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Archive for June, 2009

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.

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Posted in Pennsylvania, SREC Markets | 1 Comment »

SRECTrade in Washington D.C.

Posted June 18th, 2009 by SRECTrade.

The District of Colombia’s Renewable Energy Portfolio Standard (RPS) requires that 11 percent of the energy sold in the District must come from renewable sources by 2022. This standard includes a solar set-aside, requiring .4 percent of electricity to come from solar by 2020. Much like other states, electricity suppliers must make an alternative compliance payment (ACP) should they not meet each yearly requirement. In D.C., the ACP goes to the District’s Renewable Energy Development Fund.

Due to the area’s small size, the government has imposed fairly modest requirements for renewable energy provided by electricity suppliers, compared to those of neighboring states. However on a per capita basis, owners of photovoltaic solar systems in the D.C. area are equally well positioned to benefit from RPS requirements through federal incentives and the ability to sell self-generated SRECs. The government offers grants for installation of solar systems based on the size and capacity of the system, with a maximum receivable amount of $33,000. Once the system is installed and registered, owners can sell their SRECs to electricity suppliers in D.C., namely PEPCO, relative to the price dictated through supply and demand in the area.  SRECTrade hopes to be an integral part of matching that supply with demand through facilitating the sale of credits generated in D.C. with electricity suppliers in both D.C. as well as neighboring states.

Getting Started in D.C.

If you wish to generate and sell SRECs in D.C., you must first apply for certification as a Solar Renewable Energy Facility through the Washington D.C. Public Service Commission. Once your system is certified, you must register with the PJM-EIS Generation Attribute Tracking System (PJM-GATS), which serves as the renewable energy generation tracking system for Washington D.C. and several surrounding states. Generators interested in having SRECTrade manage their SRECs can simply sign up for our EasyBid service and send the forms to us. We’ll handle the rest. Find out more on our EasyBid page.

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Posted in SREC Markets, Washington, DC | Comments Off on SRECTrade in Washington D.C.

SRECTrade Now in North Carolina

Posted June 18th, 2009 by SRECTrade.

North Carolina is a brand new market for the exchange of SRECs. There are no restrictions on selling North Carolina SRECs to eligible states in the PJM network. North Carolina has a Renewable Portfolio Standard mandated by the state, with a specific carve-out for solar energy. 12.5% of all energy sold by suppliers must be from renewables by 2021, with 0.20% of that coming from solar energy.

Utilities are required to provide the above portions of electricity from solar sources. Your SRECs help the utilities to reach this minimum threshold. Normally, if they do not reach the threshold, they are forced to pay a Solar Alternative Compliance Payment (SACP). The state of North Carolina has not yet determined what the price of their SACP will be. When this is decided, the price of SRECs will respond. For now, the price will be around the regional average, $200-$250.

Getting Started in North Carolina

Talk to your installer to get your PV installation certified in North Carolina and other states where it is eligible. Once you have these state certification numbers, we’ll be able to help you establish an account and manage your SRECs. We’ll cross-list your SRECs on our multi-state auction platform every month to make sure you get the best price for your SRECs. Alternatively, if you choose to manage your own SRECs, you would need to register with the appropriate state SREC agency. After that you can choose to sell your SRECs month-to-month on SRECTrade.com.

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Posted in North Carolina | Comments Off on SRECTrade Now in North Carolina

SRECTrade Expands to Virginia & West Virginia

Posted June 18th, 2009 by SRECTrade.

In Virginia and West Virginia, SREC markets do not currently exist. However SREC generators in these markets are able to sell out-of-state in other markets.

Virginia enacted a voluntary Renewable Portfolio Goal in 2007. Investor-owned utilities are encouraged to obtain a percentage of power sold in Virginia from renewable sources. There are various incentives for the utilities that participate, however, since solar is still more costly than other types of energy, it is unlikely in the short term that utilities in Virginia will be looking to buy SRECs. Meanwhile, in West Virginia there is no RPS program. States with stringent RPS standards still need SRECs, and your SRECs from Virginia or West Virginia can be sold into some of the other PJM states. In this year, SRECs have been fetching prices from $200-$250 in other markets, and this is forecasted to increase.

