What are SRECs?
SRECs are credits that you can obtain from your state when you produce energy produced from a home solar arrangement. A single SREC can be earned if your solar panel arrangement generates 1,000 kWhs of power.
When you happen to produce 5,000 kWhs of power from solar sources a year, five SRECs would be yours. Every SREC you gain is available to be sold back to utilities.
Tip: SRECs are not the same power your home solar energy system makes. This is the reason you could’ve consumed all of the power you generated from solar sources and earned SRECs at the same time.
What is the worth of an SREC?
SRECs are tradable commodities. This means their market price is brought about by supply and demand.
When the amount of SRECs grows, the price decreases. The less SRECs there are in the hands of solar owners, the more the prices increase. Prices could vary from less than $50 to over $300 an SREC. An increase in price will be the year of your best interest, but limits have been established to make sure the state of the market is sort of stable.
A significant element that helps the SREC market are solar alternative compliance payments (SACP). SACPs are basically fines that are paid to the state through utilities when the SRECs are sufficient to fulfill state demands.
Tip: You could look over bid prices in New Jersey from SRECTrade to view an example of SREC prices. You will see prices that increase year by year for the Garden State.
SRECs and the Renewable Portfolio Standard
SRECs are available in states that have a renewable portfolio standard (RPS). An RPS needs the state to provide a predetermined amount of power from sources of renewable energy (solar, wind, etc.).
Tip: When a state’s RPS has special determinations for solar power, it is usually designated as a solar carve-out. If you’re looking for more information regarding your state, look at the database of State incentives regarding renewable energy (DSIRE). They have a site for RPS data and various other state regulations.
Getting SRECs Up and Running
Your home solar arrangement has to be registered and certified to be able to sell SRECs. The process involved with registering your home’s solar system is it going to be determined by your state. Make sure you look over each one of the requirements prior to installation.
You will usually need to register your home’s solar system before the installation even starts. To find out more about registration, look up more information about DSIRE. Certain government websites have more information on SREC registration.