Posted on Aug. 1, 2024

Flett Exchange is the first SREC exchange to launch a market for Maryland Certified SRECs. These RECs are available to Maryland residential solar PV systems installed after 07/01/2024, as per the The Maryland Solar Bill.

These RECs prices will be closely correlated with Maryland’s legacy market, which is what all systems installed prior to this July produce. Maryland utility companies, who are required by the state of Maryland to make an alternative compliance payment (ACP) of $55.00 in 2025, can satisfy this requirement easily with the purchase of new Certified SRECs, which satisfy 150% of the ACP.

This presents a unique opportunity to homeowners who sell their credits to Flett Exchange. Since energy companies are able to get a discount by buying these RECs, homeowners can sell them for more. Currently, the bid for Maryland Certified SRECs is $75.50. To learn more about the state incentives in Maryland available for FY25, review the early blog post about Maryland Certified SRECs and Cost Effective Solar Array Installation. If you are interested in taking advantage of the benefits of going solar, use the Maryland Solar Installation Financial Model and give us a call at 201-209-0234 to speak with a member of our team about your options.

TAGS:
MarylandPress ReleasesSRECMaryland Certified

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 

TAGS:
MarylandFederal GrantsPress ReleasesSRECResearchMaryland Certified

Posted on April 29, 2024

• UPDATE May 13, 2024
  Maryland Governor Wes Moore signed the Brighter Tomorrow Act (SB 783) into law. See Maryland's post here: https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/sb0783

The Governor of Maryland currently has bill HB1435/SB0737 on his desk for signature. Named “The Brighter Tomorrow Act”, we have listed some of the changes that will take place if it is signed into law:

1. Only NEW solar installed from July 1, 2024 to January 1, 2028, before hitting total installed megawatt limits per category, will be classified as “Certified SRECs” and compliance buyers will be able to use them to satisfy 150% of their compliance obligation per Certified SREC. 

2. All RECs will have a 5 year life. Currently, the life is 3 years.

3. The first 300MW AC of solar 20kW and less qualify.

4. The first 270 MW AC of solar 20kW to 5MW qualify.

1. The size limit can only be above 2 MW for rooftops, parking canopies, or brownfield sites. 

5. The 150% multiplier for Certified RECs goes into effect after January 1, 2025 

6. New solar installed after July 1, 2024, will earn legacy MD SRECS until December 31, 2024, and then produce Certified SRECS thereafter for 15 years.

7. For systems larger than 1MW in size workers must be paid the prevailing wage.

8. Low Moderate Income (LMI) households at or below 150% of the average median income for the State of Maryland can apply for a grant of $750 per kW with a maximum grant of $7,500 per system.

We expect to hear by early May 2024 if the Governor signs the bill into law.

Certified MD SRECs can be used for 150% of the compliance value by electricity suppliers toward meeting the renewable portfolio standard. These SRECs will command a premium to regular MD SREC. Based on this 150% multiplier we calculate the implied SACP and premium to regular MD SRECs per year:

You can find a copy of the Maryland Solar Bill – HB1435 / SB0737 here:

https://mgaleg.maryland.gov/2024RS/bills/sb/sb0783E.pdf

TAGS:
MarylandSRECSolarMaryland Certified

Posted on March 5, 2024

Flett Exchange operates a market for Maryland Geothermal RECs, or commonly called GRECs. Owners of certified geothermal facilities in Maryland – homes, businesses, schools, hospitals – sell their GRECs on Flett Exchange. Energy companies purchase GRECs on Flett Exchange to comply with Maryland’s Renewable Energy Portfolio. If energy companies do not purchase enough GRECs they have to submit a compliance payment to the state of Maryland. That compliance payment is $100 until 2025 and is reduced after that. See the compliance schedule decrease under “specifications”. 

Owners of geothermal facilities can register and sell their GRECs directly on Flett Exchange. Flett Exchange also offers full-service GREC management. For full-service managed clients Flett Exchange will register your system with the state of Maryland, register with the database that creates GRECS, and sell your GRECs along with all of our other GREC clients. Sellers benefit from the increased prices due to the large volume Flett Exchange transacts. 

The following are some of the main aspects of the MD GREC Market:

1. Installation date: January 2023 cut-off. Prior to January 2023 MD geothermal facilities produced Class 1 RECs. January 2023 or later installations produce GRECs. 

2. MD Class 1 REC price cap: $30

3. MD GREC price cap: $100 -moving down to $65. See the schedule.

4. Residential and non-residential geothermal facilities in Maryland qualify for GRECs differently. 

1. Residential:

1. installed in a residential home that is not owned by a business. The system must meet ENERGY STAR standards and not feed electricity back into the grid.

