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Have You Heard Of Solar Renewable Energy Credits (SRECs)?

Ean GoodguyJuly 20, 20181540

Have You Heard Of Solar Renewable Energy Credits (SRECs)

There is a whole world of incentives created to help all people, of all backgrounds to jump into the most exciting energy revolution witnessed in the entirety of the human experience.  Are you ready? We can tell you are the type of person who does their research.  It's sure you have now heard something about credits, rebates, etc. that make the step toward your solar energy systems purchase and install one step closer.  In your broad search, you may have heard of solar renewable energy credits (SRECs). 

SRECs are a tradable asset that you obtain from having a solar panel system and generating clean energy at home. Due to the widely utilized state requirement recognized as the Renewable Portfolio Standard (RPS), utilities in 38 separate states must provide a concluded percentage of their energy from renewable sources, typically at least 20 percent. In 6 states and Washington D.C., the RPS specifies that a specific portion of the renewable energy generated must be provided via solar power. States with this type of “solar carve-out” are willing to spend meaningful amounts of money to take credit for the electricity produced by solar homeowners.


Solar Renewable Energy Credit Calculating

There is a formula for calculating this renewable energy credit.  One renewable energy credit (REC) is equal to a 1-megawatt hour of energy generated (1,000-kilowatt hours).  This equation means that the typical solar panel installation accumulates between three and seven SRECs per year. State contingent, cashing in on your SRECs could be an annual payoff of several thousand dollars. 


Sometimes SRECs Change In Price

SRECs are similar to stock prices in some respects.  They are bought from aggregators, fluctuate over periods of time, and are volatile, just like stocks you may follow on several indexes. Policy changes such as raising or lowering a state’s RPS goal or modifications to ACPs for businesses can have an instant and severe impact on SREC market pricing. Said another way, states can become a hot commodity market for SRECs or an ugly and scary market over a 24 hour period. Consequently, if you consider yourself a professional online aggregator, the potential for significant gains is waiting for you.   


Top SREC Markets In The United States

Washington D.C., New Jersey, and Massachusetts take the first hat when it comes to SREC Pricing.  But keep notice that generally in states, SREC prices fall each year, although exceptions loom. It's a reasonable expectation as we witness more solar power installations in various states – it signals that there is a robust supply of SRECs in the market.  This logic, in turn, means that utilities are narrower in reaching their RPS goals. Low costs can also say that the fines for not presenting RECs specifically for solar are unsubstantial. The other takeaway, however, is that the NJ, MA and D.C. SREC markets are still paying off significant profits for your PV credits and with prices likely to continue to fall, there is no sufficient time to go solar than the present.

If you want to move into the future and join the solar revolution, or if you want to find out what solar panels are right for you, go to HahaSmart.com and try our price checker tool. You can see how much a system will cost, and how much you can save over the next 20 years. 

For more information relating to going solar, don't forget to visit our solar blog section for more handy guides and articles. 

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