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Title: Solar Renewable Energy Certificate (SREC) Markets: Status and Trends

Abstract

This paper examines experience in solar renewable energy certificate (SREC) markets in the United States. It describes how SREC markets function--key policy design provisions, eligible technologies, state and regional eligibility rules, solar alternative compliance payments, measurement and verification methods, long-term contracting provisions, and rate caps. It also examines the trends of SREC markets--trading volumes, sourcing trends, trends in the size of solar photovoltaic (PV) systems driven by these markets, and trends in price and compliance. Throughout, the paper explores key issues and challenges facing SREC markets and attempts by policymakers to address some of these market barriers. Data and information presented in this report are derived from SREC tracking systems, brokers and auctions, published reports, and information gleaned from market participants and interviews with state regulators responsible for SREC market implementation. The last section summarizes key findings.

Authors:
; ;
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Solar Energy Technologies Program
OSTI Identifier:
1029410
Report Number(s):
NREL/TP-6A20-52868
TRN: US201201%%111
DOE Contract Number:
AC36-08GO28308
Resource Type:
Technical Report
Country of Publication:
United States
Language:
English
Subject:
14 SOLAR ENERGY; 32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; COMPLIANCE; DESIGN; IMPLEMENTATION; MARKET; PRICES; VERIFICATION; SOLAR RENEWABLE ENERGY CERTIFICATE; SREC; RENEWABLE PORTFOLIO STANDARD; RPS; UNITED STATES; SOLAR CARVE OUT; PHOTOVOLTAIC; PV; SOLAR THERMAL; MARKET TRENDS; ALTERNATIVE COMPLIANCE PAYMENT; ACP; Energy Analysis

Citation Formats

Bird, L., Heeter, J., and Kreycik, C. Solar Renewable Energy Certificate (SREC) Markets: Status and Trends. United States: N. p., 2011. Web. doi:10.2172/1029410.
Bird, L., Heeter, J., & Kreycik, C. Solar Renewable Energy Certificate (SREC) Markets: Status and Trends. United States. doi:10.2172/1029410.
Bird, L., Heeter, J., and Kreycik, C. 2011. "Solar Renewable Energy Certificate (SREC) Markets: Status and Trends". United States. doi:10.2172/1029410. https://www.osti.gov/servlets/purl/1029410.
@article{osti_1029410,
title = {Solar Renewable Energy Certificate (SREC) Markets: Status and Trends},
author = {Bird, L. and Heeter, J. and Kreycik, C.},
abstractNote = {This paper examines experience in solar renewable energy certificate (SREC) markets in the United States. It describes how SREC markets function--key policy design provisions, eligible technologies, state and regional eligibility rules, solar alternative compliance payments, measurement and verification methods, long-term contracting provisions, and rate caps. It also examines the trends of SREC markets--trading volumes, sourcing trends, trends in the size of solar photovoltaic (PV) systems driven by these markets, and trends in price and compliance. Throughout, the paper explores key issues and challenges facing SREC markets and attempts by policymakers to address some of these market barriers. Data and information presented in this report are derived from SREC tracking systems, brokers and auctions, published reports, and information gleaned from market participants and interviews with state regulators responsible for SREC market implementation. The last section summarizes key findings.},
doi = {10.2172/1029410},
journal = {},
number = ,
volume = ,
place = {United States},
year = 2011,
month =
}

Technical Report:

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  • This report documents the status and trends of 'compliance'--renewable energy certificate (REC) markets used to meet state renewable portfolio standard (RPS) requirements--and 'voluntary' markets--those in which consumers and institutions purchase renewable energy to match their electricity needs on a voluntary basis. Today, 29 states and the District of Columbia have an RPS, more than half of all U.S. electricity customers have an option to purchase some type of green power product directly from a retail electricity provider, and all consumers have the option to purchase RECs. This report documents REC activities and trends in the United States. The compliance RECmore » market analysis includes analysis of REC trading, regional REC markets, REC tracking systems, types of compliance RECs, compliance REC pricing trends, and an overview of compliance with RPS polices. The voluntary REC analysis presents data and analysis on voluntary market sales and customer participation, products and premiums, green pricing marketing and administrative expenses, voluntary REC pricing, and the voluntary carbon offsets market. The report concludes with a discussion of upcoming guidance from the Federal Trade Commission on green marketing claims, the emergence of community solar programs, and the potential impact of Dodd-Frank regulations on the REC market.« less
  • The "voluntary" or "green power" market is that in which consumers and institutions voluntarily purchase renewable energy to match all or part of their electricity needs. Voluntary action provides a revenue stream for renewable energy projects and raises consumer awareness of the benefits of renewable energy. There are numerous ways consumers and institutions can purchase renewable energy. Historically, the voluntary market has consisted of three market sectors: (1) utility green pricing programs (in states with regulated electricity markets), (2) competitive suppliers (in states with restructured electricity markets), and (3) unbundled renewable electricity certificate (REC) markets, where RECs are purchased bymore » consumers separately from electricity ("unbundled").« less
  • This report documents the status and trends of U.S. 'voluntary' markets -- those in which consumers and institutions purchase renewable energy to match their electricity needs on a voluntary basis. Voluntary REC markets continue to exhibit growth and spur renewable energy development. Voluntary green power markets provide an additional revenue stream for renewable energy projects and raise consumer awareness of the benefits of renewable energy. Although a full estimate of the size of the voluntary market is not available for 2011, this review uses indicative metrics to capture 2011 voluntary market trends.
  • This report documents the status and trends of U.S. 'voluntary' markets -- those in which consumers and institutions purchase renewable energy to match their electricity needs on a voluntary basis. Voluntary REC markets continue to exhibit growth and spur renewable energy development. Voluntary green power markets provide an additional revenue stream for renewable energy projects and raise consumer awareness of the benefits of renewable energy. Although a full estimate of the size of the voluntary market is not available for 2011, this review uses indicative metrics to capture 2011 voluntary market trends.
  • This project was primarily to develop and implement a curriculum which will train undergraduate and graduate students at the University seeking a degree as well as training for enrollees in a special certification program to prepare individuals to be employed in a broad range of occupations in the field of renewable energy and energy conservation. Curriculum development was by teams of Saint Francis University Faculty in the Business Administration and Science Departments and industry experts. Students seeking undergraduate and graduate degrees are able to enroll in courses offered within these departments which will combine theory and hands-on training in themore » various elements of wind power development. For example, the business department curriculum areas include economic modeling, finance, contracting, etc. The science areas include meteorology, energy conversion and projection, species identification, habitat protection, field data collection and analysis, etc.« less