Energy providers in New Jersey and Pennsylvania are required to buy certain amounts of solar power each year. They pay a premium for that solar power in the form of Solar Renewable Energy Certificates, or SRECs, and pass this premium cost on to ratepayers. The study found that solar power delivers a total levelized value ranging from $256 to $318 per MWh (25.6 cents to 31.8 cents per kWh).
However, this includes a premium value in the range of $150 to $200 per MWh (15 cents to 20 cents per kWh), above the value of the solar electricity generated. The SRECs in New Jersey currently cost about $60/MWh (6 cents per KWh), and in Pennsylvania they cost about $20/MWh (2 cents per KWH).
“This indicates that electric ratepayers in the region are getting more than a twoâ€toâ€one return on their investment in solar energyâ€, said Dennis Wilson, President of MSEIA. “Although the current SREC prices are unsustainably low, our analysis indicates that SRECs can increase in price , deliver net benefits and still support strong solar growth. Solar power has proven it can deliver value that exceeds its cost by 50% to over 100%. This net positive benefit will only increase as solar technology continues to drop in costâ€.
The full report is available from the MSEIA website.
