The District of Columbia Public Services Commission has been revising the language of the state RPS, and details are expected to be released at the beginning of October. Currently, a discrepancy in the wording of the RPS makes the eligibility of PJM-bordering states, such as New York, unclear. This ambiguity led to the rejection of New York solar facilities earlier this year, and has effectively halted the certification of NY facilities in DC. We expect that this revision will clarify the status of New York systems, making them eligible for the DC SREC market. As soon as concrete details are released, SRECTrade will resume registering New York facilities in DC as a part of our EasyREC program.
Although prices in the DC market are close to $300 per SREC, the market is small. In 2010, a total of approximately 3 megawatts must be installed in order to meet the requirement. That number grows to 15 megawatts in 5 years. Considering that facilities in the entire PJM region and adjacent territories are eligible for the DC market, it is quite possible that this market becomes oversubscribed in the future. We foresee the DC market as a viable option for smaller solar facilities for now, but in the long-run, it will be difficult for the solar industry in New York to rely on the DC market. The long-term solution for New York is to pass the Solar Jobs Act that is currently pending in the senate. Hopefully it will pass this fall and create one of the largest SREC markets in the nation.
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