Where Our House is, Big Picture...

Here's where our house is. We are 13 miles south of Philadelphia...





We're under the red star...




And here is our unobstructed roof...

Signed up for SREC Account

I signed up for our SREC account today, and this answered a lot of questions. I've been wondering how to manage this account, since we're not planning to sell our SRECs through a broker. It looks like I can do everything through the New Jersey Clean Energy Program (NJCEP) website. Most notably that includes monitoring our meter readings and solar production statistics as well as selling our SRECs.

Once I log into our account the menu looks like this:

The bulletin board section includes a message board where offers to buy and sell SRECS (quantity and price) are posted along with contact information.

Homes with Already-Operational Solar Electric Systems

There are some really cool people installing solar electric systems. It isn't as radical as it might seem. Here are links to the stories of two of them (hopefully they won't mind being linked up here):

The Watsons and their beautiful solar-paneled house (this website has a lot of useful links):
http://256.com/solar/

Another beautiful Solar-powered house, this on in Maine...
http://www.solarhouse.com/index2.html

While I'm linking, here's som FAQs (and As) from General Electric:
http://www.gepower.com/prod_serv/products/solar/en/faqs/resid_sys.htm

By the way, I really need to call the guy from BP Solar and tell him that we ended up signing with another company. Every time I go to Home Depot he's there at a table handing out information so I have to sneak in through the Garden Center or contractor's entrance.

I really thought we'd end up working with them. They just wouldn't accept the idea that our New Jersey rebate was still valid and wouldn't incorporate it into any proposal.

Surprise -- Installation in Three Weeks

We received a call from groSolar today. They're planning on beginning the installation in about three weeks, which is much sooner than the July date that we were expecting. There's no reason not to do it sooner, though, if they can. I can expect a call soon from the project manager, E.F., to start coordinating the installation. They will take care of all the permits and handle all matters with the power company, PSE&G.

In the meantime I have to get busy on submitting the construction application and paperwork to our homeowner's association. Also, I have to contact the New Jersey SREC Program Administrator to register for an SREC account. That's where an SREC will be deposited each time we generate 1000 KW of energy.


New Jersey SREC Program Administrator
(201) 612-3221
njsrec@cleanpowermarkets.com

Home energy prices will be rising sharply in the next few years. This article from The Philadelphia Inquirer explains that PECO (A Philadelphia area utility company) has held down prices as part of a recent restructuring/rate cap plan that ends in 2011. I'm guessing that the same is in store with regard to utility companies everywhere else. Being immune to this is one more benefit we'll have when we're producing most of our own power.

http://www.philly.com/inquirer/business/homepage/43216597.html

"State officials have warned that double- or triple-digit rate increases could occur as price caps expire and utilities enter the next phase of the state's power-industry restructuring. Spikes have happened elsewhere to customers protected by caps that expired before Peco's."

"Last year, Peco itself predicted its prices would rise about 20 percent for residential customers in 2011..."

It's All About the SRECs

We're still not one-hundred percent clear on what a Solar Renewable Energy Credit (SREC) is, how we receive them and what to do with them. This page on NJCEP's website was helpful:

http://www.njcleanenergy.com/renewable-energy/programs/solar-renewable-energy-certificates-srec/new-jersey-solar-renewable-energy

Apparently the SREC is a state-based concept. I was poking around the internet and saw a New Mexico state government website describing their own program, which was similar but clearly independent.

Here in New Jersey it works like this. The SREC is a tradeable "certificate". It's electronic, though, not paper (Previously I was thinking it would look something like a Willie Wonka golden ticket). Each time 1000 KW of power is generated, an SREC is issued.

The value of SRECs will fluctuate much like the price of a stock on NASDAQ or NYSE. Currently they are trading for about $600. It could be that SRECs drop in value as more systems like ours go online meaning that there are more SRECs on the market. On the other hand, the SREC market is completely artificial, driven by the law that specifies how many SRECs the utilities must purchase. That will also rise each year which will probably negate the effect of a growing number of SRECs.

The SREC is issued by an SREC administrator who is appointed by the New Jersey Board of Public Utilities. This office tracks energy production for systems like ours, issues SRECs, and records sales/trades of SRECs. I'm still not clear on how this SREC Czar tracks our production but it must be through our power company (PSE&G) and their electric meter.

As I understand it the SREC market consists of the current providers of electricity in the state (the utility companies), who are required to purchase a minimum number of SRECs under New Jersey's Renewable Portfolio Standard. The number of SRECs the utilities must purchase rises every year under the current law, the purpose of which is to encourage the growth of renewable energy to meet growing needs for electricity rather than construction of new power plants.

Operators of solar systems can manage their own SRECs. To do this they must register with the SREC Czar for an SREC account. When SRECs are issued, presumably they are automatically deposited in this account.

Many operators enroll with commercial SREC brokers. This must be a lucrative business because every installer seems eager to push their customers towards their preferred broker. These companies will manage the sale of SRECS for a fee. My first impression is that unless it's more difficult than it looks, it would be wise to handle this ourselves.

groSolar sent us literature from their preferred broker. The proposal wasn't written very clearly but the gist of it was that we had to commit for five years. For part of the duration the installer actually receives a percentage of the profit, which explains why groSolar is anxious for us to enroll. At some point early on during the duration of the contract the arrangement settles into an arrangement by which we would keep 60% and the broker would keep 40% of the money generated by SREC sales. That seems steep, although one benefit of working with this broker is that they guarantee a minimum payment of $200 per SREC regardless of how low value drops.

We're still learning about SRECs. We've got about three months to master it.

Refiling for New Jersey Rebate

Before the New Jersey Clean Energy Program (NJCEP) will forward our rebate directly to groSolar we need to refile a rebate application. Until the change is approved the rebate can only be paid to Mesa/SunTechnics, who is not installing our system. R.B. from groSolar prepared this document which we signed and mailed off to NJCEP today.

Hopefully this is just a formality. T.G. from NJCEP told us last month by e-mail that the rebate is still valid and that all we needed to do was refile with groSolar as the installer, but I'll believe this when I see it on paper.

Since the size of our system has decreased from 9.84 KW/month to 9.12 KW/month, the rebate is slightly smaller than before (down from approximately $37K to $34K). It bothers me that this dollar amount isn't on the application anyplace, but then again it didn't appear on the initial application either. When we get an updated approval letter from NJCEP with the new installer, system size and rebate amount spelled out, I'll feel better.