Sunday, February 21, 2016

Negative Prices Require Positive Changes in Community Solar | Greentech Media

Last fall, it was disclosed that renewable energy credit (REC) prices in the Colorado Solar Gardens program have turned negative -- that is, developers have submitted bids that require them to pay the utility to take the RECs generated by their projects.

How could this be?

Does it mean RECs fundamentally have no value? Or maybe that participating retail customers don't value solar energy from community solar projects? No and no. Negative REC prices in the Solar Gardens program are a direct result of a complicated web of regulatory guidance and program design in Colorado that distorts REC pricing.

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