Sale of Solar Renewable Energy Certificates (SRECs)

FAQ Archives - October 2015 Auction

The FAQs on this page are no longer relevant, as they are from past auctions. These FAQs are posted here only for reference purposes. Do not rely on the information provided on this page for the current auction.

FAQ-178:
Can we submit comments to the Master SREC Agreement?

There was an opportunity to comment on the Master SREC Agreement when it was first issued, but at this time all bidders must accept the terms without modifications.

10/05/2015 in Contract
FAQ-177:
What date should be used to complete the Signature Pages?

Each of the eight (8) pages signature pages should be dated with the date of the Buyer's signature. The information on the right is for the Seller to complete and should be left blank.

09/18/2015 in Qualification
FAQ-176:
Energy Year 2015 SRECs auctioned by EDCs in October and December 2014 increased by 14% year-over-year compared to Energy Year 2014 SRECs auctioned in October and December 2013. However, Energy Year 2015 SRECs auctioned in March, June and July 2015 decreased by 6% year-over-year compared to Energy Year 2014 SRECs auctioned in March, June, and July 2014, despite more than 20 MW of new capacity reported as being installed by the EDCs in December 2014. Can you please explain the cause for this decline?

It is up to each bidder to make its own analysis of the market and of the expected supply of SRECs. In making such an analysis, each bidder should be weary of drawing conclusions based solely on year-to-year comparisons of SRECs sold in the auction for a particular month. The quantity of SRECs for an auction in a particular month is not only driven by the overall level of SREC production, which itself is of course subject to variation, but it is also influenced by the particular EDCs that sell SRECs in a given auction.

As the response to FAQ-175 makes clear, an EDC does not necessarily participate in all auctions and a given EDC may not participate in the same auctions from one year to the next. For example, only PSE&G sold SRECs through the December 2013 SREC Auction; whereas PSE&G, JCP&L, and ACE all sold SRECs through the December 2014 SREC Auction. Thus, if a year-over-year comparison of December 2014 over December 2013 shows an increase in SRECs sold, part of this increase may be due to JCP&L and ACE SRECs having been included in December 2014 but excluded in December 2013. By the same token, a decrease in SRECs sold in March 2015 over March 2014 may in part be due to the fact that JCP&L and ACE would have sold SRECs from a greater number of generation months in March 2014 (having last sold SRECs through the October 2013 SREC Auction) compared to the number of generation months for SRECs that JCP&L and ACE would have sold in March 2015 (having last sold through the December 2014 SREC Auction).

09/18/2015 in General
FAQ-175:
Can you please explain why an SREC might not be made available in the auction immediately following its generation?

SRECs in the account of a given EDC are typically sold in the first auction subsequent to their production in which that EDC participates. However, the time between the “minting” of the SREC in PJM GATS (which occurs with a lag to the generation) and the first auction in which an EDC participates is variable. The schedule for the last year SREC Auctions was as follows:
- July 2015. Vintage: EY 2015. Participating EDCs: PSE&G, JCP&L, and ACE.
- June 2015. Vintage: EY2015. Participating EDC: PSE&G.
- March 2015. Vintage: EY 2015. Participating EDCs: PSE&G, JCP&L, ACE, and RECO.
- December 2014: Vintage EY 2015. Participating EDCs: PSE&G, JCP&L, and ACE.
- October 2014: Vintage EY 2014 and Vintage EY 2015. Participating EDCs: PSE&G, JCP&L, ACE, and RECO.
Thus, for example, SRECs from generation in March 2015 transferred to RECO would not have been sold yet and would be expected to be sold in the October 2015 SREC Auction.

There are a variety of reasons for small number of SRECs of older vintages transferred to an EDC to be sold in an auction later than the auction that immediately follows production and in which such EDC participates. These reasons include: (i) there are remaining SRECs after an SREC Auction because the number of SRECs is not divisible perfectly by the block size; (ii) systems have loans approved or begin transferring RECs to the EDCs after several months of generation and SREC production has already occurred; and (iii) a project that registers in PJM GATS after coming online may be able to receive SRECs retroactively for generation prior to registration.

09/18/2015 in General
FAQ-174:
Can you please provide historical generation data for New Jersey?

This website is only for the New Jersey EDCs’ sale of SRECs. Total historical generation is not available on this website.

You may want to direct your attention to New Jersey's Clean Energy Program website via this hyperlink: http://www.njcleanenergy.com/renewable-energy/project-activity-reports/installation-summary-by-technology/solar-installation-projects.

09/18/2015 in General