Solar Renewable Energy Credits (SRECs) Spot Market Program
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|Program Name||Solar Renewable Energy Credits (SRECs) Spot Market Program|
|Sector||Agricultural, Commercial, Industrial, Integrators, Low Income Residential, Multifamily Residential, Nonprofit, Residential, Schools|
|Last updated||May 27th, 2015|
NOTE: While interested parties can still trade DE SRECs in the spot market, the spot market in itself is limited since most of the SRECs produced are part of the SREC Purchase Program, or the SREC Procurement Program. The price for DE SRECs are usually similar to PA SRECs prices.
Delaware Renewable Portfolio Standard (RPS) requires the retail electricity suppliers to purchase 25% of the electricity sold in the state from renewable sources by 2025. The RPS also includes special provision that requires 3.5% of renewable energy goal to be met with solar photovoltaic (PV) resources. The RPS applies to the state's investor-owned utilities, retail electricity suppliers, municipal utilities, and rural electric cooperatives. Municipal utilities and rural electric cooperatives are allowed to opt out of the RPS requirements if they establish a comparable RPS program for their own ratepayers by 2013, and establish a green energy fund.
Under Delaware law, a solar renewable energy credit (SREC), is equivalent to one megawatt-hour (MWh) of retail electricity sales in the state that is derived from a qualifying PV resource. Electricity suppliers must purchase SRECs in order to meet their compliance obligations under the law, or pay a Solar Alternative Compliance Payment (SACP) for any shortfalls in SREC purchases. The SACP operates as a ceiling on the price that a supplier would pay for SRECs used for compliance with the Delaware RPS. In general, the SACP is initially set at $400 per MWh, but increases to $450 per MWh if the electricity supplier has opted for the ACP in any previous year, and then increases to $500 for subsequent years. The Delaware Energy Office has the authority to review and adjust the ACP and SACP given certain market conditions. As of October 2014, sales of Delaware-sourced SRECs tracked on the SRECTrade averaged $55 per MWh.
|Incentive Amount||Varies based on market conditions; as of October 2014 the SRECs were trading at approximately $55 per MWh in SREC marketplace.|
|Maximum Incentive||CY 2009-2010 SACP: $250 - $350/MWh ($0.25 - $0.35/kWh)|
Beginning CY 2010-2011 SACP: $400 - $500/MWh ($0.40 - $0.50/kWh)
Values refer to Delaware RPS SACP as a theoretical maximum; SACPs and trading prices in other states where Delaware-sourced SRECs are eligible may be different
|Eligible System Size||No system size limitations|
|Duration||SREC is valid for a period 3 years|
|Equipment Requirements||Systems must have a generation meter; engineering estimates not permitted|