In 2008, SRECTrade launched the SREC auction as an innovative way to connect sellers directly to buyers in the nascent SREC markets that lacked liquidity and transparency. Since then the auctions have grown substantially, providing publicly available market pricing and fulfilling a missing piece in the SREC program. With the expansion of new SREC markets in adjacent states, SRECTrade is now the leading online platform for anything related to SRECs.
With the launch of the SREC Forwards Exchange, SRECTrade has become a one-stop shop for all participants in the SREC markets. The service now includes long-term SREC price discovery and contracts, in addition to the spot transactions available in the auction. The Forwards Exchange will provide a mechanism to match sellers in need of long-term contracts or upfront payments for financing solar projects to parties interested in the return opportunities available in buying and trading forward contracts.
In the Forwards Exchange, sellers and buyers will have two options. Prepaid Forwards are available to smaller facilities using estimated generation. These users will be able to sell any strip or individual SREC scheduled to be produced by their facility for an upfront payment from a buyer. For larger facilities, traditional Forward Contracts are available in the exchange with payment terms on delivery. Both sellers and buyers entering into the payment-on-delivery forwards will be required to post some form of collateral, whether it be maintaining a margin requirement for buyers or withholding a portion of the SRECs generated for sellers. Buyers in both markets will own the rights to the SRECs and can choose to hold onto them until maturity or close their positions in the market at any time.
For more information, visit our main website for each market:
Prepaid Forwards – Upfront payments for SRECs
Forward Contracts – Long-term SREC contracts with payment-on-delivery
For questions or comments on the SREC Forwards Exchange, please email firstname.lastname@example.org
Tags: forward srec contracts, long-term srecs, prepaid srecs, upfront srec payments