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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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Federal GrantsPress ReleasesSRECResearchMaryland Certified
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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.
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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
Submit your grant application to the state of Maryland
Connect you with a local installation company
Register your array with PJM GATS
Manage the sale of your Certified SRECs (estimated to be worth $75/KW in 2025)
Provide 5 day per week phone and email support for questions and concerns you may have along the way
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MarylandFederal GrantsPress ReleasesSRECResearchMaryland Certified
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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:
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.
All RECs will have a 5 year life. Currently, the life is 3 years.
The first 300MW AC of solar 20kW and less qualify.
The first 270 MW AC of solar 20kW to 5MW qualify.
The size limit can only be above 2 MW for rooftops, parking canopies, or brownfield sites.
The 150% multiplier for Certified RECs goes into effect after January 1, 2025
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.
For systems larger than 1MW in size workers must be paid the prevailing wage.
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