Why are Sol Annuity's fixed prices lower than Sol Brokerage?

Sol Annuity contracts provide a guaranteed price per SREC. Prices for these contracts are often lower than the current market price (used for Sol Brokerage), since they account for declining prices in the coming years and are adjusted for general market risk.

SREC prices have a tendency to decline because (1) the solar alternative compliance payment (SACP) in many states declines each year and (2) SREC supply is set to grow. This projected pricing decline will leave the unprotected seller exposed to lower prices. Sol Systems' contracts offer protection against declining or otherwise uncertain SREC prices.