REC market shows extreme volatility

22 Nov 2009

The REC market has seen quite a bit of volatility over the last few weeks. We saw prices fall by nearly $6 per REC last week before recovering some ground on Friday. Uncertainty around how the government might deal with heat pumps and the approach it might take with the review of the REC spot market have been seen to be the greatest contributors to this volatility. We have also seen the number of Solar PV RECs continue to grow driven by both Solar Credits and the surge in installations of systems receiving the $8000 rebate – this has added to the oversupply.