Solar Renewable Energy Certificates (SRECs) have dropped to $150 on the spot market, according to FlettExchange. This represents a dramatic drop from the mid-$600 range that SRECS were going for last summer. SRECs are what the owners of solar systems earn in exchange for producing electricity. Since power providers are required by law to meet a certain standard of renewable energy, they purchase the SRECs to meet escalating requirements that some of their electricity be produced from solar systems. According to FlettExchange, this is the first year that there have been more SRECs produced than electricity providers are required to purchase.
The low rates for SRECs is a serious problem both for the solar industry and for owners of solar systems, because the SRECs are needed to cost-justify the system’s purchase price.