SunPower & PPL Sign 10-Year REC Deal

SunPower Corp. announced that PPL Energy Plus, the energy marketing and trading subsidiary of PPL Corporation, has signed an agreement to purchase New Jersey Solar Renewable Energy Certificates (NJ SRECs) from SunPower over the next ten years.

Under the agreement, PPL EnergyPlus will purchase SRECs issued as a result of solar power generated at SunPower installations in the state. SunPower expects to use revenue from the sale of the SREC’s to finance the construction of approximately 2.5 megawatts of new solar power projects in New Jersey by 2010.

“PPL EnergyPlus is reducing solar renewable energy portfolio compliance costs and demonstrating good corporate citizenship by entering into this long-term agreement. Although the agreement will only address a small portion of new solar capacity to be built in New Jersey in the coming years, it is an indication that the SREC market can facilitate the construction of clean, reliable solar power projects,” said Tom Leyden, managing director of SunPower’s Trenton office.

SRECs, which took a close look at last year, are tradable certificates representing all the renewable energy benefits generated from a solar electric system. Each time a solar system generates one megawatt hour of electricity, an SREC is issued that can then be sold or traded.