2. Non-residential:

1. At a commercial building; or

2. At multi-family housing units that qualified as low- or moderate-income housing on the date the system was installed on the property; or

3. At institutions that primarily serve low- or moderate-income individuals and families, including i) schools with a majority of students who are eligible for free and reduced prices meals; ii) hospitals with a majority of patients eligible for financial assistance or who are enrolled in Medicaid; and iii) other facilities that serve individuals and families where a majority of those is enrolled in Federal or State Safety Net Programs.

4. A system with a 360,000 BTU capacity is eligible for geothermal renewable energy credits only if the Company installing the system provides for its employees:

1. Family-sustaining wages;

2. Employer-provided health care with affordable deductibles and co-pays;

3. Career advancement training;

4. Fair scheduling;

5. Employer-paid workers’ compensation and unemployment insurance;

6. A retirement plan;

7. Paid time off; and

8. The right to bargain collectively for wages and benefits

5. Low income carve-out. Energy companies must procure 20% of the GREC obligation from low-income geothermal facilities. Low or Moderate Income (LMI) for GREC purposes is a household with an aggregate annual income that is below 120% of the area median income. The ability to qualify for the low-income tag on the GRECs may help in the future if the GREC market gets oversupplied because these may retain value longer. 

6. New Geothermal facilities must register with the Maryland Public Service Commission and GATS. Flett Exchange will register for full-service GREC clients.

Register for either a do-it-yourself or a managed GREC account on Flett Exchange to take the first step to receive payments for your GRECs. 

TAGS:
MarylandPress ReleasesSRECResearchMaryland GREC

Posted on April 13, 2021

The Maryland legislature passed legislation that will raise the fine (Solar Alternative Compliance Payment) for power companies if they do not procure enough MD SRECs from solar owners. The current legislation sets a fine of $80 per SREC for 2021 and lowers each year to $20.35 by 2030. The bill raises that fine $15 to $20 each year. As of publication we are awaiting the Governor to sign it into law. The proposed fines are shown below.

The same bill also decreases the amount of solar that the energy companies have to procure. Taking into account the amount of solar installed in Maryland and the growth rate this should not have an effect on solar owner’s prices of their SRECs. The only way it will is if an unexpected amount of solar is installed in the next few years.

This is welcome news for solar owners in Maryland along with homeowners and businesses planning on installing a new solar array. The current SREC price caps were inhibiting solar development. We expect the rate of solar installations to increase in Maryland if this bill is passed.

Click here to view the full Amendments.

The following is the text for the Amendments to Maryland Senate bill 65 2021-2022 legislative session:
 

SB0065/773192/1                 

BY:     Economic Matters Committee   

AMENDMENTS TO SENATE BILL 65 

(Third Reading File Bill) 

AMENDMENT NO. 1

            On page 1, in line 2, strike “Qualifying” and substitute “Tier 2 Renewable

Sources, Qualifying”; in the same line, after “Biomass” insert “, and Compliance Fees”; in line 3, after the first “of” insert “altering the renewable energy portfolio standard for certain years; extending the eligibility of certain Tier 2 renewable sources for purposes of the renewable energy portfolio standard in certain years; altering the compliance fee for a shortfall from the required percentage of energy from certain Tier 1 renewable sources for the renewable energy portfolio standard in certain years;”; in line 7, after “Act;” insert “providing for the effective dates of this Act; making a conforming change;”; in line 11, strike “and” and substitute a comma; in the same line, after “(s)” insert “, and (t)”; in line 16, strike “and” and substitute “, 7–703(b)(16) through

(25),”; and in the same line, after “7–704(a)” insert “, and 7–705(b)(2)”.

AMENDMENT NO. 2

On page 1, after line 20, insert:

“Article – Public Utilities

7–701.

            (a) In this subtitle the following words have the meanings indicated.

            (t) “Tier 2 renewable source” means hydroelectric power other than pump                        storage generation.

7–703.

            (b) Except as provided in subsection (e) of this section, the renewable energy                     portfolio standard shall be as follows:

                        (16)     in 2021[,]:

                                    (I)       30.8% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least 7.5% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)                                 of this subtitle derived from offshore wind energy; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (17)     in 2022[, 33.1%]: 

                                    (I)        30.1% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [8.5%] 5.5% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

of this subtitle derived from offshore wind energy; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (18)     in 2023[, 35.4%]: 

                                    (I)        31.9% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [9.5%] 6% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

                                    of this subtitle derived from offshore wind energy; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (19)     in 2024[, 37.7%]: 

                                    (I)        33.7% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [10.5%] 6.5% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

                                    of this subtitle derived from offshore wind energy; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (20)     in 2025[, 40%]: 

                                    (I)        35.5% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [11.5%] 7% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

            of this subtitle, not to exceed 10%, derived from offshore wind energy; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (21)     in 2026[, 42.5%]: 

                                    (I)        38% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [12.5%] 8% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

of this subtitle derived from offshore wind energy, including at least 400 megawatts of Round 2 offshore wind projects; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (22)     in 2027[, 45.5%]: 

