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Carbon Offset and Value Opportunities for Airports 23 Case Study 2: (Continued). Had the DoA had the option to maintain the SRECs associated with the solar arrays, potential revenue could be generated by selling the SRECs (as opposed to a generic renewable mix) directly to Texas electricity suppliers who need to meet the state's Renewable Portfolio Standards (RPS). Combined, all three arrays are projected to produce 337 MWh yearly. 1 MWh of renewable energy production earns one SREC, giving the DoA the potential right to sell 337 SRECs. The 2010 mean price for one REC in Texas was $1.00, with the spread between $.85 and $1.15. If prices for SRECs in Texas remained at $1, as expected, the potential revenue generated for the DoA would be $337 yearly. However, in the Northeast and Mid-Atlantic region of the United States, SRECs are traded between $140 per MWh and $650 per MWh offer- ing a much greater financial incentive for airports. For instance, a Northeast airport hosting an equivalent solar array output has the potential to earn $198,830 yearly given the regional average of $590 per MWh SREC price. There are two major factors contributing to the high disparity in SREC price between the Northeast region and Texas. First, electricity suppliers in the Northeast region are currently under an obligation via the state RPS--to incorporate a higher per- centage of solar generated electricity compared to electricity suppliers in Texas. As a result, there is a greater demand for SRECs in the Northeast region which drives up the price of SRECs. Second, in the Northeast region it is relatively more expen- sive to supply SRECs to the marketplace due to lower solar radiation in the North- east region than compared to Texas; equivalent output of electricity from a solar array in the Northeast region and Texas would require a much larger solar array in the Northeast to compensate for the lower solar radiation. The relative lack of sup- ply drives up the price of SRECs as well. Energy Efficiency Credits--The market for energy efficiency credits, or "white tags," is still immature in the United States and no market currently exists in Texas. The value associated with implementing energy efficiency projects is primarily lim- ited to costs savings by reduced energy expenditures. An energy company carried out a detailed assessment of the ABIA facilities and identified potential for a $258,724 reduction in annual energy costs by reducing energy consumption by 2,169,970 kWh. This equates to a 12% reduction in electric and gas bills at ABIA (based on the period of September 2006 through August 2007). The estimated installation cost of the upgrades is $1,453,170, equaling a 5.62-year payback before eligible rebates are applied. 2.2 Voluntary Carbon Markets and Initiatives Key Takeaways for Airports Offset projects must align with credible standards and be verified and sold. Voluntary offset markets in the United States offer limited liquidity and value at this time.