Archive for the ‘SREC Markets’ Category

New to Solar?

Posted February 15th, 2010 by SRECTrade.

We realize that many visitors of our site are learning about solar for the first time, so we thought we would put up this post by way of an introduction and some guidance on how to navigate our site. A growing number of states are implementing SREC programs. If you are new to solar, here is what you need to know:

1. Understand SRECs: For a deeper understanding of what SRECs are and how the programs work, visit our SREC Program page.

2. Find out where you are eligible to sell your SRECs: Your state may or may not have a program, however your ability to sell your SRECs into other states could have a significant impact on the value of your SRECs. You may be eligible to get your system certified in many state programs, regardless of if your state has one or not. Everyone should check our Cross-Listing post to see the states in which they may be eligible for certification.

3. Get your system installed: SRECTrade works with several installation companies. In addition, you should be able to sign up for the EasyREC service through your installer. If they do not offer the service, then feel free to contact us directly.

4. Enroll with SRECTrade: SRECTrade provides two options. If you sign up for the EasyREC service, we handle everything else including submitting your state certification applications, creating your SREC tracking account and automating the sale of your SRECs in our auction.

If you do not sign up for EasyREC, here are the additional steps:

4a. Get your system certified by your state: Once the system is installed, it is now ready to be certified by your state and any other states in which you are eligible. You can find out more on where you are eligible and how to apply on the Cross-Listing page. Every state handles this process differently, but we recommend beginning the application as soon as possible, before your installation is complete.

4b. Set up your SREC tracking account: Every state or region will use a different system for creating and tracking the SRECs. The Mid-Atlantic states use GATS, North Carolina uses NC-RETS, Massachusetts uses NE-GIS. If you opt to manage your own SRECs, you will need to have a tracking account with one of these registries. Once you have SRECs in that account, you can then post them in our auction.

4c. Create an account online with SRECTrade: This is the simplest step of all. Complete the online form to create your account and when your SRECs are available in your tracking account, log into your SRECTrade account, select the “Orders” link and place an offer to sell your SRECs.

5. Understand the timing: After you initially sign up, it will take a few months before you begin receiving payments. For example, if your system goes online on January 1st, your January generation will be recorded on February 1st. Your first SREC(s) will be actually credited to your account on March 1st. They would then be sold in the March auction, so your first payment would come in late March. After that, payments will come as SRECs are generated. Also note: some systems operate on a quarterly basis, rather than monthly.

As these processes are refined, we will continue to update this post. Please feel free to contact us any time at 877-466-4606 if you have any questions.

Tags: Getting started with solar, New to solar, Solar Credits, Solar Renewable Energy Certificates, SREC Programs, SRECs
Posted in Delaware, Getting Started, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, SREC Markets, Virginia, Washington, DC, West Virginia | Comments Off on New to Solar?

NJ Solar Energy Advancement and Fair Competition Act

Posted February 5th, 2010 by SRECTrade.

Senate Bill A3520: The Solar Energy Advancement and Fair Competition Act was passed on January 17, 2010 and represents another big step forward for the New Jersey solar market. The state that is leading the way with its SREC program is upping the requirement in the Solar Renewable Portfolio Standard. Here are the key additions included in this legislation:

The RPS for solar increases through 2026 and will remain at or above the 2026 level indefinitely after.
Starting in June, 2010, the SREC requirement will be changed from a percentage to an absolute number of required SRECs each year.
The annual SREC requirement will increase by approximately 20% on average over current requirements.
The RPS shall increase by 20% in any given year if the SREC requirement is met in the each of the previous 3 years AND the average LSE purchase price decreases in 3 consecutive years.
The BPU will be required to establish a new SACP level that shall not reduce previously published SACP levels.
As previously reported, the requirement that a facility be below 2MW to be eligible for SRECs has been lifted.
In the final version of the bill, the legislation disqualifying public utility solar projects from SRECs was removed in favor of the following: “For projects which are owned, or directly invested in, by a public utility, the board shall determine the number of SRECs with which such projects shall be credited; and in determining such number the board shall ensure that the market for SRECs does not detrimentally affect the development of non-utility solar projects and shall consider how its determination may impact the ratepayers.”

Here are the new requirements listed by year will be posted here:
http://www.srectrade.com/new_jersey_srec.php

This is a huge step forward for all participants in the SREC market as it not only indicates an increase in the potential of the solar market and the number of SRECs that will be traded in the year, but more importantly that the state is committed to developing a viable competitive market for SRECs. This legislation sets out to ensure that all segments of the market can have access to the value created by the market and limits the influence that any single public entity can have over the market.

