|New Jersey Governor Chris Christie|
However, there is an important market factor to consider in the New Jersey solar bonanza. As solar became successful, New Jersey SREC prices soared to over $600 per REC. With the boom in solar installation the amount of renewable energy being generated by solar panels is now exceeding the Renewable Portfolio Standard’s requirement. This means that there is an excess of RECs and consequently the once high prices have steeply declined and there is substantial volatility in the market.
This is to be expected to a degree, as it conforms to the universal economic law of supply and demand. Most experts believe that following the correction, the market will stabilize over the next couple of years. On the other hand, there are steps state governments can take to ease the financial burden of homeowners who are counting on SRECs to help pay for their solar systems. Some legislators in New Jersey are now pushing for measures similar to those in Massachusetts that create a “floor” for SREC prices. However it is unclear how successful these efforts will be.
|Pennsylvania's Tom Corbett, which|
way will he go.
So while the SREC market will likely stabilize in the future, New Jersey’s highly admirable position as a renewable energy powerhouse is precarious at best right now. Hopefully the Governor and legislature will see the benefits of keeping their state as a beachhead of renewable energy on the East Coast and a center of green jobs. Only time will tell.
by Richard Harrod
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