About Rick Peters

Rick Peters manages strategy, administration, sales and marketing for SES and is a currently the President of the Board of Directors for MDV-SEIA; the solar industry’s regional trade association. Rick holds a mechanical engineering degree from Marquette University and an MBA from the University of Maryland’s Smith School of Business. Prior to entering the solar industry, Rick’s 9-year executive leadership position in Sales and Marketing of an Information technology Services Company was instrumental in growing the firm of 14 employees to more than 100.

Home Solar Panels Solar Service
Written by Rick Peters

Solar Plus Storage is Ready for Prime-Time Backup Power for your Home

As we’ve seen the cost of solar drop rapidly in the last ten years (more than 80%), we continued to endure those naysayers in the distance arguing that “no matter how cheap you make solar; much like wind, it will never dominate the energy landscape because of intermittency.” It’s hard to believe people still say “Never” in the context of technology? That term only provokes our great American drive and ingenuity, which continues to deliver. Witness electric storage costs have dropped 80% in the last eight years, outpacing the dramatic solar cost reductions!

Battery technology today

Today, electric batteries continue to back up solar in more and more markets every year. Batteries are giving solar system owners a lot more control and choice about energy independence, while giving grid operators a game changing tool to help manage the modern grid with greater economic efficiency. We’ll talk more about the how and why, later in this post.

Storage market is heating up

So far SES has contracted for 7 battery installs already this year in Maryland, up dramatically from 2017. The residential solar plus storage market has begun to take off in many markets. In fact, the preferred battery suppliers were out of stock for more than 4 months this year, both from increased demand to complement solar projects, but also due to the soaring demand increase for Electric Vehicles (EVs) that use the same battery technologies.

Storage is like bacon

Why is storage so valuable? One of my favorite energy experts, Katherine Hamilton (https://38northsolutions.com/team/bios/) once said that “storage is like bacon, it makes everything better.” Storage has almost a dozen value streams that can be monetized now or in the future. The two biggest and most obvious value streams are that it can provide extra capacity in times of high demand, and it can provide extra demand in times of excess capacity. In both cases, it provides stabilizing value to the grid and more efficient use of generating assets.

A testament to the value of storage on the grid was seen several years ago when the California Public Utilities Commission required utilities to procure a minimum amount of storage. Not only did the major utilities comply, they all procured more storage than mandated. They are well aware, storage helps them modulate an increasingly dynamic and decentralized grid.

Residential Solar Panels Anne Arundel County MD

Why should I consider solar plus storage for my home?

If you deploy solar along with your energy storage solution, you can utilize the same federal tax benefits as you do for solar, namely the 30% investment tax credit. In Maryland, you are eligible for an income tax credit on the storage portion of the system, in addition to the other state solar incentives (https://energy.maryland.gov/business/Pages/EnergyStorage.aspx). As a result, the economics in Maryland for residential solar + storage are much improved from a few years ago.

The main reason our residential customers are deploying energy storage is for backup power during a grid outage. This is typically done by way of an essential loads subpanel in their electric system. SES often installs these subpanels as part of our solar + storage project.

Another factor driving this trend is a residential customer’s desire to position themselves to cut the cord in the future, if the utility relationship becomes unappealing or uneconomical for them.

Lastly, future changes to electric rate design and/or net metering policy, could present solar + storage owners the ability to increase their savings or even generate revenue from the services that their frequently-idle storage can provide.

Are you building a new home and want to be sure it is ready for the energy architecture of the future? It’s easier than you think. Ask your builder or electrician to insure you have an essential loads subpanel (to use with electric battery storage, or possibly a generator). Secondly, request they install an empty (capped) electrical conduit from attic to electric room for us to easily add your solar energy conducting wire in the future.

Please see Roger Perry’s technical writeup on residential storage applications recently implemented by SES.

What has brought about this market opportunity?

