Delaware
Delaware Solar Renewable Energy Certificates (SRECs)
Delaware SREC Alert!
July 29th, 2010
The first Delaware SRECs for the 2011 Energy Year (vintage) will be created by PJM-GATS on Friday, July 30, 2010. DE SRECs are generated on an energy year basis which runs from Jun 1 to May 31. Values for 2010 vintage SRECs differ from the values of 2011 SRECs. Valuation differentials between specific SREC vintages are attributable to two factors: 1) the estimated future value of compliance payments. 2) the potential signing of an increased solar requirement law. SRECs are valid for RPS compliance for the year generated and the following 2 years. Sellers will have to check which energy year SRECs they have before they sell them on Flett Exchange. Prices for 2010 DE SRECs have softened recently due to more buyer interest in 2011 DE SRECs.
The Flett Exchange trading platform allows for the simultaneous listing of multiple vintages. Our transparent and competitive trading platform ensures that our buyers and sellers achieve the market value for their SRECs at the most competitive rate in the industry. Our brokers are available to answer any questions that you have at 201-209-0234.
Delaware Set to Boost RPS
July 29th, 2010
June 29th, 2010 –
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The Delaware House of Representatives has passed the latest revision of SB 119, entitled “AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO THE RENEWABLE ENERGY PORTFOLIO STANDARDS” by a margin of twenty-six to seven. The latest in a series of energy bills, Substitute 1 for SB 119 extends and increases Delaware’s RPS, raises penalties for non-compliance, and requires municipal electricity suppliers and rural cooperatives to submit their own plans for renewable energy, shall they choose to exempt themselves from the program. Already passed by the Senate, the bill is now awaiting the signature of Governor Jack Markell. |
After the bill is signed into law, the current RPS of 20% by 2019 with 2.005% minimum from solar will be increased to 25% by 2025 with 3.5% from solar. Additionally, the Alternative Compliance Penalty will be raised from $250 to $400 per MWh, with the $50 annual increase for non-compliant utilities remaining in effect. This comes as welcomed news for Delaware’s home-grown solar industry and residents, who depend on incentive programs to spur new installations. Short-term solar targets are also slated to increase, with new targets of .2% by 2011 and .354% by 2014 going into effect.
The bill also incentivizes locally-sourced solar. It provides an additional 10% credit toward RPS compliance for SRECs produced by solar facilities that were built using at least 75% in-state labor or consist of at least 50% in-state manufactured components. These provisions demonstrate Delaware’s commitment adopting clean energy while still fostering a robust home-grown solar industry.
Also, new provisions have been added to allow state energy coordinators to adjust the ACP by as much as 20% “to determine reasonableness compared to market-based SREC prices” and another that allows the solar requirement to be frozen all together if the total cost of compliance exceeds 1% of the retail cost of electricity. These amendments demonstrate Delaware’s willingness to provide better incentives for going green while still safeguarding against unreasonable rate hikes.
Delaware’s amendments echo similar legislation in neighboring Maryland, which has recently expanded its own renewable energy portfolio, and demonstrates a growing trend all over the United States toward fostering growth in renewable energy. Delaware and other PJM states are leading the way in creating effective renewable energy programs, striking a balance between increasing clean energy while still protecting tax payers from unfair rate hikes.
SB 119 – Original, Delaware.gov Legis Home Page:
http://legis.delaware.gov/LIS/lis145.nsf/vwLegislation/SB+119/$file/legis.html?open
http://legis.delaware.gov/LIS/LIS145.NSF/7712cf7cc0e9227a852568470077336f/6b0482f3610e0c11852575750058d5a8?OpenDocument
SB 119 – Substitute 1, Delaware.gov Legis Home Page:
http://legis.delaware.gov/LIS/lis145.nsf/vwLegislation/SS+1+for+SB+119/$file/legis.html?open
http://legis.delaware.gov/LIS/LIS145.NSF/b51f4b5053c30a5c852574480048057a/a189cc0072f401998525771300660055?OpenDocument
US Solar Capacity Surges in 2009 on New Economic Incentives
April 21st, 2010
LOS ANGELES, APRIL 15, 2010 — (Reuters) — Installed solar capacity jumped an astonishing 37% in 2009 following an onslaught of state and federal incentives offered during the recent economic crisis to help prop-up demand for new solar equipment. Grants, subsidies, tax-credits and cash incentives helped push revenue past $4 Billion in 2009, a 36% increase from the previous year.
According to a report released last Thursday by solar advocates it was the fourth straight year of unprecedented growth for the solar photo-voltaic industry here in the United States. This contrasts with the long-standing European solar power industry, which has seen a decrease as it’s mainstay nations ramp-down their incentive programs.
New U.S. solar capacity reached 481 Megawatts (MW) last year, an increase of 130 MW from 351 in 2008. Solar thermal for water heating also rose, but at a more modest 10% on the year. The only decline was seen in solar-pool heating, which saw a 10% decline blamed mostly on the slowdown in the housing sector.
Analysts say that the spike in U.S. growth is also attributed to lower prices of solar hardware, which the Solar Energy Industries Association (SEIA) reported fell an estimated 40% in recent years. “Despite the Great Recession of 2009, the U.S. solar industry had a winning year and posted strong growth numbers… Consumers took notice that now is the best time to go solar,” says SEIA CEO Thone Resch. The increase in solar was led by California, with New Jersey coming in second place, followed by Florida, then Arizona.
According to the SEIA, six solar utility projects also came on line in 2009, including both solar PV and solar concentration plants. Despite the increase, solar still remains under 1% of utilities generation within the United States. The SEIA is optimistic for the future however and predicts 17 Gigawatts of solar power down the line, enough to power over 3 million homes.
“Now we’re talking gigawatts of solar, not megawatts,” said Resch.
View the SEIA’s 2009 Industry Year in Review Here:
http://seia.org/galleries/default-file/2009%20Solar%20Industry%20Year%20in%20Review.pdf
View the original article from Reuters Here:
http://www.reuters.com/article/idUSN159853820100415
(Reporting by Dana Ford; Editing by Marguerita Choy)
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