FAQs
Use the navigation bar below to view answers and explanations for some of our Frequently Asked Questions regarding:
- Renewable Energy Credits (RECs) and Solar Renewable Energy Credits (SRECs)
- Requirements for electric meters and solar monitoring solutions
- Partnerships with Sol Systems
- Payments for SRECs
- Sol Brokerage
About Sol Brokerage
2. Can I try Sol Brokerage without a long term commitment?
3. Does my system have to be registered with the state of New Jersey?
4. How does the floor price work for Sol Brokerage?
5. How will I get paid for Sol Brokerage?
6. How much will my SRECs be worth in the future?
7. What are the risks of selling SRECs using Sol Brokerage?
8. Can I convert my Sol Brokerage account to a longer term, fixed price contract?
In exchange for the Sol Brokerage service, Sol Systems retains a 5% fee from the SREC sellers gross clearing price. (SREC buyers pay a 2% fee in addition to the gross clearing price).
2. Can I try Sol Brokerage without a long term commitment?
Sol Brokerage customers have a 1 year minimum commitment. After the 1 year commitment, customers may cancel at any time.
3. Does my system have to be registered with the state of New Jersey?
If your system is 50 KW or smaller, we require a state certification system number so that we can create your GATS account if you are in New Jersey (NJ). If you have not received this certification number, you should contact your installer. If your system is larger than 50 KW, please contact us and we can help you get started.
4. How does the floor price work for Sol Brokerage?
Each quarter, we analyze the previous period’s SREC prices and we set a quarterly floor price. We will only accept new SREC purchase agreements that allow us to clear our floor price. If, for some reason, we are not able to sell all SRECs at a price above our floor price, we will hold your SRECs until the next quarterly cycle.
5. How will I get paid for Sol Brokerage?
You will be paid the weighted average of all our SREC purchase agreements in that quarter less a 5% brokerage fee. For example, we might have 100 SRECs to sell and a quarterly floor price of $625. Through the course of the quarter, we might receive 6 bids from energy suppliers and decide to enter into 3 purchase agreements.
30 SRECs x $648
50 SRECs x $662
20 SRECs x $672
We will pay our customers the weighted average for the 100 SRECS ($659.80/SREC) minus the 5% brokerage fee ($32.99). As a result, you would receive $626.81 for each SREC in your Sol Brokerage account.
The value of SRECs will fluctuate as market factors change, but you can expect your SREC sales price to be more than our quarterly floor price and less than the Solar Alternative Compliance Payment (see SACP schedule).
6. How much will my SRECs be worth in the future?
SRECs are a commodity and prices are subject to the laws of supply and demand, therefore the future value of SRECs is unknown. SRECs are also subject to the influence of RPS legislation and Solar Alternative Compliance Payments (ACP) in particular. In many states, the ACP is set to decline; therefore, it is likely that SREC prices will decrease in the future.
If you are concerned with the risk of dropping SREC prices, you may want to consider a fixed rate contract. One of the advantages of working with Sol Systems is that you can seamlessly switch over to a fixed price contract such as Sol Upfront or Sol Annuity as your tolerance for risk changes.
7. What are the risks of selling SRECs using Sol Brokerage?
Sellers should understand that there is an inherent risk and reward in choosing any non-fixed SREC pricing option. SREC prices fluctuate depending on supply and demand, as well as regulations.
It is possible that your SRECs can not be sold at a price above the floor price, in which case your SRECs would be held until the next quarter. If you are concerned with the risk of dropping SREC prices, you may want to consider a fixed rate contract such as Sol Upfront or Sol Annuity.
8. Can I convert my Sol Brokerage account to a longer term, fixed price contract?
Yes, one of the benefits of working with Sol Systems is that you can take advantage of our suite of SREC services. At any time, you may convert your Sol Brokerage account to a long-term contract agreement such as Sol Annuity or Sol Upfront, assuming it is offered in your state. Availability varies with market conditions. These products provide a fixed price for your SRECs.