NJSREC.com New Jersey SREC Market News Letter

Our goal is to update you on current New Jersey market information so you may make an informed decision in selling your NJ SRECs. We provide a Marketplace for New Jersey SRECs and a platform on which to monetize them.

Please contact us at support@NJSREC.com if you have any question or need assistance.

Current Eligible SREC Energy Years (EY) also known as reporting years

There are 6 eligible New Jersey Energy Years this month

• 2020 EY is the current Energy Year (EY) The 06/2019 Generation from the 2020 EY will be posted this month

Energy Year:

NJ 2020 EY

NJ 2019 EY

NJ 2018 EY

NJ 2017 EY

NJ 2016 EY

NJ 2015 EY

SREC Generation Dates:

06-2019 to

05-2020

06-2018 to

05-2019

06-2017 to

05-2018

06-2016 to

05-2017

06-2015 to

05-2016

06-2014 to

05-2015

• FOR CURRENT SREC PRICES go to www.NJSREC.com.
• Note: To view full eligibility for each Energy Year (EY), go to www.NJSREC.com and click on each EY grid.
• Important: You must use "Month of Generation" to determine the vintage of your SRECs.

NJ SREC Market price movement during the July 2019 trading month 06-28-19 to 07-30-19

• The price of New Jersey 2019 EY SRECs increased $2.00 during the July, 2019 trading month.
• The price of New Jersey 2018 EY was unchanged during the July, 2019 trading month.
• Older vintages had an average increase of $0.50 during the July, 2019 trading month.

• New Jersey Clean Energy reported an additional 38.695 MW for June, 2019 however they reported an additional 11.843 MW which was added from previous months going back to the 2014 calendar year. The total added to New Jersey Solar capacity in June, 2019 is 50.538 MW.

• During the last month, trading was very strong for the NJ 2019 (EY), moderate for the 2018 (EY) Energy year and light for the NJ 2017 (EY) Energy Year. Trading for the 2016 and 2015 (EY) Energy Years was light. The 2015 Energy Year SRECs will expire 12/01/2019.

• We have previously noted that NJ Clean Energy is now reporting build rates based on PTO “Permission to Operate” date. This has resulted in different metrics being used and the market believes the lull in build rates last spring and the larger reports now are affected by the new reporting method. The unevenness of the market will likely come out in the wash as the system catches up however older projects continue to be reported monthly in the new system.

• Including the 07-17-2019 NJ Clean Energy Report information and after revisions, the 6 month installation average is 28.322 MW which 2.287 MW more than the 26.035 MW per month from last quarter. This is the largest increase in quite a while.

• Including the 07-17-2019 NJ Clean Energy Report information and after revisions, the 12 month installation average is 27.617 MW which 0.686 MW more than the 26.931 MW per month from last quarter.

• The Pipeline queue for solar projects applied for and accepted less the projects that completed installation, withdrew application or washed out as of 06-30-2019 decreased by 37.210 MW to the previous month. The Pipeline was 657.124 MW adjusted as of 05-31-2019. The Pipeline was 619.914 MW as of 6-30-2019.

• The installed solar capacity as of 06-30-2019 as reported was 2,908,156 kW. This capacity generates approximately 3,489,787 SRECs annually using the calculation that 1 kW of solar capacity generates an average 1,200 kWh.

NJ SREC Market food for thought, statistics and market stake holder thoughts.

Note: These are generally recognized market opinions and not necessarily the opinions of www.NJSREC.com.

There is a meeting on 7/31/2019 with a proposal of how to close the current SREC program. Information follows and you can follow the links for additional information:

Please be advised that Staff of the NJ Board of Public Utilities will be holding a stakeholder meeting to discuss the calculation of the 5.1% Milestone, in accordance with the provisions of P.L. 2018, c.17 (“Clean Energy Act”).

Date: Wednesday, July 31, 2019

Location: Committee Room 11, State House Annex, Trenton, New Jersey 08625

Time: 10 a.m.

Stakeholders interested in participating must register no later than 5 p.m. on July 30, 2019 via an email to solar.transitions@bpu.nj.gov. This meeting is in-person only, and will be recorded by a court reporter.

• Per legislation signed by Governor Murphy on 5/23/2018, the current New Jersey SREC program will close either by the end of the 2021 (EY) Energy Year, June 1, 2021 or when applications are received that will make solar power production equal 5.1% of New Jersey power consumption whichever comes first.
• New Jersey Clean Energy announced on 10/29/2018 accepted applications of midnight 10/29/2018 will have a 15 year SREC life. Applications accepted after 10/29/2018 will have a 10 year SREC life until the program closes. Existing systems will retain their 15 year SREC life as will new systems that had completed applications before (S2314/A3723) was signed into law.

• There are many other aspects to the solar bill and we have provided a link below.  The SACP for the 2020 Energy Year will drop from $268 to $258 and the SACP will drop $10 per year in each successive year until this SREC program ends in 2033. The SACP usually determines the top SREC price for an EY not counting administration costs. The BPU through NJ Clean Energy will be working on new solar programs which may or may not include SRECs. Planning will require the state to achieve 50% renewable electricity by 2030 which includes solar energy. The long range plan is to work towards 100% renewable energy by 2050. The implementation of closing the current program is not finalized.

