As we have mentioned previously, the Pennsylvania market is slightly different than other SREC markets because the SACP is not published until December after the energy year trading has concluded. The PA PUC recently published the prices paid by SRECs purchased for compliance in PA. Note: this only reflects prices paid by the electricity suppliers, i.e. the end buyers. As you can see the SACP for 2009 was $550.15 in PA. Up slightly from $528.34 the previous year.
2008/2009 Alternative Energy Credit Pricing
|AEC Type||Weighted Average Price||Price Range||ACP|
|Solar PV||$260.19||$225 – $690||$550.15|
Our comments: Although the price range was $225 – $690, the majority of PA SRECs must have traded in the mid-$200 range due to the fact that the weighted average price was only $260. With the way this market is structured, buyers will try to purchase at the average price level throughout the year so as not to drive the average price up. This is reflective of the market price. However, at year end, if a buyer is in danger of not procuring enough SRECs to comply, the buyer will be willing to pay anything below their best calculation of the SACP for that year. Based on the results above, it appears that most buyers paid around $260 for SRECs in PA in 2009, however, there was at least one buyer, who in an effort to avoid the SACP, paid a price of $690! We wonder if that was based on the buyer’s own calculation that the SACP would be at or above $700, or if it was the case that an SREC bought in the NJ market was used for PA compliance.
The good news for PA solar generators is that the average trading price is increasing. We expect this trend to continue as the solar requirement increases each your for Pennsylvania electricity suppliers.