What is an SREC and how are they produced?

An SREC is a Solar Renewable Energy Credit that is produced for every 1000 KWH (1 MWH) of production your Solar System generates.

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.


Click Here To Read More on SRECs and Watch Our Informational Video



Who buys SRECS? 

Select states opened up the SREC market by mandating that utility companies are required to have a certain percentage of clean energy attributes each year. This is referred to as the Renewable Portfolio Standard (RPS) or Clean Energy Standard. If utility companies are unable to reach their requirement, they are able to buy renewable energy credits from privately owned solar projects.



What is the process to sell SRECs? 

We partner with solar installers to make this process as easy as possible for solar owners. We will receive information about your system directly from your solar installer and will provide you with a customized contract proposal. 

Your solar system will then go through a registration process and get paid for your SRECs in accordance with the agreed upon payment schedule.





How much can I make? 

Since SRECs are state incentivized, the state largely determines what the price per REC sells for, with supply and demand factoring second. 

SRECs are worth different amounts in different states and can range from a market of around $4 to over $300 per SREC. In your personalized contracts, you can see which payment structures are available and how much we are offering.

Some SRECs produced before registration within a valid time period are also eligible for retroactive payments

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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. 


Why might I opt out of selling my SRECs?

Because SRECs are a recognizable way of acknowledging your effort to be green and promote clean energy, as a business owner, you may want to consider holding on to your RECs. 

There are many advantages for business owners who hold RECs. They are able to advertise themselves as clean energy leaders in the community and demonstrate their commitment to renewable resources and sustainability goals!


Can I sell my SRECs in a state market I don't live in?

It depends! Some markets do allow for systems located outside that state to participate. However, it is usually at a lower tier or class of the market and substantially less than the "in-state" price.

CSG will register your system in the highest-priced market that your system is eligible to receive. Every state market has different eligibility requirements, and your system may not qualify.

State by State Registration Process: 









New Jersey

North Carolina







Washington DC

West Virginia






1 comment

  • John Lyons

    Under the FAQ's you may want to add the following:

    • Why would someone sell their SREC's with a state that offers only $3-4 /SREC instead of state that offers $300?
    • Is there is some reason to incentivize you for doing such?
    • Obviously you are allowed to sell your SREC's to states where the energy was created in?

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