SREC prices are constantly changing as policy and market behavior continuously evolve. Prices vary across states, as state SREC markets are tied to state-specific policies that are rarely the same.
For example, New Jersey has a Renewable Portfolio Standard (RPS), which requires the state’s utilities to source a certain amount of its energy from renewable sources (20% by 2021 in NJ). Compliance entities can source their own solar system or buy SRECs to meet this requirement. Because renewable sources vary, a percentage of the RPS is dedicated to solar, called a solar carve-out. The value of SRECs are quantified by three major factors:
- State RPS requirements
- Value of the state’s Solar Alternative Compliance Payment (ACP)
- Supply and demand of SRECs in that specific state
Because of these factors, SREC prices and values can vary dramatically from state to state.
Need more background on SRECs? Visit our New to SRECs page.
To see all of our current prices, download our July 2021 pricing sheet.