Our team strongly believes that a managed SREC solution, one in which a third party such as Sol Systems executes trades in the best interest of the SREC owner, provides the customer with the highest sale price. Here’s why the managed approach works so well.
Aggregation is important because larger volume SREC transactions often result in higher prices. For example, it’s very difficult to sell 12 SRECs on any given day. However, many SREC buyers would be very interested in purchasing 1200 SRECs. The higher volume that a managed SREC solution allows improves liquidity, and results in higher pricing. Sol Systems has always passed down this higher pricing to SREC owners.
2. Market Intelligence
Our SREC market research allows us to spot trends in the market. Sol Systems has established itself as a leader in the renewable energy credit market with its market research. This industry knowledge provides our SREC trading team with the data they need to make informed investment decisions and sell our clients’ SRECs at price levels above fair value.
3. Timely Trade Execution
Our trading team is active in the SREC market so you don’t have to be. This daily activity allows us to see trades from multiple buyers at multiple price levels. We’re careful to sell to the highest bidder, and do so in a timely and efficient fashion.
Performance of Managed SREC Solutions v. Competitors
Our team recently conducted an analysis comparing SREC sales prices of our Brokerage customers to the auction clearing prices of a leading competitor. The figure below shows the average clearing prices for equivalent quarterly transactions from Q1 2010 to Q2 2014 for both Sol Systems’ Sol Brokerage product and auction products in the marketplace. Sol Systems’ managed services provided higher returns than the auction strategy favored by our competition. In fact, the managed approach resulted in $10 or more per SREC in 4 of 7 SREC state markets.
The graphs and numbers cited reflect Sol Systems’ quarterly SREC clear prices for Sol Brokerage customers since 2010. Payments are sent to customers on a quarterly basis, and are calculated as the weighted average price of all sales of similar SRECs during the same payment quarter. Learn more about our approach to calculating payments for our Brokerage customers, or learn more about the SREC solutions we provide and view recent pricing.
Sol Systems’ managed SREC solutions have proven to be more profitable to our customers over long periods of time – and remember, most state SREC markets will remain active until at least 2025. Though we believe that managed approach will provide solar system owners with above average returns, Sol Systems offers fixed annuity contracts as well. In fact, fixed price SREC contract (like our Sol Annuity product) outperformed our brokerage sales prices in 6 or 7 SREC states.
Sol Systems offers a number of ways to monetize SRECs, all of which are competitive with or deliver superior returns. If you own SRECs and would like to discuss how Sol Systems can help you monetize them for the highest value, please contact us at 888-235-1538 x1 or firstname.lastname@example.org.
About Sol Systems
Sol Systems is a renewable energy finance firm that provides secure, sustainable investment opportunities to investor clients, and sophisticated project financing solutions to developers. Founded in 2008, Sol Systems focuses on meeting the industry’s most critical solar financing needs, including tax structured investments, capital placement, debt financing, and SREC portfolio management. To date, the company has facilitated financing for thousands of distributed generation solar projects and hundreds of millions in investment on behalf of Fortune 100 corporations, utilities, banks, family offices, and individuals. For more information, please visit www.solsystemscompany.com.