During the week ended Sept. 19, major U.S. renewable energy credit markets shifted in varying directions.
Increased buying interest worked to boost Massachusetts solar I and II market prices. SREC I prices in the state came in at $384.33/MWh and $360.00/MWh for 2019 and 2020, respectively, up 41 cents and 83 cents week over week. Massachusetts SREC II markets were mixed, with 2019 prices down 41 cents to $313.67/MWh and 2020 values unchanged at $293.75/MWh.
Final results for the Massachusetts Annual Solar Clearinghouse Auction held at the end of July were issued Aug. 30 by the Massachusetts Department of Energy Resources. The DOER determined that the final 2020 compliance obligation for the SREC-I program will be 748,584 MWh, and the minimum standard will be 1.6116%. The 2020 minimum standard for load under contracts signed before June 28, 2013, will be 0.9867%.
The DOER also calculated the final 2020 compliance obligation and minimum standard for the SREC-II program: 1,023,737 MWh and 2.2040%, respectively. In addition, the agency said the 2020 SREC II compliance obligation and minimum standard for load under contracts signed after May 8, 2016, is 1,765,527 MWh and 3.8011%, respectively.
The Massachusetts solar auction serves as a price support mechanism for the market in years when more SRECs are produced than compliance buyers need. The SREC compliance obligation is the amount of credits suppliers are required to purchase in any given year. It determined by a formula that takes into account the amount of SRECs to be generated, SRECs banked from previous periods and the number of SRECs deposited and purchased in the clearinghouse auction.
Extending losses from the week before, the active New Jersey SREC markets continued to leak lower due to lackluster buying interest. Garden State energy year 2019 SRECs lost more than $1.50 to an index at $233.42/MWh, and energy year 2020 SRECs were down more than $1.75 to an average of $232.50/MWh.
New Jersey's four electric distribution companies will hold an SREC auction Oct. 17, offering for sale between 1,400 and 2,100 energy year 2019 SRECs and between 90,000 and 136,000 energy year 2020 SRECs. At the conclusion of the auction, bidders will have the opportunity to submit a bid for a single block of SRECs that are expected to consist of 2018, 2017 and 2016 SRECs. The block will offer less than 500 SRECs.
Following gains the week prior, New Jersey class 1 prices were mixed during the week ended Sept. 19. Vintage 2019 class 1 REC prices increased 6 cents to $6.94/MWh, while vintage 2020 class 1 RECs were down 1 cent week over week to $7.12/MWh.