The Bill can be read in its entirety here: http://www.njleg.state.nj.us/2008/Bills/A4000/3520_R3.HTM

For an explanation of the bill: DSIRE New Jersey RPS

Posted in New Jersey, State RPS | 6 Comments »

SREC-Based Financing Program for ACE, JCP&L and RECO

Posted January 28th, 2010 by SRECTrade.

ACE, JCP&L and RECO have an SREC-Based Financing Program that is available to solar project developers. The utilities are expected to issue three RFPs (requests for proposals) per year available to solar developers in these territories for projects under 500kW with 10-15 year contracts. In theory, the program is intended to promote solar by providing reasonable assurances regarding the prices of SRECs, however, the RFPs, run by NERA Economic Consulting have not reached the targets set by the program. In the first solicitation, only 8 bids were received, the most recent one reached 44. The firms intend to increase the targets for future RFPs in order to meet the original goal of the program. As seen below, the average prices tend to be around $400/SREC, while the lowest price bid by a developer was well under $300/SREC! Although these RFPs aren’t viable for the majority of the prospective developers out there, it should serve as an indication of the long term contracts that are out there.

The New Jersey Board of Public Utilities (“Board” or “BPU”) has approved the results of the second solicitation of the SREC-Based Financing Program for ACE, JCP&L, and RECO, which was held in December 2009. The results are as follows:

Forty-four (44) bids were received, totaling 7,009.628 kW.

Thirty-nine (39) awards were made, totaling 6,521.798 kW.

Five bids (5) were rejected because pricing was found not to be competitive, totaling 487.830 kW.

The simple average NPV of all accepted projects was $2,864.93 (corresponding to an average price of $405.15/SREC for a ten-year project).

The low NPV of all accepted projects is $1,926.53 (corresponding to an average price of $272.44/SREC for a ten-year project).

Posted in New Jersey, SREC Pricing | Comments Off on SREC-Based Financing Program for ACE, JCP&L and RECO

DC State Eligibility Criteria

Posted January 25th, 2010 by SRECTrade.

The District of Columbia is one of the states that will allow its electricity suppliers to procure SRECs from out-of-state solar generating facilities. There are no defined boundaries for what states may qualify for certification in the DC SREC market. According to information received by SRECTrade, the DC PSC will approve SRECs for states in the PJM region and states adjacent per the following guidelines:

The DC Public Service Commission is responsible for approving applications to the DC SREC market. Their rule of thumb is that if your state has an RPS similar to DC you are guaranteed certification in DC. Currently those states include Maryland, Pennsylvania, Delaware, New Jersey and Ohio.

Solar facilities built in all other PJM area states AND adjacent states are reviewed closely and the DC PSC will determine if they can be granted certification. Currently, they have not declined a registration from any of those states because of location. Based on the map of the PJM region, these states include: Indiana, Illinois, Kentucky, Michigan, Tennessee, Virginia, West Virginia and Wisconsin.

Here is a link to get you started:

DC Certification Instructions

Tags: DC SREC, Michigan, New York, SREC, SRECs, Tennessee, Wisconsin
Posted in Illinois, Indiana, Kentucky, Michigan, New York, North Carolina, Ohio, Tennessee, Virginia, Washington, DC, West Virginia, Wisconsin | 2 Comments »

Maryland Governor to accelerate the solar RPS

Posted January 22nd, 2010 by SRECTrade.

In a press release issued by the Governor’s office, Governor Martin O’Malley has prioritized solar electricity in his 2010 agenda. He plans to increase the solar RPS requirement in the earlier years. Currently, compared to other states, Maryland’s RPS solar requirement increases exponentially in the later years. It appears the Governor is planning to straighten out the growth path so that more solar is required earlier. This is great news for the industry in Maryland in the next five years because it allows the state to remain competitive with other states in the region while the solar industry is in its formative years. Hopefully this will help establish the state at the foreground of industry along with New Jersey and Delaware. Here are the specific agenda items relating to the solar RPS:

This legislation will accelerate Maryland’s solar RPS requirements in the early years (2011 – 2017), resulting in more residential and commercial solar installation and greater job creation.
It will make the phase-in of the Solar RPS more evenly distributed over the next decade and provide more long-term support for Maryland‘s growing solar industry. This change will put the State’s solar goals more in line with New Jersey and Delaware.
Additional solar energy in Maryland will decrease peak load electricity prices in the summertime, reduce greenhouse gas emissions by displacing fossil-fueled powered generation, create new green jobs, and help Maryland meet its renewable energy goals.