Getting Started in Virginia and West Virginia:

Talk to your installer to get your PV installation certified in states where it is eligible. Once you have these state certification numbers, we’ll be able to help you establish an account and manage your SRECs. We’ll cross-list your SRECs on our multi-state auction platform every month to make sure you get the best price for your SRECs. Alternatively, if you choose to manage your own SRECs, you would need to register with the appropriate state SREC agency. After that you can choose to sell your SRECs month-to-month on SRECTrade.com.

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Posted in Virginia, West Virginia | Comments Off on SRECTrade Expands to Virginia & West Virginia

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.

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Posted in Ohio, SREC Markets | Comments Off on SRECTrade launches in Ohio

SRECTrade Now in Delaware

Posted June 18th, 2009 by SRECTrade.

For our July 10th auction, SRECTrade plans on having a fully functional multi-state platform in place with seven new states and the ability to cross-list your SREC in multiple states. Delaware is a fairly new and liberal market for the exchange of SRECs. There are no restrictions on exporting SRECs and the state Renewable Portfolio Standard (RPS) has a specific carve-out for Solar through 2019. The standard is 20% renewables by 2019, with solar representing 2.005%.

If an electricity supplier (utility) doesn’t reach the solar-carve out threshold with their own solar supply or by purchasing SRECs, they must pay a Solar Alternative Compliance Payment (SACP) as an offsetting penalty into a state renewable energy fund. In Delaware, the SACP begins at $250 per MWh and increases $50 every year if a utility didn’t reach the threshold in the previous year. So there is a big incentive to buy SRECs to reach the threshold. This is why SREC prices follow SACP prices.

This year in Delaware, SRECs have fetched prices between $200-$250. However, as time progresses, if utilities don’t meet the solar threshold, you will see the SACP average price climb because of the $50 per year increase, and the SREC price will follow.

Additionally, since other states have different structures for their SACP price, they will have different prices for their SRECs. If you register your Delaware system in other states (e.g., Pennsylvania), you will be able to sell your SRECs in the states you are registered in by checking the cross-list box on the SRECTrade.com order. We’ll make sure you get the best price possible in your eligible states.

How to get started in Delaware:

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

2. Option A: Sign up for our EasyBid service, and we’ll handle your SRECs. We’ll take care of registering your system with GATS, 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: Sign up for GATS yourself in Delaware, as well as other states that accept Delaware SRECs (Pennsylvania and Maryland to start). Then post your SRECs every month on SRECTrade.com or find a third-party to sell your SRECs.

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Posted in Delaware | Comments Off on SRECTrade Now in Delaware

SRECTrade Expands to Maryland

Posted June 18th, 2009 by SRECTrade.

SRECTrade is expanding into several other PJM Region states in July of 2009. As part of this expansion, we are utilizing this blog to help introduce our customers to the individual state SREC programs. Maryland’s Renewable Energy Portfolio Standard (RPS) requires electric service providers to provide 20 percent of their sales in the state from renewable energy sources by 2022. There is a specific carve-out for solar-generated electricity, currently at .01% for 2009 and set to reach 2% by 2022. Much like other states, electricity suppliers must make an alternative compliance payment (ACP) into the Maryland Strategic Energy Investment Fund should they not meet each yearly requirement.

Maryland is unique because the RPS mandates that electricity suppliers buying from individual solar owners must enter a 15-year contract for the sale of all the owner’s SRECs produced during that time. Due to uncertainty of the future, electricity suppliers have been disinclined to buy SRECs in this manner, and thus both sides have mutually used third parties (as allowed by law) as a means of transferring the credits between individuals and electricity suppliers. The SRECTrade auctions will serve as means to sell SRECs for sellers who are unable to lock into the 15-year contracts.

