FAQ-258:
What is an SREC and how many MWhs does it represent?
"Solar renewable energy certificate" or "SREC" represents one megawatt-hour (MWh) of solar energy that is generated by a facility connected to the distribution system in New Jersey. Basic Generation Service (“BGS”) Suppliers and Third-Party Suppliers (“TPSs”) can use these SRECs for compliance with the New Jersey’s Renewable Portfolio Standards (“RPS”).
As background, the four New Jersey Electric Distribution Companies (“EDCs”) are Atlantic City Electric Company (“ACE”), Jersey Central Power & Light Company (“JCP&L”), Public Service Electric and Gas Company (“PSE&G”), and Rockland Electric Company (“RECO”), and the EDCs hold Auctions to sell Solar Renewable Energy Certificates (SRECs). In the New Jersey SREC Auctions, SRECs from a given Energy Year are grouped into “blocks” of equal size. The block size is expected to be approximately 50 SRECs. Bidders in the SREC Auction must bid in multiples of the block size and may not purchase portions of a block. The Auction establishes a single transaction price for all SRECs of a given product sold through the Auction. There is a standard statewide contract, the Master Solar Renewable Energy Certificates Agreements (“Master SREC Agreement”), which a winning bidder executes with one or more EDCs. A winning bidder purchases the SRECs won through the execution of a Transaction Confirmation Letter (“Confirmation”) under one or more Master SREC Agreements.
Additional information on the SREC Auctions, as well as the standard form of the Master SREC Agreement and the Auction Manual, can be found here:
10/03/2024 in
General
