Solar Renewable Energy Credits (SRECs) are issued to homeowners and organizations to allow them sell certificates to their utility. For every 1000 kWhs produced by a solar panel system, one SREC is awarded. These credits are considered the currency of renewable energy which can be sold and bought in an open market setting. Homeowners and organizations getting electricity from their solar systems can sell these credits on the market to help offset the cost of installing and maintaining a renewable energy system.
Many states, like Illinois and New Jersey, require their public utility companies to produce a certain amount of Renewable Energy, and often this requirement specifies solar energy. When a state is required to have renewable energy, it is known as a Renewable Portfolio Standard (RPS) and the utility company purchase the (SREC)s from homeowner and businesses to reach the requirement.
How To Make Money With (SCREC)s
The value of (SREC)s varies from state to state and from year to year. Not all states have an active SREC market. However, a few states have solar carve-outs that establish SREC market to facilitate the sale of (SREC)s. This allows utilities that need to meet their solar carve-out requirements to buy (SREC)s from solar panel system owners through the SREC market.
The price of (SREC)s varies from state to state and can range from under 30 dollars to over 300 dollars per SREC. The value of a SREC can also be dictated by RPS compliance regulations, the year the renewable energy was generated, and supply and demand.
Some states have set high regulatory penalties for not meeting RPS requirements and this can affect the price of (SREC)s.
What Happens To SRECs When One Is Planning To Move?
If a homeowner living in a state with an active SREC market wishes to sell their property, he or she may retain the rights to sell their system’s (SREC)s even after they sale their home. This means that individuals and organizations who sell their properties can still receive income from the solar systems year after leaving their home. You may also pass (SREC)s rights to new owners if agreed upon as part of the transaction. A house that creates income for the, now who wouldn’t want that?