SRECS in New Jersey (Future of?)

[BigDaddio]

HI I posted in beginners a few weeks ago, and thanks to all for replies.
I read that Gov Christie is revisiting the 10 year Energy Master plan that the Corzine adm put in place couple of years ago.

Was wondering if anyone had an opinion as to whether the new Admistration can or will change the SREC policy as it stands now. (Without the SREC's continuing for 15 years from time of my purchase- I won't invest- and that's assuming at least $500 per SREC during that timeframe).

Thanks again

[gordon]

I had not heard of that. I also would not invest if the possibility of the SREC's is not there for 15 years at reasonable rate.

[gordon]

Don't know if this helps or not.

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ07F&re=1&ee=1

[BigDaddio]

thanks I've seen that :

here is the article regarding the "revisiting" of the NJ Energy Master plan:



Lastly, can we really rely on the kw promised by the installers (to figure out the cost per kw?). I mean one guy says I'll get 14,000kw for x price, and the other guys says I get 13,000 for x price. ...for arguments sake, let's say the 14,000 kw was the cheapest in terms of price per kw....how do we know we're really going to get the amount they say...they only guarantee 80% effiecincy...

[BigDaddio]

forgot article:

http://www.nj.com/business/index.ssf/2011/02/nj_to_shift_priorities_on_sola.html

[gordon]

forgot article:

http://www.nj.com/business/index.ssf...s_on_sola.html

Just read nj.com article. Hope my interpretation is correct that the sbc change to loans only means that there will not be any state rebates (which ended last year when the closed program to new applicants) in near future, but utilities will still need to buy SREC's. Hope someone more knowing than me can clarify this issue.

[gordon]

Grandfathered in?

forgot article:

http://www.nj.com/business/index.ssf...s_on_sola.html

also wondering if people already in SREC's "system" would be grandfathered in for the 15 year period/pricing?

[Naptown]

From what I am reading is that you will not invest if the price or length of SREC income is less than 15 years at current values?
At Curent pricing in NJ your systems will pay for themselves in about 5 years.
Calculate the increase in property value and you are still getting a very hefty return on your investment.

Someone here questioned wether the production estimates from the installers are accurate.
If they calculated the production using a Solar eye or Pathfinder this should be very accurate. However if you want to double check them you can use PVWatts which is the NREL algorithm for estimating production and is what those two programs are based on. It is available for free on the web google it and use version 1

The 80% efficiency or more accuratly the system derate is built into the calculations. Therefore unless they are really fudging the derate factors the end result is pretty accurate.

[BigDaddio]

Thanks Naptown- It was I who said that I need the 15 years.

reason is that I plan on moving in 10 years so really i need 10 years not necessarily 15 years . I know it pays off in 5-6 years but I want to be assured 10 years of SRECS due to risk I feel I'm taking with a new methodolgy that doen't have a long track record (relative to gas, electric, etc). technology comes and goes, and this although I'm sure I'm exagerating to say but I'm risking that solar is the "flavor of the week" and with wind coming on strong , maybe solar incentives dry up.

as far as property values, two things I can think of, first, if the incentives dry up, then the solar will not driving up property values as much as it could, and 2) I look at solar panels similiar to guy with built in pool- 1/2 the people want it, and 1/2 home buyers done.

[Naptown]

Actually a much higher percentage will look at it as an advantage. I have talked with some realtors in my area and the homes with solar installed are marketing quicker than those without. The big reason is reduced energy costs which equate to lower costs of ownership. The current real estate market notwithstanding it is a sensible investment.

[JoeF]

Future of SREC's in New Jersey

While no one can predict the future of New Jersey's solar energy program, we can surmise several factors that will weigh in on any future changes. The progress of New Jersey in implementing renewable energy programs is the primary factor, but the program has been hailed as a model for other states to follow and is viewed as highly successful, so I believe the program will continue in the foreseeable future. Beyond that is only speculation by anyone. The SREC program should have a "grandfather provision" if it were to end so this should make you feel better about the SREC program.

People that complain about the economics of the program are looking at it in a very short sighted way. Yes, all taxpayers help subsidize the program, but without the program, very few installations would be started. This means those buildings without solar would need to get all their power from the grid. With supply the same and demand increasing, we all know where prices will go. If instead, several buildings went with solar as a result of the SRECS, they would use less energy from the grid. Less demand, same supply and price increases won't be as high.

[russ]

Hi Joe - Welcome to Solar Panel Talk!

The SRECs and high FITs are driving up the cost per kWh overall. The average consumer (without solar) is paying the bill.

Russ

[Sunking]

People that complain about the economics of the program are looking at it in a very short sighted way. Yes, all taxpayers help subsidize the program, but without the program, very few installations would be started.

Short sighted, NOT well at least for the educated who actually knows and studies history. No subsidy has ever generated one penny of profit for the government. All the money poured into it will never make a profit from taxes from sales and income tax. Only free market can generate organic growth and wealth. Governments have no business trying to steer the the market, it fails every time. All it does is create debt and delay true progress. RE will fail, it cannot do what it is claimed to do, it is impossible.

[russ]

New Jeresy SREC

From Renewable Energy World an article about SRECs in New Jersey.

'Lots of people know that New Jersey is the 2nd largest solar market in the U.S. and that the market

[BigDaddio]

Thanks Russ I had seen that article, and the contents of the article particularly statements like the below are what me hesitant to sign up and pay the upfront costs. I'm still undecided.:

[I][I][I][I]"In addition, the supply of SRECs in New Jersey is increasing as more solar farms, residential and commercial solar energy systems are built (