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The statistics released by the Clean Energy Program about the 2007 reporting year show that there were 1,231 SCAP made by LSE’s. That is $369,300. At the same time there remain 1544 SRECs unsold. Some of those SREC owners did not make a conscious effort to sell however there were many that could not find a buyer at any price. We at Flett Exchange had offers on our trading platform and on the bulletin board.
There is either a simple fact that buyers could not find sellers or the buyers know that if they pull their bids at the end that they can collapse the price. This will send a clear message to sellers the next year to be more aggressive and accept lower prices. The BPU goes to great strides to ensure that supply meets demand which it did in 2007.
Now the $ paid for the SCAP should go to the SREC owners that were trying to sell. A “clearing price” to determine the price paid to SREC sellers can be established by where the fair market was in the last month. The difference between the clearing price and the SCAP can go to the Sate or wherever it is allocated.
This system will protect the smaller investor in Solar since they are most likely the entity that has the SRECs go worthless
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