Posted on Aug. 2, 2024

On July 30th 2024, Flett Exchange became the first broker to launch the Maryland Certified SREC market. Currently, homeowners with systems installed after 07/01/24 will begin generating Certified SRECs on 01/01/2025, which are expected to be worth around 1.5x the current Legacy MD SRECs. Homeowners in Maryland who are interested in the possibility of installing solar will benefit massively from these higher priced SRECs, and can enjoy the benefit of incentives like the Federal Investment Tax Credit and the MD FY2025 Solar Access Program, which is designed to provide grant money for low to moderate income residents. 

Flett Exchange has also released a free to use solar installation financial model. We suggest using this model to fully realize the advantages and long term cash flows of a solar investment before having a conversation with a solar installer. Flett Exchange is a neutral third party that does not profit off of the installation of a solar array; we simply broker SRECs produced by homeowners. This affords us the unique position to offer unbiased, informative, and realistic forecasts and consulting on solar investments. If you are interested in potentially going solar, contact Flett Exchange for a zero cost consultation service and we can help match you with a solar installation company. The goal of Flett Exchange, ultimately, is to broker more SREC deals; we are not involved in any capacity with the process of installing solar arrays. It is our hope that this complementary service will steer you in our direction to sell your SRECs post installation. 

MD Solar PV Installation Cash Flow Model

Listed below are some key assumptions of the model: 

• The Maryland Energy Administration will provide grants of $750/kW  with a $7,500 cap to low to middle income homeowners for installation of a residential solar system

• The Maryland utility bill inflation rate is 2.83% annually. This number is derived from the average utility bill from 2014-2023 for five major state power companies: Delmarva Power, PEPCO, SMECO, BGE, and Potomac Edison. 

• A residential solar installation will yield positive cash flow from SREC income, as well as an implied positive cash flow from avoided utility costs

• The SACP set by the Maryland RPS will decrease incrementally as expected, and this benchmark will serve as a proxy for yearly SREC prices throughout the life of the system 

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Posted on July 25, 2024

Are you a Maryland resident interested in installing a cost effective solar array on your home or business? If so, this news is for you!

With the recent passage of SB0783, known as the Brighter Tomorrow Act, the Maryland Energy Administration has proposed funding a grant pool of $18 million for FY2025 in compliance with the aforementioned bill [9-2016] . This ACT is specifically designed to enable low to moderate income Marylanders gain access to affordable renewable energy systems. Qualifying homeowners may be entitled to up to $7,500 in reimbursement for their solar system installation cost. ($750 per Kw up to 10Kw)

Additionally, under the Inflation Reduction Act signed by President Biden in 2022, homeowners nationwide can take advantage of a tax credit to offset the cost of solar installation as defined in 26 U.S.C. § 25D. This covers 30% of your installation cost. If you don’t have the taxable appetite Flett Exchange can sell your tax credit for you.

Flett Exchange is the easiest one stop option to manage your personal solar project finance and subsequent account management for sale of Certified MD SRECs (for more information on the new Maryland SREC program for systems installed after 01/01/2025, see the Maryland Solar Bill.)

Once you have decided to install a cost-effective solar system on your home and want to begin selling your certified SRECs, Flett Exchange will:

Provide a no-cost estimate for your system installation, and 

1. Submit your grant application to the state of Maryland 

2. Connect you with a local installation company 

3. Register your array with PJM GATS

4. Manage the sale of your Certified SRECs (estimated to be worth $75/KW in 2025) 

5. Provide 5 day per week phone and email support for questions and concerns you may have along the way 

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Posted on March 2, 2011

How will your company take advantage of the extension of the 1603 Treasury Program and 100 percent bonus depreciation? SEIA’s updated “Guide to Federal Tax Incentives for Solar Energy” will help you learn how to calculate your tax basis and depreciation basis as well as update you on changes in the section 1603 Treasury grant program. The guide is free to SEIA members and can be downloaded by logging into the members-only section of www.seia.org.

More on Flett Exchange:

Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Over 2,000 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers (it’s simple sell a SREC and get a check!) Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.

Flett Exchange brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-7 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services.