                                    (I)        41.5% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [13.5%] 9.5% derived from solar energy; and

                                    [(ii)] 2. an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy, including at least 400 megawatts of Round 2 offshore wind projects; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (23)     in 2028[, 47.5%]: 

                                    (I)        43% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [14.5%] 11% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

of this subtitle derived from offshore wind energy, including at least 800 megawatts of Round 2 offshore wind projects; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES;

                        (24)     in 2029[, 49.5%]: 

                                    (I)        47.5% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least [14.5%] 12.5% derived from solar energy; and

                                    [(ii)] 2. an amount set by the Commission under § 7–704.2(a) of this subtitle derived from offshore wind energy, including at least 800 megawatts of Round 2 offshore wind projects; and

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES; AND

                        (25)     in 2030 and later[,]: 

                                    (I) 50% from Tier 1 renewable sources, including:

                                    [(i)] 1.             at least 14.5% derived from solar energy; and

                                    [(ii)] 2.            an amount set by the Commission under § 7–704.2(a)

of this subtitle derived from offshore wind energy, including at least 1,200 megawatts of Round 2 offshore wind projects; AND

                                    (II)      2.5% FROM TIER 2 RENEWABLE SOURCES

7–705.

 (b) (2) If an electricity supplier fails to comply with the renewable energy portfolio standard for the applicable year, the electricity supplier shall pay into the Maryland Strategic Energy Investment Fund established under § 9–20B–05 of the State Government Article:

(i) except as provided in item (ii) of this paragraph, a compliance fee of:

1. the following amounts for each kilowatt–hour of shortfall from required Tier 1 renewable sources other than the shortfall from the required Tier 1 renewable sources that is to be derived from solar energy:

A.        4 cents through 2016;

B.        3.75 cents in 2017 and 2018;

C.        3 cents in 2019 through 2023;

D.        2.75 cents in 2024;

E.        2.5 cents in 2025;

F.        2.475 cents in 2026;

G.        2.45 cents in 2027;

H.        2.25 cents in 2028 and 2029; and

I.         2.235 cents in 2030 and later;

2. the following amounts for each kilowatt–hour of shortfall from required Tier 1 renewable sources that is to be derived from solar energy:

A.        45 cents in 2008;

B.        40 cents in 2009 through 2014;

C.        35 cents in 2015 and 2016;

D.        19.5 cents in 2017;

E.        17.5 cents in 2018;

F.        10 cents in 2019;

G.        10 cents in 2020;

H.        8 cents in 2021;

I.         6 cents in 2022;

J.         [4.5] 6 cents in 2023;

K.        [4] 6 cents in 2024;

L.        [3.5] 5.5 cents in 2025;

M.       [3] 4.5 cents in 2026;

N.        [2.5] 3.5 cents in 2027 [and 2028];

O.        [2.25] 3.25 cents in [2029] 2028; [and]

P.        [2.235] 2.5 cents in [2030 and later] 2029; and

Q.        2.25 CENTS IN 2030 AND LATER; AND

3. 1.5 cents for each kilowatt–hour of shortfall from required Tier 2 renewable sources; or

                                    (ii)       for industrial process load:

                                    1.         for each kilowatt–hour of shortfall from required Tier

1 renewable sources, a compliance fee of:

A.        0.8 cents in 2006, 2007, and 2008;

B.        0.5 cents in 2009 and 2010;

C.        0.4 cents in 2011 and 2012;

D.        0.3 cents in 2013 and 2014;

E.        0.25 cents in 2015 and 2016; and

F.        except as provided in paragraph (3) of this subsection,

0.2 cents in 2017 and later; and

                                                2.         nothing for any shortfall from required Tier 2 renewable sources.

 SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read as follows:”.

 On page 4, in line 15, strike “through 2020”; in line 18, strike “2.” and substitute “3.”; in line 20, strike “3.” and substitute “4.”; in the same line, after “That” insert “Section 2 of”; and after line 22, insert:

            “SECTION 5. AND BE IT FURTHER ENACTED, That, except as provided in

Section 4 of this Act, this Act shall take effect June 1, 2020.”.

DISCLAIMER: Maryland SREC prices are volatile. Buyers and sellers of SRECs must do their own research. The above projections are subject to change as market dynamics change.

TAGS:
MarylandSRECSolar

Posted on May 29, 2019

May 29, 2019

New Law

This past weekend Maryland Governor Larry Hogan did not veto the Clean Energy Jobs Act which is now law. It requires at least 50% of the electricity in Maryland be derived from Tier 1 renewable sources which are at least 14.5% in-state solar by year 2030. It provides an immediate stimulus for solar by increasing the demand in 2019 to 5.5% up from the old requirement of 1.95%

Big Win for Owners and Investors in MD Solar

This law is a boon for owners of existing solar in MD, new investors of solar and any of the associated businesses involved in the development of solar projects.

