During the week ended Dec. 26, over-the-counter prices for solar renewable energy credits in Maryland continued to rise on more active buying.
Maryland reporting year 2019 SRECs were priced at $81.04/MWh, gaining more than 30 cents from the week prior, while reporting year 2020 SRECs came in at an index of $80.92/MWh, rising more than 40 cents.
In recent months, Maryland SREC prices have largely been climbing after legislation was passed to hike the state's renewable portfolio standard, which would increase demand. The bill sets a mandate of 50% renewable generation by 2030.
In the nearby New Jersey, SREC markets swung lower during the final full week of December. Garden State energy year 2019 SREC prices were assessed at $232.50/MWh, down 42 cents on the week. New Jersey vintage 2020 class I REC prices were firm at $9.56/MWh.
In early December, the New Jersey Board of Public Utilities approved a new solar incentive program to serve as a bridge between an existing program and one that has not yet been developed. This is a result of a 2018 law that, in addition to expanding New Jersey's RPS, called for the board to close the existing SREC program to new applications when 5.1% of the electricity sold in the state comes from solar, or by June 2021, whichever comes first.
The BPU established 15-year, fixed-price Transition Renewable Energy Certificates, or TRECs, which will be available to projects that were in the solar renewable energy certificate pipeline as of Oct. 29, 2018, but have not reached commercial operation at the time the board determines the 5.1% milestone has been reached.
The BPU will hold a cost-cap proceeding in early 2020 to finalize the annual value of the fixed-price TREC. The BPU will evaluate two pricing scenarios: a flat 15-year price of $152 and a price of $65 for the first three years followed by a price of $189 for the last 12 years.