Whoa, check this article out. I've said before that I sometimes wonder if it's good public policy to force solar energy into the pipeline with this artificial SREC mechanism (although on a personal level, I like getting money). Requiring power companies to buy SRECs owned by solar power generators like me drives everybody's power costs up, because the utilities must accrue the money to buy them. is that good? This article, which happens to be about my county here in New Jersey, sums it up well at the end. I sometimes crow about high SREC prices while this article speaks of a longing for low ones...
Gloucester County Becoming Solar Powerhouse
Greg Reinert, spokesman for the Board of Public Utilities, said the Garden State is attractive to solar developers for a couple of reasons.
One, state law mandates how many gigawatts of solar power must be generated in the state on an annual basis Ð and the number climbs a bit each year Ð but that number has yet to be met.
Second, because the state hasn't met the number, it drives up the price of the Solar Renewable Energy Credits (SREC), which are federal tax credits that owners of solar arrays receive for generating solar power. For every megawatt of solar power generated, the owner gets an SREC.
Unfortunately, solar power is a costly enterprise at the moment, Reinert said, and ultimately that cost falls back on the ratepayer. So, the more solar power, the lower the price of the SREC, and the lower the SREC price, the less that ratepayers will pay.
"The goal is to drive the SREC down," he said.