
Flett Exchange is pleased to announce the results of the Sparta Township Solar Renewable Energy Certificate (SREC) sale. 40 energy year 2010 New Jersey SRECs were sold at a clearing price of $679.00 on Flett Exchange Friday, August 13th 2010. The sale was conducted on Flett Exchange’s electronic marketplace under its Public SREC Auction and total market proceeds equaled $27,160.00 Registered buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
The $679.00 clearing price is 98% of the $693 Solar Alternative Compliance Payment (SACP). The SACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. The auction was oversubscribed and there was strong participation by Load Serving Entities (LSE’s) trying to procure SRECs. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.
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New York has the opportunity to become one of the nation’s leading solar states. The Empire State is pursuing a solar measure that could stimulate the economy, create permanent jobs, establish a new manufacturing base, reduce climate change, increase sustainability, and preserve precious natural resources that over 20 million New Yorkers depend upon daily. The New York Solar Industry Development and Jobs Act of 2010 has been introduced to the state assembly and senate. The bill would responsibly require investor owned utilities (IOUs) and public power authorities to gradually incorporate solar electricity in their energy mix over the next 15 years. In 2009, New York installed only 34 Megawatts of solar electricity. This proposed solar measure would increase the statewide installed capacity to at least 5,000 Megawatts and assist New York in achieving its clean energy goals at the lowest cost to the ratepayer.
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New York has always been a gateway for new ideas and progress. The solar industry, environmentalists, and conservation groups are calling on government officials to act on a solar plan which can deliver serious results. The New York Solar Energy Industries Association (NYSEIA) is “calling on Governor David Paterson, the State Legislature, and the Public Service Commission (PSC) to immediately take needed actions to put the state on target to reach its goals of meeting 45 percent of the state’s electricity needs through the improved efficiency and clean renewable energy by the year 2015.” (NYSEIA Proposes Long-Term Solar Electric Incentive Plan, 7/2/2010).
The proposed solar bill could benefit New York in the following ways:
- Economic Growth- Proponents of the New York solar act exclaim that it could generate $20 billion in economic stimulus over the next 15 years. This comes at a time when the state deficit is at alarming levels (over $8 billion) and at risk of a double-dip recession.
- Green Jobs- The solar industry has been steadily adding real jobs nationwide and providing competitive salaries to the US workforce (i.e. the average salary for solar jobs is $61,000 depending on the company, location, and experience.) The New York Solar Industry Development and Jobs Act of 2010 is estimated to support 22,000 new jobs.
- Solar Manufacturing Plants are coming to New York- Solar manufacturing factories are being established in upstate New York. This is an enormous win for New York and one that needs to continue. New York has the ability to attract emerging industries and provide a fertile environment for world-class solar technology, research, and development companies.
- SpectraWatt- a manufacturer and supplier of advanced silicon photovoltaic cells has recently opened its solar factory in Hopewell Junction, NY. SpectraWatt’s $81 million investment will create a state-of-the-art facility and bring 161 new jobs to Dutchess County, NY. The facility will be capable of producing over 50 million solar cells annually which is enough to power 35,000 homes.
- Solartech Renewables- is opening a $10 million production facility in Ulster County, New York. When completed in 2010, the “Tech City” complex will create 100 new full time permanent jobs and produce 12 Megawatts or 55,000 solar panels utilizing technology from the Spire Corporation.
- Solar for All- Solar is a level playing field in which all parties can participate. Unlike other renewable energies (i.e. wind, biomass, and geothermal) which can be difficult to develop and only achievable on a larger scales solar is affordable and equally available to homeowners, schools, universities, townships, municipalities, corporations, and government agencies.
- What a “Fracking” Mess- Unregulated natural gas drilling is being seriously considered in the New York, Pennsylvania, and Delaware watershed regions. “Hydraulic fracturing or fracking is a means of natural gas extraction employed in deep natural gas well drilling. Once a well is drilled, millions of gallons of water, sand, and proprietary chemicals are injected, under high pressure, into a well. The pressure fractures the shale and props open fissures that enable natural gas to flow more freely out of the well.”(www.gaslandthemovie.com) Natural gas fracking has destroyed ecological systems and contaminated the water supplies of many parts of Arkansas, Colorado, Kentucky, Louisiana, Montana, Nebraska, Texas, and Wyoming.