Electric storage has long been an essential part of any true off-grid solar/wind application and this is where the earliest developments have taken place. As solar began to penetrate the grid in the last 10 years, there has been a lot of R&D investment in this future “holy grail” of renewable energy development. The investment is now paying off.

Storage broke into the US grid-tied market about five years ago. In the case of Hawaii, it was mostly a market driven change. Extremely expensive power, a grid congested with rapid solar growth, denials and delays of solar interconnection applications, and abundant sunshine, all contributed to the new paradigm. This resulted in economics that justified a certain segment of residential customers in Hawaii to cut the cord and embrace storage as a long-term solution. This sent an alarming message to utilities around the world: You better embrace these changes or plan to go the way of the buggy whip!

At about the same time, California’s PUC mandated a specific quantity of storage on the grid, much of it behind the meter. The utilities went on to exceed that mandate in the first auction and later in 2017, the target was increased again, with little to no resistance. In the past year, we’ve seen California utilities choose new battery storage over new gas fired peaker plants to meet peak loads in three separate cases. This is a tremendous validation of the economics of storage, particularly in an age of record low natural gas prices.

What’s ahead for energy storage?

The horse is out of the barn. Distributed energy generation combined with storage, will be the foundation of the future electric grid. The role that storage will play in this transformation will be enormous at the macro level, but somewhat uncertain at the micro level due to regulatory policy, incentives, and local market conditions.

We should expect to see strong storage growth in markets with the following attributes:

  • Places where local or state incentives are promoting storage – Maryland is one of them.
  • Markets where system owners can capture supplemental revenue from their storage investments (Our grid operator, PJM has piloted bundling distributed storage as a revenue generating resource for storage system owners)
  • Markets with high electric rates or Time of Use (TOU) rates.
  • Markets where electric “demand charges” represent a large cost for commercial and industrial (C&I) customers. This is because storage can dramatically lower a building’s electricity demand profile, and thus add energy bill relief to a portion of the bill where solar has had limited impact.
  • Microgrids are increasingly popular, particularly with campus style environments and military installations. These applications will increase storage demand and further drive down costs through scale and experience.

Next steps

Be sure to contact SES if you are interested in solar + storage. We will be happy to design a system that is customized to your needs. As always, we’ll provide you all the support you need to capture the Maryland solar grant and the storage tax credit (which has a limited budget) so contact us right away.

Home Solar Panel ,Solar Service
Written by Rick Peters

Peters’ Journey to Net Zero

Solar Service,Home Solar PanelsWhat Net Zero Meant for Us? Our Severna Park based, four-person family was looking to offset some of our home’s dirty energy, but we really did not have an expectation we could offset it all, but we had to start somewhere. We took our first step shortly after I joined the solar industry in 2008.

Low Hanging Fruit. In February 2009, we installed a 120-square foot solar water heating system to offset most of our water heating, and a small portion of our space heating for the first floor of our home. We saw big savings from this 3-panel system right away. Ever since, I enjoy the act of turning off the back-up water heating in April and leaving it off until almost October. For us, offsetting a dirty and expensive oil-fired boiler was the obvious low hanging fruit. We would later convert that remaining load to natural gas when the utility extended the pipeline to our home.

Solar Electric (PV) With the rest of the heat, A/C, and appliances all running off electric, it was time to look at the next opportunity. A few years later, when budget allowed, we decided to add a 5 kW solar PV system to our second story roof which faces SSE. My best determination was that we offset just over 40% of our electric load with that PV system. We were happy, but knew we’d want to find a way to get to NetZero eventually. , . I began to evaluate the remaining rooftops and consider what it would take to get us there. Solar panel efficiencies had improved a lot over the past several years so this reduced the remaining roof space we’d need to hit our goal

Phase 2 (PV). In the spring of 2016 we finished filling the balance of the south roof with some slightly higher wattage panels. As part of the same expansion, we added 24 relatively high efficiency panels to the E/W, low slope, rooftop of our one-story garage. We now had a total of 6.6 kW Equivalent of solar thermal and 13.8 kW of PV.

