By John Farrell | New Rules Project
In light of the recent collapse of Solar Renewable Energy Credit (SREC) markets, Farrell’s report aims to compare the cost-effectiveness of SREC and Clean Local Energy Accessible Now (CLEAN) Programs to finance solar energy projects and meet renewable energy goals. Farrell has found that the transparency, certainty, and low risk nature of CLEAN Programs allow them to deliver solar energy at a significantly lower levelized cost than SRECs. This means CLEAN Programs enjoy higher bankability with lower transaction costs and lighter ratepayer impact. Farrell’s analysis is certainly a challenge to the status quo in places like New Jersey, which has assumed that SRECs are a preferred mechanism for encouraging solar deployments. His report clearly shows the opportunity that new jurisdictions have in considering CLEAN Programs. Download the report here.