Massachusetts SREC Market Update

Karbone Market Research Briefs

The Massachusetts Department of Energy Resources (DOER) adjusted downward the Solar Alternative Compliance Payment (SACP) by 8.3%, from $600 to $550 for 2011 related compliance. This reduction appears, at least in part, to have resulted from declining PV module prices. The DOER stated that installed project costs have decreased 5 to 10% since the program inception.

Pennsylvania SREC Market Update

Karbone Market Research Briefs

The PA Alternative Energy Portfolio Standard (AEPS) is already adequately supplied for Reporting Year (“RY”) 2011 and will likely remain long through RY 2012. Despite utility RPS exemptions expiring in January 2011, inclusion of out-of-state facilities will keep installed capacity high through 2012.

New Jersey SREC Market Overview

Karbone Market Research Briefs

With the expectation of the 30% Cash Grant ceasing at year-end, December 2010 installed capacity increased by 25 MW and by 20 MW in January 2011. The build rate has returned to normal in February, with the addition of 11 MW taking capacity to 291 MW.

PJM SREC Market Overview: Strong Market Demand Growth

Karbone Market Research Briefs

The PJM Solar Renewable Energy Certificate (SREC) market is set for greater than 15% compound annual growth from 2011 through 2014. The most established market, New Jersey, will continue to lead in 2011 making up 83% of SREC demand within PJM.  As solar RPS obligations ramp up, Delaware and Maryland are poised for their first period of strong growth. Markets in Pennsylvania and Ohio continue to mature. However, inclusion of out-of-state SRECs leaves Pennsylvania currently oversupplied and Ohio vulnerable to oversupply. Total PJM SREC demand for 2011 will be greater than 600,000 MWh, increasing to well over 1.2 million by 2014.

Maryland SREC Market Overview

Karbone Market Research Briefs

Senate Bill 715 will facilitate the procurement of solar renewable energy credits (SRECS) under long–term contracts as part of the competitive selection of wholesale electricity suppliers. LongXterm contracts will result in lower average SREC prices.

Massachussets SREC Market Update

Karbone Market Research Briefs

The Massachusetts Department of Energy Resources (DOER) adjusted downward the Solar Alternative Compliance Payment (SACP) by 8.3%, from $600 to $550 for 2011 related compliance. This reduction appears, at least in part, to have resulted from declining PV module prices. The DOER stated that installed project costs have decreased 5 to 10% since the program inception.

Ohio SREC Market Overview and Update

Karbone Market Research Briefs

The Ohio Alternative Energy Portfolio Standard (AEPS) is one of the most recent state Renewable Portfolio Standards (RPS) to include a solar requirement. Like other states in PJM, the AEPS includes an SREC market, distinct from other classes of RECs.

California REC Market Update: Senate Bill 2

Karbone Market Research Briefs

With a new Governor in office, Senators Simitian, Kehoe and Steinberg are attempting to legislate the ARB’s executive order to extend the CA RPS, such that California utilities and retail electric sellers would need to provide 33% of electricity sales from renewable sources by 2020. The most recent attempt to undertake this (SB 722) narrowly missed getting passed in 2010. This new piece of legislation largely mirrors the previous bill’s parameters with portfolio content categories, also known as buckets, for classifying RPS renewable resources and limiting the quantities for each of the types.

Ohio SREC Market Overview and Update

Karbone Market Research Briefs

The Ohio Alternative Energy Resource Standard (AERS) is one of the most recent state Renewable Portfolio Standards (RPS) to include a solar requirement. Like other states in PJM, the AERS includes an SREC market, distinct from other classes of RECs.

Massachusetts SREC Market Update

Karbone Market Research Briefs

The Massachusetts Department of Energy Resources (DOER) adjusted downward the Solar Alternative Compliance payment (SACP) by 8.3% from $600 to $550 for 2011 related compliance. This reduction appears, at least in part, to have resulted from declining PV module prices. The DOER stated that installed project costs have decreased 5 to 10% since the program inception.