Not There Yet….We almost tripled our PV with the last upgrade and according to my calculations, this would get us to NetZero electricity. We’d know for sure by April, the annual true-up time frame for netmetering with BGE. When April 2017 came around, we were disappointed to come up a bit short (unfortunately, with a couple teenagers in the house, my usage predictions were a little off). Where do we go from here? I was not ready to put panels on the north roof, there had to be something available to us on the demand side.

Oops – More Low Hanging Fruit…One thing about Energy Efficiency, there’s always more opportunity. I had changed out many bulbs to LED over the prior several years, mostly through attrition, but I had not replaced any of the more than 2 dozen canister lights we had throughout the ceiling upstairs and down. Not only were these lights very inefficient, but the heat they generated in the summer was just adding to our air-conditioning load. We found the LED replacements on sale and replaced them all, as well as the remaining few incandescent lights in the house.

Commercial Solar Energy,Solar ServiceEureka. we have arrived!… In April of 2018 we received a $46 check from BGE for the annual overage from solar. With the kids heading off to college soon and a new refrigerator around the corner, I’m confident our checks from BGE will be getting bigger for the near future. At least until we purchase an electric car…

solar energy, renewable,
Written by Rick Peters

PACE Solar Financing in Maryland and Washington DC

Typical Commercial Challenges

As veterans of the small commercial solar market in this region, we are very familiar with the challenges of financing solar energy systems to this group of property owners.  Small businesses want solar as much or more than any other market segment, but they are capital-constrained like no others so they need affordable financing.

Third party solar developers have been the answer for other markets.  They can easily finance large systems because the cost of assessing the applicant’s credit is well worth the return.  In the case of residential systems, they can use universal tools like credit scores to help manage their risk.  For the small commercial and non-profit market, there hasn’t been a super-attractive  way to finance solar, until now!

Commercial Solar Systems Now Recognized as Public Benefit

Washington DC and Maryland now have laws and programs in place for commercial (and nonprofit) property owners to utilize PACE.  Property Assessed Clean Energy (PACE) is a vehicle that is used to finance energy improvements for buildings.  It operates under the recognition that energy improvements are considered to be a public benefit.  As such, PACE uses the property tax as a vehicle to structure the financing payments – much like we would finance a sewer extension, but in this case specific to one property.

PACE is very appealing to property owners because they can add significant value to their building on a cash-flow-positive basis without personal guarantees or the application of additional debt to the balance sheet.  The financing payment must be less than the savings and it’s paid in the form of a special assessment on the property tax bill over the term of the financing arrangement (5-25 years at competitive rates).  Multiple energy improvements (i.e. lighting, solar, new roof) can be bundled into one financing package.

The best thing about this approach to financing solar is that the property owner will own the system, not a third party.  The property owner gets all of the benefits, including the energy savings, the substantial incentives, the marketing value, and the satisfaction.  All it costs them is the interest on the financing which pales in comparison to the savings.

More info is available on your webpage on our PACE webpage but you may just want to pick up the phone and call us to see if your property is eligible.

solar energy, Solar Service ,Home Solar Panels,
Written by Rick Peters

Press Release: Solar at the Chesapeake Bay Foundation

Press Statement
6-15-15

Solar Service, Home Solar Panels, Chesapeake MDCBF Merrill Center to Install 106 kW Solar System

(ANNAPOLIS, MD) The Chesapeake Bay Foundation (CBF) and Solar Energy Services, Inc. (SES) announced an agreement today for SES to design and build a 106 kW, grid-tied solar photovoltaic system at the Philip Merrill Environmental Center, CBF’s headquarters.

