14
Case Study: An SREC User’s Perspective September 26, 2005 2005 New Jersey Clean Energy Conference
© 2005 PowerLight Corporation
Case Study:An SREC User’s Perspective
September 26, 2005
2005 New Jersey Clean Energy Conference
© 2005 PowerLight Corporation
Focus:PV systems manufacturer
Turnkey solutions provider
Founded 1991
High growth 140% average growth per year since 1997 INC 500 listed for the past five years.
Solid technology base ~ 80 US and international patents
Profitable
PowerLight is a Worldwide Leader in Commercial-Scale Grid-tied PV Systems
PowerLight Corporation
© 2005 PowerLight Corporation
Customers
PowerLight Corporation
CYPRESS
© 2005 PowerLight Corporation
Bavaria Solarpark, Güenching Site 1.9 MW
© 2005 PowerLight Corporation
US Navy’s 1 MW Power ShadeWorld’s Largest PV Carport
© 2005 PowerLight Corporation
Middlesex Water - Edison, NJPG 250 kW complete, 250 kW PT under construction
© 2005 PowerLight Corporation
NJ Dept. of Military and Veterans Affairs (DMAVA) - 181 kW
© 2005 PowerLight Corporation
Create extra revenue stream for solar equipment customersMonetize benefit to bring in extra cash
How SRECs Speed Solar System Implementation
PowerLight Corporation
Revenue stream is mandated by state governmentSafer than just having a voluntary market SREC contract
Bayonne Schools 1,930 kWs Janssen Pharmaceutical 500kWs
© 2005 PowerLight Corporation
Originally thought that role would be brokering
Energy is not the core business of our solar system customers; it was hard for them to deal with LSEs & traders
It is easier for our customers to sell to PLPL offers less onerous terms and conditions
It is not hard to administer SRECs contracts given remote monitoring and easy BPU process, so PL started to buy & sell
PowerLight’s Evolving Role
PowerLight Corporation
© 2005 PowerLight Corporation
Basic strategyDon’t over promise to SREC purchasersBalance long term stability with higher short term valueReally, don’t over promise!
Current statusPurchasing & selling several thousand SRECs/yr
PowerLight’s Role, continued
PowerLight Corporation
© 2005 PowerLight Corporation
Conclusion from a user perspective after 1+ years: It is working!
More solar systems are being built
There is a relatively liquid market for SRECs –this keeps SREC sellers from getting above market SREC pricing from LSEs (and indirectly, ratepayers)
LSEs that act in good faith can purchase SRECs if they want to (they are available)
The on-line SREC trading system is working
Prospects for the future: More of the same!
Summary of SREC Experience
PowerLight Corporation
© 2005 PowerLight Corporation
More liquidity would be helpful
Extend SREC life to 2 years (9 months before program year + 12 month program year + 3 months after program year)
This would encourage LSEs to not be afraid of overbuying as their SRECs currently cannot be carried forward
It is easy to administer this as each SREC has a vintage (create date) associated with it
Allow LSEs to meet 90% of their goal by end of Program Year and the full 100% of their goal 90 days later
This would help SREC suppliers and LSEs to mitigate minor variances in annual solar irradiance
Summary of SREC Experience, continued
PowerLight Corporation
© 2005 PowerLight Corporation
Consider a minimum SREC contract length of at least 5 years
Guaranteed pmts make financing less risky and cheaper
Summary of SREC Experience, continued
PowerLight Corporation
Consider developing a standard SREC and SREC futures contract in conjunction with an SREC contract advisory board
Howell School
