Liquidity returns to the LGC market

Liquidity returns to the LGC market

Something unusual recently happened in the LGC market. While the solar industry was suffering through a terrible May, the LGC market came alive. Now, most LGC trading typically happens in January and February as Liable Entities prepare for the annual surrender of LGCs, and there is far lower volumes of trading outside of those months. The chart below shows an analysis of the REC Registry that depicts the monthly LGC trading volume – Januaries and Februaries have been excluded. You can see the massive spike in May, which was preceded by a noteworthy April and an outstanding March. The only time we’ve seen trading volumes this large before was when liable entities were snapping up cheap LGCs from PV systems before the RET was split into LRET and SRES.