PPL Energy PLus, a division of PPL Corp (PPL) announced it has signed an agreement with Sunpower (SPWRA) to purchaxe New Jersey Solar Renewable Energy Certificates (SRECs) over the next next 10 years.

SRECs are certificates representing the energy benefits generated from solar energy and are issued each time one MW hour of electricity is generated.  They can then be sold or traded.  PPL will purchase SunPower SRECs which provide them with the funds needed to finance the construction of 2.5MW of new solar power projects within the next 2 years.  It benefits PPL by reducing their renewable energy compliance cost.

Said Tom Leyden of SunPower, “PPL Energy Plus 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. We expect that more of New Jersey’s electricity suppliers will follow suit with similar long-term SREC purchase agreements.”

New Jersey is one of the fastest growing solar energy markets in the US with nearly 70MW of installed capacity.