• The business case for solar projects
• Federal and State incentives
• Choosing between rooftop, ground mount, or carport structures
• Analyzing the risks, costs and benefits of solar energy projects
• Project development from financing and assembling a team through design, operation, and maintenance

 
Keynote Speaker:

• Upendra Chivukula, New Jersey State Assemblyman

 
Executive Panelists:

• Michael Flett, President and CEO, Flett Exchange LLC
• Rich Cleaveland, Partner, Amper, Politziner & Mattia
• Al Bucknam, CEO SunDurance Energy
• George Cruden, Director of Market Operations, Power & Communications Market Team, Clough Harbor Associates
• Doug Janacek, Co-Chair, Real Property & Environmental Department, Gibbons P.C.
• Valerie Montecalvo, President, Bayshore Recycling Corp.
• Steve Morgan, President and CEO, American Clean Energy, LLC, and past senior executive of First Energy Corporation including CEO and Chairman of Jersey Central Power & Light
• Anthony DiGiacinto, Amper, Politziner & Mattia
• Paula Durand, Senior Venture Officer, Clean Technology, New Jersey Economic Development Authority
• Kurt Fuoti, TD bank
• Ronald Reisman, Manager of Business Outreach, New Jersey Board of Public Utilities
• James Rice, CEO, Nautilus Solar Energy, LLC
• Govi Rao, President and Chief Executive Officer, Noveda Technologies, Inc.

 
Gibbons P.C. and Eisner Amper LLP look forward to identifying solar opportunities and working together with qualified corporations to enhance the evolution of the New Jersey solar marketplace.
 

www.gibbonslaw.com	www.eisneramper.com

 
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.
 

   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.

 
   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.

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

 
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

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

      Flett Exchange is pleased to announce the results of the Township of Verona Solar Renewable Energy Certificate (SREC) public-auction. 79 Energy Year 2010 New Jersey SRECs were sold at a clearing price of $675.00. The sale was conducted on Flett Exchange’s online, transparent environmental exchange under its “Public-Auction SREC Market” and total market proceeds equaled $53,325.00. Qualified buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
      The $675.00 clearing price is 97.4% 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.

      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.

      June 15, 2010, WASHINGTON DC — — U.S. Senators proposed extending the 30% federal cash grants to renewable energy developers for another two years. Passed as part of the “2009 Recovery and Reinvestment Act”, Section 1603 gives 30% cash grants in lieu of investment tax credit (ITC) to renewable energy developers. Set to expire at the end of this year, the proposal would extend the Treasury-Department-issued grants until 2012. Though other Recovery Act programs have helped provide liquidity to the renewable energy, extending these cash grants is seen as vital to ensuring new solar, wind, and geothermal projects continue being installed across the United States.
      Prior to the “2009 Recovery and Reinvestment Act”, a 30% tax credit was given to renewable energy developers to incentivize projects. Developers then sought tax-equity partners in order to provide initial project funding. While large Wall Street banks were able to provide tax-equity services before the financial crisis; after credit markets dried up, cash grants were needed to spur continued growth in renewables. By giving developers direct access to capital, the grants provide crucial start up funding for renewable energy projects, which can run into the millions of dollars.
      The proposal comes in the form of an amendment to the “tax extender” portion of a $140 billion dollar federal unemployment and tax break extension package currently being deliberated in Congress. Six democratic senators, including Dianne Feinstein of California and Maria Cantwell of Washington, introduced the legislation last Tuesday. According to Feinstein, “The clean energy sector is the next frontier in jobs creation, so we need to ensure that developers can access financing to launch wind, solar and geothermal projects and put people to work.”
      The current grant program is credited with helping keep U.S. wind, solar, and geothermal markets afloat after the financial crisis evaporated many sources of funding for renewable energy developers. Now, industry insiders and analysts agree that the proposed extension is crucial to avoid a possible slowdown. The senators did not specify the exact cost of the latest bipartisan proposal but said it would be minimal and will help to “jumpstart” a transition to clean energy.
      It’s likely that as the grant-expiration deadline nears the federal government will act swiftly on the measure to prevent renewable energy sector from suffering a slowdown. The reliable funding provided from these incentives is vital to continued expansion and adoption of renewable energy in the United States. If this measure is passed, growth in renewables should continue to accelerate and increase as well as spur job creation in this important sector.
More about Flett Exchange:
      Flett Exchange operates a continuous, real-time trading platform where users can buy and sell solar renewable energy credits (SRECs). Flett Exchange offers long-term SREC contracts, public-auction services, power purchase agreements (PPAs), request for proposals (RFPs), voluntary REC markets, and solar consulting services for its clients. A pioneer in renewable energy markets, Flett Exchange has been publishing daily SREC settlement prices and other market data since 2007 bringing transparency, standardization, and fairness to renewable energy markets.
 
