VA Market Overview (Partners)

VA Market Overview for 

Partners

Market Details

Market Overview

The VA SREC Market is an open market where market forces determine prices. Key factors include the Alternative Compliance Penalty along with supply and demand based on the Renewable Portfolio Standard (RPS).

Virginia passed the Virginia Clean Economy Act in 2020, opening the possibility of an SREC market. Virginia-sited systems are presently eligible to register in the Virginia and Pennsylvania Tier I REC market. The VA market is expected to continue to mature. The Virginia State Corporation Commission (SCC) is currently working on setting the regulations for the solar carve out of the Virginia Clean Economy Act’s Renewable Portfolio Standard, which will provide much needed clarity regarding project eligibility, requirements, and future expectations.

ACP and Market Trend

The VA Market is in its infancy, and the pricing is fluctuating on a sale-by-sale basis. Pricing is expected to be on the high end (closer to the ACP) as the supply is still low within the first few years. As more solar systems complete SREC registration, the supply and demand structure will evolve with the potential to heavily affect pricing. 

The RPS sets the Alternative Compliance Penalty (ACP) and can be viewed as a soft benchmark for what the REC will be valued at. The ACP is a fee imposed on utilities and mandated purchasers for shortfalls in REC procurement.  

The VA SACP is set at $75 in 2021 for Distributed Generation (<1 MW) and increases by 1% annually thereafter.

Retroactivity / Eligibility Start Date

A system’s eligibility to start generating RECs is based on the system’s date of interconnection date. A system that is not registered in the same year as its interconnection can generate RECs back to the beginning of the calendar year of registration. 

Example: A facility that is interconnected on 5/10/2020 and is registered on 8/20/2022 will only receive SREC payments back to January 1, 2022. 

REC Shelf Life

VA SRECs have a shelf life of 5 years. 

Example: A SREC generated in 2022 can be counted towards the 2022, 2023, 2024, 2025 or 2026 compliance periods.

What Contract Options do we offer in Virginia?

Full Upfront - One Upfront Lump-Sum Payment

This option is one payment upfront. This is a “pre-payment” for 25 years of SRECs generated. We calculate this payment based on your DC size. The price is discounted from the current market price, and payment is made within 45 days of all registrations being approved.

Short Term Locked-In Rate - Fixed Price per SREC With a Shorter Term

This option also has a locked-in price per SREC but offers a shorter term. You will be paid annually between December and February based on your previous year’s actual production. 

Market-Based - Current Market Rate Minus Commission

The timing and amounts of the payments will fluctuate with the market. We will sell your  SRECs (based on the actual production) at least once per year. Payments will be made within 45 days of the sale of the SREC, and a set commission will be deducted from your payment.

Referral Payments for Installers

As an installer, you will receive a set price per kW referral bonus for information sharing and converting your customers to be our registered customers. Fees differ depending on the SREC Market and are agreed upon in a referral agreement prior to information sharing.

* The example below is only a representation of our payments and not indicative of our actual referral payments. 

State	kW (DC)	$/kWReferred	Total Potential Earnings
Example	10kW	$3.00	$300.00

Registration 

Overview of the Process and Timeline

The registration process will begin after a system has been interconnected, and the solar owner has signed a REC contract. VA SREC systems must be registered with PJM GATS (A REC generating and tracking system). This process generally takes between 1 - 2 months. Payment to the customer is dependent on the payment option chosen during contracting.

System Eligibility Requirements

• All sited photovoltaic facilities must report power generation for SRECs from revenue grade meters.

Information/Documentation Requirements

• System Details / Array information
• Permission to Operate signed by the Utility
• Access to Online Monitoring or the ability to report production
• A Revenue Grade Meter meeting the ANSI C12 certification standard

We appreciate the opportunity to work with you.

Carbon Solutions Group Contact Information                                                       

Setup a call with us: www.calendly.com/SREC_Customer_Call

Phone: [phone]

Email: [e-mail]