SRECs; Then and Now In MD

SREC’s are the primary funding sources for solar in MD. Flett Exchange has run a market for MD SRECs since July of 2009. At that time the goal was to obtain 2% solar by year 2022 and SREC prices on Flett Exchange were $370 for MD SRECS. During the last 10 years the price to install solar decreased significantly and the 2% goal in MD was achieved quicker than expected. The state legislature and governor in MD were unsuccessful in putting new solar growth targets into law for a few years. This resulted in a slow-down of new solar development and the prices for SRECs decreased in response. Prices for MD SRECs dropped below $30 in 2016 and traded under $10 until recently. Due to the anticipated and eventual passage of this Clean Energy Jobs Act SREC prices have moved up above $60 as of today. We provide historical pricing on our website for your reference based on our Flett Exchange Daily Settlement price. Current owners of Solar in MD are taking advantage right now and selling their SRECs as the prices rise on the Flett Exchange MD SREC spot market via immediate delivery and payment.

What’s Next for Solar in MD?

The major take-away of this new law is that it creates a strong, long-term goal for demand for SRECs which is what solar investors look for.  As opposed to other states, it takes a well-balanced approach by protecting ratepayers by way of a lower compliance payment which starts at $100 and gradually decreases to $20.23 by year 2030. This is important in that solar investors want to be confident that the mandates are less likely not to be rolled back due to rate increases. The following is a table comparing the previous solar mandates to the new ones implemented via the Clean Energy Jobs Act:

How do you Sell SRECs if you own Solar in MD?

Flett Exchange is celebrating a decade of servicing Maryland solar owners this summer! We look forward to the next ten years and assisting our current and all future Maryland Solar investors. We offer a do-it-yourself SREC service for those who don’t mind handling the GATS meter readings and transfers. If you sign up you gain access to our exchange 24x7 for immediate transfer and payment. For those who want a hassle-free full-service brokerage we offer Flett REC Manager. We will handle all of your meter readings, SREC minting in GATS and process your sales and payments immediately upon SREC creation. We are efficient at what we do so we have low fees to match. Our goal is to help you maximize your revenues on your solar investment! Sign up for either service on our website.

www.flettexchange.com

DISCLAIMER: Maryland SREC prices are volatile. Buyers and sellers of SRECs must do their own research. The above projections are subject to change as market dynamics change.

TAGS:
MarylandSRECMaryland Clean Jobs ActSolar

Posted on April 9, 2019

DISCLAIMER: Maryland SREC prices are volatile. Buyers and sellers of SRECs must do their own research. The above projections are subject to change as market dynamics change.

TAGS:
MarylandPress ReleasesSREC

Posted on April 27, 2016

Supply and Demand. This is the main driving factor in MD SREC pricing.

Currently there is 478 mw of solar installations registered in PJM-EIS, the website that creates SRECs.  These facilities will generate an estimated 570,000 SRECs for the 2016 calendar year. Add in the unsold SRECs from 2014 and 2015 (around 100,000 SRECs) and we are looking at an oversupply of 230,000 or more SRECs after the buyers turn in their 2016 SREC purchases.

The 2017 vintage is oversupplied. The RPS requires approximately 615,000 SRECs to be turned in for 2017 compliance year. With the 230,000 plus SREC carry over from 2016 plus the current 478 mw of solar generating SRECs right now that demand is met and oversupplied again by approximately 115,000 SRECs. As the year goes along and more solar is installed the market become more and more oversupplied.

Build Rates: Maryland has been installing more and more solar year over year.  In 2013 around 40 mw was installed, 2014 around 60 mw and in 2015 124 mw!  Yes, in 2015 twice as much solar went on-line then 2014.   If this trend continues, installing double the 2015 number, we could potentially see 248 mw installed this year.  Is this build rate sustainable? Potentially yes, but that’s an aggressive amount to install. However, just this year MD has installed almost 100 mw’s and its only been 4 months. If the 2016 build rate does in fact double we could project a 400,000 SREC oversupply for 2017. If the build rate remains the same, 10 to 11 mw a month, an oversupply of 200,000 plus SRECs could happen.

Legislative variable: Will the current house bill HB116 http://tinyurl.com/zeklecq that just passed in the House and Senate fix the problem? The bill does call to increase the solar carve out. For 2017 the RPS for solar will be increased from 0.95% to 1.15% or increase the demand from 615,000 SREC to about 725,000 SRECs. This increase would soak up the oversupply of SRECs but not if the current build rate continues. The date in which the bill will reach the Governors desk has not been scheduled yet.

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

TAGS:
MarylandPress ReleasesSREC

Posted on April 17, 2012

The Maryland Senate passed legislation, Senate Bill 791, increasing the minimum percentage of  Tier 1 renewable energy the must be derived from solar in the Maryland renewable energy portfolio standard. It will increase the amount of Solar Renewable Energy Certificates SRECs that the energy companies will have to buy from owners of solar. Now, the Governor just has to sign it.

