Tesla now keeps all the SRECs [SREC = Solar Renewable Energy Credits]

[wjgjr]

But looking at this site Flett Exchange | Maryland Bill Will Raise the Price Cap for MD SRECs which shows your refferenced chart, it says the the cost of SREC's should not be effected by the SCAP's decreased number. but again time will tell i guess. I just dont know where you found any "scheduled" drop in SREC's because i cant find that anywhere.

There is no scheduled drop in the SREC. It is just basic market behavior that if a utility has two choices to meet the RPS - buy an SREC or pay the SACP, they will not pay more for an SREC than the SACP. So, it is not theoretically impossible for SREC > SACP, but there is fundamentally no reason why it would be. (The only reason would be a fundamental change in the market such that non-MD entities wanted to buy the SRECs for other purposes, but I see nothing like that on the horizon.)

And the quote is

The same bill also decreases the amount of solar that the energy companies have to procure. Taking into account the amount of solar installed in Maryland and the growth rate this should not have an effect on solar owner’s prices of their SRECs. The only way it will is if an unexpected amount of solar is installed in the next few years.

What they are saying is that the decrease in the RPS will not cause SREC prices to drop significantly below the SACP number for the given year because utilities are not likely to have other ways to make the even the lower RPS number in the bill (barring the "unexpected amount of solar" being installed) - they will still need to buy all our SRECs to avoid the SACP. What they are not suggesting is that SREC prices will be above the SACP for a given year, only that the lowering of the RPS number should not cause SREC prices to tank. (And this is a legitimate concern as MD had this happen several years ago.)

In the end, as @jjrandorin said, it may well make sense to look elsewhere. Even if factoring in a proper understanding of the value of an SREC and Tesla's lower pricing gets you a better deal than others, I would also have a concern about the REC agreement for the reasons you outlined. Additionally (unless covered elsewhere) it is not clear whether you have any obligation to keep the system for any length of time (suppose, for example, in 10 years the technology/price makes it worth replacing, or there is a fire in 5 years and you elect to replace with a different vendor.) And, it doesn't mention property transfers. Just as solar leases can be a sticking point in a home sale, this could potentially be an obligation that would be transferred with a sale.

 

[wjgjr]

Just as a follow up for MD owners since it was discussed here, the proposed changes were passed into law (see PDF list linked from here of senate bills governor is not signing but allowing to pass, which includes SB65.) As discussed above, this does raise the SACP, effectively raising the SREC cap, starting in 2023, so our production credits are now potentially worth more. But, it does lower the RPS starting in 2022, so there is more chance that the market could become saturated, which would reduce the value of SRECs which are currently selling very near their limit.

 

[macbeth]

I wanted to follow up on this thread. I cancelled my solar roof install for a number of factors, but price is the primary reason. I am finishing up my project at my home, replacing my entire roof, and now in the market for solar panels. Tesla is dramatically cheaper than anyone in my area in Western Maryland, but I am very concerned with the REC agreement as the agreement is very open ended (must maintain system, indefinitely, must provide access to Tesla, assignment on home sale not defined, what about upgrades made later??, etc...). Has anyone been able to opt-out of the REC agreement recently based on these concerns or similar concerns?

 

[sdesai]

I did not assign my SRECs to Tesla but they said they will open account for me. I have no information about it, if they are cashing it in and not paying me. I am trying to get answer from them for last five weeks but seems like no one reads e mail at Tesla. My final recourse is better business bureau and PA utility commission. I wonder how a company can thrive with such a poor customer service?

 

[wjgjr]

I did not assign my SRECs to Tesla but they said they will open account for me. I have no information about it, if they are cashing it in and not paying me. I am trying to get answer from them for last five weeks but seems like no one reads e mail at Tesla. My final recourse is better business bureau and PA utility commission. I wonder how a company can thrive with such a poor customer service?

I doubt they are cashing in and not paying you - most likely they are just being really slow about getting you registered (which is just as bad since either way, you are not getting SRECs until that happens.)

