FAQ

Please read the FAQ, Our Service, and Markets Pages for information about our services.

Glossary of Terms

SREC, GATS, SACP, RPS, what does it all mean?

General

Transaction

SREC Pricing and Fees

Bids and Offers

General

When is the energy year? When do my SRECs expire?
In some states, the energy year runs from June 1 to May 31.  Others will use the calendar year.  The SREC Program page has a link to every state we run auctions in. You can see the details of the calendar year for your state on the state page. After the energy year ends, the SRECs produced during that year have a finite life until they expire.  This life varies from state to state and information can be found on the your state information page on SRECTrade. While SRECs are active, they may be used to satisfy RPS requirements.  SRECs beyond their expiration date may not be used to fulfill RPS requirements and thus trade at a much lower price, but they may still be traded on various voluntary exchange markets.

Transaction

Will all bids/offers be executed?
No.  A bid that is below the clearing price or an offer that is above the clearing price will not be executed.

Will SRECTrade inform me if my bid or offer has been executed?
Yes.  The day after the close of the auction, SRECTrade will send an e-mail to all sellers and inform them if their offer has been executed. Since successful sellers must deliver their SRECs before 5pm on the day of the auction close, SRECTrade will accept all successful seller's SRECs and transfer back all unsuccessful SRECs to their original sellers. All buyers will be notified on the day after the auction. Prices are published on two days after the auction. 

What happens if my bid or offer is not executed?
If your offer to sell SRECs was not executed because your offer price was above the clearing price, then you need not do anything, SRECTrade will reject your initial SREC transfer and your SRECs will re-appear in your Registry account.  If your bid to purchase SRECs was not executed because your bid price was below the clearing price, then you need not do anything.  In both cases, we will notify you by email, and of course, we welcome you to try buying or selling SRECs in the next auction.

How does the escrow process work?
Offers are activated immediately after (or sometimes shortly after) a seller hits "Place Order."  In lieu of the escrow process, the Terms and Conditions for using SRECTrade specify the seller's responsibility to transfer SRECs to SRECTrade at the end of the auction for successful sales. SRECs must be transferred by 5pm on the day of the auction close.

If you are a successful buyer, you will receive SRECs from SRECTrade to your account within five business days from the close of the auction.

Why are successful sellers required to transfer their SRECs before they receive payment?
SRECTrade never takes an ownership position in SRECs, and, thus, needs to transfer the SRECs immediately to our successful buyers.  As soon as the successful buyers send us payment, we send payment to the successful sellers.  Since our trade volume is high, we are unable to pay successful sellers until successful buyers have sent payment to us.

Since we do not take an ownership position in the market,  we avoid the conflicts of interest that will inevitably occur in any exchange where the exchange provider has access to inside information and can act upon it to the detriment of their customers.  

What assurance do sellers have that SRECTrade will send payment after sellers have transferred their SRECs?
We have fulfilled our payment obligations in all our previous auctions, and the reputation of both our company and our founding team is based on continuing to do so.  Should we decide to abscond with a seller's SRECs without paying, a seller could get them back through the tracking system since they still control who owns the SRECs and would return them in a clear case of fraud.  Additionally, we invite you to further investigate our team's background as well as that of our advisory board.

I was just informed that my SRECs were sold, what happens next?
If you successfully sold SRECs, then you don't need to do anything! We will simply accept your SREC transfer, and will initiate payment to you for the SRECs that you sold within 10 business days.  The time between payment initiation and receipt of your money will depend on the payment method that you select in your "Account Information" page.

I was just informed that my SRECs were sold, how will I receive my money?
You have two options.  The quickest way to receive payment for your SREC is via a direct deposit into your bank account.  You may provide us with this information in the My Account page.  Alternatively, you may  indicate that you prefer payment via a check mailed to the address listed under Account Information.  This option may take an additional 3-5 business days.

I was just informed that I purchased SRECs, what happens next?
Within 5 business days of the close of the auction, SRECTrade will initiate a transfer into your account.  Your payment to SRECTrade must be made within 5 business days.  Payment instructions will be listed on your electronic invoice which will be available in your My Account page.  At this time, SRECTrade only accepts payment through electronic bank transfer and wire.

SREC Pricing and Fees

Is SRECTrade charging me a commission?
Please refer to the SRECTrade Fees page for a description of the fees associated with this service. SRECTrade has a two-tier service. The auction transaction represents the first tier. Buyers pay a "transaction" fee of $5 per SREC purchased in auction. This is in addition to the amount of the clearing price. Sellers in the auction pay a transaction fee of up to 2% of the clearing price. The fee to sellers will decrease based on the volume of SRECs sold. If the clearing price is $500, a seller will receive at least $490, while the buyer will pay $505 to SRECTrade.

In addition to the auction platform, SRECTrade offers an optional premium service for sellers called EasyREC, this represents the second tier of our service. Sellers who sign up for EasyREC will be charged an additional "service" fee for the SRECs they sell through EasyREC. The EasyREC fees start at 5% and decrease based on the size of the facility enrolled. The fee schedule for EasyREC can be found on the SRECTrade Fees and are described more specifically on the EasyREC Fee page. 

Bids and Offers

How do I decide how much to bid/offer for each SREC?
High bids and low offers increase the likelihood that a trade will be executed.  The detailed rules of the exchange are listed here.  Successful buyers are guaranteed to receive a price that is less than or equal to their bidding price.  Successful sellers are guaranteed to receive a price that is greater than or equal to their offer price.

What is a bid?
A bid is the maximum price which a buyer is willing to pay for a certain quantity of SRECs.  If a trade is executed, the clearing price is guaranteed to be less than or equal to the buyer's bid.

What is an offer?
An offer is the minimum price which a seller is willing to sell a certain quantity of SRECs.  If a trade is executed, the clearing price is guaranteed to be greater than or equal to the seller's offer price.

How do I remove, edit, or add a bid or offer?
Log in to your personal account page.  On the order status page will be a list of all active bids/offers. Next to these entries will be options to remove, edit, or add additional bids/offers.

Can I make multiple bids and offers?
Yes.  Multiple bids and offers are allowed. 

Can I make both bids and offers in the same auction?
Yes.  Before the auction closes and all bids and offers have been received, it is unknown what the clearing price will be.  You may choose to place bids at one price and make offers at another price, letting the market equilibrium determine the outcome of your speculation.