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Federal GrantsSREC

Posted on Feb. 24, 2011

A bill passed by the New Jersey State Legislature allowing wind and solar facilities to be built on closed landfills and quarries is awaiting Governor Christies signature. This legislation continues the trend towards larger solar arrays. In the end this will better enable solar developers in the State to achieve the amount of solar installs to satisfy renewable portfolio standard RPS requirements. The amount of solar installed in NJ has consistently not been enough to generate enough Solar Renewable Energy Certificates SRECs needed by electricity producers in New Jersey. This has resulted in SREC prices trading at 97% of the solar alternative compliance payment SACP for years. It is likely that financing for solar at these landfills will be attained through bond issues at the county levels. Repayment of the bonds will rely on revenue from SRECs along with the sale of electricity. Public – private structures that are designed correctly can bring the best value to ratepayers and counties alike.

The following is a copy of the bill:

[Second Reprint]

SENATE, No. 2126

STATE OF NEW JERSEY

214th LEGISLATURE

 
More on Flett Exchange: 
 
Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Over 2,000 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers (it’s simple sell a SREC and get a check!) Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 
Flett Exchange brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-7 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services.

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Posted on Dec. 21, 2010

DECEMBER 21st, 2010 – The United States congress reached a compromise Thursday night, passing a major tax-cut deal including an extension of hotly-contested “Bush tax cuts”. The bill, which was signed into law over the weekend by President Obama, also included a one-year extension of the popular Federal incentive program for alternative energy projects. Solar and wind companies nationwide breathed a collective sigh of relief after the 1603 Treasury grant program was piggybacked into the overall package by the House of Representatives following intense lobbying on behalf of the renewables industry.
 
The program, which would have expired at the end of the year, covers up to 30% of the cost of renewable energy projects, which supporters claim has created over 100,000 jobs and more than $18 Billion in investments for thousands of clean generation facilities all across the United States.
“Orders will be on the rise for new wind power, and investors will put more capital into the U.S. economy,” said Denise Bode, chief executive of the American Wind Energy Association.
 
The run-up to the vote had been a nail-biting experience as developers rushed to meet the deadline in the event the extension failed to pass, said Rhone Resch, chief executive for the Solar Energy Industries Association (SEIA). “It was kind of a roller coaster there,” he said. “There were a lot of projects that were getting close to being canceled. Now, this gives them some flexibility to get their financing together and start construction at a time when they need it most.”
 
Industry leaders are hopeful and may see this most-recent triumph as sign of overall bipartisan support for renewable energy. As vital as the 1603 Treasury grant program has proven to be, they’re likely already looking forward to another extension next year. But for now, the one-year reprieve will do quite nicely, Resch said. “It keeps the lights on, keeps us growing,” he said. “There are a lot of happy people in the industry today, and 2011 is looking like it’ll be a true breakout year.”
 
Original Reporting by Tiffany Hsu at the Los Angel Times:

http://latimesblogs.latimes.com/technology/2010/12/congress-extends-federal-treasury-grant-program-for-renewable-energy-projects-.html

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Federal Grants

Posted on Nov. 18, 2010

As Reported by Reuters News Service it may be expected that the Grant in-Lieu-of the Federal Tax Credit may be extended in the lame duck session of Congress. The ability to obtain a grant expires on Dec 31, 2010. When Congress begins in January the ability to extend the Grant diminishes due to the increase in Republicans.
 

If the Grant expires solar developers will have to find tax equity partners for solar projects instead of just filing paperwork and receiving a cash grant within 60 days. In general, the Investment Tax Credit (ITC) has been worth more than the grant, however solar developers prefer not having to obtain a tax equity partner. Many solar developers are not sophisticated enough to obtain tax equity partners and the inclusion of a tax equity partner generally requires forward hedging to mitigate downward price risk in SREC based markets. Forward hedging and inclusion of another partner generally diminishes returns and forces installers to be more competitive. This will squeeze developers and integrators margins.
 

