During the week ended Jan. 9, over-the-counter markets for renewable energy credits in Maryland and New Jersey worked higher due to increased buying interest.
Rebounding from previous losses, New Jersey solar REC values were up during the review period. Energy year 2019 SRECs in New Jersey ran at an index of $231.42/MWh, increasing 52 cents from the week prior.
At the New Jersey class I REC markets, values also swung higher, with vintage 2020 prices coming in at an average of $9.78/MWh, up 21 cents.
In early December 2019, the New Jersey Board of Public Utilities approved a new solar incentive program to bridge the current 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 renewable portfolio standard, 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 board established 15-year, fixed-price Transition Renewable Energy Certificates, which will be available to projects that were in the 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.
In Maryland, reporting year 2020 SRECs were priced at an index of $81/MWh, gaining 42 cents week over week.
Maryland SREC prices started to climb sharply during the summer of 2019 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.
Tier I markets in Maryland were also aimed higher during the week ended Jan. 9. Vintage 2020 tier I RECs in the state rose 25 cents from the week before to an average of $9.78/MWh.
In Connecticut, vintage 2019 RECs were assessed at $40.44/MWh, while vintage 2020 prices were seen at $42.66/MWh, down $1.28 and $1.09, respectively, week over week.