SPARTA, NJ – Sparta Township Council authorized the sale of 373 SRECs. Solar Renewable Energy Certificates are created for every megawatt-hour of solar electricity generated. They are sold separately from electricity. SRECs are typically purchased by utility companies that are required by law to have a certain amount power generated from solar sources.
The value of the SREC is driven by market supply and demand. The utilities are motivated to use the SRECs or risk facing fines. The fines that can be levied by the state, called solar alternative compliance payments, represent a cap for pricing on the SREC market; SRECs will likely be lower than the amount the utility will have to pay for a shortfall in solar energy Mwh.
“Pricing in recent weeks has been in the neighborhood of $220-$230, but fluctuates daily,” according to Township Manager Bill Close.
Sparta township has solar panels in three locations; roof of town hall, roof of Department of Public Works building and ground mounted at the Germany Flats Water Utility Building.
“If we get a price of $220, the low end estimate, it would yield revenue to the municipality of $82,060,” said Close.
The resolution 5-10 authorized the sale of the SRECs through flettexchange, an online auction website.
Close said, “We are anticipating another sale in December.”