03/30/2020

NJSREC.com New Jersey SREC Market News Letter

(The NJSREC.com newsletter is no longer monthly, it is periodic)

COVID-19 has become a major issue and NJ currently has the second largest number of cases after New York. This is truly a stressful time and we are all being tested however the vast majority of us realize we are all in this together. Please follow the guidelines and social distance and help protect those that are most vulnerable to this virus.

AS we stated in out last letter, NJ SREC.com is mostly an internet based business. We are here to take care of your voice communication and special needs however, making your transfers on-line by knowing the procedure or following the step by step directions at the “How to Transfer” tab is simple and easy. You may also use the “contact us” tab or email support@NJSREC.com with any questions, quote requests or needs 24/7 at the NJSREC.com website.

We are socially distanced and WE WILL BE OPEN for BUSINESS in home offices and ARE HERE to help you monetize your SRECs and make payment for any SRECs you transfer to us from the GATs website.

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.

GATs is currently minting SRECs 5 to 7 business days after generation is entered.

See Solar Buddy on the www.NJSREC.com homepage. We will post important updates for you there.

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

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 2020 trading month 2/29-2020 to 3-30-2020

The price of New Jersey 2020 EY SRECs decreased $9.00 from February 29, 2019 through March 30, 2020.
The price of New Jersey 2019 EY SRECs decreased $10.00 from February 29, 2019 through March 30, 2020.
The price of New Jersey 2017 &2018 EY decreased $7.00 from February 29, 2019 through March 30, 2020.
Older 2016 vintages decreased $6.00 from February 29, 2019 through March 30, 2020.

New Jersey Clean Energy reported an additional 14.673 MW for February, 2020 however they reported an additional 19,234 MW which was added from previous months going back to the 2014 calendar year. The total added to New Jersey Solar capacity end February, 2020 is 33.907 MW.

During the past few months, trading has been Strong for the NJ 2020 (EY), moderate for the NJ 2019 (EY), slow/moderate for the 2018 (EY) Energy year and light for the NJ 2017 (EY) Energy Year. Trading for the 2016 (EY) Energy Year was very light.

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 03-18-2020 NJ Clean Energy Report information and after revisions, the 6 month installation average is 40.262 MW which 1.110 MW more than the 39.152 MW per month from last month.

Including the 03-18-2020 NJ Clean Energy Report information and after revisions, the 12 month installation average is 36.792 MW which 0.168 MW less than the 36.960 MW per month from last month.

The Pipeline queue for solar projects applied for and accepted less the projects that completed installation, withdrew application or washed out as of 02-28-2020 decreased by 45.277 MW compared to the previous month. The Pipeline is currently 420,753 MW.

The installed solar capacity as of 02-29-2020 as reported was 3,250,414 kW. This capacity generates approximately 3,900,497 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.

Program Information:

Meeting are being held regarding the solar transition. Please see current information from NJ Clean Energy below:
2019/2020 Solar Transition Incentive Staff StrawProposal

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 is $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.

*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. Go to www.NJSREC.com

SOLAR TID BITS

Final February, 2020 reports show solar generation varied widely compared last February. With the exception of a few outliers NJ systems produced about, -10% to +30% kWh compared to February, 2019. The range was better than last year.
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 7.2% off the high price for the past 12 months. Current EY SRECs are trading $3 50 lower than SREC prices this time last year. (based on 2-3 NJ SRECs with NO FEEs or Commissions charged or deducted)

Spring season recommendations:
Spring is in the air and although we could see more snow, it will be time for clean up soon:
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 10th month of NJ 2020 EY SRECs will be posted to the GATs platform on 03/31/2020.

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 21st 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™