The Merrill Center rooftop solar system will include more than 370 solar panels from US manufacturer SolarWorld, as well as inverter systems from Solar Edge. The panels will be installed primarily on the available roof tops, but the design also calls for some unique solar shade structures to provide additional benefits to the facility and its occupants.

SES president Rick Peters shared that SES is pleased to participate in this marquee project. “I know personally that CBF has led the way on sustainable initiatives in our region for a very long time. It is an honor to be selected to construct this project, which will help advance CBF’s message and their environmental stewardship.”

The solar system is projected to produce more than 133 MWh of electricity annually, enough to power more than 10 average Maryland homes. This will significantly offset the facility’s consumption of traditional electricity.

“While we have had solar panels at the Merrill Center in the past, we are adding this new capacity because it is now more affordable as well as more efficient,” said CBF Vice President Mary Tod Winchester. “The new array will generate enough electricity to provide one third of the power for heating, cooling, and other needs of the more than 100 staff who work here. As a non-profit, we will not benefit from the many tax incentives available, but we encourage other individuals and businesses to closely examine the costs and benefits of adding solar generation.”

The project is expected to be completed before the end of this summer.

About Solar Energy Services, Inc.

Solar Energy Services, Inc. (solarsaves.net) designs, builds and services solar power systems for institutional, commercial, and residential customers. The firm was founded by 37 year solar industry veteran Roger Perry who has longstanding ties to the communities served by SES. Based in Millersville Maryland, the 21 person firm operates in Maryland, DC, and Virginia.

About Chesapeake Bay Foundation

Founded in 1967, the Chesapeake Bay Foundation (www.cbf.org) is the largest independent conservation organization dedicated solely to saving the Bay. Serving as a watchdog, we fight for effective, science-based solutions to the pollution degrading the Chesapeake Bay and its rivers and streams. Our motto, “Save the Bay,” is a regional rallying cry for pollution reduction throughout the Chesapeake’s six-state, 64,000-square-mile watershed, which is home to more than 17 million people and 3,000 species of plants and animals.With offices in Maryland, Virginia, Pennsylvania and the District of Columbia and 15 field centers, CBF leads the way in restoring the Bay and its rivers and streams. Over the last four decades, we have created broad understanding of the Bay’s poor health, engaged public leaders in making commitments to restore the Chesapeake, and fought successfully to create a new approach to cleanup that features real accountability-the Chesapeake Clean Water Blueprint

Home Solar Panels,Eastern Shore MD
Written by Rick Peters

Solar Energy Trends

Some Positive Trends:

Eastern Shore MD,Residential Solar PanelsThe Challenges:

Industry consolidation can be disruptive

Residential solar leasing is fast outpacing cash sales in many of the more developed states, like Maryland. It’s what many Americans want so it will continue to drive the market. It seems to work for more of America.   After all, we do like instant gratification and if I can save $10/month immediately, and feel good about it, where do I sign? While SES is typically strongly advocates for cash sales to our customers who are able, no one can argue the enormous impact and value that the various residential and commercial financing options have delivered. Getting solar access to the mainstream will be the most critical piece to advancing the development of distributed solar. It really has been transformational so far.

There’s other good news. System Pricing, though leveling off somewhat, has dropped dramatically in the past 5 years. While incentives decline as planned, the industry continues to drive down installation costs to maintain the impressive paybacks and internal rates of return.

Beneficiaries of solar price reductions include states like Maryland, who had the foresight to seed this industry over the last 6 years. Government and industry partnership in Maryland has built an economic environment that supports solar development and as a result, it is sustaining 2200 jobs while Maryland continues to meet its solar RPS goals. That’s right, our industry delivers over 2200 paychecks in Maryland. In fact, there is now a solar thermal equipment manufacturer in Baltimore. Much to be pleased about.