- Flammable tap water – that’s what people across the US have discovered in the wake of the unconventional method of natural gas extraction known as hydraulic fracking.
- The 65 compounds that are used in natural gas drilling are harmful to human health.
- 80,000 pounds of chemicals are injected into the earth’s crust to frack each natural gas well.
- 70% of the fracking fluid that remains in the ground is not biodegradable.
- A loophole in the 2005 Energy Bill exempts natural gas drillers from following EPA guidelines like the Clean Water Act. Natural gas fracking is totally unregulated and will begin in New York unless state legislature acts immediately.
Solar energy is the responsible and viable energy solution for New York. It allows the state to meet its Renewable Portfolio Standard (RPS) in an efficient and healthy manner. Solar energy does not contaminate the water supply nor proposes harmful health risks to New Yorkers. The question New Yorkers should be asking their legislators is “does New York need a self-inflicted Gulf Oil Disaster?”
Solar Renewable Energy Certificates (SRECs) have also been incorporated in the proposed solar bills. SRECs are a proven market based solution that augments solar development and financing. SREC markets have remained vibrant even as state incentives and rebates have diminished or terminated. One SREC is equal to 1,000 kilowatt hours of solar electricity and is typically purchased by utilities and energy companies who need to comply with a state mandated Renewable Portfolio Standard (RPS). State mandated SREC markets successfully operate in DE, OH, PA, MA. MD, NJ, and Washington DC and fluctuate pricing ($250.00 – $693.00). SRECs are the driving financial component that makes solar economically feasible. SREC markets promote free market competition and reward participants who take renewable energy risk with a revenue stream from SREC monetization. SRECs could incentivize New Yorkers to install solar provide a market mechanism that delivers proven results.
Now is the time for New York to become a leader in solar energy. New York is the United States third most populous state, yet its solar industry lags neighboring states. In 2009 New York installed less than 35 MW or 1,200 photovoltaic systems compared to New Jersey’s 181 MW or 6,281 installed photovoltaic systems. New Yorkers need to reclaim their energy independence. Instead of depending on expensive foreign oil or harmful natural gas, government officials can implement a renewable energy policy with an increased solar carve-out that would immediately benefit the state. An aggressive Renewable Portfolio Standard (RPS) would demonstrate that New York is serious about clean energy, the health of its residents, and illustrate its environment stewardship to the rest of the nation. Solar energy is the smartest, safest, and quickest way for New York State to achieve its renewable energy goals. Solar energy can elevate the environmental consciousness of the Empire State and responsibly benefit our two most prized possessions: the earth and mankind.
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Flett Exchange is pleased to announce the results of the Atlantic County Utilities Authority (ACUA) Solar Renewable Energy Certificate (SREC) sale. 244 energy year 2010 New Jersey SRECs were sold at a clearing price of $683.00, which is a Flett Exchange contract high! The sale was conducted on Flett Exchange’s electronic marketplace under its Public-Auction SREC Market and total market proceeds equaled $166,652.00. Registered buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
The $683 clearing price is 98.5% of the $693 Solar Alternative Compliance Payment (SACP). The SACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. The auction was oversubscribed and there was strong participation by Load Serving Entities (LSE’s) trying to procure SRECs. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.

More about the ACUA: “The Atlantic County Utilities Authority is responsible for enhancing the quality of life through the protection of waters and lands from pollution by providing responsible waste management services. The Authority is an environmental leader and will continue to use new technologies, innovations and employee ideas to provide the highest quality and most cost effective environmental services.”
The ACUA generated these Solar RECs from a solar facility located on their waste water treatment plant.
Click Here To View Our Upcoming Public Auction Schedule
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Ohio Renewable Portfolio Standard (RPS) buyers can buy 50% of their SRECs from neighboring states. Pennsylvania, Michigan, Indiana, Kentucky, and West Virginia SREC sellers can certify their solar systems in Ohio and have the potential to sell their SRECs into a growing Ohio solar market.
