SRECs, or solar renewable energy credits, are an incentive for homeowners with residential solar systems. Earn renewable energy credits and make extra money simply by owning and using solar panels.
Certain requirements apply when selling these credits. Plus, not every state offers this incentive. Only states with RPS (Renewable Portfolio Standard) legislation offer SRECs. Find out if your state has this option here. You can also check out this database of state SREC programs.
If your state has a program, you’ll want to get involved. But first, how do SRECs work?
Learn more about this performance-based incentive and make the most of your system. Earn money without putting in any extra effort. Get more information on SRECs below.
SRECs (solar renewable energy credits) are a type of solar incentive.
Certain states have renewable portfolio standards that require utility companies to produce a certain percentage of electricity from renewable resources. This incentivizes companies to use greener production methods.
To meet the renewable portfolio standards, utility companies use renewable energy credits (RECs) to show that they have either produced renewable electricity or paid someone who produces renewable electricity.
Solar renewable energy credits (SRECs) are just a type of renewable energy credit (RECs). While companies can collect renewable energy credits from a variety of renewable sources, solar renewable energy credits only come from solar technologies.
Certain states require a certain percentage of electricity sales to be specifically from solar systems.
If you’re a homeowner with a residential solar system, you can sell SRECs to these companies. This helps them meet their quotas and puts money in your pocket.
So, now that we know a little more about what they are, how do SRECs work?
One renewable energy credit represents one MWh of energy produced. The average residential system is 6 kW, which produces six to eight MWh of electricity per year. A homeowner with a system this size will earn six to eight SRECs each year.
The amount of money you can receive for each SREC varies by state. It typically ranges from $15 to $300 per SREC depending on general market supply and demand factors.
A state’s ACP (alternative compliance payment) also plays a role in price. The ACP is the fine per MWh a company has to pay if they don’t meet the SREC requirements. It only makes sense for the utility companies to purchase SRECs if they’re cheaper than the fine. Because of this, the ACP acts as a cap for SREC prices.
Now that you’ve figured out how do SRECs work, you’re ready to sell them. Like stocks, solar renewable energy credits are bought and sold online through an intermediary. Popular SREC aggregators include SREC Trade, Knollwood Energy, Sol Systems, and Flett Exchange.
Not sure which one to choose? A certified solar installer will be able to recommend one to you. Compare qualified solar installers in your area here.
The first step to owning a successful home solar system is to find a qualified installer.
Top installation companies can ensure that your system is producing the most electricity possible. They’ll also be able to help you take advantage of solar tax incentives and reap the benefits of solar renewable energy credits.
A solar system can last over 30 years. It’s important to find an installer that can be with you every step of the way, from installation to maintenance. Choose a solar installer that you can trust to answer your questions and help you make smart financial decisions.
Compare pricing from a variety of qualified installers near you. Greenlife Solar pre-screens and partners with high-quality solar installers across the country. We then offer quotes and information on each option for free.
We make it easy for you to browse all of your options before you decide. Make the smart choice. Compare pricing with Greenlife Solar.