One of SRECTrade’s customers was the subject in a recent article in the Wall Street Journal titled Businesses Wait for Green Energy Payback. The article describes the opportunities available for small businesses looking to go green and some of the headaches involved in the process. There is no doubt that the federal, state and local incentives combined make solar an especially attractive investment in New Jersey. Despite this, solar is not growing at the pace that it should be in New Jersey and other states. Part of the reason is due to financing challenges to cover the gap between investment and payback. Although there are some banks that have been willing to take the time to understand the SREC markets, many have simply not wanted to venture into the unknown. As a result many business owners looking for financing have struggled to get it. In the example in the article, our client found an angel investor willing to put down the capital for the investment. In a few short years, both our client and his investor will have made a significant return on investment from the sale of the SRECs. Since the value of SRECs are driven by market fundamentals, as long as would-be solar owners continue to struggle to get financing, the market will be under-supplied and SREC values will subsequently remain high, ensuring that those willing to invest today see the same returns that are quoted in the article.
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