An extension of the Grant is bad news for present solar investors in states like New Jersey where increased development is trending towards an oversupply of solar in the next year. Grant expiration is the best way to throttle back new installations in the next year. This may allow the shortage of SRECs to continue thus potentially delaying a drop in SREC values. SREC values in New Jersey have been trading close to the Solar Alternative Compliance Payment (SACP) due to a shortage of solar installations compared to State requirements. If the rapid rate of installs continues, the market can become oversupplied sooner rather then later. The extension of the Grant has an increased likelihood of passing due to the fact that is will be included in legislation extending the Bush tax cuts. This will force Republicans to vote yes.
 

More on Flett Exchange: 
Flett Exchange is a leading environmental exchange and brokerage firm. Our online trading platform brings transparency, price discovery, and liquidity to Solar Renewable Energy Certificates (SRECs). Over 1,500 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs in a secure and seamless online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers (it’s simple sell a SREC and get a check!) Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, CT, MA, and DC and supported by trained solar professionals with specialized knowledge and proven experience.
 

Flett Exchange brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-7 years in duration. Our stringent vetting process ensures that quality solar projects are presented to the market in a skillful manner. Buyers and sellers utilize Flett Exchange for long-term SREC contracts gain direct access to large pools of SRECs, while mitigating risk and locking-in profits. Please visit www.flettexchange.com to learn more about our services.

TAGS:
New JerseyFederal GrantsSREC

Posted on Sept. 16, 2010

It’s that time of year when many Americans are just returning from a summer vacation.
 
During their travels, most of those vacationers probably passed by some of the many solar projects, large and small, being installed across the country. However, they probably didn’t know that while they were on holiday, smart policies were at work speeding up deployment of solar projects. From PV farms to solar water heating systems, solar is having a record growth year and is creating stable, well-paying American jobs.
 
One of the main drivers of solar’s robust growth has been the Treasury Grant Program (TGP), an initiative created in the Recovery Act which provides a cash grant in lieu of the 30 percent solar investment tax credit for companies that lack access to private tax equity financing due to the poor economy. Research by Lawrence Berkeley National Laboratory found the TGP “has provided significant economic value” and more than 40 states have solar projects that were stimulated by the TGP.
 
Vacationers who hit the beaches of Southeast Florida were sunbathing near the DeSoto Next Generation Solar Energy Center, a 25-megawatt solar power plant that is the largest photovoltaic plant in the country. It provides clean, safe, reliable electricity to about 3,000 homes and created around 400 construction jobs. Almost 900 other solar projects nationwide have been built because of the TGP.
 
Tourists sending postcards from the National Cherry Festival in Michigan may have noticed a revival in America’s manufacturing sector. The Upper Midwest is one of the regions hardest hit by the recession. In Michigan, where unemployment hovers around 10 percent, the TGP has supported thousands of jobs in the manufacturing plants producing solar products. American-made solar components from these plants will be sold across the U.S. and exported around the world.
 
Elvis fans making the pilgrimage to Graceland may have been all shook up to see how the TGP is creating jobs for local solar installers, contractors and distributors. Memphis, Tennessee-based Unistar-Sparco was able to cut their energy costs by one-third by going solar with the help of the TGP.
 
While we were on vacation, the TGP was hard at work and there’s more that it can do. According to independent research, extending the TGP by two years would help the solar industry create more than 65,000 American jobs over the next five years. Many of these jobs are in the trades hardest hit by the recession, like manufacturing, construction, plumbing, and electrical contracting. The study also found the TGP would add 5,100 megawatts of clean energy, enough to power more than 1 million homes.
 
Unfortunately, this successful stimulus program is headed for a permanent vacation at the end of the year if Congress and the President don’t extend it.
 
Inaction on the TGP is bad enough, but Congress also raided $3.5 billion from another promising stimulus programs for creating clean energy jobs: the Department of Energy’s (DOE) renewable energy loan guarantee program. The Loan Guarantee Program offers a federally guaranteed loan to solar developers and manufacturers.
 
This troubling decision will harm our economy and our climate by taking away a potential $35 billion in financing authority for renewable energy investments.
 
It is imperative that this mistake be fixed.
 