• Please note: If you have an existing system you will receive the full 15 years from date of interconnect. There will still be banking for the year of generation plus 4 additional years.
• The Bill content is available at http://www.njleg.state.nj.us/bills/BillView.asp See   (S2314/A3723)

Trading Price Statistics through the NJ Energy Year (EY) Spectrum as of 07-29-2019 (30 DAY CHANGES)

Current 2020 EY Price

Current 2015 EY Price

Current 2016 EY Price

Current 2017 EY Price

Current 2018 EY Price

Current 2019 EY Price

Future 2021 EY Price

Future 2022 EY Price

Future 2023 EY Price

Spot Price

$223.00*

$205.000*

$213.00*

$214.00*

$218.00*

$223.00

$207.00

$169.00

$134.00

Delta (change) Current 2016 EY

Delta (change) Future 2018 EY

Delta (change) Future 2019 EY

Delta (change) Future 2018 EY

Delta (change) Future 2021 EY

Delta (change) Future 2021 EY

Delta (change) Future 2021 EY

Delta (change) Future 2021 EY

Change over past 30 days

Not active last month

+$2.00

+$0.00

+$0.00

+$0.00

+$2.00

+$0.00

-$1.00

-$7.00

Note: The reported prices above are numbers as of 06/26/2019. DO NOT USE THESE PRICES WHEN INPUTING YOUR SELL PRICE TO GATS as these prices will change during the month.

Note: This chart is based on a spot price for 2-3 NJ SRECs with NO FEEs or Commissions charged for NJ 2019 EY Compliant SRECs (2015EY-2018EY) and for 500-1,000 lot quantities on FUTURE NJ 2020 EY through NJ 2022 EY SRECs.

*Prices of currently available spot market SRECs posted above are the prices in effect at the time of this update. Prices will most likely change during the month. You MUST always enter our Web-Site posted price in GATs when transferring NJ SRECs to us.

www.NJSREC.com

 SOLAR TID BITS

• Final June, 2019 reports show solar generation was similar to last June. With the exception of a few outliers NJ systems produced, +3% to -3% kWh compared to June, 2018.
• Current Energy Year SREC prices in the last 12 months have traded in roughly the $202.50 to $233.00 range and are current trading 4.3% off the high price for the past 12 months. Current EY SRECs are trading $20.00 higher than SREC prices this time last year. (based on 2-3 NJ SRECs with NO FEEs or Commissions charged or deducted)

Spring/Summer season recommendations:

• For roof systems. Make sure modules are clear from blown branches or winter debris. Check to make sure no animals have been chewing on your wires. When trees leaf, bud and flower there may be debris to clean also.

• If you have a ground system make sure the area is clear of winter debris. When trees grow you may want to check to make sure you have not developed shading issues over the years. If so some trimming may be required. Be careful of your system if you do trimming.

• If you still have not installed a revenue grade meter you are losing valuable revenue.

• Don’t forget to read your meter periodically and make sure it is advancing as expected. Make sure your inverters are functioning. We recommend you read your meter at least once a month.

• The 1^st month of NJ 2020 EY SRECs will be posted to the GATs platform on 07/31/2019.

• As we state often, when asked if the prices are as high as they will go or if they are headed up or down the only advice we have is to sell your SRECs periodically. It has been difficult to pin the NJ SREC market down. Periodic SREC selling is still likely the only way to guarantee an average SREC return.

• Regardless of when you choose to sell your SRECs, NJSREC.com is here to help you monetize your SRECs when you need us.

NJSREC.com, a 21^st Century Sales Company is a New Jersey based company serving New Jersey New Jersey Solar Generators. Our NJSREC.com offices are proud to host a New Jersey Solar System and NJSREC.com runs on NJ SUN™

Current SREC Transfer Information

• As always, our website bids are spot market prices*.  NO FEE or Commission will be deducted from your payment. You will be paid the full price posted on our website. *(one time sale with no future obligation) If you compare our prices to others, make sure you take all fees others charge and deduct from their posted prices into account.

• Remember, when transferring NJ SRECs to us transfer to “NJSREC.com, a 21^st Century Sales Company”, on the www.pjm-eis.com website. GATs will send you a receipt confirmation email after you complete the transfer. Again, please remember that once you have transferred your SRECs to us now, our name will appear at the TOP of the list of account holders.

• GATs will provide us your mailing address you entered when you registered your system. If your check is to be made out to an alternative payee or if the mailing address is different you are required to notify us by email after transferring your SREC(s) to us.

• All SRECs must be transferred on the GATs platform. Others methods employed by our competitors add extra steps to the transfer process and any method other than simply transferring on the GATs Platform causes delays and room for error and are just more work for you, our customer generators.

• Please, an email confirming we received your NJ SRECs should not be required of us as you will receive a confirmation email from GATs and to your OUTBOX on your GATs page. It is not necessary to contact us to ask us to confirm as we will be shown as the transferee in both locations.

• Current GATs Platform transfer instructions can be found at the “How to Transfer” button at our website, www.NJSREC.com