A Solar Renewable Energy Certificate (SREC) is generated by your solar array for every 1000 KWH (1 MWh) that your system produces.
They are production-based incentives that represent the green attributes produced by your solar project. RECs are sold separately from the actual power generated to consumers who want to essentially “green” their existing power source.
This arrangement provides the renewable energy generator an additional revenue stream while allowing the REC purchaser to keep their existing utility and make the environmental stewardship claim that a certain percentage of their electricity is generated from renewable resources.
These SRECs are state-incentivized credits that can become a passive income for solar system owners. Any size system is eligible to participate in SREC selling.
Do you buy excess solar power?
For clarification, we do not buy solar generation but rather the green attributes that your system production represents. You will retain all energy production.
What we buy is the Solar Renewable Energy Credits (SRECs). Consider SRECs as certificates representing that 1 MWh of solar energy was produced.
As an example, if you had your panels on a business and were currently advertising they are "A Solar Powered Business", or "100% Green", then you could not sell the SRECs generated, because the environmental claims are directly attached with the associated SRECs.
Instead, the buyer of your SREC can claim that 100% solar powered energy for each MWh of power they used was offset by the SREC.