Effective SREC Market Design

The full text of this post by SRECTrade CEO Brad Bowery can be found on RenewableEnergyWorld.com:

Since 2004, several U.S. states have designed and implemented markets for Solar Renewable Energy Certificates (SRECs). These markets are intended to serve several purposes in supporting the growth of solar energy within the state. 2010 was a banner year for the SREC concept as solar growth in these 7 markets outpaced the rest of the U.S., turning the East Coast into a focal point for solar companies in California and across the world. No two SREC programs are the same and some markets will fair better than others. Understanding why some markets are successful while others faulter will become increasingly important as other states look to SRECs as the way to incentivize solar.

In 2007, SRECTrade conceived an online marketplace powered by competitive monthly auctions for SRECs. Since launching in New Jersey, the transaction platform has expanded to all 7 key SREC markets, adding Massachusetts, Maryland, Ohio, Delaware, Pennsylvania, and Washington, DC. Through the experience gained developing SREC markets and aggregation services, SRECTrade takes a look at the components of an effective SREC market, the challenges that they face and some recommendations for how to avoid some of the design flaws found in existing SREC programs.

Read the entire post at RenewableEnergyWorld.com.

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Tags: Effective SREC Markets, How to design an SREC Market, SREC Aggregator, SREC Market Design, SREC Policy, SREC Policy Design, SREC Program Implementation