However if too many solar generators register to sell their SRECs in a particular state or region an oversupply scenario could occur. Market saturation could diminish SREC demand and depress prices. It is also important to note, that a solar facility generating SRECs outside of Ohio and also registered within Ohio might not receive the same price of an Ohio sited SREC. For more information please click on the application for certification as an Ohio Renewable Energy Resource Generating Facility.
Click Here To Download Details from Ohio.gov
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
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The California Public Utilities Commission (CPUC) has unanimously approved the use of renewable energy credits for compliance with the California Renewables Portfolio Standard (RPS). The CPUC’s decision has authorized the procurement and transaction of tradable renewable energy credits (TRECs). The objective of the TREC market is to encourage renewable energy development and help California satisfy its progressive Renewable Portfolio Standard. |
The CPUC has outlined a market and compliance structure that promotes a transparent, fair, and easily operational TREC market. The Commission’s most significant proceeding was their decision to distinguish between bundled (energy plus renewable energy credits) and unbundled (renewable energy certificates only) transactions used for RPS compliance. Bundled transactions “must serve California customer load, without needing any intermediary energy transactions that in effect substitute energy that is not RPS-eligible for energy that is. The decision concludes that bundled transactions with renewable energy—or those which serve California customer load – are those where:
- the RPS-eligible generator’s first point of interconnection with the Western Electricity Coordinating Council (WECC) interconnected transmission system is with a California balancing authority, or
- the RPS-eligible energy from the transaction is dynamically transferred to a California balancing authority.” 3/11/10, Decision Authorizing Use of Renewable Energy Credits for Compliance with the California Renewables Portfolio Standard.
The CPUC’s decision to separate the electricity commodity from the environmental attribute allows Load Serving Entities (LSEs) to use TRECs to comply with California’s growing renewable energy requirements. Creating two separate tradable commodities is advantageous to renewable energy development because the TRECs can help subsidize the financing and development of renewable energy projects.
The CPUC has also disclosed a few important amendments that buyers and sellers of TRECs should pay close attention to:
- A 40% to 25% decrease in the amount of RECs that Investor-Owned Utilities (Pacific Gas and Electric, Southern California Edison, and San Diego Gas and Electric) can pledge toward their annual RPS compliance obligation.
- Bundled transactions for out-of-state facilities will be re-classified using firming and shaping as TREC specific transactions and be included in the 25% cap.
- The introduction of a $50 cost cap for TREC transactions. Contracts exceeding this limit will not be approved by the CPUC. (Alternative Compliance Payments (ACP) have been lifted, increased, or extended in other REC states over time.)
- The CPUC has the ability to modify or extend their decision before December 31, 2011.
- The Western Renewable Energy Generation Information System (WREGIS) will assist in the tracking and retirement of TRECs. “TRECs must be tracked in WREGIS and retired in WREGIS for RPS compliance within three calendar years of the year of electricity associated with the TRECs.” 3/11/10, Decision Authorizing Use of Renewable Energy Credits for Compliance with the California Renewables Portfolio Standard.
The CPUC’s decision regarding TRECs is being viewed as a significant policy statement. However the CPUC is not the only governing body deciding on TREC matters. The CPUC will be working collaboratively with the California Energy Commission (CEC) to serve in the implementing and overseeing California’s RPS. “The CEC and CPUC are expected to serve in advisory roles to help the CARB (California Air Resources Board) develop the regulations to administer the 33% by 2020 requirement… until the CARB regulations are adopted, the CEC and CPUC will continue serving in their current roles to administer the 20% by 2010 standard:
The CEC’s roles are to:
- Certify eligible renewable resources that meet statutory requirements; and
- Design and implement a tracking and verification system to ensure that renewable energy output is counted only once for the purpose of the RPS and for verifying retail product claims in California or other states”. (California Incentives/Polices for Renewable & Efficiency, DSIRE).
On May 6, 2010, the CPUC placed a temporary stay on their March decision and a moratorium on TREC transactions. Hopefully going forward the CPUC and the CEC can work together for the betterment of California’s renewable energy policy, which has the potential to be the largest US tradable REC market.
Flett Exchange looks forward to adding value to the California environmental markets. As a leading exchange for state-mandated and voluntary REC markets, Flett Exchange will bring liquidity, transparency, and price discovery to spot and long-term TRECs. Our team of skilled market professionals offers supply and demand intelligence, legislative commentary, forward pricing projections, and in-depth market research. With California taking a leading role in clean energy development, Flett Exchange looks forward to supporting the TREC market and providing guidance so that the masses can fully informed and benefit from renewable energy.
