In the past few weeks, there have been a number of news items regarding the increase in the spot market value of NJ SRECs. After hitting lows of around $70, they’re now back up to around $120. 3 year forward contracts can be found. These are welcome developments. We’d like to see 5 year contracts because that gives lenders and investors the certainty of SREC values they need for their ROI calculations.
Commercial solar is coming back steadily. We’ve seen several public sector projects in the past few months. We’ve built a number of them and are building more. We’re hopeful the private sector picks up speed.
Patience is essential. We expected the utility SREC financing programs to come back online sometime in the 2nd quarter. That would be just shy of a year since Governor Christie signed the law. However, the Board of Public Utilities has granted the utilities a 6 month extension before the programs need to be in place. We’re now looking at the end of the year at the earliest for those programs. And we need them. They provide the certainty and stability of SREC values that investors need. We’re hoping these programs actually do come online this year.
So there’s reason for optimism. The SREC financing programs are coming, they’re just going to take a little longer than we would have liked. But they’ll get here.