Tuesday, 16th December 2025

Solar Energy Solar Renewable Energy Certificates (SRECs)

The New Jersey Electric Distribution Companies (EDCs)—Public Service Electric and Gas Company (PSE&G), Atlantic City Electric Company (ACE), Jersey Central Power & Light Company (JCP&L), and Rockland Electric Company (RECO)—successfully concluded their December 2025 Solar Renewable Energy Certificate (SREC) auction, offering 2026 vintage SRECs into the market. The auction, administered by NERA Economic Consulting, represents a key compliance mechanism supporting New Jersey’s Renewable Portfolio Standards (RPS) and ongoing solar deployment objectives.

The auction cleared at a final price of $190.52 per SREC, with a total of 40,480 2026 SRECs sold. Participation was open to all qualified market participants, including SREC traders, aggregators, Basic Generation Service (BGS) suppliers, and third-party suppliers with RPS compliance obligations. Qualification milestones were completed in early December, with the auction commencing on December 11, 2025, following the announcement of the final SREC volume and starting price earlier in the week.

The clearing outcome suggests sustained demand for forward-year compliance instruments, reflecting both regulatory certainty around New Jersey’s solar carve-out and the continued role of utility-managed SREC auctions in providing liquidity to the market. Pricing near the upper range of recent compliance expectations indicates that obligated entities remain focused on securing supply ahead of future compliance deadlines, particularly as legacy SREC vintages phase out and transition mechanisms evolve.

From a market perspective, the auction reinforces the importance of EDC-sponsored SREC sales as a reference point for secondary market pricing and compliance planning. The results also underscore the ongoing relevance of structured auctions in balancing solar program cost recovery for utilities while ensuring transparent price discovery for market participants.

Overall, the December 2025 auction outcome highlights steady compliance demand and continued confidence in New Jersey’s solar policy framework as it progresses through the 2026 compliance period.