Last week’s post discussed how investing in your own solar system can be affordable, provide a worthwhile return, and help you to be a better citizen of planet earth. One incentive mentioned in the post was an SREC. For many, this is a confusing topic. This week, we at Earthsponse hope to answer any questions you may have about SRECs, so that you can better understand this potentially lucrative opportunity.
What is an SREC?
Let’s start from the beginning. In the U.S., 30 of the 50 states (plus Washington D.C.) have established Renewable Portfolio Standards (RPS). This means that these states are required to obtain a portion of their electricity from renewable sources, (i.e. wind, biofuels, solar, etc. ).
An SREC, or Solar Renewable Energy Certificate, is a certificate that you receive every time your solar system produces 1000kWh of electricity. The SRECs contribute to the solar aspect of the state’s renewable energy goals. These certificates are proof that you have produced renewable, solar electricity. For a 5kW system about 6 of these are produced every year, and these certificates are worth money!
Once your solar system is installed, it must be certified by the state, and an account must be created with a trading platform (Earthsponse will help you with this!). SRECs are then issued based on what your system generates.
How much are SRECs worth?
Even though most states have RPS, they do not all have an active SREC market. The states that do are: Ohio, Pennsylvania, New Jersey, North Carolina, Massachusetts, Delaware, Maryland, and Washington D.C.. There is no set price for SRECS. They are traded similarly to stocks, so as the demand goes up, so does the price. Current market prices can be viewed at http://www.srectrade.com/. Currently New Jersey and Massachusetts have the most attractive SREC markets, with certificates trading at $640 and $570 respectively. This means that with a 5kW system in New Jersey, you could potentially put an extra $3,840 in your pocket each year you produce solar electricity.
How are SRECS sold?
There are two ways to sell your SRECS once they are produced:
1. They can be sold to a middle man, who will take on the risk, complete all administration work, and sell them to the utility for a cut.
2. Register and sell your SRECS on the open market.
How can you get started?
The only way to begin producing your own SRECS is to install your own solar system! Give Earthsponse a call, or complete our online assessment to learn more today!
-Lisa Dougherty
What is an SREC?
Let’s start from the beginning. In the U.S., 30 of the 50 states (plus Washington D.C.) have established Renewable Portfolio Standards (RPS). This means that these states are required to obtain a portion of their electricity from renewable sources, (i.e. wind, biofuels, solar, etc. ).
An SREC, or Solar Renewable Energy Certificate, is a certificate that you receive every time your solar system produces 1000kWh of electricity. The SRECs contribute to the solar aspect of the state’s renewable energy goals. These certificates are proof that you have produced renewable, solar electricity. For a 5kW system about 6 of these are produced every year, and these certificates are worth money!
Once your solar system is installed, it must be certified by the state, and an account must be created with a trading platform (Earthsponse will help you with this!). SRECs are then issued based on what your system generates.
How much are SRECs worth?
Even though most states have RPS, they do not all have an active SREC market. The states that do are: Ohio, Pennsylvania, New Jersey, North Carolina, Massachusetts, Delaware, Maryland, and Washington D.C.. There is no set price for SRECS. They are traded similarly to stocks, so as the demand goes up, so does the price. Current market prices can be viewed at http://www.srectrade.com/. Currently New Jersey and Massachusetts have the most attractive SREC markets, with certificates trading at $640 and $570 respectively. This means that with a 5kW system in New Jersey, you could potentially put an extra $3,840 in your pocket each year you produce solar electricity.
How are SRECS sold?
There are two ways to sell your SRECS once they are produced:
1. They can be sold to a middle man, who will take on the risk, complete all administration work, and sell them to the utility for a cut.
2. Register and sell your SRECS on the open market.
How can you get started?
The only way to begin producing your own SRECS is to install your own solar system! Give Earthsponse a call, or complete our online assessment to learn more today!
-Lisa Dougherty
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