NJSREC.com New Jersey SREC Market Monthly 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 5 eligible New Jersey Energy Years this month

     2018 EY is the current Energy Year and the 01/2018 Generation from the 2018 EY will be posted this month

Energy Year:

NJ 2018 EY

NJ 2017 EY

NJ 2016 EY

NJ 2015 EY

NJ 2014 EY

SREC Generation Dates:

06-2017 to 05-2018

06-2016 to 05-2017

06-2015 to 05-2016

06-2014 to 05-2015

06-2013 to 05-2014

     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 February 2018 trading month   01-31-18 to 02-27-18

     The price of New Jersey 2018 EY SRECs decreased $2.00 during the February, 2018 trading month.

     Older vintages also decreased up to $2.00 through the trading month.

      New Jersey Clean Energy reported an additional 8.706 MW for January, 2018 however they reported an additional 26.534 MW which was added from previous months going back to the 2015 calendar year. The total added to New Jersey Solar capacity in December, 2017 is 35.240 MW.

      Trading was average for the NJ 2018 and NJ 2017 (EY) Energy Years. Trading for the 2016EY, 2015EY, 2014EY’s was 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. This is the third month where only a small percentage of added capacity came from legacy months more than three months back. The system is likely catching up now.

     Including the 2-21-2018 NJ Clean Energy Report information and after revisions, the 6 month installation average increased by 3.530 MW. The average was 20.044 MW and increased to 23.574 MW per month.

     Including the 2-21-2018 NJ Clean Energy Report information and after revisions, the 12 month installation average increased by 0.106 MW. The average was 25.002 MW and increased to 25.108 MW per month.

      The Pipeline queue for solar projects applied for and accepted less the projects that completed installation, withdrew application or washed out as of 01-31-2018 increased by 56.215 MW. The Pipeline was 400.984 MW as of 12-31-2017 and increased to 457.199 MW as of the end of the January, 2018.

     The installed solar capacity as of 01-31-2018 as reported was 2,391,780 kW. This capacity generates approximately 2,870,136 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.

     Most New Jersey stake holders believe 15 MW to 17.5 MW of solar installed per month on average will stabilize the SREC market. Some believe that as little as 12.5 MW per month is the correct metric while others believe 20 MW on average is still on the edge of stable.

     The current 12 month average of 25.108 MW is higher than the perceived stabilization range. The 12 month average is typically a better metric to use than the 6 month average. The 12 month average increased slightly this month.

     The NJ 2017 EY compliant period ended 10/01/2017.

     NJ 2013 EY SRECs expired 10/01/2017. We are no longer buying them.

     The pipeline had a significant increase this month.

     New Jersey solar growth is very strong but again bit slower than previous months. There is still currently a lower demand for SRECs over the next several years especially in the 2019 through 2023 Energy Years. The SREC market remains over supplied however the price is felt by the market to be buoyed by current talk of new legislation with the advent of the new, New Jersey administration.

Trading Price Statistics through the NJ Energy Year (EY) Spectrum as of 02-27-2018 (30 DAY CHANGES)

Current 2018 EY Price

Current 2014 EY Price

Current 2015 EY Price

Current 2016 EY Price

Current 2017 EY Price

Future 2019 EY Price

Future 2020 EY Price

Future 2021 EY Price

Future 2022 EY Price

Spot Price

$213.00*

$203.00*

$205.00*

$207.00*

$211.00*

$214.00

$187.00

$159.00

$126.00

Delta (change) Current 2014 EY

Delta (change) Current 2015 EY

Delta (change) Current 2016 EY

Delta (change) Future 2018 EY

Delta (change) Future 2019 EY

Delta (change) Future 2020 EY

Delta (change) Future 2021 EY

Delta (change) Future 2021 EY

Change over past 30 days

-$2.00

-$2.00

-$2.00

-$2.00

-$2.00

+$2.00

-$5.00

-$3.00

-$6.00

Note: This chart is based on a spot price for 2-3 NJ SRECs with NO FEEs or Commissions charged for NJ 2018 EY Compliant SRECs (2014EY-2018EY) and for 100 lot quantities on FUTURE NJ 2019 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 January, 2018 reports show solar generation was higher than last January. With the exception of a few outliers NJ systems produced, +3% to +75% kWh compared to last January. This was likely due to snow conditions.

     Current Energy Year SREC prices in the last 12 months have traded in roughly the $158.00 to $262.50 range and are current trading just above the average price for the past 12 months. NJ 2018 EY SRECs are trading the same as SREC prices this time last year. (based on 2-3 NJ SRECs with NO FEEs or Commissions charged or deducted)

Winter season recommendations:

      For roof systems. Winter is coming. Snow and ice will melt off solar panels on you roof from the sun and the dark surface of the panels. The steeper the tilt angle of your system and the more south facing the faster the melt will be. Don’t try to chop the ice or snow around or under your system as you could easily damage the solar panels, wiring and supports.

      If you have a ground system either let the ice and snow melt but if you feel the need to clean the modules a light brooming is preferable. Again, don’t try to chop or shovel the ice or snow around or under your system

     The 8th month of NJ 2018 EY SRECs will be posted to the GATs platform on 02/28/2018.

      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™