Market Watch

Washington D.C.

Washington DC has a moderately aggressive RPS, but a high ($500/MWh) SACP, which should ensure a steady level of SREC revenue at least through 2020. The real driver in DC is the Renewable Energy Incentive Program, which offers a substantial rebate for system owners savvy enough to install a 1-20kW system during 2011 or early 2012!

See our list of state specific rebate programs here.

• Average Commercial Payback:
  5-7 years
• Average Residential Payback:
  6-8 years
• In-State SREC Value:
  $50-$100
• State Energy Goals:
• Revenue Potential:

Pennsylvania

The PA Sunshine Rebate Program is now on a waiting list for both residential and commercial PV installations. This means that funding may become available through attrition (as other projects with reservations fail to be completed).

The extreme oversupply of SRECs in Pennsylvania means that they are no longer a reliable source of income but can provide a nice ‘bonus’ income from time to time. House Bill 1580 is currently under consideration in the state legislature to remedy the SREC oversupply in PA.

However, the installed-cost of solar PV systems have been decreased by roughly 50% since 2007. As a result, solar PV is a smart choice for home owners that understand a long-term investment (paying for 25-30 years of electricity for the price of 10 years of utility bills).

See our list of state specific rebate programs here.

• Average Commercial Payback:
  8 - 11 years
• Average Residential Payback:
  10 - 15 years
• In-State SREC Value:
  $0 - $50
• State Energy Goals:
• Revenue Potential:

Massachusetts

With new legislation providing for a ‘solar carve-out’ as of 2010 in Massachusetts for in-state grid-tied solar PV systems, the market for solar PV in Massachusetts is just getting started this year. During 2011 the SREC market in Massachusetts will need to double in size to meet demand. With a current SACP of $550 and an indefinite annual increase of the Massachusetts RPS, the potential revenue from SRECs will be substantial.

See our list of state specific rebate programs here.

• Average Commercial Payback:
  3 - 4.4 years
• Average Residential Payback:
  3.8 - 4 years
• In-State SREC Value:
  $500
• State Energy Goals:
• Revenue Potential:

Delaware

With an aggressive solar photovoltaic carve-out in the Delaware REC market and healthy utility-based rebate programs, Delaware is a prime market for solar PV installations. Some of these rebates allow for approximately 75% of the upfront cost to be paid back during the first 1-3 years after installation. Also, specific provisions in state legislation allow for additional incentives for system owners that use equipment made in Delaware.

The current SREC market is marginally oversupplied. However, Delmarva is in the process of implementing an SREC procurement program that will offer a guaranteed value for SRECs for the first 20 years of a system’s lifetime.

See our list of state specific rebate programs here.

• Average Commercial Payback:
  3 - 6 years
• Average Residential Payback:
  5- 7 years
• In-State SREC Value:
  $260 - $312
• State Energy Goals:
• Revenue Potential:

New Jersey

New Jersey has a mature SREC program with an exponential increase in required MWh. Though the demand for SRECs is mandated to continue increasing through 2026, the number of solar PV installations in New Jersey has saturated the SREC market, driving credits down below 50% of their previous year trading value.

The bill S2371 (and equivalent bill A3731) has passed the state senate and is pending passage in the state assembly. If fully enacted S2371 will pull forward the SREC requirements by one year, which may ease the oversupply of SRECs in the short-term. If it is not enacted, it is likely that within the next year or so New Jersey’s SREC market may look similar to the Pennsylvania SREC market.

See our list of state specific rebate programs here.

• Average Commercial Payback:
  5 - 7 years
• Average Residential Payback:
  6 - 8 years
• In-State SREC Value:
  $150-$200
• State Energy Goals:
• Revenue Potential:

Maryland

The state rebate programs in Maryland have been guaranteed significant funding for 2011; however, it is important to have your system installed early in the year to ensure funding is still available! Also, provisions in the Maryland SREC market allow utility companies to offer an up front payment for 15 years of SRECs, which may reduce payback timeframes for smaller PV systems.

See our list of state specific rebate programs here.

• Average Commercial Payback:
  5.9 - 7.5 years
• Average Residential Payback:
  5.9 - 7.5 years
• In-State SREC Value:
  $50 - $350
• State Energy Goals:
• Revenue Potential: