The true-up period for purchasing 2009 New Jersey SRECs ends 9/30/09. This means that buyers will only be purchasing these SRECs (generation prior to June 1, 2009) through the end of the month. Our next auction is on October 2nd and will not include any 2009 NJ SRECs. However, we will arrange a special sale for any remaining 2009 SRECs before the end of September. Please contact us at 877-466-4606 if you still have 2009 NJ SRECs.
TweetAs the New Jersey market grows, the need to secure streams of SRECs over the course of the next few years is becoming increasingly important. We are often approached about long-term contracts by sellers interested in securing a fixed price. In the past, this option was not appealing because it lacked the flexibility that the spot market provided when SREC values soared. The spot market on SRECTrade has provided a valuable resource for selling SRECs on the short-term, however, we are now looking forward to providing an additional option for all sellers on SRECTrade.
The ultimate goal with this offering is to provide options. We are working with buyers to offer different contracts at fair prices, right next to same spot market that many flocked to in order to avoid unfair long-term contracts. We hope the existence of options and choice will ultimately create a vibrant market for SRECs at SRECTrade.
If you are interested in the long-term SREC contracts, please feel free to email us at EasyREC@srectrade.com.
TweetSustainable Energy Fund, a Lehigh Valley-based non-profit organization that invests in renewable energy projects, energy efficiency projects, and energy education initiatives, announces a limited-time grant opportunity for small businesses in PA. Must be within the PPL Electric Utilities territory, and if the project yields at least a measurable 15% increase in energy efficiency, a business may be eligible for up to $20,000. Only one grant may be submitted per contractor or grant-seeking entity. Retrofits of existing buildings, ventilation systems, windows, automated control systems, lighting, or deployment of renewable energy technologies.
To view the entire program qualifications and eligiblilty, or to download an application, please visit www.thesef.org.
TweetThe Pennsylvania Public Utility Commission recently approved the purchase of up to 8,000 SRECs annually in ten-year contracts. Plans are being finalized for the implementation of the RFP. Unfortunately, this plan is geared towards larger installations since your system must be able to produce at least 300 SRECs a year in order to participate. This means that the RFP is only available to solar systems above approximately 250 kW, so therefore it is not really going to do much to promote residential and small commercial solar. However, PECO must publish a weighted average price for winning bids which should signal the market as to where prices will trade.
TweetAccording to the Pennsylvania state RPS, the SACP (Solar Alternative Compliance Payment) or fine paid by utilities that do not purchase enough SRECs to comply is set as:
200% of the “average market value for solar photovoltaic alternative energy credits sold during the reporting period in the RTO control area where the noncompliance occurred.”
The RTO control area referenced is the PJM region, so we were previously under the impression that the SACP is determined by the average SREC price in the region – which includes Delaware, Maryland and New Jersey among others. However, the interpretation used by the state when implementing this program is that the SACP could only be based on the average price of SRECs used to meet the Pennsylvania RPS. This is considered regional because residents in other PJM region states can register and sell their SRECs into the Pennsylvania market. Apparently that justifies the requirement that it is an average of the RTO region. Therefore, the Pennsylvania SACP is NOT impacted by the price of SRECs that are used to meet the RPS in New Jersey, Maryland, Delaware or any other states within the region.
In conclusion, the SACP in Pennsylvania for SRECs created through May 2009 will be posted in December of 2009 and will be double the average price of SRECs counted towards the Pennsylvania RPS. In 2008, the average price was around $264, resulting in a 2008 SACP of $528. Since this average price is taken from data provided by the utilities (end-buyers), it doesn’t reflect the actual price that generators recieved for their SRECs when markups and broker fees are taken into consideration. Therefore if generators are getting prices of $300+ in Pennsylvania for their SRECs, it’s possible that the average price paid by the end-buyers is much higher. On the flip-side, a good portion of what the end-buyer procures may also come from previously negotiated long-term contracts that have locked sellers in at low prices. So it could go either way. Sometimes rulemakers are experts at layering complexity upon complexity!
The silver lining in all this is that we hope that the monthly Pennsylvania SREC auctions hosted at SRECTrade will help bring stability and fairness to this market, making it easier for individuals to make the decision to go solar! We can’t tell you where the market is going, but soon enough, we’ll be able to tell you where it has been.
Pennsylvania SACP by energy year (June 1 – May 31):
2010 – TBD 12/10
2009 – TBD 12/09
2008 – $528
For people interested in the West Virginia SREC market, unfortunately there is currently no market within West Virginia for solar RECs (SRECs). The existence of SRECs, as opposed to regular RECs, is predicated on specific renewable portfolio legislation that says x% of the state’s energy has to come from solar. West Virginia has a generic renewable standard, but no specific solar carve-out. This means that the RECs that are applied to the West Virginia renewable portfolio standard are not considered SRECs, but rather generic RECs. RECs trade at a fraction of the price of SRECs because the alternative compliance payments for solar tend to be higher when there is a carve-out. This is primarily because solar is still more expensive than other renewable energies and needs additional incentives in order to compete.
In addition, the renewable portfolio standard requirement of 10% in West Virginia does not come into effect until 2015. Utility companies have until 2011 to develop a plan for procuring renewable energy to meet the requirements beginning in 2015. An SREC market in West Virginia, if it were to develop would both take time and adjustment to the state legislation as it is today. Even the REC markets won’t pick up in West Virginia until 2015.
However, West Virginia is within the PJM regional transmission organization which means that residents may be able to certify their solar systems in Pennsylvania. We highly recommend doing this because they would be considered SRECs in PA and therefore have a much higher value than they ever would in West Virginia. You can find the information to register here on our Pennsylvania Cross-List Blog. North Carolina and DC are two other markets where West Virginia residents may consider selling their SRECs. Our Cross-Listing section covers most of this information.
See also the West Virginia Renewable Porfolio Standard.
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