Tags: Maryland, maryland solar rps, Solar, solar requirement
Posted in Maryland | Comments Off on Maryland Governor to accelerate the solar RPS

2009 PA SREC pricing data

Posted January 14th, 2010 by SRECTrade.

As we have mentioned previously, the Pennsylvania market is slightly different than other SREC markets because the SACP is not published until December after the energy year trading has concluded. The PA PUC recently published the prices paid by SRECs purchased for compliance in PA. Note: this only reflects prices paid by the electricity suppliers, i.e. the end buyers. As you can see the SACP for 2009 was $550.15 in PA. Up slightly from $528.34 the previous year.

2008/2009 Alternative Energy Credit Pricing

AEC Type	Weighted Average Price	Price Range	ACP
Solar PV	$260.19	$225 – $690	$550.15

Our comments: Although the price range was $225 – $690, the majority of PA SRECs must have traded in the mid-$200 range due to the fact that the weighted average price was only $260. With the way this market is structured, buyers will try to purchase at the average price level throughout the year so as not to drive the average price up. This is reflective of the market price. However, at year end, if a buyer is in danger of not procuring enough SRECs to comply, the buyer will be willing to pay anything below their best calculation of the SACP for that year. Based on the results above, it appears that most buyers paid around $260 for SRECs in PA in 2009, however, there was at least one buyer, who in an effort to avoid the SACP, paid a price of $690! We wonder if that was based on the buyer’s own calculation that the SACP would be at or above $700, or if it was the case that an SREC bought in the NJ market was used for PA compliance.

The good news for PA solar generators is that the average trading price is increasing. We expect this trend to continue as the solar requirement increases each your for Pennsylvania electricity suppliers.

Posted in Pennsylvania, SREC Pricing | Comments Off on 2009 PA SREC pricing data

Cross Listing Your SRECs

Posted January 3rd, 2010 by SRECTrade.

2011 Update: State certification information can be found here

One of the benefits of the SRECTrade multi-state auction platform is the ability to cross-list in multiple states in which you have registered your SRECs. If an SREC is cross-listed, it will be included in any state in which it has been registered to be sold. SRECs will be sold in the state auction that offers the most value. In order to qualify to sell your SRECs in a state that accepts out-of-state SRECs, you need to get your system certified in that state. The following section has information on what states accept out-of-state SRECs and how to get your systems registered and obtain a state certification number. For EasyREC customers, SRECTrade can help you register in the states available to you.

SREC Markets by State

SREC State Registration Information:

Delaware

To get a Delaware state certification number, your installation must be located in DE. You must apply to become an Eligible Energy Resource. The link for the application is here. For more information, go to the Delaware Public Service Commission.

Contact:
Delaware Public Service Commission
861 Silver Lake Boulevard
Cannon Building, Suite 100
Dover, DE 19904
Main: (302) 736-7500
Toll-Free: (800) 282-8574
Fax: (302) 739-4849

District of Columbia

Eligible to states within and adjacent to the PJM Region. For information on the DC registration process, see DC State Certification Instructions.

Contact:
Dorothy Wideman
Commission Secretary
Public Service Commission of the District of Columbia
1333 H Street, N.W
2nd Floor West Tower
Washington, D.C. 20005

Maryland

To register in Maryland, your solar installation must be in MD and you must complete and file an application for certification as a Solar Renewable Energy Facility (REF) with the Public Service Commission. The link to the application is here. For more complete details on the process, see Maryland SREC Registration Details.

New Jersey

New Jersey is a closed market, therefore only SRECs produced in New Jersey are eligible. New Jersey residents can apply for state certification at the New Jersey Office of Clean Energy’s website.

Contact:
New Jersey’s Clean Energy Program
c/o Conservation Services Group
75 Lincoln Highway, Suite 100
Iselin, New Jersey 08830
Phone: 866-NJSMART (866-657-6278)

North Carolina

North Carolina is still in the early stages of implementing an SREC program. The state is still accepting applications for a REC tracking system through December 15, 2009. More information can be found on the North Carolina Utilities Commission website. A sample application can be found here.