Source(s):

http://www.greentechnologydaily.com/energy/576-proposal-would-extend-cash-grant-for-renewables-to-2012

http://www.govtrack.us/congress/bill.xpd?bill=s111-2899

http://www.foxbusiness.com/story/markets/industries/utilities/senators-propose-extending-renewable-energy-grant-program/

      The Connecticut State Senate and House of Representatives passed State Bill 493 recently, but a veto from the Nutmeg State’s republican governor, M. Jodi Rell, has state democrats scrambling for votes to overturn her decision. Rell says the Bill, entitled “AN ACT REDUCING ELECTRICITY COSTS AND PROMOTING RENEWABLE ENERGY”, will accomplish neither of its two stated goals.
      Fed up with the nation’s second highest electric rates (Hawaii is number one), Connecticut residents, businesses, and municipalities are frustrated with their state government’s reluctance to provide relief. The Bill, a revised version of an earlier piece of legislation (SB 463), aims to cultivate Connecticut’s home-grown clean-energy industry by incentivizing energy efficiency, providing loans for investment in renewables, and subsidizing clean-generation with grants for residents, businesses, and municipalities. Among some of the Bill’s more ambitious objectives is a promise to install a minimum of 30 Megawatts of residential solar PV by the end of 2021, and financing for a tariff fund to subsidize up to 50 Megawatts of utility-scale solar PV capacity.
      The Bill would give municipalities new powers, allowing them to create loan programs and issue bonds in order to promote renewables and energy efficiency. It would also loosen requirements for a $200-500/kilowatt grant on “distributed resources”, such as on-site solar PV. Currently, the grants are only given if the project results in a reduction in Federally-Mandated Congestion Charges (FMCCs), a fee associated with interstate electrical transmission.
      In addition to removing the FMCC eligibility clause mandated in 2005, the Bill would cap the grant at $200/kilowatt for installers and $250/kilowatt for electric companies, decreasing down to $25 in 2013. The Bill also seeks better coordination between electric companies, businesses, municipalities, financing, and regulatory agencies. It also calls for more frequent compliance auditing, and the creation of a yet unnamed agency to review and approve guidelines for the new programs.
      The original proposal, SB 463, sought to fund the new loan programs by lowering Connecticut’s RPS and transferring the savings electricity companies would gain as a result into a special account used to subsidize the loan programs. But last minute changes to the Bill preserved incentives for energy efficiency, Combined Heating & Power (CHP), and solar PV, but removed the RPS reductions (Summary Section “B” Highlighted in YELLOW), leaving the original target of 20% by 2020 intact.
      The amended Bill, SB 493, was passed by an 81-40 vote in the Connecticut House and a 20-14 vote in the State’s Senate. Whether the democrats in the senate can rally enough votes to overturn the Governor’s veto remains to be seen. Until then, the future of Connecticut’s renewable energy program is uncertain.
 
Source(s):
http://www.cga.ct.gov/2010/TOB/S/2010SB-00463-R00-SB.htm (Full-text SB463)
http://www.cga.ct.gov/2010/TOB/S/2010SB-00493-R00-SB.htm (Full-text SB493)
http://www.cga.ct.gov/2010/VOTE/S/2010SV-00324-R00SB00493-SV.htm (Senate Vote)
http://www.cga.ct.gov/2010/VOTE/H/2010HV-00214-R00SB00493-HV.htm (House Vote)
http://www.cga.ct.gov/2010/rpt/2010-R-0178.htm (Summary)

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.

Exempting electric suppliers from incremental changes in Renewable Portfolio Standard (RPS) changes are common. In New Jersey the latest changes in Solar Renewable Energy Certificate (SREC) purchase requirements exempts suppliers that have entered into existing Basic Generation Services (BGS) increases. The supplemental increases are shifted to those electric suppliers not contracted under BGS contracts. Once the contracts run out, which is generally 3 years or less, the SREC purchase increases shift back to an even distribution for all suppliers and future BGS auction participants can factor in the higher RPS requirements. These changes are generally a small percentage.

