supply and demand figures over the next coming months. Final 2020 DC SREC production, Q4 build rates, and actual grandfathered load will need to be analyzed to determine the degree of oversupply and more accurately project future market conditions.

Should you have any questions regarding the enclosed analysis or need transaction and management services, please contact us.