New Jersey’s 2010 Energy Year begins with the June 2009 generation. June SRECs were credited as 2010 SRECs on July 31st and can be sold in the August 7th auction. This will be our first 2010 SREC auction and here are a few changes that might impact prices this year:
SACP drops to $693: Through May 2009, SRECs were valued based on a Solar Alternative Compliance Payment (SACP) of $711. This is the fine that utilities pay for the SRECs that they are unable to collect in order to meet the state solar requirement. In 2009, prices ranged from $461 to $675 relative to the $711 SACP. Starting with June generation, the SACP is now $693. We anticipate that this change will impact prices and want to be sure to adjust expectations accordingly.
Early Energy Year trading: Since it has only been a year since the first SRECTrade auction, this is the first energy year transition that we are experiencing. Recent history indicates that prices tend to rise as the year progresses, however it is our hope that with the creation of a public market price and a consistently available auction that prices will be more fluid throughout the year. Only time will tell how the market reacts to a new energy year and what impact it will have on trading prices in the early months of the year.
2 year SREC life: Beginning with June generation, SRECs now have a two-year life. This means that you do not have to sell your SREC this year if you prefer to wait. It also means that if utilities meet the solar requirement later on in this year, they will still be interested in buying your SRECs to count them towards next year’s goal. You can find out more on our posting about the 2 year SREC life.
2009 SRECs can still be sold: You have until the end of the true up period in September to sell your 2009 SRECs. You will also be able to sell your remaining 2009 SRECs in the August auction.
Please contact us at 877-466-4606 if you have any questions.