Contact:
Chief Clerk
North Carolina Utilities Commission
4325 Mail Services Center
Raleigh, NC 27699-4325

Ohio

Utilities in Ohio are allowed to procure 50% of the SRECs from out of state facilities. However, these states must be contiguous with Ohio (PA, MI, IN, KY, WV). Instructions and forms required for Ohio certification can be found here: Application for Certification as an Ohio Renewable Energy Resource Generating Facility

Contact:
Public Utilities Commission of Ohio
Email: AEPS@puc.state.oh.us
Toll-Free: (800) 686-PUCO (7826)
Phone: (614) 466-3292 (in Columbus area)
Fax: (614) 752-8351
180 East Broad Street
Columbus, Ohio 43215
Directions to the PUCO

Pennsylvania

Utilities in Pennsylvania are allowed to buy out of state SRECs from solar generators in the PJM region to meet the Renewable Portfolio Standard. If you are interested in selling in PA, you need to get your solar system registered. For a detailed explanation of the process with screenshots see our most recent post on Pennsylvania State Certification Registration Process.

Contact Info:
Dina M. Deana
Pennsylvania AEPS Program Manager
Clean Power Markets, Inc.
Phone: 1-877-AEPS-773 (1-877-237-7773)
Fax: (610) 444-9213
Email: paaeps@cleanpowermarkets.com

Share|

Tags: sell AEC, selling AEC, selling solar certificate, selling SREC, selling SREC out of state, SREC Programs, SRECTrade
Posted in Cross-Listing, Delaware, Getting Started, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, SREC Markets, Virginia, Washington, DC, West Virginia | 4 Comments »

Massachusetts SREC Market

Posted December 16th, 2009 by SRECTrade.

The Massachusetts Department of Energy Resources (DOER) recently announced the implementation of a solar carve out as part of the state’s renewable portfolio standard. The carve-out establishes a requirement of 25 MW of solar electricity for 2010 and a solar alternative compliance payment (SACP) of $600. SRECTrade will begin hosting SREC auctions in Massachusetts in 2010. Solar generators may begin registering their facilities with SRECTrade as long as they meet the criteria for eligibility in Massachusetts:

– Solar photovoltaic project located in Massachusetts
– Under 2MW in capacity
– Installed on or after January 1, 2008
– Has not received funding from Commonwealth Solar I
– Has not received substantial support from ARRA-related federal stimulus funds

Go to the Massachusetts Solar Renewable Energy Certificate (SREC) Program page for more details.

Tags: MA, MA SREC, Massachusetts Solar Carve-out, Massachusetts Solar Renewable Energy Certificates, Massachusetts Solar RPS, Massachusetts SREC
Posted in Massachusetts | Comments Off on Massachusetts SREC Market

Qualifying for the Ohio SREC market

Posted December 16th, 2009 by SRECTrade.

This is the first year that the Ohio RPS has come into effect and we expect Ohio to be one of the best market for SRECs over the next few years. With an established SACP starting at $450 this year, a large electricity market, and a growing solar requirement, we expect Ohio to surpass Pennsylvania and many of the other SREC states in volume. For that reason, we recommend registering in Ohio if you are from Ohio and any of its neighboring states: Pennsylvania, West Virginia, Kentucky, Indiana and Michigan. For Pennsylvania residents, the early months of the Pennsylvania auctions brought a price of $290-$300, but your PA SRECs could be worth up to 30% more in the Ohio market. To find out more about the Ohio SREC program follow this link.

Registering in Ohio

Tags: Ohio SREC, registration process, SREC, SRECs, state certification
Posted in Cross-Listing, Indiana, Kentucky, Michigan, Ohio, Pennsylvania, West Virginia | Comments Off on Qualifying for the Ohio SREC market

New York SRECs?

Posted December 15th, 2009 by SRECTrade.

You may have noticed a recent post in our blog suggesting that solar generators based in New York can register their system to sell SRECs in DC. This information came to us by way of the DC Public Service Commission when we first began registering Delaware systems in DC. We checked the GATS database and have confirmed that there is a precedent for a NY-based system that is eligible to generate and sell SRECs in the DC market. Though we have yet to confirm this with a NY-based SRECTrade customer, we have a few projects that are currently applying for eligibility in DC and will keep you posted on our progress.

The caveat to this is that if you are a New York resident that took advantage of the NYSERDA state rebate, then you have forfeited your SRECs to NYSERDA for the first three years that the system was installed. Therefore, the DC market (and perhaps other markets in the future) will not be available to most solar generators in New York until they have been generating for at least three years.

Posted in New York | Comments Off on New York SRECs?