The increases run from energy year 2013 to 2021. Matter deleted is in [brackets], amendments are in bold.

(8) in 2013, 8.2% from Tier 1 renewable sources, including at least

2 [0.2%] 0.25% derived from solar energy, and 2.5% from Tier 2 renewable sources;

3 (9) in 2014, 10.3% from Tier 1 renewable sources, including at least

4 [0.3%] 0.35% derived from solar energy, and 2.5% from Tier 2 renewable sources;

5 (10) in 2015, 10.5% from Tier 1 renewable sources, including at least

6 [0.4%] 0.5% derived from solar energy, and 2.5% from Tier 2 renewable sources;

7 (11) in 2016, 12.7% from Tier 1 renewable sources, including at least

8 [0.5%] 0.7% derived from solar energy, and 2.5% from Tier 2 renewable sources;

9 (12) in 2017, 13.1% from Tier 1 renewable sources, including at least

10 [0.55%] 0.95% derived from solar energy, and 2.5% from Tier 2 renewable sources;

11 (13) in 2018, 15.8% from Tier 1 renewable sources, including at least

12 [0.9%] 1.40% derived from solar energy, and 2.5% from Tier 2 renewable sources;

13 (14) in 2019, 17.4% from Tier 1 renewable sources, including at least

14 [1.2%] 1.75% derived from solar energy, and 0% from Tier 2 renewable sources;

15 (15) in 2020, 18% from Tier 1 renewable sources, including at least

16 [1.5%] 2.0% derived from solar energy, and 0% from Tier 2 renewable sources;

17 (16) in 2021, 18.7% from Tier 1 renewable sources, including at least

18 [1.85%] 2.0% derived from solar energy, and 0% from Tier 2 renewable sources; and

19 (17) in 2022 and later, 20% from Tier 1 renewable sources, including at

20 least 2% derived from solar energy, and 0% from Tier 2 renewable sources.

Since SREC demand is based on a percentage of power in Maryland instead of a fixed rate the ultimate SREC requirement in future years is very hard to estimate, especially 5 to 10 years out. Large amounts of energy efficiency could decrease electricity consumption in the future, while increasing economic activity coupled with electric vehicles could increase electricity demand in the future. The law increases help with short term demand, however long term SREC demand is hard to quantify.

Owners of solar in Maryland utilize Flett Exchange to sell their SRECs directly to the highest bid on the Flett Exchange Maryland SREC Market. Electric companies utilize Flett Exchange to purchase SRECs to comply with Maryland renewable portfolio standards (RPS). The RPS  requires the purchase of SRECs by electric suppliers if those suppliers do not generate a minimum percentage of the supplied electricity with solar.

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). Our knowledgeable staff is also available to assist you in selling your SRECs for you. Over 4,200 active clients utilize Flett Exchange to negotiate the price, quantity, and details of SRECs through our brokers or on our online trading platform. Upon each SREC transaction Flett Exchange remits immediate payment to our sellers. Flett Exchange operates SREC markets in NJ, PA, DE, MD, OH, and DC, supported by trained solar professionals with specialized knowledge and proven experience.
Flett Exchange also brokers bilateral long-term SREC contracts between qualified counterparties. Flett Exchange buyers and sellers can secure price, quantity, and terms of SREC contracts 1-5 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. (201) 209-0234.

DISCLAIMER: This article contains forward looking statements. Actual market action could differ materially from those anticipated. Sellers of SRECs should do their own research. Actual SREC production may differ significantly from those estimates. The company assumes no obligation to update any forward-looking statement.

TAGS:
MarylandSREC

Posted on April 21, 2010

LOS ANGELES, APRIL 15, 2010 — (Reuters) — Installed solar capacity jumped an astonishing 37% in 2009 following an onslaught of state and federal incentives offered during the recent economic crisis to help prop-up demand for new solar equipment. Grants, subsidies, tax-credits and cash incentives helped push revenue past $4 Billion in 2009, a 36% increase from the previous year.

According to a report released last Thursday by solar advocates it was the fourth straight year of unprecedented growth for the solar photo-voltaic industry here in the United States. This contrasts with the long-standing European solar power industry, which has seen a decrease as it’s mainstay nations ramp-down their incentive programs.

New U.S. solar capacity reached 481 Megawatts (MW) last year, an increase of 130 MW from 351 in 2008. Solar thermal for water heating also rose, but at a more modest 10% on the year. The only decline was seen in solar-pool heating, which saw a 10% decline blamed mostly on the slowdown in the housing sector.

Analysts say that the spike in U.S. growth is also attributed to lower prices of solar hardware, which the Solar Energy Industries Association (SEIA) reported fell an estimated 40% in recent years. “Despite the Great Recession of 2009, the U.S. solar industry had a winning year and posted strong growth numbers… Consumers took notice that now is the best time to go solar,” says SEIA CEO Rhone Resch. The increase in solar was led by California, with New Jersey coming in second place, followed by Florida, then Arizona.

