New Jersey Solar Renewable Energy Certificates -- News

Recently Flett Exchange, LLCs Founder and President Michael Flett was featured in a extensive article covering the nature of Flett Exchanges role as an unregulated commodities trading platform and their dominating presence in the New Jersey Solar Renewable Energy Certificate (”NJ SREC”) program. Biz4NJ.com a provider of business related news in NJ featured the recent article covering the theory imbedded in Flett Exchanges business model and the passion for excellence that has established Flett Exchange, LLC as one of the main providers of market transparency, informational postings, and blog rolls in the NJ SREC market. The article also investigates the technology behind the exchange and the true meaning of the Flett Exchange motto” Trade Everything”.

To read the full article please follow the link provided below or navigate to www.biz4nj.com and look for the article titled “The Future with Flett”

http://www.biz4nj.com/articles.php?artID=50

Vintage Year 2008:

Current volume for the vintage year 2008 Solar Renewable Energy Certificates (”SREC”) has been slowing considerably over the past few weeks. This isn’t a surprise considering there is a projected short fall in relation to the RPS required by the Load Serving Entities (”LSEs”). However, it remains vital that producers still holding their 2008 SRECs find buyers immediately as there is no telling when the utilities will stop their buying. Our current bid is $255 with no immediate counter offers.

Vintage Year 2009:

As we are still in the true up period for vintage year 2008 we have not seen any significant volume in the 2009 market. This is mainly because buyers are focusing on wrapping up their 2008 compliance buying before placing significant buy orders in the 2009 market. Thus far we have sold 2009s from $425 to $450 however volume has been low. Our current market remains $425 bid at $450. We have heard of a one year contract for all of the producers 2009s SRECs at $500 but haven’t seen anything else at those levels. On the sell side producers have been requesting from the lower $500s upwards to $675.

For more pricing information and questions call Flett Exchange at 201 209 0234 or email sproft@flettexchange.com

Flett Exchange, LLC. Recently signed up its 250th Customer equating to a 40% increase since April 21st when it reached the 150th mark. This growth signifies a growing interest in Flett Exchanges’ bilateral trading platform which allows buyers and sellers to interact in an open market environment while placing real time bids and offers for New Jerseys Solar Renewable Energy Certificates (NJ SRECS).

Flett Exchange has become a market wide resource providing market transparency, analysis, and up to date news focusing on regulatory and market related changes that affect all participants within New Jerseys’ Solar Renewable Energy Market. Further more as New Jerseys’ Renewable Energy Market continues to grow be assured that Flett Exchange will provide the market with pricing transparency and up to date news and blog releases as changes occur.

For questions, comments, or to open an account with Flett Exchange, LLC Please call 201 209 0234, visit www.flettexchange.com, or email sproft@flettexchange.com

The New Jersey Board of Public Utilities has recently released a notice to all users of the Clean Power Markets (CPM) NJ SREC trading platform of a move to the Generation Attributes Tracking System (GATS) operated by the tri state PJM Environmental Information System (PJM-EIS). However, the time frame for the transition is dependent on two factors. First the speed at which PJM-EIS can employ the necessary changes in order to meet the functionality requirements SREC generators will require. And secondly, the contract between the Board and CPM will expire this coming September forcing the Board to transfer the program to GATS immediately. So far the Board is attempting to renew the contract for another year which will allow them to take the longer transition approach and move the entire SREC system to GATS by next September.

Currently the Board of Public Utilities Office of Clean Energy has two options. Assuming the contract extension is signed with CPM the Board will initiate a SLOW implementation which will begin august 1 of this year and be completed by September 1^st 2009. However, if the contract is not extended the Board will initiate a FAST implementation which will begin august 1^st 2008 and completed the following month on September 1^st. A decision regarding the contract extension with CPM will be released on July 1^st.

Flett Exchange will keep you updated on any new developments.

Flett Exchange, LLC. signed up its 150^th customer for its New Jersey Solar Renewable Energy Certificate NJ SREC Market this week. Producers of solar energy in New Jersey earn certificates (SREC) that they can sell to power producers. Power producers in New Jersey are required to generate a percentage of their power through solar and if they don’t they have to purchase SRECs from those who do produce electricity via solar.

Flett Exchange customers are made up of producers of solar energy along with electricity producers in New Jersey. The solar energy producers must be registered with New Jersey’s Clean Energy Program in order to earn the certificates. Electricity generators use Flett Exchange’s SREC market to help them procure SRECs for compliance.

Flett Exchange customers have their own username and password which enables them to log on to the Flett Exchange SREC market. The Flett Exchange SREC market is an internet based commodities trading platform. Users can see the prices that buyers are willing to pay along with the prices sellers are asking for their SRECs. All transactions for each day are listed on the marketplace as well for price comparison.

Sellers enjoy the ability to monitor price action and  place orders at any time to sell their SRECs. Sellers do not have to speak to numerous aggregators as they do when they post on the bulletin board on the New Jersey Clean Energy Program (NJCEP) website.

Electric producers place bulk orders to buy SRECs on Flett Exchange. Flett  Exchange deals with all of the individual sellers and handles payment and correspondence with the sellers. When the buyer’s quantity is filled Flett Exchange transfers the SRECs to the buyers account on the NJCEP website and issues one invoice. Buyers of SRECs enjoy the combination of the ease of procuring the SRECs along with the ability to move their purchase price in real time.

