We are really excited to announce that we will be launching our auction in Pennsylvania next month! We are adding seven new states in our July 10th auction and giving Solar Alternative Energy Certificate sellers (AEC sellers or SREC sellers as they are referred to in other states) the ability to cross-list their SRECs.
The Pennsylvania SREC market is going to be significant and increase rapidly every year. Our estimates show that there will be a demand for 14,000 SRECs in Pennsylvania this year. These numbers represent the 0.0063% solar requirement for utilities and this number will grow to 0.5% by 2021.
Utilities that fail to comply will have to pay a Solar Alternative Compliance Payment (SACP) for each SREC (i.e. 1 Mega Watt Hour of electricity) they are short. Pennsylvania has a unique SACP structure where the penalty is not pre-fixed but is actually set 6 months after the end of the energy year. The energy year of Pennsylvania runs from June 1 to May 31 of the next year (for example, the 2009 energy year was from June 1, 2008 to May 31, 2009). The SACP for the 2009 energy year will be declared on December 20, 2009 and will be 200% of the average SREC trading price in Pennsylvania in that year. This means that the SRECs will be sold without really knowing their true value. We plan on providing information on the average SREC trading price in the state to give our Pennsylvania customers a rough idea of what they should sell their SRECs for.
PA, MD, DC, NC and OH are the states accept out of state SRECs for now. For those of you who wish to be able to sell your certificates in these states, your system needs to be registered in that state and have a separate State Certification Number. This will be done with GATS, and we will soon put up information on the procedure.