Posts Tagged ‘SREC Price’

SRECTrade launches its service in Pennsylvania

Posted June 18th, 2009 by SRECTrade.

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.

SRECTrade launches in Ohio

Posted June 18th, 2009 by SRECTrade.

We are really excited to announce that we will be launching our auction in Ohio next month! We are adding seven new states in our July 10th auction and giving SREC sellers the ability to cross-list their SRECs. Unlike previous years, the Ohio SREC market is going to be significant and increase rapidly every year. Our estimates show that there will be a demand for 6,200 SRECs in Ohio this year, half of which must come from Ohio generators. These numbers represent the 0.004% solar requirement for utilities in Ohio and this number will grow to 0.5% by 2024.

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. For 2009, this has been set at $450. For 2010 and 2011 it will be $400, $350 for 2012 and 2013, and will continue to drop $50 every two years until it reaches $50 in 2024.

The SACP somewhat represents the ceiling price for SRECs. This is the first year that the SREC requirement is significant in Ohio where the demand is expected to be higher than supply. This means utilities will be willing to pay prices closer to the SACP. Therefore, our suggestion would be to not enter into long-term contracts, at least for now, as the future of the SREC market is still not fully certain.

PA, MD, DC, and OH 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. We will soon put up information on the procedure.

How to get started in Ohio:

1. Certify your PV system: your installer will provide you with the information to get your system certified by the state.

2. Start selling your SRECs:

Option A: Sign up for our EasyBid service, and we’ll handle your SRECs. We’ll take care of registering your system to generate SRECs, and cross-listing your SRECs on our multi-state auction platform every month to make sure you get the best price for your SRECs.

Option B: Users who choose to manage their own SREC accounts can register with GATS or MISO in Ohio. Then post your SRECs every month on SRECTrade.com or find a third-party to sell your SRECs.