SRECs and Solar Finance Made Simple
The SREC Knowledge Center
We enable homeowners, businesses, installers and developers to fully realize the value of their solar energy systems by registering their systems to produce solar renewable energy credits (SRECs) and then purchasing these SRECs. We also assist large-scale energy suppliers and utilities in investing in the solar community by managing their state-mandated solar Renewable Portfolio Standard (RPS) requirements and SREC portfolios. Let us work for you.
SREC Defined
The term SREC stands for Solar Renewable Energy Credit and is a tradable credit that represents all the clean energy benefits of electricity generated from a solar electric system. Each time a solar electric system generates 1000kWh (1MWh) of electricity, an SREC is issued which can then be sold or traded separately from the power.
SRECs are then purchased by electrical utilities in order to meet a state’s Renewable Portfolio Standard (RPS) requirements. SRECs are therefore commodities; their value quantified by (1) the state RPS requirements for which they are purchased, (2) the value of the state’s Solar Alternative Compliance Payment (ACP), and (3) the supply and demand of SRECs in that specific state. Because SRECs may be produced in one state and utilized in another, their values can vary dramatically.