There’s also a darker side. Bankruptcies and consolidation of solar companies have carried the headlines quite a bit in the last year especially. While a natural part of the tech/business evolution cycle, consolidation and shake out are always disruptive, not only to industry members, but also to consumers of these solar energy products and services. As a result, all of the solar “investors” are asking lots more good questions – particularly about the longevity of the manufacturer and the installer. Popular questions, particularly in the solar PV panel world, are “Who will be here to support my warranty?” and “What is the design track record of these systems?”

The beneficiaries of these trends will be those with a proven commitment to the industry either through time or capital. It’s that commitment that gives customers confidence of future support if and when it is needed. Whether it’s an installer with 35 years experience or a manufacturer like SunPower that has 25 years in business, longevity is a key indicator of future availability to support the install base.

Washington DC Solar Commercial Solar Service
Written by Rick Peters

Commercial Solar Water Heating: ANOTHER Renaissance?

Washington DC Solar ,Commercial Solar ServiceSolar water heating has quite a long history. In the United States alone, the industry has boomed and busted 3 times in the last 130 years – each time displaced by cheap energy. Many are surprised to know that the first US patent for a residential solar water heater was issued in 1891 to Clarence Kemp, a Baltimore inventor. That’s right, 1891.  In the 1920’s, 30% of the homes in Pasadena, CA had solar water heaters.  With the discovery of natural gas resources in the region, the industry evaporated almost overnight.  Solar thermal technology is mature and efficient; the problem lies with allowing our commitment to solar to dissolve in favor of decreasing natural gas prices.

In these previous industry “busts”, energy became cheap and we were lulled into a false expectation of stable prices. Each time, not long after the industry was dismantled, energy prices began to creep back up, making us long for that clean and cheap solar energy again. So today Solar Water Heating is on the rise again. Will it be different in the 21st century or are we doomed to repeat the same cycle? What was it that Winston Churchill said about failing to learn from history….?

The recent surge in US solar water heating deployments began in 2008. This resurgence, especially at the commercial scale, has helped to drive up adoption rates while scaling down installation costs. Several factors are converging in recent years to bring about this renaissance:

  • Engineers, architects, and contractors are becoming increasingly familiar with this mature technology – improving costs with increasing experience
  • Regional incentives are bolstering the existing federal incentives to reduce the capital investment.
  • The federal government has mandated that a minimum of 30% of water heating must come from solar for new construction or major renovations on federal buildings.
  • Project Developers like Skyline Innovations (http://www.nextility.com/) have introduced new business models to help deploy these systems for those without available capital.
  • Property owners increasingly want to have more control over their energy budget
  • Various societal pressures continue to reward solar adoption
  • An improving economy has allowed property owners finally to reinvest in their buildings

Remarkably, much of this has occurred despite a backdrop of rapidly falling natural gas prices (the primary heating fuel for commercial water heating), decreasing drastically from 2008 to 2012. However, in the last 18 months, natural gas prices are climbing again in a trend that is likely to continue: gas exportation; deployment of energy intensive manufacturing in the US; diversion of more natural gas to transportation (locomotives, trucks, fleet vehicles and eventually automobiles); conversion of more power plants and residential heating to natural gas.In light of these trends, property owners are rapidly moving forward to install solar water heating systems before the financial incentives expire. Business owners with substantial hot water loads in Washington DC and Maryland are able to achieve simple ROIs of 2-7 years. This approach requires them to take a slightly longer perspective, recognizing that they are buying 30+ years of energy up front for a fixed price (with generous subsidies). Whether financed independently or through the bank, building owners are able to lock in their energy prices and hedge the inevitable increase in fuel costs while leveraging all of the other benefits of renewable energy.

If you have any doubts about this trend, visit our commercial solar water heating page and take a look at the photos of just a subset of the projects we’ve been deploying in the region (https://solarsaves.net/commercial-solar-water-heating/).

If you want to know more about the history of solar water heating, check out this excellent book: The Golden Thread: 2500 Years of Solar Architecture and Technology, coauthored by Ken Butti and John Perlin.