You do potentially have some options. I am in MD, and I used SRECTrade, which is one of a few SREC brokers around, to handle the registration process and then sell my credits. It appears they also support PA, so you may be able to work directly with them. (But note that, at least in MD, some questions were rather technical, and I did pre-ask Tesla for some answers prior to my install, because at the time, Tesla was not doing these registrations at all.)

If you are curious whether your system was registered, you can look here:

https://gats.pjm-eis.com/gats2/PublicReports/RenewableGeneratorsRegisteredinGATS

Possibly narrowing it down to your county and system size will let you find it, and it seems like most personal facilities have their name as the home address or homeowner's name.

 

[chhaprahiya]

I just placed an order for solar panels. Tesla is offering a $765 REC credit. They are asking me to sign away REC rights which they then sell to companies with a high conventional energy footprint. They make a hefty profit by doing so. Here is the contract language:

Energy Credit Agreement 1. Introduction. This Renewable Energy Credit Agreement (this “REC Agreement”) is between Tesla (“Tesla” or “we”) and you (“Customer”) for your sale of the Environmental Attributes associated with the electricity generated by your photovoltaic system (“Solar System”), which you are purchasing under your Tesla Energy Products Purchase & Home Improvement Agreement (the “Solar Agreement”), to Tesla. “Environmental Attributes” are commonly referred to as renewable energy credits (“RECs”) and include all solar renewable energy credits, carbon offset credits, green tags, and other similar credits and benefits, however named, generated by or associated with the Solar System. Environmental Attributes do not include electricity or tax credits. 2. Payment. Tesla will provide you credit toward the purchase of your Solar System based on the value that we place on your Environmental Attributes (“REC Credit”). Your REC Credit is listed in the Price Sheet. The REC Credit is considered income and we will send you a Form 1099. The REC Credit is payment for 100% of the Environmental Attributes generated by the Solar System for the life of the Solar System following the first date that your system produces energy (the “Term”). This REC Agreement will survive the Solar Agreement and you will not be entitled to any payment related to your sale of the Environmental Attributes other than or in addition to the REC Credit. 3. Your Obligations. You agree to cooperate with Tesla to allow Tesla (and any party to which Tesla may sell or transfer the Environmental Attributes) to claim the Environmental Attributes, including, but not limited to taking the following actions: a. To the extent allowable by law, enter into net metering agreements and interconnection agreements for the Solar System; b. Promptly, but in no case more than 7 days after Tesla’s request, sign and/or file documentation in connection with the registration and/or transfer of the Environmental Attributes to Tesla and to any party to which Tesla may subsequently sell or transfer the Environmental Attributes; c. Maintain and make available, at your cost, a functioning indoor internet connection with the understanding that an intermittent internet connection (which includes but is not limited to temporary wireless hotspots) will not satisfy this obligation; d. Allow Tesla to monitor and report the Solar System’s production; e. Upon reasonable prior written notice, provide Tesla and/or its designees, with access to the Solar System for inspections and maintenance as Tesla deems necessary; f. Maintain the Solar System in good working condition; and g. Maintain the Solar System’s interconnection to the local electric utility. Additionally, you understand that by selling the Environmental Attributes to Tesla, you will have no right to sell the Environmental Attributes, or any component thereof, to any other party. 4. Tesla’s Remedies. If you fail to comply with the obligations set forth in Section 3 within 30 days after Tesla’s written notice to you, and that failure results in any disruption in the production of Environmental Attributes or Tesla’s ability to claim, transfer, or otherwise make use of the Environmental Attributes, Tesla will have the right to invoice and collect from you an amount equal to Tesla’s direct, actual damages resulting from such disruption. In no case, however, will you be liable to Tesla under this REC Agreement for amounts in excess of the REC Credit. 5. Environmental Claims. Tesla may sell the Environmental Attributes to a third party. You recognize that you will not own the Environmental Attributes to sell, use or claim, and a third party may have the right to claim clean, green or renewable energy based on its purchase of Environmental Attributes from your Solar System. I have read this REC Agreement in its entirety and I acknowledge that I have received a complete copy of this REC Agreement.

