Solarrenewable energy credit prices in New Jersey faltered in value once againduring the week ended July 22. Energy-year 2016 SRECs in the state posted anaverage at $269.17/MWh, down more than $3.30 week over week. Garden State energy-year2017 SRECs notched an index for the week at $264.33/MWh, dropping more than$1.80.
was passed in NewJersey in early June by the New Jersey Senate Committee on Environment and Energythat would adjust the state's solar target to hit 4.1% of power sales by 2021instead of 2028. S.B. 2276 shifts the solar targets earlier to align with thetiming of federal investment tax incentives, which, for residential solarprojects, expire in 2022.
NewJersey requires a certain percentage of its power to come from renewablesources, including solar, with a 3% solar mandate in 2018, rising to about 3.5%in 2021. The bill would hike the mandates to about 3.3% in 2018 and 4.1% in2021.
Forthe week ended July 22, prices for New Jersey class I RECs extended higher. NewJersey vintage 2016 class I RECs saw an index at $13.25/MWh, up 6 cents on theweekly period. Vintage 2017 class I RECs in New Jersey came in at $13.68/MWh,also up 6 cents from the week prior.
MassachusettsSREC I prices found mixed directions on the week. While the vintage 2015 marketwas assessed at $438.75/MWh, decreasing $5.63 from the previous week, theMassachusetts vintage 2016 SREC I market was quoted at an average of$439.58/MWh, climbing $1.25. Massachusetts SREC II prices for 2015 climbed$1.87 to an index of $281.25/MWh, while the 2016 market was assessed $2.58lower at a weekly average of $276.17/MWh.
Thefirst round of the 2016 Massachusetts Solar Credit Clearinghouse Auction willbegin July 29. The Massachusetts Department of Energy Resources, or DOER, willconduct auctions for both the SREC I and SREC II markets. According to theagency, 1,898 vintage 2015 credits under Massachusetts SREC I and 66,440vintage 2015 credits under Massachusetts SREC-11 will be offered for sale.
TheMassachusetts clearinghouse auction is designed as a price support mechanismfor the market in years when more SRECs are produced than compliance buyersneed to purchase. In Massachusetts, the SREC compliance obligation, the amountof SRECs suppliers are required to purchase in any given year, is determined bya formula that takes into account the amount of SRECs to be generated, SRECsbanked from previous periods, and the number of SRECs deposited and purchasedin the clearinghouse auction.
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