This settlement did not solve the constitutionality of the law in regards to Interstate Commerce. It does show that at this point a minority of electric suppliers may threaten the Interstate Commerce card to achieve a settlement. The downside is that a supplier risks damaging their reputation with their customers if it is perceived that they do not support renewable energy. Lawsuits of this type bring uncertainty for investors in renewable energy. Interstate Commerce was brought up in NJ Clean Energy meetings in the last month for the first time because of the Massachusetts suit.

The settlement will be welcome news for solar developers in Massachusetts and other states such as New Jersey which only accept SRECs from in state solar facilities.

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.

U.S. Environmental Protection Agency Honors N.J. Board of Public Utilities

SREC Financing Model Receives Clean Air Excellence Award in Regulatory and Policy Innovations Category

NEWARK, N.J. – The New Jersey Board of Public Utilities (NJBPU) and New Jersey’s Clean Energy ProgramTM (NJCEP) have been recognized for New Jersey’s innovative solar financing model by the U.S. Environmental Protection Agency (EPA) through the Clean Air Excellence Awards Program. Established in 2000 at the recommendation of the Clean Air Act Advisory Committee, the Clean Air Excellence Awards Program annually honors outstanding innovative efforts that advance progress in achieving cleaner air. Award-winning organizations directly or indirectly reduce pollutant emissions, demonstrate innovation, offer sustainable outcomes, and provide a model for others to follow.

Recognized in the Regulatory and Policy Innovations category, New Jersey’s solar financing model is based on the use of Solar Renewable Energy Certificates or SRECs. Representing all of the clean energy benefits of a solar energy system, SRECs can be sold or traded separately from the power, providing solar system owners a recurring source of revenue to help offset the cost of installation.

“We are honored to receive this award from the EPA,” said Lee Solomon, President, NJBPU. “New Jersey’s SREC program is the first in the nation to successfully begin the transition from up-front incentives to a market-based system for project finance. By avoiding upfront incentives, the SREC program lowers the financial impact on ratepayers while continuing to motivate solar electricity installations.”

New Jersey is one of the fastest growing solar markets in the nation and one of the largest in terms of both installations and installed capacity. As of April 2010, more than 5,800 solar energy systems totaling 157 MW of solar capacity have been installed across the state. In addition to the use of SRECs, NJBPU’s integrated approach to solar development includes a strong Renewable Portfolio Standard with a solar set-aside that has helped to create sustainable demand and investor confidence. Interconnection and net metering standards have also made it easier for systems to connect to the distribution system.

“Innovation and commitment are the keys to environmental progress, and our Clean Air Excellence Award winners are tremendous examples,” said Gina McCarthy, EPA Assistant Administrator for Air and Radiation. “As we look to the future, these winners will help lead the way toward cleaner air and a healthier environment.”

For more information about the NJBPU or New Jersey’s Clean Energy Program visit NJCleanEnergy.com or call 866-NJSMART.

About the New Jersey Board of Public Utilities (NJBPU)
The NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by the NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about the NJBPU, visit our web site at www.nj.gov/bpu.

About the New Jersey Clean Energy Program (NJCEP)

NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State’s residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers’ energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is www.njcleanenergy.com.

Massachusetts based solar companies could lose a competitive advantage if a lawsuit filed by a Canadian company is successful. TransCanada Power, a Canadian utility provider who sells electricity to large commercial and industrial facilities in Northeast New England, is challenging a Massachusetts state law requiring utility providers to purchase all future renewable energy from firms based within the state.

According to the civil suit filed in Federal District Court on April 16th, 2010, TransCanada claims that the existing Massachusetts Solar Carve-Out and proposed Long-Term Renewable Energy Contract Program are unconstitutional and discriminatory on the grounds that they violate the Commerce Clause of US Constitution, which forbids restrictions on cross-state trading. The suit goes further claiming that the existing Carve-Out harms TransCanada and the public at large, forcing the purchase of Solar RECs at artificially and illegally high prices.

According to the suit, the current Solar Carve-Out “prevents the development of an efficient market for Solar RECs.” and, “will slow the development of an efficient market for solar energy.” TransCanada goes on to say, “Businesses and consumers will be forced to pay a higher price than they would need to pay for efficient production of renewable energy. As a result of artificially high prices, the purchasing public will be slower to adopt renewable energy.”

