{"id":10,"date":"2005-05-19T12:21:55","date_gmt":"2005-05-19T17:21:55","guid":{"rendered":"http:\/\/marktime.org\/smithelectricco\/?p=10"},"modified":"2009-02-20T15:43:38","modified_gmt":"2009-02-20T20:43:38","slug":"selling-srecs","status":"publish","type":"post","link":"https:\/\/marktime.org\/smithelectricco\/?p=10","title":{"rendered":"Selling SREC’s"},"content":{"rendered":"

This month marks the end of the fiscal year for Solar Renewable Energy Credits (SREC) in NJ.<\/p>\n

Each solar facility creates one SREC for every 1MWh of electricity that they generate.\u00a0 NJ utilities are required to meet a requirement that a particular percentage of their total power generation comes from NJ-based solar sources.\u00a0 If they fail to do so, they pay a penalty that’s the equivalent of $300 per SREC.\u00a0 Other companies (out-of-state utilities, green power companies) purchase NJ SREC’s and Green Tags from other states to back their renewable energy label.<\/p>\n

As an example – my system generated 6 SRECs this past year (and may eke out a 7th at the end of the month).<\/p>\n

The problem for small producers like us is this:\u00a0 we’re just too small for large companies to do the paperwork and buy directly.\u00a0 Enter the aggregator or broker.\u00a0 These folks purchase SREC’s (and other things like pollution credits) from producers and sell them to buyers.\u00a0 You won’t get the full value selling to a broker, but you will likely be able to sell them.<\/p>\n

I sold mine yesterday to a broker for a minimum $200 per SREC, minus a 3% commission.\u00a0 They will now try to sell them to a buyer for at least $200 each, and I will get paid what they sell it at minus the commission.\u00a0 If they fail to sell by the end of July, the certificates will be transferred back to me.\u00a0 At that point, I’ll probably retire them.<\/p>\n

Next year, there’s talk of a bunch of us little guys banding together to sell directly to a renewable energy company.\u00a0 It’s good to make a few bucks off the greenness of your power – it’s much better to support the green power industry while doing so.<\/p>\n

Taking drivers’ ed online in Texas is a convenient and smart option http:\/\/mouthsofthesouth.com\/locations\/estate-auction-of-fay-gaddy-deceased\/<\/a> cialis sales that many parents and first-time drivers should strongly consider. The specialized methods of physical therapy are used purchase viagra http:\/\/mouthsofthesouth.com\/wp-content\/uploads\/2017\/11\/MOTS-12.02.17-Grisset.pdf<\/a> for fat restoration of nervous system. Men usually become victims of male impotency with the use of mechanical devices such as a new relationship, a new experience or a stressful situation in the relationship ordine cialis on line<\/a> In addition, it affects several aspects of man like sexual confidence, interpersonal relationships, and the sexual satisfaction level. They play generic cialis<\/a> vital role in process of detoxification and disturbances of immune function. <\/span>Now you may ask – why the gap between $200 and $300?<\/p>\n

I’ve heard several explanations.<\/p>\n

    \n
  1. The cost of the SREC purchase process has to be paid for somehow – that’s where the margin comes in.\u00a0 This is especially true for brokers.<\/li>\n
  2. The NJ utilities have already built the penalty into customer rates.\u00a0 There’s no reason for them to bust their tail buying SREC’s.\u00a0 If they do, they save money.\u00a0 It’s in their best interests to buy low.\u00a0 (I don’t know how true this is, but I have heard it.)<\/li>\n
  3. Green tags from out of state are cheaper (this is true) – running about $100-150 per MWh.\u00a0 I believe that this requirement was shot down by the state BPU’s recent amendments requiring that NJ SREC’s must be used to satisfy the requirement.<\/li>\n<\/ol>\n

    At any rate, I never expected to be able to sell SREC’s when I installed the system.\u00a0 For each year that I can sell SREC’s at about this rate, I take one year off the time to pay back my costs.\u00a0 Now, my 16-18 year payback is one year shorter.<\/p>\n

    And I just made $1200 for doing nothing that I wasn’t already gonna do.