FAQ
If you have any questions, please submit a help request form at our online help center. An SRECTrade representative will respond to your request within one business day. A list of frequently asked questions is included below.
General
How do I contact SRECTrade?
Why should I use SRECTrade to buy or sell SRECs?
What is an SREC?
Where can I learn more about the solar energy initiative in New Jersey?
How do I know how many SRECs I currently own?
How does the auction work?
What is the clearing price?
How often does SRECTrade hold SREC auctions?
Are my bids and offers legally binding?
How was SRECTrade started?
Will SRECTrade send me a 1099 tax form?
What is the energy year? When do my SRECs expire?
Transaction
Will all bids/offers be executed?
Will SRECTrade inform me if my bid or offer has been executed?
What happens if my bid or offer is not executed?
How does the escrow process work?
Why are successful sellers required to force-transfer their SRECs before they receive payment?
What assurance do sellers have that SRECTrade will send payment after sellers have force-transferred their SRECs?
I was just informed that my SRECs were sold, what happens next?
I was just informed that my SRECs were sold, how will I receive my money?
I was just informed that I purchased SRECs, what happens next?
SREC Pricing and Fees
Is SRECTrade charging me a commission?
How much are my SRECs worth?
Bids and Offers
How do I decide how much to bid/offer for each SREC?
What is a bid?
What is an offer?
How do I remove, edit, or add a bid or offer?
Can I make multiple bids or offers?
Can I make both bids and offers in the same auction?
General
How do I contact SRECTrade?
You can contact SRECTrade via a help request form at our online help center. An SRECTrade representative will respond to your request within one business day.
Why should I use SRECTrade to buy or sell SRECs?
SRECTrade offers a convenient and transparent way to exchange SRECs. Bids and offers can be made quickly and conveniently over the internet. At the close of an auction, SRECTrade determines the clearing price and makes it publicly available so everyone knows the real market price for SRECs.
What is an SREC?
An SREC is a solar renewable energy credit (also referred to as a solar renewable energy certificate). It represents the environmental benefits of producing one megawatt-hour of electricity using renewable solar technology.
Where can I learn more about the solar energy initiative in New Jersey?
The state of New Jersey Clean Energy Program (NJCEP) maintains an excellent website explaining the solar energy initiative in detail.
How do I know how many SRECs I currently own?
SREC ownership is tracked and maintained through the New Jersey Office of Clean Energy. The database requires a username and password to access. Information on how to sign up is available here.
How does the SRECTrade auction platform work?
How our auction process works is explained in our How it Works page.
What is the clearing price?
The clearing price is the price at which SRECs are bought and sold for a particular auction. SRECTrade's method for determining the clearing price is described in the How it Works section.
How often does SRECTrade hold SREC auctions?
SREC auctions are held monthly. Auctions close at 5:00 PM EST on the first friday after the 5th of the month. The NJCEP issues SRECs on the 5th of each month. The SRECTrade home page displays the relevant information for the current, active auction.
Are my bids and offers legally binding?
Any bid or offer may be modified or removed up to the closing time of the auction. Upon closing of the auction, all outstanding bids and offers become legally binding. The bid/offer contract is available here.
How was SRECTrade started?
Click here to learn how SRECTrade was started.
Will SRECTrade send me a 1099 tax form?
No. We leave it up to you and your tax advisor to determine how to account for your SRECTrade selling activity. For your convenience, we make your entire transaction history available in your My Account page.
When is the energy year? When do my SRECs expire?
The energy year runs from June 1 to May 31. After the energy year ends, the SRECs produced during that year have a finite life until they expire. Up-to-date information on the life of SRECs is available on the NJCEP website. 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 the voluntary exchange market.
At the moment, only 2009 Reporting Year SRECs are traded on SRECTrade.
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. At the close of the auction, SRECTrade will e-mail all participants and inform them if their bid or offer has been executed. You may also log in to your SRECTrade account and view updated messages about your order.
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. 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?
As of September 1st 2008, we no longer require that SREC sellers place their SRECs in escrow to make an offer. 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 force-transfer SRECs to SRECTrade at the end of the auction for successful sales.
If you are a successful buyer, you will receive SRECs in escrow from SRECTrade to your NJCEP account within five business days from the close of the auction.
Why are successful sellers required to force-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 force-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 New Jersey Clean Energy Program 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, you must visit the New Jersey Clean Energy Program website and force-transfer your SRECs to SRECTrade within 3 business days of the close of the auction. We then will initiate payment to you for the SRECs that you sold within 10 business days of the auction close. The time between payment initiation and receipt of your money will depend on the payment method that you select in your "My Accounts" page.
I was just informed that my SRECs were sold, how will I receive my money?
You have three options. The quickest way to receive payment for your SREC is to provide your bank account number and routing number to SRECTrade so we may make a direct deposit into your bank account. You may provide us with this information in the My Account page. Alternatively, you may enter your paypal address and SRECTrade will send payment via paypal. Finally, you may indicate that you prefer payment via a check mailed to the address listed under My Account. 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 place the SRECs in escrow under your New Jersey Clean Energy Program account. Your payment to SRECTrade must be made within 5 business days of placement of SRECs into escrow. 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?
Sellers of SRECs are charged no commission for offering their SRECs on SRECTrade. SRECTrade charges a fee only to buyers of SRECs: 3% of the clearing price for each SREC bought. For instance, if you are a buyer and successfully bid for 100 SRECs that closed at a clearing price of $249, your fee is 100 x (3% of $249)).
How much are my SRECs worth?
The price of SRECs fluctuates with market supply and demand. As part of SRECTrade's commitment to a fair and transparent auction process, we make the clearing price of all of our auctions publically available immediately after the close of an auction, and we keep this information on our website for all to see. We encourage you to take advantage of other publically available information when considering your bid and offer prices.
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.
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