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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.