Ohio Market Overview (Partners)

Ohio SRECs 

Overview for Partners 

Market Details

The Ohio SREC market is currently confronting an oversupply challenge, resulting in unfavorable pricing dynamics. Historically, prior to 2014, SRECs originating from Ohio-based facilities held a premium position in the market. However, this premium was eroded due to a lapse in oversight regarding out-of-state eligibility criteria, allowing facilities in neighboring states to inundate the market with SRECs.

Ohio-based systems are eligible to participate in the Pennsylvania Tier I (PATI) market, which has demonstrated more favorable pricing conditions. Consequently, to optimize pricing outcomes for our clients, CSG diligently facilitates the dual registration of Ohio systems in both markets, ensuring access to the most advantageous pricing opportunities.

The Pennsylvania Tier I (PAT1) Market is similar to the Ohio market as it is an open market where market forces determine prices. Key factors include the Alternative Compliance Payment and supply and demand based on the Renewable Portfolio Standard (RPS). This is a subsection of the Pennsylvania SREC Market is open for all eligible systems located in the PJM Grid which include all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Tennessee, Virginia, West Virginia and the District of Columbia.

ACP and Market Trend

The value of the OH SREC fluctuates but has remained consistently under $6 throughout the 2022 energy year. The PAT1 Market trended up throughout the 2022 energy year with highs in the mid $30s and has been ~$31 for the beginning of the 2023 energy year. 

The Alternative Compliance Payment (ACP) for Tier I  is $45/SREC. The RPS sets this and can be viewed as a ceiling price for what the REC will be valued at. The SACP (or ACP) is a fee imposed on utilities and mandated purchasers for shortfalls in REC procurement.

Retroactivity / Eligibility Start Date

Facilities on estimates will earn credit beginning with the first full month following application submission to the PennAEPS.

REC Shelf Life

PAT1 SRECs have a shelf life of 3 years.

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

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 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. 

k

State	kW (DC)	Referral $/kW	Total Potential Earnings
Example	10kW	$5.00	$50.00

kW

SREC Payment Structures for Solar Owners

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

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.

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.

Registration Process

Overview of the Process and Timelines for Solar Owners

The registration process will begin after a system has been interconnected and the solar owner has signed a REC contract, which are sent directly from Docusign . Ohio systems are registered first in the state of Pennsylvania to receive PAT1 Market eligibility and then PJM GATS (A REC generating and tracking system). CSG will also register the system in Ohio if it meets the eligibility requirements and if is more financially viable than Pennsylvania Market. This process generally takes between 1 - 3 months. Payment to the customer is dependent on the payment option chosen during contracting.

System Eligibility Requirements

• A facility must use actual, metered production if the facility is equal to or greater than 15kW, has a revenue-grade PV meter installed, or if the facility is composed of adjustable tilt PV modules or laminate PV modules, or if the facility was interconnected on or after May 18, 2017.
• The system must have online monitoring, and access to view production must be granted to CSG.
• To qualify for the Ohio SREC Market systems over 6kW DC must have a revenue grade meter that meets the ANSI C12 certification.

Information/Documentation Requirements*

• System Details / Array information
• Certificate of Completion or Permission to Operate letter signed by the Utility
• Access to Online Monitoring or a solar dedicated meter
• Certificate of Good Standing if the solar owner is a corporation
• Photograph of the panels in which all panels can be counted
• Photograph of the inverter showing the nameplate/make/model (online monitoring screenshot showing make/model acceptable)
• Photograph of the meter showing the lifetime production (online monitoring screenshot acceptable)
• Battery schematic if a battery backup is installed

 *Additional information or documentation may be required. Requirements can change without prior notice as per state guidelines.

We appreciate the opportunity to work with you.

Carbon Solutions Group Contact Information                                                       

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

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