According to the SEIA, six solar utility projects also came on line in 2009, including both solar PV and solar concentration plants. Despite the increase, solar still remains under 1% of utilities generation within the United States. The SEIA is optimistic for the future however and predicts 17 Gigawatts of solar power down the line, enough to power over 3 million homes.

“Now we’re talking gigawatts of solar, not megawatts,” said Resch.

View the SEIA’s 2009 Industry Year in Review Here:

http://seia.org/galleries/default-file/2009%20Solar%20Industry%20Year%20in%20Review.pdf

View the original article from Reuters Here:

http://www.reuters.com/article/idUSN159853820100415

(Reporting by Dana Ford; Editing by Marguerita Choy)

TAGS:
New JerseyPennsylvaniaOhioMarylandWashington DC

Posted on April 20, 2010

olar energy is attracting investment dollars. Competitive returns, lower barriers of entry, state and federal incentives, SREC revenue streams, and progressive Renewable Energy Portfolio Standards (RPS) are advancing solar to the forefront of renewable energy world. As the solar market evolves, so are the financial structures that are assisting investors in financing and completing projects. This article will examine various financing strategies, the risks and rewards associated with them, and the incentives involved with solar investing.

• Self Financed (Most Risk/Most Reward)– Self financed solar facilities are for residents and entities who want control of their solar destiny. These parties absorb the upfront costs for developing solar and the challenges of operating and maintaining their solar facility. This is the most capital intensive structure and poses the most risk and reward. The risk lies in the development of the project, the failure in properly monitoring and maintaining the facility, and the price associated with the Solar Renewable Energy Certificates (SRECs). The rewards are a reduced rate of electricity for as long as the facility can generate solar energy, declining installation costs, and a revenue stream generated by SREC monetization. Self-financiers take the risk of developing solar because there is the potential for them to payoff the facility in a shortened period of time and realize increased upside profit potential.
• Solar Lease Financing (Moderate Risk/Moderate Reward)– Solar lease financing structures are being executed in both the residential and commercial markets. The concept is simple, straightforward, and similar to an equipment or automobile lease. Instead of self financing your solar facility, parties can enter into a leasing contract and agree to make monthly lease payments on their solar installation. Similar to a PPA contract the client does not incur the expensive upfront installation costs or the responsibility of operating and maintaining the solar facility. In a best case scenario the lessee can take advantage of higher SREC values and an option to buy out the system in six years, while the lessor obtains the ITC and accelerated depreciation of the system. A solar lease structure is also an alternative to a PPA contract for non-profit organizations who want to take on SREC risk for potential reward, while the lessor passes on the ITC and accelerated depreciation indirectly through a lower lease payment. Solar leasing firms have a set of criteria that clients need to meet in order to participate in their solar leasing program: commercial clients may need to submit audited financial statements and residents may need to have a FICO score of 700 or greater to be considered. However there are also risks associated with solar leases. One risk is that a lessee could go upside down on their contract. This happens when the solar lease is more expensive than the SRECs being monetized. Another risk is the future price of electricity. Lessees could potentially pay more for solar electricity than basic generated electricity if demand diminishes. The financial crisis of 2008-2009 was a reminder that electricity prices do not always go up and that electricity demand could decline during lean economic times. Solar lease financing is becoming more popular because it is affordable, convenient, environmentally responsible, and lowers your electricity bills. However, interested parties should weigh the risks and rewards associated with solar leases and learn more about the leasing company before signing an extended contract.
• PPA Financed (Less Risk/Less Reward)– A Power Purchase Agreement (PPA) is a contract between a solar electricity generator and a client seeking solar energy. This financial structure is designed to provide the client with a reduced rate of electricity for an extended period of time (10-20 years), no upfront installation cost, and the option to purchase the solar facility at the end of the contract. The PPA Provider designs, develops, operates, maintains, and owns the solar facility located on the client’s property. In turn the client pays the PPA Provider for the electricity generated from the solar facility. PPA Providers enter into these agreements because there is a profitable margin between where solar can be developed and what electricity can be sold for. The PPA Provider can also take advantage of the Investment Tax Credit (ITC) and accelerated depreciation. PPA Providers gain ownership of the SRECs which are generated from the solar facility and can monetize them on the Flett Exchange live markets. This solar structure is popular with non-profit organizations that cannot take advantage of the ITC and realize the accelerated depreciation of their solar facility.

Many solar projects are contingent on tax benefits, rebates, and long-term SREC contracts. Without these incentives and risk mitigation strategies solar projects can be difficult to finance and pose significant risk to investors. Let’s examine some of the incentives and strategies that are allowing the solar market to flourish.