SREC producers and buyers can open an account with Flett Exchange, LLC by calling 201 209 0234, filling an “open an account” on the www.flettexchange.com website or by email mflett@flettexchange.com

PSE&G received approval by the New Jersey Board of Public Utilities BPU to offer $105 million in loans to help finance the installation of solar in New Jersey.

Here are the details:

– PSE&G’s solar program will be open to all of its electric customers,
         including low-income, residential, commercial, industrial and
         municipal/governmental. The solar panels would be owned by the
         developer or the host customer.

      — Applications will be available for two years and accepted on a
         first-come, first-served basis until 30 megawatts of projects have
         been developed.

      — PSE&G would provide loans to developers or customers to cover
         approximately 40-60 percent of the cost of a solar installation
         project, depending on the projected output of the solar energy system
         and the cost of the system. The borrower would repay the principal,
         plus interest, over 10 years for residential customers and over 15
         years for all other borrowers, a considerably longer investment
         timeframe than traditional lenders are willing to provide for solar
         installations.

      — The remaining project cost would be funded by the owner of the solar
         installation. The owner may have access to funds from banks and
         investors. In addition, the owner may be eligible for a federal
         investment tax credit.  (Utilities are currently not eligible for
         this tax incentive.)

      — Owners of solar energy systems would repay the loan with Solar
         Renewable Energy Certificates or SRECs, which are created every time
         the system generates solar electricity.  It takes one megawatthour of
         solar generation to create one SREC, which has value in the
         marketplace.  An SREC is a New Jersey tradable product that
         represents the clean energy benefits of electricity generated from a
         solar energy system. For the purposes of this program, an SREC is
         valued at the market price or $475, whichever is higher. Borrowers
         could also repay the loans in cash.

      — PSE&G’s electric customers will pay for the cost of the solar program
         through the Solar Pilot Recovery Charge (SPRC), which will be
         included in the delivery part of their monthly bill. PSE&G will sell
         the SRECs it receives for loan repayment in an auction, and credit
         the proceeds from the sale to customers through the SPRC, which will
         offset a portion of the program costs.

 go to http://www.pseg.com/customer/solar/index.jsp to get details about PSE&G solar loan program

There have been reports of SREC buyers trying to lock in sellers into the 2009 SREC vintage at prices that do not take into account the rise in the SCAP. The SCAP rises from $300 per SREC for the 2008 vintage to $711 for the 2009 SREC vintages. The typical deal is when a buyer buys the balance of a sellers 2008 SRECs and offers to buy the 2009 SRECs in the high $200s area. This may sound like a good deal to a seller who has never sold SRECS in the high $200 level before. If you have one of these contracts let us know what the buyer told you so that others don’t get taken advantage of.

Estimates are in the high $400 area to low $500 area for $2009 SRECS. Of course this is all speculation until the 2009 SRECS are issued and they start to trade! Prices can go anywhere. Look to Flett Exchange to see where SRECS are REALLY traded.

Activity in the NJ SREC market has recently picked up. Producers have now produced approximately 70% of their 2008 SRECs. The production period ends on May 31 for the 2008 generation year.

Electricity Providers in New Jersey are also actively satisfying their requirements. They have until August 31 to procure enough SRECs for the 2008 reporting period.

SREC producers are actively selling their SRECS to avoid the possibility of them going worthless as they did at the end of the 2007 reporting year. Some producers waited too long last year. This year they may not risk making another $10 per SREC and letting the price get away. See our chart on the SREC market home for the price action at the end of the 2007 vintage period.

There is also the view by most others that demand is tight and the Buyers will be forced to pay the $300 SCAP payment if there are not enough 2008 SRECS.

Flett Exchange saw its first trade in the NJ SREC market just seven days after the launch. A trade for 3 SRECs was done at a price of $200 each. The market after the trade was $192.00 bid, $225.00 offered for 2007 vintage certificates. The market for 2008 is $185.00 bid, no offer. 

The seller has a home solar installation and earns about 12 certificates per year.

Buyers and sellers of SRECs can call in their orders to a Flett Exchange representative or manage them their selves from any computer.

Flett Exchange announces its entry as a broker in Solar Energy in the NJ SREC program, providing a live electronic website for the state of New Jersey’s “Solar Renewable Energy Certificates” (SRECs). By using an innovative commodity platform Flett Exchange makes buying and selling of certificates on the internet fast and easy. Users benefit by seeing live buy and sell orders in real-time, providing instant price discovery through market transparency.

With Flett Exchange’s electronic platform those trading Solar Energy credits will have direct access to an open marketplace to interact with aggregators, brokers and individuals looking to buy or sell SRECs.

This platform will enable all market participants to access an open and transparent marketplace thus commoditizing the NJ SRECs. Market based pricing should help the State of New Jersey reach its goal of increasing solar capacity from 90 megawatts (MW) in 2008 to 1500 MW in 2020 and help the state go 20% green by that time. Without an SREC market the State would have to contribute $500,000,000 per year to achieve the goals. An open marketplace for SRECs will be needed to reach that type of capital requirements. Flett Exchange will enable the type of transactions needed by the program.

Flett Exchange will offer its exchange services to all market participants interested in the NJ SREC program - call Flett Exchange at (201) 209-0234.

Once accounts have been created participants will then be able to actively enter buy and sell orders in real time on the Exchange’s open market place. All transfers of SRECs are done on the NJCEP.com website.