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Flett Exchange is pleased to announce the results of the Lawrence Township Public Schools Solar Renewable Energy Certificate (SREC) public-auction. 238 Energy Year 2010 New Jersey SRECs were sold at a clearing price of $678.10. The sale was conducted on Flett Exchange’s online, transparent environmental exchange under its “Public-Auction SREC Market” and total market proceeds equaled $191,902.30. Qualified buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
The $678.10 clearing price is 98.7% of the $693 Alternative Compliance Payment (ACP). The ACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.
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Flett Exchange is pleased to announce the results of the North West Bergen Utilities Authority Solar Renewable Energy Certificate (SREC) sale. 100 energy year 2010 New Jersey SRECs were sold at a clearing price of $678.25. The sale was conducted Flett Exchange’s electronic marketplace under its Public-Auction SREC Market and total market proceeds equaled $67,825. Registered buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
The $678.25 clearing price is 97.8% of the $693 Solar Alternative Compliance Payment (SACP). The SACP is the payment electric producers have to pay to the State of New Jersey if they do not produce a specified amount of electricity using solar energy or through the purchase of SRECs from facilities located in New Jersey. This activity supports solar development in New Jersey and SREC revenue goes to entities that take risk in developing solar facilities.
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Solar energy is attracting investment dollars. Competitive returns, lower barriers of entry, state and federal incentives, SREC revenue streams, and progressive Renewable Energy Portfolio Standards (RPS) are advancing solar to the forefront of renewable energy world. As the solar market evolves, so are the financial structures that are assisting investors in financing and completing projects. This article will examine various financing strategies, the risks and rewards associated with them, and the incentives involved with solar investing.
- Self Financed (Most Risk/Most Reward)– Self financed solar facilities are for residents and entities who want control of their solar destiny. These parties absorb the upfront costs for developing solar and the challenges of operating and maintaining their solar facility. This is the most capital intensive structure and poses the most risk and reward. The risk lies in the development of the project, the failure in properly monitoring and maintaining the facility, and the price associated with the Solar Renewable Energy Certificates (SRECs). The rewards are a reduced rate of electricity for as long as the facility can generate solar energy, declining installation costs, and a revenue stream generated by SREC monetization. Self-financiers take the risk of developing solar because there is the potential for them to payoff the facility in a shortened period of time and realize increased upside profit potential.
- Solar Lease Financing (Moderate Risk/Moderate Reward)– Solar lease financing structures are being executed in both the residential and commercial markets. The concept is simple, straightforward, and similar to an equipment or automobile lease. Instead of self financing your solar facility, parties can enter into a leasing contract and agree to make monthly lease payments on their solar installation. Similar to a PPA contract the client does not incur the expensive upfront installation costs or the responsibility of operating and maintaining the solar facility. In a best case scenario the lessee can take advantage of higher SREC values and an option to buy out the system in six years, while the lessor obtains the ITC and accelerated depreciation of the system. A solar lease structure is also an alternative to a PPA contract for non-profit organizations who want to take on SREC risk for potential reward, while the lessor passes on the ITC and accelerated depreciation indirectly through a lower lease payment. Solar leasing firms have a set of criteria that clients need to meet in order to participate in their solar leasing program: commercial clients may need to submit audited financial statements and residents may need to have a FICO score of 700 or greater to be considered. However there are also risks associated with solar leases. One risk is that a lessee could go upside down on their contract. This happens when the solar lease is more expensive than the SRECs being monetized. Another risk is the future price of electricity. Lessees could potentially pay more for solar electricity than basic generated electricity if demand diminishes. The financial crisis of 2008-2009 was a reminder that electricity prices do not always go up and that electricity demand could decline during lean economic times. Solar lease financing is becoming more popular because it is affordable, convenient, environmentally responsible, and lowers your electricity bills. However, interested parties should weigh the risks and rewards associated with solar leases and learn more about the leasing company before signing an extended contract.
