Distributed Renewable Energy Operating Impacts and Valuation Study

Appendix C
The price of an SREC is determined by a number of factors including supply and demand for
SRECs in any given year and the cost of the SACP that utilities are required to pay if they do not
meet their RPS goals. SRECs have been trading in the range of 50 to 75 percent of the SACP
level for the past two years.
The following table presents the state-approved SACP schedule for the next eight years. The
schedule reflects a three percent annual decrease to account for an expected decrease in the cost
of PV systems going forward along with improved project economics.
Table C-1
New Jersey Approved 8-Year Schedule for Solar Alternative Compliance Payments
Approved 8 Year SACP Schedule
Energy Year 2009 2010 2011 2012 2013 2014 2015 2016
SACP $711 $693 $675 $658 $641 $625 $609 $594
The SREC is issued once a solar facility has generated 1,000 kWh through either estimated or
actual metered production, and represents all the clean energy benefits of electricity generated
from a solar electric system. SRECs can be sold or traded separately from the electricity, which
provides solar system owners a source of revenue to help offset the cost of installation.
C.2 Summary of Non-Residential PV Installations in New Jersey Since 2003
The following graphs provide a summary of the non-residential PV systems installed under the
New Jersey program since 2003. Data are presented for the following types of customers:
• Universities
• Schools: K-12
• Non-Profit Agencies
• Municipal Facilities
• Government Facilities
• Commercial Buildings
For each customer category, data is presented for the number of installations by year, the average
installed capacity for each year, and the average installed cost of the systems.
C.2.1 Universities
In 2006, there were four PV installations at universities, with an average capacity of 145.9 kW DC
and a cost of $6,364 per kW DC . There are currently six PV installations scheduled for
completion in 2007/2008 with an average capacity of 43.4 kW DC and a cost of $7,545 per kW DC .
C-2 | R. W. Beck, Inc. Arizona Public Service