Solar Renewable Energy Credits (SRECs) Explained

A Solar Renewable Energy Certificate (SREC) is generated by your solar array for every 1000 kWh (1 MWh) that your system produces.

A Renewable Energy Credit (REC) is a market-based instrument that represents the environmental attributes of one megawatt-hour (MWh) of electricity generated from a renewable energy source. RECs are separate from the actual electricity produced and can be bought and sold independently. 

RECs provide a way for individuals and organizations to support and promote the growth of renewable energy without physically purchasing the electricity generated by renewable sources. They play a crucial role in incentivizing the development and expansion of renewable energy projects.

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?

NO. For clarification, we do not buy solar generation but rather the green attributes that your system production represents. You will retain all energy production.

Is my power bill and net metering affected by selling SRECs?

Selling your SRECs has no impact on Net Metering. SREC brokering and Net Metering are separate incentive programs that allow solar owners to make back money.

Your power bill is unaffected by SRECs. SRECs are "Solar Renewable Energy Credits," and they represent the environmental attributes of the power that you produce. You will not see any changes on your utility bill. 

Can I participate in Net Metering and SRECs at the same time?

You can participate in both Net Metering and sell SRECs at the same time. This is because Net Metering has to do with excess energy production, whereby you can receive a credit from your electricity supplier.

SRECs are solely the environmental attributes, so if you use all of your production or put all of it back on the grid for others to consume, it has no impact on your SREC production or ability to sell them. 

What am I giving up by selling my SRECs? 

You are giving up the rights to claim your energy as "green" energy. The buyer of your SRECs can claim solar-powered energy for each MWh of power they used was offset by an SREC.

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.