There are currently more than 23 gigawatts of utility-scale solar power projects in the development pipeline. That’s enough to power more than 4.6 million homes and create tens of thousands of jobs. These projects, and the jobs they will create around the country, will remain in a state of uncertainty – and in some cases risk being scrapped – with the TGP and Loan Guarantee Program in limbo.
 
Additionally, Congress can resurrect our nation’s manufacturing sector by extending the current investment tax credit it provides to solar projects to cover solar manufacturing as well. This will help keep solar manufacturing in the U.S.
 
The TGP, Loan Guarantee Program and strong incentives for solar manufacturing are a critical trifecta for enabling solar to compete with heavily subsidized fossil fuels. These programs provide the specific guarantees investors look for when deciding to finance energy projects.
 
Like the rest of us returning to the office, Members of Congress are finishing vacations and visits back to their hometowns to return to Washington. We hope they’ll consider the many Americans who weren’t able to travel this year because of the economy or couldn’t vacation at all because they don’t have a job. We’re sure many of them would love a good job in the solar industry. But if Congress and the President don’t act quickly to extend the TGP, replenish the Loan Guarantee Program and expand solar manufacturing incentives, the U.S. solar industry may go on an extended vacation and we will lose more ground to nations like China and Germany who are pouring investment and policy support into the new cleantech economy.

Original Source:Renewable Energy World, republished with permission from the author.

TAGS:
Federal GrantsPress ReleasesSREC

Posted on June 28, 2010

      June 15, 2010, WASHINGTON DC — — U.S. Senators proposed extending the 30% federal cash grants to renewable energy developers for another two years. Passed as part of the “2009 Recovery and Reinvestment Act”, Section 1603 gives 30% cash grants in lieu of investment tax credit (ITC) to renewable energy developers. Set to expire at the end of this year, the proposal would extend the Treasury-Department-issued grants until 2012. Though other Recovery Act programs have helped provide liquidity to the renewable energy, extending these cash grants is seen as vital to ensuring new solar, wind, and geothermal projects continue being installed across the United States.
      Prior to the “2009 Recovery and Reinvestment Act”, a 30% tax credit was given to renewable energy developers to incentivize projects. Developers then sought tax-equity partners in order to provide initial project funding. While large Wall Street banks were able to provide tax-equity services before the financial crisis; after credit markets dried up, cash grants were needed to spur continued growth in renewables. By giving developers direct access to capital, the grants provide crucial start up funding for renewable energy projects, which can run into the millions of dollars.
      The proposal comes in the form of an amendment to the “tax extender” portion of a $140 billion dollar federal unemployment and tax break extension package currently being deliberated in Congress. Six democratic senators, including Dianne Feinstein of California and Maria Cantwell of Washington, introduced the legislation last Tuesday. According to Feinstein, “The clean energy sector is the next frontier in jobs creation, so we need to ensure that developers can access financing to launch wind, solar and geothermal projects and put people to work.”
      The current grant program is credited with helping keep U.S. wind, solar, and geothermal markets afloat after the financial crisis evaporated many sources of funding for renewable energy developers. Now, industry insiders and analysts agree that the proposed extension is crucial to avoid a possible slowdown. The senators did not specify the exact cost of the latest bipartisan proposal but said it would be minimal and will help to “jumpstart” a transition to clean energy.
      It’s likely that as the grant-expiration deadline nears the federal government will act swiftly on the measure to prevent renewable energy sector from suffering a slowdown. The reliable funding provided from these incentives is vital to continued expansion and adoption of renewable energy in the United States. If this measure is passed, growth in renewables should continue to accelerate and increase as well as spur job creation in this important sector.
More about Flett Exchange:
      Flett Exchange operates a continuous, real-time trading platform where users can buy and sell solar renewable energy credits (SRECs). Flett Exchange offers long-term SREC contracts, public-auction services, power purchase agreements (PPAs), request for proposals (RFPs), voluntary REC markets, and solar consulting services for its clients. A pioneer in renewable energy markets, Flett Exchange has been publishing daily SREC settlement prices and other market data since 2007 bringing transparency, standardization, and fairness to renewable energy markets.

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