• Tax Benefits- At this juncture, tax incentives are an integral part of solar financing. The Investment Tax Credit (ITC) returns over 30% of a solar project’s capital cost to investors in the form of a tax credit. Sophisticated investors are utilizing solar as a tax-equity investment vehicle because tax credits can offset tax liability. Section 1603 of The American Recovery and Reinvestment Act of 2009 (Stimulus Bill) also allows investors to receive a grant in lieu of tax credit when the “specified energy property” is submitted to the “grant program.” This program runs out at the end of 2010, and the SEIA www.seia.org is lobbying to have it extended. Both the credit and grant programs promote renewable energy on the institutional level and help incentivize solar development.
• Accelerated Depreciation- Developers of commercial projects can realize additional tax benefits from the depreciating cost of their solar facility. An entity “can depreciate the installed cost of the system minus 50% of the business Investment Tax Credit (ITC) over the first five years of ownership (SEIA 2008) using the modified accelerated cost recovery system (MACRS) (DSIRE 2008). According to a report by Lawrence Berkley National Laboratory, the tax benefit of this depreciation is equivalent to 26% of the installed cost of the system, 12% of which comes from the ability to accelerate it over a five year period (Bolinger 2009).” –National Renewable Energy Laboratory, “Solar Leasing for Residential Photovoltaic Systems.”
• Long-Term SREC Contracts- are helpful in financing proposed solar projects. Flett Exchange brokers long-term SREC contracts between qualified institutional counterparties. Our ability to facilitate and streamline long-term SREC contracts is value-added to both buyers and sellers. Buyers gain direct access to large pools of SRECs at a discounted price to satisfy their RPS, while sellers have the ability to mitigate risk and lock-in profits. Counterparty credit risk is paramount in this market. Buyers and sellers enter into bilateral contracts to secure price, quantity, and term of the SREC contract. Counterparties agree to pay or delivery SRECs at a specified future date. Flett Exchange augments this process by employing a stringent vetting process and presenting quality and creditworthy solar projects to the market. Flett Exchange is currently brokering 1-7 year SREC contracts in the open market and growing our ability to facilitate longer term deals for eligible commercial entities.

As the solar markets continue to evolve new and innovative thinking will be the most prized commodity. The emergence of banks, lenders, financial institutions, and new financial structures will be welcomed and as solar makes the transition form a subsidized market to a self-sustaining market.

TAGS:
New JerseyPennsylvaniaOhioMarylandWashington DCPress ReleasesSREC

Posted on April 20, 2010

Solar energy is gaining momentum in the renewable energy world. It is being heralded as a smart investment due to growth prospects, favorable market conditions, federal and state incentives, and more stringent Renewable Portfolio Standards (RPS). Individual and institutional investors are committing capital and taking risk because of potential profits and tax benefits that are associated with developing solar. Existing and newfound factors are driving solar energy to become a more mainstream investment. This article will examine these factors and demonstrate how they are contributing to solar energy’s success.

• Growth- Over the past decade, technological advancements have made solar energy more affordable, more reliable and less obtrusive. Lower barriers of entry have allowed solar installers, integrators, and developers to offer competitive pricing on residential and commercial facilities and reduce their installed cost per watt.
• Value- Solar energy is a potential hedge against higher electricity prices. It is estimated that electricity prices could conservatively increase by 3.0% a year. Solar energy is a wise alternative to higher electricity bills and can provide clean, green, and cheaper power. Self-Financing, Solar Lease Financing, and Power Purchase Agreement (PPA) Financing are all financial structures that can accomplish reduced electricity costs.
• Tradable SREC Markets- Solar Renewable Energy Certificates (SRECs) are environmental attributes that can be transacted and monetized. SRECs are the driving financial component that makes solar economically feasible. SRECs are generated from the production of solar energy and can be monetized on Flett Exchange’s live SREC markets. SRECs are market based. Unlike feed-in tariffs SRECs pass savings on to ratepayers over time, if overdevelopment occurs or if solar becomes less expensive.
• State Mandated Markets- SREC markets are state mandated. State governments are establishing stringent Renewable Portfolio Standards (RPS) and increasing their solar carve-outs. Electric suppliers need to procure SRECs to meet their RPS. If electric suppliers cannot procure enough SRECs in the open marketplace to satisfy their RPS they are subject to a Solar Alternative Compliance Payment (SACP) which is a penalty payment and can be considerably higher then the spot SREC market.
• Tax Benefits- Many solar projects are candidates for federal tax incentives and state rebates. The Investment Tax Credit (ITC) returns over 30% of a solar project’s capital cost to investors in the form of a tax credit. Section 1603 of The American Recovery and Reinvestment Act of 2009 (Stimulus Bill) also allows investors to receive a grant in lieu of tax credit when the “specified energy property” is submitted to the “grant program.” State rebates may also be available for residential and commercial solar installations. Rebate programs can differ from state to state and exist on a sliding scale depending on the size of the proposed solar facility.
• Escalating Fossil Fuel Demand- Global demand for fossil fuels is increasing while supplies are diminishing. Developed and emerging nations are competing for fossil fuels and all petroleum products come with political and environmental risk. Solar energy, on the other hand, is limitless, does not emit harmful emissions, and can be achieved without any political risks. Also if the US Dollar continues to depreciate the price of foreign fuel could continue to rise.
• Climate Change- Private and public corporations, organizations, agencies, and municipalities are implementing clean energy programs. Climate change is a growing social and political issue, both domestically and internationally. Insightful entities understand the benefits of renewable energy and the risks associated with not staying ahead of the climate curve. These players are implementing clean energy programs and are well positioned if climate legislation gets passed. The recent US healthcare decision demonstrates that political winds can shift momentarily and legislation can be passed swiftly. Renewable energy strategies and sustainability teams are becoming more conventional, as private and public entities recognize their social responsibilities to the environment and potential legislative risk.