The suit takes direct aim at the ‘Green Communities Act’, passed in 2008, which calls for long term contracts to be entered exclusively with generators located in Massachusetts and Solar Renewable Energy Certificates to be purchased from generation units located in Massachusetts (or be forced to pay the Alternative Compliance Payment). TransCanada, whose subsidiary has committed over $300 million to construct the Kibby Wind Power Project along Kibby Mountain Range in Maine near the Canadian border, wishes to compete for Massachusetts long-term renewable energy contracts from the Kibby project and other sources located outside the state.

The New Jersey Board of Public Utilities (NJBPU) stopped accepting applications for rebates under the Renewable Energy Incentive Program (REIP) for solar installations this month. The surge in April applications has outstripped all allocated funds. The REIP provides rebate checks for solar installations in New Jersey. These grants are available for home systems and small commercial systems that are 50kW and less.

The flood of applications can be attributed to the reduction of state incentives and growing interest for installing solar. The reduction rumor began with the change of administrations as Republican Governor Chris Christie replaced former Democrat Governor John Corzine. Governor Christie inherited a budget deficit and is proactively cutting state spending in all segments of New Jersey Government. Shortly after his election the incentives for the REIP program were reduced from $1.75 per watt to $1.35 for residential installations and $1.00 per watt to $.80 cents for commercial installations. Installers across the Garden State quickly accelerated sales and were seen lining up at state offices to submit their applications for the second funding cycle.

At the last Renewable Energy Committee meeting in Trenton, New Jersey, the Office of Clean Energy asked for stakeholder suggestions on how to administer the third round of applications in September. Suggestions like entity caps are now being considered. The prospect of increasing funding was abruptly dismissed by NJBPU staff citing that adequate funds are currently not available at this time.

According to an article published by Associated Press/1010 WINS on May 12, 2010, BPU spokesman Greg Reinert said, “the BPU decided not to take any more applications until the next funding cycle begins Sept. 1.But all the eligible projects that were submitted will still get the rebates, he said, even if the amount surpasses the $6 million set aside for them. Money could be transferred from another fund, he said.” This information was not available at the Renewable Energy Committee meeting that day since many participants were complaining about waiting on line and missing the deadline. However, it appears this topic could be addressed in more detail at the next BPU board meeting on June 7, 2010 and there is approximately $8 million in CORE projects that could alleviate funding draw downs.

The discontinuing of REIP rebate checks could potentially hurt the future of residential and small business solar installations. In the past, the NJBPU has been vigilant for making solar democratic process; homeowners and small business were given incentives to keep them competitive with larger utility, government, and large corporate projects. This has created a more diverse and distributed mix of solar thus generating a macro benefit to all electricity users through less impact on the grid. Residents and small business in New Jersey were given a fair chance to participate in renewable energy projects through the REIP rebates.

Solar Renewable Energy Certificates (SRECs) are now coming to the aid of the New Jersey solar market. Over the past five New Jersey has weaned itself off of an incentive based program and SRECs have evolved into reliable income stream. If this transition had not been achieved, solar investors would be at the mercy of rebates and the market would virtually shut down. Instead, the market is busier than ever. Mid scale projects in the 200kW-500kW range are leading the way for NJ solar development. Solar investors use the SREC revenue to pay down the cost of the system. In a market in which regulatory risk is just as high as supply/demand risk, investors feel more confident in a market based SREC program instead of relying on politicians who could discontinue a program at any time.

The buoyant price of New Jersey SRECs is an attractive incentive to solar investors.
Daily settlement prices on the Flett Exchange spot SREC exchange have been consistently 95% to 97% of the Solar Alternative Compliance Payment (SACP) for the second half of 2010.

 
Flett Exchange is pleased to announce the results of the Town of Morristown Solar Renewable Energy Certificate (SREC) sale. 190 energy year 2010 New Jersey SRECs were sold at a clearing price of $676.25. The sale was conducted Flett Exchange’s electronic marketplace under its Public-Auction SREC Market and total market proceeds equaled $128,487.50. Registered buyers and the public could observe the bidding in real time by logging in to Flett Exchange.
 
The $676.25 clearing price is 97.5% 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.
 
The Town of Morristown generated these Solar RECs from a solar facility located on their waste water treatment plant.
 
Click Here To View Our Upcoming Public Auction Schedule