What's an SREC?
A Solar Renewable Energy Certificate (SREC) represents the environmental benefit—or “green attribute”—of electricity generated by a solar energy system. SRECs are a type of Renewable Energy Certificate (REC). While RECs can come from many renewable sources, SRECs are issued specifically for solar energy generation.
How are SRECs created?
SRECs are awarded when a solar energy system produces a specific amount of electricity.
One SREC is created for every 1,000 kilowatt-hours (kWh), or 1 megawatt-hour (MWh), of solar energy generated.
How are SRECs different from electricity?
SRECs are sold separately from the electricity your system produces.
This means:
-
You still receive the benefits of net metering or electricity savings
-
SRECs provide an additional financial incentive for owning a solar system
SREC generation is based on total energy produced, not how much electricity you use in your home or business.
How is the value of an SREC determined?
The value of an SREC is market-based.
-
Prices fluctuate over time based on supply, demand, and state policy
-
Like stocks or other commodities, SREC prices can rise or fall