What is driving the recent volatility in New Jersey SREC Prices and what impact will this have on Solar Project ROI for Corporate entities?
As a leading developer of solar photovoltaic (“PV”) projects for Corporate entities, we have seen significant volatility and sharp declines in the market price of New Jersey Solar Renewable Energy Credits (“SRECs”) over the last few months. As the attached chart indicates, there have been reductions in both the SREC spot market (i.e. where a SREC trades in the open market) and the SREC “contract” market (i.e. where multi-year strips of SRECs are traded on a fixed price basis).