Residential Solar Panels,Solar Energy
Written by Rick Peters

SES Embraces SunPower Partnership

Residential Solar PanelsMany of our prospective customers have been waiting to buy their panels in the hopes of significant advancement. “I want the technology to mature ” they say, “ and be state-of-the-art”. Well, the closest you can get to those standards with a production panel is with SunPower.

Ask around, do some Google searches. You’ll learn quickly that SunPower is considered the best with very little debate. In fact, it’s by far the best. This American born company launched out of the US university research system (the founder was a Stanford professor) has sustained a 23 year run to be acquired recently by a global energy company.

At Solar Energy Services we’re excited to report that we are now a SunPower certified dealer. We’ve always wanted to offer the very best PV product and now we can. SES is proud to tie our 35 year commitment to the industry to the world leader in solar panel manufacturing.

Many are aware that the cost efficiency of installed solar has improved dramatically in the last 5 years due to efficiencies gained through price competition, distribution improvements, development of installation techniques, and other process improvements. However, the physical efficiency of solar cells has advanced more slowly than most have hoped. The standard Chinese panel being installed by the majority of installers today (especially the large leasing firms) are in the 14-15% efficiency range. A few solar manufacturers have been able to stay notably ahead of the pack. SunPower remains out front with their standard 327 W panel (E20) at 20% efficieny. Sunpower’s new “X” (E21) is 21% efficient! That’s right, over 40% more efficient than the average panel out there. The X begins to ship in April 2013 – next month.

SunPower’s Maxeon cells are the industry leader in reliability and durability also. They’ve had only180 defects out of 7 million panels. That’s right, 1 in 39000! The Maxeon cell has redundancy in contacts, accommodating wear from thermal expansion. It has backside contacts that provide increases collection on the sunny side. They are highly durable with the best impact resistance ratings. They are backed by a solid company with great support and a bright future.

To recap, the physical efficiency of solar cells has been relatively stagnant, with the exception of a few leaders that have developed slow and steady progress. SunPower has led the way. The company has been around for over 23 years. They have the most durable solar cell in the industry and the highest performing. I must confess, the 3 year old solar PV system on my roof has panels made in China. If I were installing today, there is no doubt I’d choose SunPower…

Solar Service, Home Solar Panels Washington DC Solar
Written by Rick Peters

SES Embraces SunPower Partnership

Many of our prospective customers have been waiting to buy their panels in the hopes of significant advancement. “I want the technology to mature ” they say, “ and be state-of-the-art”. Well, the closest you can get to those standards with a production panel is with SunPower.

Ask around, do some Google searches. You’ll learn quickly that SunPower is considered the best with very little debate. In fact, it’s by far the best. This American born company launched out of the US university research system (the founder was a Stanford professor) has sustained a 23 year run to be acquired recently by a global energy company.

At Solar Energy Services we’re excited to report that we are now a SunPower certified dealer. We’ve always wanted to offer the very best PV product and now we can. SES is proud to tie our 35 year commitment to the industry to the world leader in solar panel manufacturing.

Many are aware that the cost efficiency of installed solar has improved dramatically in the last 5 years due to efficiencies gained through price competition, distribution improvements, development of installation techniques, and other process improvements. However, the physical efficiency of solar cells has advanced more slowly than most have hoped. The standard Chinese panel being installed by the majority of installers today (especially the large leasing firms) are in the 14-15% efficiency range. A few solar manufacturers have been able to stay notably ahead of the pack. SunPower remains out front with their standard 327 W panel (E20) at 20% efficieny. Sunpower’s new “X” (E21) is 21% efficient! That’s right, over 40% more efficient than the average panel out there. The X begins to ship in April 2013 – next month.

SunPower’s Maxeon cells are the industry leader in reliability and durability also. They’ve had only180 defects out of 7 million panels. That’s right, 1 in 39000! The Maxeon cell has redundancy in contacts, accommodating wear from thermal expansion. It has backside contacts that provide increases collection on the sunny side. They are highly durable with the best impact resistance ratings. They are backed by a solid company with great support and a bright future.