- PPA Financed (Less Risk/Less Reward)– A Power Purchase Agreement (PPA) is a contract between a solar electricity generator and a client seeking solar energy. This financial structure is designed to provide the client with a reduced rate of electricity for an extended period of time (10-20 years), no upfront installation cost, and the option to purchase the solar facility at the end of the contract. The PPA Provider designs, develops, operates, maintains, and owns the solar facility located on the client’s property. In turn the client pays the PPA Provider for the electricity generated from the solar facility. PPA Providers enter into these agreements because there is a profitable margin between where solar can be developed and what electricity can be sold for. The PPA Provider can also take advantage of the Investment Tax Credit (ITC) and accelerated depreciation. PPA Providers gain ownership of the SRECs which are generated from the solar facility and can monetize them on the Flett Exchange live markets. This solar structure is popular with non-profit organizations that cannot take advantage of the ITC and realize the accelerated depreciation of their solar facility.
Many solar projects are contingent on tax benefits, rebates, and long-term SREC contracts. Without these incentives and risk mitigation strategies solar projects can be difficult to finance and pose significant risk to investors. Let’s examine some of the incentives and strategies that are allowing the solar market to flourish.
- Tax Benefits- At this juncture, tax incentives are an integral part of solar financing. The Investment Tax Credit (ITC) returns over 30% of a solar project’s capital cost to investors in the form of a tax credit. Sophisticated investors are utilizing solar as a tax-equity investment vehicle because tax credits can offset tax liability. Section 1603 of The American Recovery and Reinvestment Act of 2009 (Stimulus Bill) also allows investors to receive a grant in lieu of tax credit when the “specified energy property” is submitted to the “grant program.” This program runs out at the end of 2010, and the SEIA www.seia.org is lobbying to have it extended. Both the credit and grant programs promote renewable energy on the institutional level and help incentivize solar development.
- Accelerated Depreciation- Developers of commercial projects can realize additional tax benefits from the depreciating cost of their solar facility. An entity “can depreciate the installed cost of the system minus 50% of the business Investment Tax Credit (ITC) over the first five years of ownership (SEIA 2008) using the modified accelerated cost recovery system (MACRS) (DSIRE 2008). According to a report by Lawrence Berkley National Laboratory, the tax benefit of this depreciation is equivalent to 26% of the installed cost of the system, 12% of which comes from the ability to accelerate it over a five year period (Bolinger 2009).” –National Renewable Energy Laboratory, “Solar Leasing for Residential Photovoltaic Systems.”
- Long-Term SREC Contracts- are helpful in financing proposed solar projects. Flett Exchange brokers long-term SREC contracts between qualified institutional counterparties. Our ability to facilitate and streamline long-term SREC contracts is value-added to both buyers and sellers. Buyers gain direct access to large pools of SRECs at a discounted price to satisfy their RPS, while sellers have the ability to mitigate risk and lock-in profits. Counterparty credit risk is paramount in this market. Buyers and sellers enter into bilateral contracts to secure price, quantity, and term of the SREC contract. Counterparties agree to pay or delivery SRECs at a specified future date. Flett Exchange augments this process by employing a stringent vetting process and presenting quality and creditworthy solar projects to the market. Flett Exchange is currently brokering 1-7 year SREC contracts in the open market and growing our ability to facilitate longer term deals for eligible commercial entities.
As the solar markets continue to evolve new and innovative thinking will be the most prized commodity. The emergence of banks, lenders, financial institutions, and new financial structures will be welcomed and as solar makes the transition form a subsidized market to a self-sustaining market.
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Solar energy is gaining momentum in the renewable energy world. It is being heralded as a smart investment due to growth prospects, favorable market conditions, federal and state incentives, and more stringent Renewable Portfolio Standards (RPS). Individual and institutional investors are committing capital and taking risk because of potential profits and tax benefits that are associated with developing solar. Existing and newfound factors are driving solar energy to become a more mainstream investment. This article will examine these factors and demonstrate how they are contributing to solar energy’s success.
- Growth- Over the past decade, technological advancements have made solar energy more affordable, more reliable and less obtrusive. Lower barriers of entry have allowed solar installers, integrators, and developers to offer competitive pricing on residential and commercial facilities and reduce their installed cost per watt.