Solar energy is a favored renewable energy source. Solar is easy to install, is a hedge against higher electricity prices, generates a SREC revenue stream, and is beneficial to the environment. So far advantageous market conditions have attracted investors to solar.

However the future of the solar market also comes with challenges and risks. Increased competition could create an overpopulated market. Inexperienced players who are attracted by favorable market conditions could sacrifice engineering and construction quality for short term monetary gains. The reduction of federal and state incentives could make solar less appealing. As the solar market evolves it will be interesting to see if it could sustain itself and emerge as an established renewable energy source.

TAGS:
New JerseyPennsylvaniaOhioMarylandWashington DCPress ReleasesSREC

Posted on July 10, 2009

Flett Exchange is pleased to introduce four new solar markets. Our online auction-exchange now hosts live Solar Renewable Energy Certificate (SREC) markets for the District of Columbia, Delaware, Maryland and Pennsylvania.
 

For the past two years Flett Exchange has established a premier presence in the New Jersey SREC market. Our online auction-exchange has completed over $1.7 million in transactions for 2009 and has over 680 customers. Flett Exchange has an extensive network of Load Servicing Entities (LSEs) in the PJM-GATS region which increases SREC liquidity and price discovery. Our mission is to bring our diligent solar service to the DC, DE, MD and PA SREC markets and help increase solar transparency.

 
The solar market structures for DC, DE, MD and PA are similar to New Jersey. The DC, DE, MD and PA SREC markets clear through The Generation Attribute Tracking System (GATS) and all solar owners registered with (GATS) are eligible to participate in our markets. Load Servicing Entities (LSEs) use the Flett Exchange to buy SRECs to satisfy their Renewable Portfolio Standards (RPS) requirements.

 
Flett Exchange looks forward to bringing transparency, price discovery and immediate execution for DC, DE, MD and PA SREC markets. Our online auction-exchange is supported by knowledgeable professionals who provide personalized service. Flett Exchange’s online auction-exchange is the most reliable and cost-effective solution to transacting and monetizing your SRECs. For a free account or immediate assistance call (201)-209-9426 or go to flettexchange.com and discover our SREC, NJ Class 1 REC, RGGI, Interest-Rate, Physical Gold and Silver markets.

TAGS:
PennsylvaniaMarylandWashington DC

Posted on July 2, 2009

Flett Exchange LLC announces the launch of its Maryland Solar Renewable Energy Certificate (SREC) market. Load Serving Entities in the State are required to purchase 2 % of their total energy output from solar energy systems by 2022. Similar to New Jersey’s SREC program each certificate will represent 1000kWh of renewable energy. Details on the MD market can be found at Maryland RPS Website or at https://flettexchange.com/markets/maryland/market-data

Flett Exchange will leverage its experience in the New Jersey markets to help match LSEs and solar systems owners with its value added transparent web based trading/auction platform. The Exchange has brokered over $1.7 million in transactions year to date with over 650 customers. Flett Exchange’s NJ SREC market has operated continuously for two and a half years allowing buyers and sellers 24 hours access to live pricing information and the immediate ability to monetize their SRECs.

Flett Exchange looks forward to bringing transparency, price discovery and immediate execution for DC, DE, MD and PA SREC markets. Our online auction-exchange is supported by knowledgeable professionals who provide personalized service. Flett Exchange’s online auction-exchange is the most reliable and cost-effective solution to transacting and monetizing your SRECs. Buyers and sellers meet on Flett Exchange to negotiate price and quantity of Solar Renewable Energy Certificates (SRECs). Our internet-based auction platform brings transparency and price discovery to SRECs markets allowing Flett Exchange users place working orders in live. Public entities can auction their SRECs on the Flett Exchange platform and obtain a competitive price in a transparent manor. The solar community is choosing Flett Exchange because our trading platform is easy to use, always reliable and absolutely secure. For a free account or immediate assistance call (201)-209-9426 or go to www.flettexchange.com and discover our SREC, NJ Class 1 Rec, RGGI, Interest-Rate, Physical Gold and Silver markets.

TAGS:
Maryland