To recap, the physical efficiency of solar cells has been relatively stagnant, with the exception of a few leaders that have developed slow and steady progress. SunPower has led the way. The company has been around for over 23 years. They have the most durable solar cell in the industry and the highest performing. I must confess, the 3 year old solar PV system on my roof has panels made in China. If I were installing today, there is no doubt I’d choose SunPower…

Commercial Solar Energy Residential Solar Panels
Written by Rick Peters

SRECs in Maryland and DC

What Does the Future Hold?

Commercial Solar Energy, Residential Solar PanelsSolar Renewable Energy Credits (SRECs) have played a large part in the financing of solar energy systems in Maryland since the RPS (Renewable Portfolio Standard) was enacted in 2005. These market-based, tradable credits are the property of the solar system owner to resell, typically to brokers who bundle them for final resale to competitive energy suppliers in the interest of meeting their solar compliance goals. In Maryland (as well as Washington DC), these credits are generated by both solar electric (PV) and solar water heating systems.

The price of SRECs is supposed to reflect the over or under supply of these credits in the marketplace. Both Maryland and DC have very aggressive solar goals (2% by 2020 in MD and 2.5% by 2023 in DC) with steep adoption curves so we need lots of SRECs to meet compliance.

Maryland:

That said, the solar industry boomed for several years recently and we are currently going into an oversupply phase in Maryland. This has the effect of pushing down prices on SRECs in the near term.   There are many contributors to the oversupply and the industry and legislators are frequently working hard to promote policies that help to smooth out the supply, but in the end, SRECs are a market mechanism that is subject to “animal spirits.”

As solar prices decline it is fitting that SREC prices are declining too – after all, we should need less incentives as solar costs come down to “grid parity.” When Maryland’s SREC market was conceived, the designers planned for a declining value as more solar got on to the grid. In fact, the Alternative Compliance Payment (ACP) schedule – the amount energy suppliers have to pay if they cannot buy SRECs – is designed to decrease over time. The ACP is considered to be the maximum that an SREC would cost in a rational market. Recently SRECs have traded on the order of 35% of the ACP, but as high as 75% a few years ago. In Maryland, the ACP is scheduled to drop from $400 to $350 in 2015 and then down to $200 in 2017, $150 in 2019, and so on.

DC

Washington DC is a different market and one that is much better insulated from the shocks of large utility scale systems that flood SRECs onto the market. The sheer geography in DC does not lend itself to 10 MW solar farms and thus the SREC supply curve is a little smoother due to the requirement being fulfilled primarily with many smaller systems. As a result, DC SRECs have shown more consistency and maintained a higher price, benefitting system owners and prospective system owners.

What now?

Regardless of the trends for solar return on investment (ROI), we all want to maximize our incentives for our own benefit. SRECs are no different. While there are many more new solar customers every day, there are also many solar system owners now approaching the end of 3 or 5 year SREC contracts (aka “strips”) and they too need to decide how to proceed going forward. Do I want to sign up for another strip (3 or 5 year term contract) and accept a large discount on my SREC price for that price security or do I want to maybe float with the market for a while? I’ve got no crystal ball, but I do know that there are many efforts underway in Maryland, some legislative and some not, to help to smooth the SREC supply and thus maintain a reasonable value for SRECs to continue to help incentivize solar. For that reason, I believe we will see some recovery of SREC prices in Maryland in the next year or two and thus maybe it is better to hold off on a term contract. In DC, I would personally opt for more surety and take a term contract with the discount price, but that is my risk averse nature. Others might like to bear more risk and float in hopes of higher SREC values in the future.

Either way, we are lucky to have these incentives in Maryland and DC. They are working to increase solar installations and jobs and they are also helping to drive down the installed price of solar in our region.

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