Microsoft Office Pro 2010 Why spot SREC Prices Hav

[lettsen04517]

In July 2010,Office 2007 Ultimate Key, Pennsylvania Solar Renewable Energy Credits (SRECs) were trading at about $300 each. Techniques located in Pennsylvania too as adjacent states, including Virginia and Delaware,Office 2010 Professional Plus, could register their photo voltaic electricity technique using the Pennsylvania Option Energy Method (PA AEPS), acquire a Pennsylvania certification quantity, and generate SRECs valued of all around $0.thirty per KWH.
Prices for Pennsylvania SRECs remained high for many months. In November 2010, spot rates have been nevertheless buying and selling over $300. For the duration of this time period, Sol Techniques was supplying a 5-year fixed cost contract for $280.00 per SREC and I often heard potential customers and program owners ask why the cost was so low. Several system entrepreneurs anticipated SREC charges to rise, and in place of electing the long-term agreement, these system entrepreneurs established to sell their SRECs about the spot marketplace.
Today,Microsoft Office Standard, SREC market circumstances have altered and Pennsylvania SRECs have dropped substantially. SRECs sold around the spot market place are clearing within the spot market place for approximately half of their July 2010 value (i.e. $150 per SREC) — when they are clearing at all.
The decline in Pennsylvania photo voltaic REC charges can be explained very simply. As of this past week, roughly 72 MW of solar capacity was registered to produce SRECs in Pennsylvania. However, the SREC demand, as dictated by Pennsylvania’s Substitute Vitality Portfolio Standards Act, requires only 34 MW of photo voltaic capacity in order to meet the solar-carve out for 2011 Compliance 12 months. (The Pennsylvania Compliance Yr is between June 1, 2010 and May 31, 2011).
The 38 MW differential between the compliance appetite (SREC demand) and the methods actually registered in Pennsylvania (SREC supply) has created an oversupply of PA SRECs. As compliance commodities,Office Professional 2010 Key, SRECs (which are simply the environmental attributes associated with 1 megawatt hour of solar electricity) have no intrinsic appeal. In other words, if there is no buyer for the photo voltaic REC, it is worthless. With all the 2011 Compliance Yr coming to a close, and regulated entities shoring up their purchases of SRECs, the PA SREC market place is suffering. (Perhaps this explains why only 1 of the 396 PA SRECs offered for sale cleared in the January 2011 PJM SAGE Auction).
The oversupply of SRECs in Pennsylvania is also having a spill-over effect in linked markets (SREC markets are linked when you can use a credit from one state for compliance in another state). For example, some states allow a portion of their solar-carve out (photo voltaic demand) to be satisfied with SRECs from other states. However, as Pennsylvania became oversupplied, these other states also became oversupplied, and the result is deflated SREC spot market rates across numerous markets.
At Sol Programs, we understand and monitor the dynamics within SREC markets, and do our best to mitigate risks for technique entrepreneurs by registering their system in multiple states and by providing them with various options for monetizing their SRECs that provide them using the appropriate level of risk or security through products like Sol Brokerage, Sol Annuity, and Sol Upfront. For example, we have several buyers in Pennsylvania that signed up for a 5 year agreement who are receiving $280 for every SREC that their technique generates. These customers have ensured that they will meet their photo voltaic investment goals regardless of market place situations.
About Sol Systems:
Sol Systems is a photo voltaic energy finance firm. With thousands of consumers and hundreds of partners throughout the United States,Microsoft Office Pro 2010, Sol Methods is the largest and oldest SREC aggregator. We provide homeowners, businesses, photo voltaic installers, and developers with sophisticated financing solutions that help make solar vitality more affordable. Sol Programs also helps vitality suppliers and utilities manage and meet their solar RPS requirements by providing access to diverse SREC portfolios. For more information, please visit www.solsystemscompany.com.