Meanwhile, Fred Ugast, an advocate for Maryland solar owners at U.S. Photovoltaics, has been working to secure 15-year contracts for their SRECs. He has familiarized us with the Maryland market and we are following his progress in this endeavor. According to Fred, there were 94 solar photovoltaic (PV) systems eligible to create SRECs in 2008, and 252 SRECs were created. This left estimated solar ACP payments at nearly one million dollars. The demand for SRECs in Maryland is approximately 5,000 in 2009, but supply is expected to increase at a faster rate over the next few years. SRECTrade hopes to be an integral part of matching that supply with demand in Maryland. Please check back as we learn more!

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New State Auctions for SRECs

Posted June 18th, 2009 by SRECTrade.

SRECTrade Expands!
We are pleased to announced that SRECTrade will now be available for the rest of the PJM Regional Transmission Organization.  In addition to New Jersey, seven new markets have been added: DC, Delaware, Maryland, Pennsylvania, Ohio, Virginia and West Virginia.  Over the next few weeks, we will be putting up information on the SREC Programs in these states.

Cross-listing your SRECs
While not every state has an RPS with a solar carve-out, homeowners may find themselves eligible to generate and sell their SRECs in other states.  We’ll be working out the details of what is eligible and where.  However, as far as our auctions go, it will be pretty simple.  If you want us to sell your SRECs in any eligible state, simply check the Cross-List option.  We will then include it in every state auction in which it would be eligible and it will only sell in the auction with the highest price.  If you do not want to Cross-List your SRECs and prefer to sell them in your home state, just uncheck this option and we’ll only include your listing in your home state’s auction.

Next Auction
Our next auction closes on July 10th.  If you have SRECs in any of the states listed above, we invite you to join us as we embark on this journey across the PJM region!

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Posted in Delaware, Maryland, New Jersey, Ohio, Pennsylvania, SREC Markets, Virginia, Washington, DC, West Virginia | Comments Off on New State Auctions for SRECs

SREC 2 Year Life Change

Posted June 5th, 2009 by SRECTrade.

According to the New Jersey Clean Energy Program, 2009 Energy Year SRECs (created from June 1, 2008 until May 31, 2009) will only count towards the 2009 Energy Year and can be sold through September, 2009.   We recommend selling all credits before the end of August, 2009.   Moving forward, 2010 Energy Year SRECs (created from June 1, 2009 through May 31, 2010) will comply with the new 2 year life rule and can count towards either the 2010 or 2011 Energy Year. So from now on, credits created can be sold in either the current year or the following year.

http://www.njcleanenergy.com/files/file/Renewable_Programs/SRECs/SREC%20Rule.pdf

What is the impact of this change?
In previous years when SRECs could only be sold in the year in which they were generated, sellers ran the risk of the market price dropping to zero if the utilities were able to meet the Renewable Portfolio Standard Solar Requirement before year end.  At that point, the SRECs would have no value to the buyers.  With this new rule in effect, if the Solar Requirement is fulfilled in a given year, the SRECs that are created for the remainder of that year can be counted towards the requirement for the following year.  Therefore, they will continue to be of value, however, it is still unclear as to how the market will react to such an event.

As the 2009 Energy Year comes to a close over the next few months, please keep in mind that the market will shift as the 2010 Energy Year auctions begin.  The SACP of $711 in 2009 will drop to $693 for 2010.  This should have a negative impact on the market prices for SRECs.  In 2009, the SACP jumped from $300 to $711.  It took the market several months to adjust to the new SACP.  Hopefully 2010 will be a much more stable year for SREC market prices.  At the very least, the 2010 Energy Year will begin with something that didn’t exist a year ago: A publicly listed, transparent, fair-market price for SRECs at www.srectrade.com.  We believe that nobody should be locked into a contract that gives up over 50% of the value of their SRECs.  Hopefully those days are behind us all!

Posted in New Jersey | 1 Comment »

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