- Value- Solar energy is a potential hedge against higher electricity prices. It is estimated that electricity prices could conservatively increase by 3.0% a year. Solar energy is a wise alternative to higher electricity bills and can provide clean, green, and cheaper power. Self-Financing, Solar Lease Financing, and Power Purchase Agreement (PPA) Financing are all financial structures that can accomplish reduced electricity costs.
- Tradable SREC Markets- Solar Renewable Energy Certificates (SRECs) are environmental attributes that can be transacted and monetized. SRECs are the driving financial component that makes solar economically feasible. SRECs are generated from the production of solar energy and can be monetized on Flett Exchange’s live SREC markets. SRECs are market based. Unlike feed-in tariffs SRECs pass savings on to ratepayers over time, if overdevelopment occurs or if solar becomes less expensive.
- State Mandated Markets- SREC markets are state mandated. State governments are establishing stringent Renewable Portfolio Standards (RPS) and increasing their solar carve-outs. Electric suppliers need to procure SRECs to meet their RPS. If electric suppliers cannot procure enough SRECs in the open marketplace to satisfy their RPS they are subject to a Solar Alternative Compliance Payment (SACP) which is a penalty payment and can be considerably higher then the spot SREC market.
- Tax Benefits- Many solar projects are candidates for federal tax incentives and state rebates. The Investment Tax Credit (ITC) returns over 30% of a solar project’s capital cost to investors in the form of a tax credit. Section 1603 of The American Recovery and Reinvestment Act of 2009 (Stimulus Bill) also allows investors to receive a grant in lieu of tax credit when the “specified energy property” is submitted to the “grant program.” State rebates may also be available for residential and commercial solar installations. Rebate programs can differ from state to state and exist on a sliding scale depending on the size of the proposed solar facility.
- Escalating Fossil Fuel Demand- Global demand for fossil fuels is increasing while supplies are diminishing. Developed and emerging nations are competing for fossil fuels and all petroleum products come with political and environmental risk. Solar energy, on the other hand, is limitless, does not emit harmful emissions, and can be achieved without any political risks. Also if the US Dollar continues to depreciate the price of foreign fuel could continue to rise.
- Climate Change- Private and public corporations, organizations, agencies, and municipalities are implementing clean energy programs. Climate change is a growing social and political issue, both domestically and internationally. Insightful entities understand the benefits of renewable energy and the risks associated with not staying ahead of the climate curve. These players are implementing clean energy programs and are well positioned if climate legislation gets passed. The recent US healthcare decision demonstrates that political winds can shift momentarily and legislation can be passed swiftly. Renewable energy strategies and sustainability teams are becoming more conventional, as private and public entities recognize their social responsibilities to the environment and potential legislative risk.
Solar energy is a favored renewable energy source. Solar is easy to install, is a hedge against higher electricity prices, generates a SREC revenue stream, and is beneficial to the environment. So far advantageous market conditions have attracted investors to solar.
However the future of the solar market also comes with challenges and risks. Increased competition could create an overpopulated market. Inexperienced players who are attracted by favorable market conditions could sacrifice engineering and construction quality for short term monetary gains. The reduction of federal and state incentives could make solar less appealing. As the solar market evolves it will be interesting to see if it could sustain itself and emerge as an established renewable energy source.
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Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia SREC generators can register their solar systems in the District of Columbia. This provides the following SREC sellers the potential to sell their SRECs into the District of Columbia solar market.
However if too many solar generators register to sell their SRECs in a particular state or region an oversupply scenario could occur. Market saturation could diminish SREC demand and depress prices. It is also important to note, that a solar facility generating SRECs outside of Washington, DC and also registered within Washington, DC might not receive the same price of a purely sited Washington, DC SREC.
DC RPS Rules:
http://www.dcpsc.org/pdf_files/commorders/dcmr15/Chapter29.pdf
Filing Instructions for District of Columbia:
http://www.dcpsc.org/pdf_files/customerchoice/electric/Electric_fileInstruc.pdf
Applications (2 options):
Streamlined application (for generators that already have certification in the PJM region):
http://www.dcpsc.org/pdf_files/customerchoice/electric/Electric_Streamline_app.doc
Regular application (for generator that not been certified in the PJM region):
http://www.dcpsc.org/pdf_files/customerchoice/electric/Electric_application.doc
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