Let’s talk about solar energy incentives! The Solar Renewable Energy Certification (SREC) is a performance-based incentive program that allows homeowners and businesses (with solar panels installed) to earn an additional income from solar electricity generation.
SREC was created due to the renewable portfolio standards (RPS), which must have utilities in order to start producing a specific percentage of their energy from renewable sources. To meet this necessity, utilities purchase Renewable Energy Certificates (RECs). Which is also known as renewable energy credits. These types of certificates are considered proof to consumers for producing renewable energy by themselves or hiring someone who is producing renewable energy for them, so it will count as their own generation of renewable energy.
SRECs and RECs Differences
You should be wondering what’s the difference between them? SRECs are a type of REC, but related to energy that comes from solar technologies. The accounting works exactly the same for both of them and like RECs, they are bought and sold in order to transfer the right to count renewable energy. In the case of SRECs, they can be bought and sold to transfer the right to count solar electricity.
Earn Money with SREC
Some states have regulated the SREC market in order to facilitate the sale of SRECs.This means that if you live in a state with an SREC regulated market, you won’t be able to sell your certificates directly to utilities. Instead, you will find it more attractive to work with a broker (specialized in SRECTrade or SolSystems) in order to monetize your certificates and earn money from it.
In case you’re wondering how much you could be earning, let me inform you that a 10 kW solar system will produce 10 to 13 MWh electricity per year, approximately. This means that you could be earning from 10 to 13 SRECs annually. It’s important to keep in mind that each state vary in the financial return of solar energy.
Taken from: Energy sage