How is the price of the SREC determined?
The price of an SREC is determined by a number of factors, including supply and demand for SRECs in any given year and the cost of SACP. Electric suppliers and providers (load serving entities) are required to pay a SACP if they do not meet the Solar RPS through purchasing SRECs. Generally, SACP levels are set by the BPU above the SREC levels necessary for electric suppliers to have an incentive to purchase SRECs instead of paying SACPs and necessary to provide an internal rate of return attractive for enough solar capacity to reach the RPS requirements. Historical SREC pricing information is recorded.
The price of an SREC is determined by a number of factors, including supply and demand for SRECs in any given year and the SACP level. Electric suppliers and providers (load serving entities) are required to pay a SACP if they do not meet the Solar RPS through purchasing SRECs. Generally, SACP levels are set by the BPU above the SREC levels necessary for electric suppliers to have an incentive to purchase SRECs instead of paying SACPs and necessary to provide an internal rate of return attractive for enough solar capacity to reach the RPS requirements. Historical SREC pricing information is recorded and reported at www.njcep.com.
