SREC Forwards

SRECTrade operates a platform for trading forward contracts for SRECs.  All payments are made to the solar owner on delivery. This is a fluid and transparent market setup to provide price certainty for sellers who need to have a fixed long-term price in place for their SRECs.  Buyers are able to take positions on the future value of SRECs while playing a key role in ensuring the financing of solar facilities.

SREC forward contracts -- hedge any stream of SRECs in a competitive, transparent forwards market with the benefits of centralized clearing.

• The exchange vets all member accounts and maintains adequate collateral with each counter party on a daily basis, dramatically lowering the counter party risk on a long term contract.
• Competitive, transparent bids and offers. Anyone can post a bid or offer in our live forwards exchange, ensure competition and the best pricing on an individual contract.
• Open and close positions as you see fit and adjust as needed. No need to worry about system underperformance -- you can hedge as many or as few contracts as you would like and adjust your hedges daily by buying/selling additional contracts or selling/buying back contracts you have previously traded.

Eligibility Requirements
1. Any size facility is eligible for the SREC Forwards exchange. Facilities that are using estimated generation are also eligible in the Prepaid SREC market.

2. All facilities must be enrolled in the SRECTrade EasyREC program.  If you want to sell some or all of your SRECs in a forward contract, your facility must be managed by SRECTrade. This way SRECTrade can track ownership and ensure delivery of the SRECs to the buyer when they are generated.  All SRECs that are not sold forward can either be sold on SRECTrade in the SREC Auction or transferred to an external buyer.

3. Both buyers and sellers are require to maintain margin requirements as collateral.  For sellers, this will be in the form of a percentage of SRECs that are generated. They will be held until the contract is fullfilled and can then be easily sold in the auction.  Buyers will need to post collateral to an account maintained by SRECTrade.  The initial margin requirement is minimal, however if the market moves against the buyer's position, additional collateral will be called or else the position will be liquidated.

Getting Started For Sellers
1. First, all sellers must complete a Forward Account Application.

2. Sign up for our EasyREC service. There are no sign up costs involved in the service.  SRECTrade will then register your facility in every state in which it is available.  The Forward SREC market is based on the state of delivery.  Therefore, in order to be eligible for a forward contract for a given state, the facility must be certified in that state. This is to guarantee that the buyer is receiving an SREC for the market in which they are bidding. 

3. Once you have signed up for EasyREC, you can log into your SRECTrade account and click on your EasyREC Account summary.  This will show you all the SRECs that will be generated by your facility based on the estimates for your system.  You can then simply select any of the SRECs to be generated by your facility and offer them up for a forward contract.  The SRECs will then be listed in the SREC Forwards market until they or sold or they are removed by you.  Another benefit of this market is that if your SREC is not sold in the Forwards market before it comes available in the auction, then you can simply sell it at auction.

Getting Started For Buyers
1. Buyers must complete a Forward Account Application. 

2. Check here for Forwards Collateral Requirements.

3. Once approved, Buyers can submit bids for forwards contracts using the Forwards Order Form. As mentioned, all SRECs are listed by state of certification.  SRECTrade will ensure that all facilities are certified and registered in the state in which the order is place. 

4. When you have successfully purchased an SREC or a strip of SRECs, the SREC(s) will then appear in your SRECTrade account.  Since SRECTrade is creating a fluid market for SREC Forwards, any SREC in your account can also be sold to other buyers at any time.  To sell your SRECs, simply log into your SRECTrade account and select your EasyREC Account page.  This will show you all the SRECs you have available in your account.  You can then select any of the SRECs and offer them up for sale in the market.

If your system is using estimated generation, consider our Prepaid SREC markets.