SREC Glut is Happening

The SREC Glut seems to be developing fast. In the most recent auction the prices dropped below the minimum threshholds of so many sellers that my broker is setting up a special mechanism to unload these. Here's part of what they announced:


Due to the price drop in the July auction, a significant number of New Jersey SRECs went unsold. You can read about the recent volatility in the NJ SREC market in our blog. For the past 3 years, prices have held at 95% of the ceiling in the market, so for many of you, this is the first month without a paycheck for your SRECs.

As we explained in the blog, there are reasons why pricing could get better for the 2011 SRECs and reasons why they may not. We suspect that you may be less interested in the complexities of the market than you are in getting your SRECs sold. For this reason, instead of waiting until the next auction, we are offering to take your SRECs to our buyers to see if we can get them sold for you sooner than later. We will use a tiered structure that promotes choice, while allowing us to go to the market with firm numbers.


I suppose that in a way, solar is a victim of it's own success and popularity. Hopefully this won't discourage anybody from going solar in the near future. Come to think of it, maybe I shouldn't post this for that reason, but hey, you all know I'm all about full disclosure!