Market based vs. fixed price.

SREC values ranged between the Alternative Compliance Payment of $248 for 2021 (the fine that energy companies had to pay if they did not buy SRECs) and $0. Prices typically traded at 80% to 90% of that level in the spot market and most recently $223 as of summer 2020. SREC values also traded by long-term contracts by willing counterparties in which the buyer was typically one of the large energy suppliers in New Jersey. A long-term chart for spot SREC prices can be found HERE. TRECs are a fixed value of $91.20 for homes and $152 for commercial rooftop. (Remember, the value of a TREC was set by Board Order – there is no contract.)

Length of time a solar array will earn credits.

TRECs are earned for 15 years. SRECs are also earned for 15 years if you installed before November of 2018. SRECs are earned for ten years if you installed between November of 2018 and the end of the program in the spring of 2020.

SRECs were all the same price no matter what type of solar you installed.

For example, solar on a house earned the same SREC value as solar on a school. TRECs have different values. TREC values differ based on where the array is located and also if it is a community solar array. Your TREC value for your specific array is based on $152 multiplied by the factor assigned to your array type. Click here for a chart depicting all of the types of solar arrays and TREC values: TREC ARRAYS AND VALUES

When your installer applies to the state of New Jersey for permission to install a solar array the owner gets a letter and that letter will have a NJ Certification number on it. You can CLICK HERE to look at example prices for TREC arrays. If your letter has a “TREC” at the end of that number you get TRECs. If it says SREC then you get SRECs.

Owners of solar with SRECs sell in the open market. Flett Exchange, like many other companies that provide exchange, brokerage and payment for SRECs compete for business and offer many different services like immediate payment, locked in values and pre-payment for SRECs. If your system generates TRECs you have to go through the company that was selected by the utilities in New Jersey as the TREC administrator to get paid. You can click on this link to go to their website: http://solarincentivesnj.com/

The good thing is that you do not have to pay for this TREC payment service – the utilities tack it on everyone elses bills and no-one ever notices it. When you set up your GATS account you have to assign your TRECs to the TREC administrator. The GATS website can be reached by clicking on this link: pjm.eis.com. This is the account that everyone with solar is required to have to enter your meter readings and where the TRECs and SRECs are created.

The TREC administrator pays you via electronic payment in 115 days from the close of your month. For example July generation will get paid on November 25th at the earliest. (SREC clients at Flett Exchange get paid 5 days after generation) Since the TREC program is governed by the BPU and it is not a free-market you are required to use the TREC administrator. There is no competition allowed.

The creation of the TREC market by the BPU shut Flett Exchange and other SREC aggregators and brokers out of the market.

There is no reason to use an aggregator for TRECs because it is not a market – it is a fixed price charged to the ratepayers. Owners of solar that earn TRECs use the TREC administrator website solarincentivesnj.com to get paid and it is free because the utilities just tack it on everyone elses bill who does not have solar. You will have to open up a GATS account, register your solar array. This process is annoying but you only have to do it one time.

Flett Exchange does this for SREC clients for free because we will be able to sell your SRECs for 10 to 15 years and earn a commission during that time. We cannot earn a commission on TRECs so that is why we do not offer this service. You will have to enter your generation into GATS periodically so that you will generate TRECs and get paid 115 days later by the TREC administrator. You don’t have to do this every month but you need to make sure you don’t forget for too long. After 2 years it is too late to enter meter reading in GATS because the TRECs go virtually worthless.