 

[noworriesinmd]

I just placed an order for solar panels. Tesla is offering a $765 REC credit. They are asking me to sign away REC rights which they then sell to companies with a high conventional energy footprint. They make a hefty profit by doing so. Here is the contract language:

Energy Credit Agreement 1. Introduction. This Renewable Energy Credit Agreement (this “REC Agreement”) is between Tesla (“Tesla” or “we”) and you (“Customer”) for your sale of the Environmental Attributes associated with the electricity generated by your photovoltaic system (“Solar System”), which you are purchasing under your Tesla Energy Products Purchase & Home Improvement Agreement (the “Solar Agreement”), to Tesla. “Environmental Attributes” are commonly referred to as renewable energy credits (“RECs”) and include all solar renewable energy credits, carbon offset credits, green tags, and other similar credits and benefits, however named, generated by or associated with the Solar System. Environmental Attributes do not include electricity or tax credits. 2. Payment. Tesla will provide you credit toward the purchase of your Solar System based on the value that we place on your Environmental Attributes (“REC Credit”). Your REC Credit is listed in the Price Sheet. The REC Credit is considered income and we will send you a Form 1099. The REC Credit is payment for 100% of the Environmental Attributes generated by the Solar System for the life of the Solar System following the first date that your system produces energy (the “Term”). This REC Agreement will survive the Solar Agreement and you will not be entitled to any payment related to your sale of the Environmental Attributes other than or in addition to the REC Credit. 3. Your Obligations. You agree to cooperate with Tesla to allow Tesla (and any party to which Tesla may sell or transfer the Environmental Attributes) to claim the Environmental Attributes, including, but not limited to taking the following actions: a. To the extent allowable by law, enter into net metering agreements and interconnection agreements for the Solar System; b. Promptly, but in no case more than 7 days after Tesla’s request, sign and/or file documentation in connection with the registration and/or transfer of the Environmental Attributes to Tesla and to any party to which Tesla may subsequently sell or transfer the Environmental Attributes; c. Maintain and make available, at your cost, a functioning indoor internet connection with the understanding that an intermittent internet connection (which includes but is not limited to temporary wireless hotspots) will not satisfy this obligation; d. Allow Tesla to monitor and report the Solar System’s production; e. Upon reasonable prior written notice, provide Tesla and/or its designees, with access to the Solar System for inspections and maintenance as Tesla deems necessary; f. Maintain the Solar System in good working condition; and g. Maintain the Solar System’s interconnection to the local electric utility. Additionally, you understand that by selling the Environmental Attributes to Tesla, you will have no right to sell the Environmental Attributes, or any component thereof, to any other party. 4. Tesla’s Remedies. If you fail to comply with the obligations set forth in Section 3 within 30 days after Tesla’s written notice to you, and that failure results in any disruption in the production of Environmental Attributes or Tesla’s ability to claim, transfer, or otherwise make use of the Environmental Attributes, Tesla will have the right to invoice and collect from you an amount equal to Tesla’s direct, actual damages resulting from such disruption. In no case, however, will you be liable to Tesla under this REC Agreement for amounts in excess of the REC Credit. 5. Environmental Claims. Tesla may sell the Environmental Attributes to a third party. You recognize that you will not own the Environmental Attributes to sell, use or claim, and a third party may have the right to claim clean, green or renewable energy based on its purchase of Environmental Attributes from your Solar System. I have read this REC Agreement in its entirety and I acknowledge that I have received a complete copy of this REC Agreement.

Just purchased the solar roof in MD. Install starts on Monday. After a lot of back and forth with Tesla, they are filing the paperwork for me to trade SREC credits in my own account. A potential 1-2k per year will quickly pay for the solar roof.

 

[wjgjr]

Just purchased the solar roof in MD. Install starts on Monday. After a lot of back and forth with Tesla, they are filing the paperwork for me to trade SREC credits in my own account. A potential 1-2k per year will quickly pay for the solar roof.

