Difficulty of Selling SRECs

[thrasherx]

All,

First post here, but after months to years of research. I've gotten quotes for a 9.12 kW system (32 SolarWorld 285 W panels and 2 SMA 5 kW inverters). A self install would be $20k plus electrician fees and paperwork. A reputable, local, solar installer quoted me $30k for the same system. They negotiate SREC rates on a yearly basis, and ask customers to sign up for a 5 year contract. Here's the kicker: the local installer's 2015 SREC rate is $160/1000 kWh.

I've heard that selling SRECs is tricky at best. I won't be generating more than 11-12 per year with the setup, so my SREC bundle might not be very attractive on the market. Obviously, I'm going for the best long-term investment.

I have friends who can help with the install and a background in Electrical Engineering. It wouldn't be nearly as hassle free, but I'd save $7k ($10k - $3k federal tax credit).

Please comment below and respond in the above poll.

[alice]

Where to choose solar products?

I want to buy solar panels, how can i do?

[peakbagger]

The problem with the poll is that the rules for SRECS vary by state. In NH they are only worth around $50. Mass SRECs sell for a lot more but only instate generated. In NH its PITA to get the paperwork filled out with the state but that's only a one time thing. There is then a need for an independent auditor to report the SRECS to the state and then a broker is needed to sell them. Everyone take a cut along the way. SREC pricing is a political tool, with the stroke of a pen the value of SRECs can plummet. In Mass, the SREC price is around $250, if the state declares Canadian hydro as renewable, the bottom drops out of the market. I expect an installer probably just aggregates the SRECS and sells them to another party for cash up front.

[bridaus]

Right or wrong, smart or not, I live in Mass. and I'm going to use SRECTrade. Not sure if I'll regret that or not, they take a big cut, but from what I understand I won't have to deal with anything other than the huge volume of paperwork it seems to require up front (more than all permitting and POCO application combined). YMMV, and in fact MMMV (my mileage... )

[Naptown]

Sounds like the OP is in maryland.
It is also looking like brokerage prices
Based on the $160 quoted.

[thrasherx]

The problem with the poll is that the rules for SRECS vary by state. In NH they are only worth around $50. Mass SRECs sell for a lot more but only instate generated. In NH its PITA to get the paperwork filled out with the state but that's only a one time thing. There is then a need for an independent auditor to report the SRECS to the state and then a broker is needed to sell them. Everyone take a cut along the way. SREC pricing is a political tool, with the stroke of a pen the value of SRECs can plummet. In Mass, the SREC price is around $250, if the state declares Canadian hydro as renewable, the bottom drops out of the market. I expect an installer probably just aggregates the SRECS and sells them to another party for cash up front.

I did forget to mention that I'm from Maryland. Where can I find more info on what % SRECTrade takes off the top? The installer that provided me a quote takes 2%. Thanks, everyone!

[thrasherx]

Anyone?

[LucMan]

SREC trade 7% .

http://www.srectrade.com/fees

[kevcor620]

I went with Direct Energy Solar after receiving quotes from over a half dozen installers. In addition to competitive price and great install job, they sell your SREC's for the first five years with no commission. Just a thought if you're still shopping around. I was very happy with them.

(note to mods: I'm just a customer. In no way affiliated with them, so I'm not trying to peddle anything here)

[thrasherx]

SREC trade 7% .
http://www.srectrade.com/fees

For some reason I didn't see that before. Thanks for pointing that out. In your (or anyone else's) experience, do you get close to the going rate at SRECtrade? I'm guessing I'd be lucky to get $120/srec less the 7% fees, compared to the $160/srec I'd get for this year with the local installer.

[LucMan]

For some reason I didn't see that before. Thanks for pointing that out. In your (or anyone else's) experience, do you get close to the going rate at SRECtrade? I'm guessing I'd be lucky to get $120/srec less the 7% fees, compared to the $160/srec I'd get for this year with the local installer.

I get the bid amount at each auction as long as it is above the minimum amount that I specified. The minumum can be changed at anytime up or doown.
Don' t forget that the srec's can be carried for 3 years before they go away. So you can sell at any time by adjusting your min. rate.
I don't understand how the installer can offer $160 when your srec market offers only $120 something doesn't seem right. Unless he is selling in another market like DC where he is getting $450.

[thrasherx]

I get the bid amount at each auction as long as it is above the minimum amount that I specified. The minumum can be changed at anytime up or doown.
Don' t forget that the srec's can be carried for 3 years before they go away. So you can sell at any time by adjusting your min. rate.
I don't understand how the installer can offer $160 when your srec market offers only $120 something doesn't seem right. Unless he is selling in another market like DC where he is getting $450.

He's selling to Brooklyn. So you're selling that you get roughly what you ask at each auction. How close is what you ask to the top end of the market?

[Naptown]

For some reason I didn't see that before. Thanks for pointing that out. In your (or anyone else's) experience, do you get close to the going rate at SRECtrade? I'm guessing I'd be lucky to get $120/srec less the 7% fees, compared to the $160/srec I'd get for this year with the local installer.

Not sure what they charge but Sol Systems pays the auction price less commission
last auction was $160 or there abouts. They also set a floor price under which they will not sell them.