THE VOLATILE SOLAR REC MARKET

Experts Warn, Know The Game Before Betting On SRECs

Mark Del Franco, 11 December 2013 (Solar Industry)

“Solar renewable energy certificates (SRECs) can be vital to the economics of a solar project. Combined with a power purchase agreement (PPA), SRECs can help establish a steady revenue stream for solar project owners…[SRECs] can be sold on the spot market through an auction or exchange. An aggregator can sell SRECs to a utility or energy company through a fixed-price, multi-year contract or, less commonly, in a lump-sum payment…[But] SRECs do not have any intrinsic value…[It] is determined by the market, subject to supply-and-demand constraints…And while SREC programs have been a key driver of solar development in states such as Delaware, Maryland, Massachusetts, New Jersey, Ohio, Pennsylvania and Washington, D.C., recent market examples [in New Mexico and New Jersey] offer a cautionary tale…” click here for more

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