Glad you got that worked out as it will almost certainly be better for you financially. Just be prepared for SREC prices in MD to fall. Right now, SRECTrade is paying out (after fees) about $72-$73 per SREC, based on the $80 SACP level this year. But, starting next year, the SCAP drops to $60, so payout will likely be in the low-mid $50 range (and, possibly lower, since the state also reduced the amount of solar required, so there is a larger - though probably still small - chance that supply of SRECs will exceed demand.) Maryland Renewable Portfolio Standard Updated Without Governor's Signature has more details (and, as a side-note, the main SRECTrade page for MD still has the old SACP numbers.)

Who knows what the state will decide to do in terms of future amendments, but right now, at least for my solar roof, the SREC was a key part of how it would eventually pay for itself, but it is still not going to be quick as much of the value comes in the first several years.

 

[sdesai]

I doubt they are cashing in and not paying you - most likely they are just being really slow about getting you registered (which is just as bad since either way, you are not getting SRECs until that happens.)

You do potentially have some options. I am in MD, and I used SRECTrade, which is one of a few SREC brokers around, to handle the registration process and then sell my credits. It appears they also support PA, so you may be able to work directly with them. (But note that, at least in MD, some questions were rather technical, and I did pre-ask Tesla for some answers prior to my install, because at the time, Tesla was not doing these registrations at all.)

If you are curious whether your system was registered, you can look here:

https://gats.pjm-eis.com/gats2/PublicReports/RenewableGeneratorsRegisteredinGATS

Possibly narrowing it down to your county and system size will let you find it, and it seems like most personal facilities have their name as the home address or homeowner's name.

Thanks

I doubt they are cashing in and not paying you - most likely they are just being really slow about getting you registered (which is just as bad since either way, you are not getting SRECs until that happens.)
You do potentially have some options. I am in MD, and I used SRECTrade, which is one of a few SREC brokers around, to handle the registration process and then sell my credits. It appears they also support PA, so you may be able to work directly with them. (But note that, at least in MD, some questions were rather technical, and I did pre-ask Tesla for some answers prior to my install, because at the time, Tesla was not doing these registrations at all.)

If you are curious whether your system was registered, you can look here:

https://gats.pjm-eis.com/gats2/PublicReports/RenewableGeneratorsRegisteredinGATS

Possibly narrowing it down to your county and system size will let you find it, and it seems like most personal facilities have their name as the home address or homeowner's name.

Trying SREC trade but could not fill out the information so it got transferred back to Tesla for information. Another dead end

 

[willow_hiller]

Trying SREC trade but could not fill out the information so it got transferred back to Tesla for information. Another dead end

Do you have a copy of your interconnection form in your Tesla documents? My interconnect application to Pepco contained all of the information necessary to register with SRECTrade, and I was able to register without any input from Tesla. If I recall correctly, they just need how many panels, roof slopes, roof azimuths, and equipment serial numbers.

 

[sdesai]

Do you have a copy of your interconnection form in your Tesla documents? My interconnect application to Pepco contained all of the information necessary to register with SRECTrade, and I was able to register without any input from Tesla. If I recall correctly, they just need how many panels, roof slopes, roof azimuths, and equipment serial numbers.

I have those but I have delta inverters with production read out and not a separate solar meter. They are asking for information on solar production meter, And without that I can not go further. Do you think I put inverters S/N? They are also asking for remote data collectors info. To my surprise they transferred application back without any input.
Thanks for your help

Do you have a copy of your interconnection form in your Tesla documents? My interconnect application to Pepco contained all of the information necessary to register with SRECTrade, and I was able to register without any input from Tesla. If I recall correctly, they just need how many panels, roof slopes, roof azimuths, and equipment serial numbers.

 

[willow_hiller]

Do you think I put inverters S/N? They are also asking for remote data collectors info. To my surprise they transferred application back without any input.
Thanks for your help

Is there any information on the side of your inverter? My SolarEdge says something like "Revenue Grade ANSI C12.20" so it didn't require an additional meter. I put the serial number of the inverter for that meter field.

