Wednesday, August 6, 2014

FW: August Flett Exchange SREC Market Update

NJ SRECS remain on edge of financeable range

 

Monty Bannerman

ArcStar Energy

+1-646-402-5076

www.arcstarenergy.com

 

From: FlettExchange.com [mailto:info=flettexchange.com@cmail2.com] On Behalf Of FlettExchange.com
Sent: Wednesday, August 6, 2014 8:30 AM
To: apope@arcstarenergy.com
Subject: August Flett Exchange SREC Market Update

 

 

 

August 2014 SREC Market Update

Please go to the Flett Exchange Website for SREC prices, news and to log into your account

                         August SREC Newsletter

The first of the new 2015 Energy Year SRECs were minted in GATS last Friday. Prices for spot SREC sales during the last year rallied in all of the major SREC markets covered by Flett Exchange. This was mostly due to new solar development being under control along with successful legislative action taking effect in New Jersey. Solar owners were able to sell their SRECs at higher prices in all markets compared to the previous year.
Here are some pricing highlights:


                           RY 2013      RY 2014
New Jersey:      $100.70       $155.65
Pennsylvania:   $14.05         $35.66
Maryland:          $126.15        $131.56
DC:                     $433.22        $466.60


(These prices are the average daily Flett Exchange settlement prices for both energy years. A listing of settlement prices back to 2007 can be found at

http://markets.flettexchange.com/new-jersey-srec/ 

The market price for SRECs for the next 12 months will be determined by 3 major factors:


1. The rate and cost of new solar installed


2. The buying/hedging activity of the electric companies


3. Legislative changes or new government incentives/policies


  We suggest to our customers to sell on a consistent basis – especially if prices are at the higher end of the range. The current prices in New Jersey, which are in the $155 to $165 range, represent a subsidy of 15 to 16 cents per kilowatt hour which is almost what you would pay without solar! Remember, the idea of an SREC market is to encourage new solar development while financing previous development. It is a delicate balance subject to open competition.  If solar becomes less expensive, and it has, SREC prices over the long term will continue to drop. The open and competitive aspect of SRECs allows new entrants to invest and install new solar.  If the cost of installing new solar becomes less expensive (this is the reason why SREC prices have dropped over the years) new solar investors will be willing to accept a lower SREC price - even if you do not.


Flett Exchange customers can log into their personal account to sell and see the following information:


• Historic SREC charts back to 2006
• Personal SREC sales and revenue charts for all Flett Exchange transactions (you can export to PDF or excel for your accountant or your own records)
• Live SREC prices
• Sell your SRECs like you would sell a stock on our market with over 6,500 other solar owners and dozens of electric company buyers

                                  Enjoy your summer!

Mike, Shean, Kevin, Brian and Mike

Flett Exchange customers can sell their SRECs in a variety of ways.

1. You can call us in the office at 201-209-0234

2. Check the Sell Now Price (for the correct SREC year) on our website and send the SRECs to us on GATS (below is a walkthrough)

GATS Transfer Walkthrough

3. Do it all on-line by accessing our trading platform.

We will process your payment the same day. Customers can also place orders to sell SRECs at higher prices by either calling our trading desk at 201 209 0234 or by logging on to their Flett Exchange account and placing their orders themselves. Checks go out the same day. Established customers can request EFT.

You can always ask us a question at

info@flettexchange.com

 

Disclaimer

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.

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