I don't know your exact inverter, but it looks like some deltas do have revenue grade meters: https://www.delta-americas.com/Prod... | M5-TL-US | M6-TL-US | M8-TL-US | M10-TL-US

"In addition, the M Series is also equipped with RGM (Revenue Grade Meter) with ANSI C12.20 (0.5% Accuracy)"

 

[jbassoc]

The statement "you will have no right to sell the Environmental Attributes, or any component thereof, to any other party." Does 'any component' mean Tesla continues to own the solar system? What happens if you want to sell your house. I'm sure the buyer will not like this arrangement even though Tesla states it will handle this transfer of this agreement paperwork to the new owner. Plus tesla wants the homeowner to "provide Tesla and/or its designees, with access to the Solar System for inspections and maintenance as Tesla deems necessary;"

 

[Fotboat]

Just purchased the solar roof in MD. Install starts on Monday. After a lot of back and forth with Tesla, they are filing the paperwork for me to trade SREC credits in my own account. A potential 1-2k per year will quickly pay for the solar roof.

So you got Tesla to back out of the agreement that they own the RECs? How did you do that?

 

[Oskirrii]

I started my solar panel install Journey early 2021. Tesla is trying to gain my consent to install my 10.63kW design. Saying they need me to fill out the new consent form to give them SREC ownership in perpetuity, and will not change my "consent" form to the "no" option. Doesn't feel like consent if there is no choice.. Solar contract and install contract both signed in Nov and neither mentioned SRECs. Feeling not great about my install (now in its 8th month) at the moment. Any other options besides just ignoring that they agreed to install my roof but now don't want to without this consent form signed? Should I get the BBB or state reps involved or just go to a local vendor? Thanks for any input in advance.

 

[crouch]

I live in NJ and am late to this discussion. I’m confused about how Tesla calculates the value of available incentives. According to its website,

14.40 kW Solar Panels
$30,384
Cash Price
$30,384
Federal Tax Credit
-$5,017
Solar Renewable Energy Credit
-$11,088

Price After Potential Incentives
$14,279

Shouldn’t the federal tax credit be 26% of the full $30,384 price for a total of $7,899.84?
And does anybody know how it calculates the SREC incentive, and must that be fully transferred to Tesla even if no loan is involved?

Lastly, Tesla’s website mentions installation delays due to supply chain issues. What length of delay is likely?

I didn’t see this information earlier in the thread but apologies if I missed it.

 

[willow_hiller]

I live in NJ and am late to this discussion. I’m confused about how Tesla calculates the value of available incentives. According to its website,

14.40 kW Solar Panels
$30,384
Cash Price
$30,384
Federal Tax Credit
-$5,017
Solar Renewable Energy Credit
-$11,088

Price After Potential Incentives
$14,279

Shouldn’t the federal tax credit be 26% of the full $30,384 price for a total of $7,899.84?
And does anybody know how it calculates the SREC incentive, and must that be fully transferred to Tesla even if no loan is involved?

The SREC/TREC incentive Tesla is quoting you is not something provided by your local government or utility, even if your utility ultimately provides the TRECs. It's an exchange of your system's future TRECs to Tesla for an upfront discount on the entire system. So when it comes to calculating the federal tax credit 26%, it only applies after the discount is applied.

 

[lensovet]

And does anybody know how it calculates the SREC incentive, and must that be fully transferred to Tesla even if no loan is involved?

They presumably have some formula they use based on the expected system output and underlying market cost of the SREC.

My project advisor told me this morning explicitly that signing these over is non-negotiable.

 

[willow_hiller]

Point of data for people who are trying to project Maryland SREC value forward, just sold my first SREC for 2022:



This is why I think Tesla's incentive for it comes across as a low-ball offer. They're trying to quantify the risk of the SREC markets declining in the future.

Given it took until March to sell an SREC generated in January, I'm guessing we've got an oversupply now that the utility penalties have fallen.

 

[MKurzdorfer]

So I live in Virginia and didn't see anything listed on the incentive page for my state regard SREC. I see that the system pricing is different for neighboring states (MA) where the is an SREC credit is included in the system price as a line item. I don't see any mention of SREC on any of the my pricing, or documentation I have signed already (Solar Loan Agreement & Retail Installment Contract). I am currently waiting for my Site Assement (Next week).

Is it possible this is just not something Tesla is persuing in my state OR is this just something looming further in the process?