What are SRECs?
Feb. 06, 2017
Posted: Monday, 2/6/17 @ 8am EST
Updated: Tuesday, 5/8/18 @ 4pm EST
Solar Renewable Energy Credits (SRECs) are certificates earned by producing solar energy. These can be bought and sold on a renewable energy market, kind of like the stock market or a commodity, with values subject to the usual supply-and-demand pressures of a marketplace. The SRECs you hold are directly proportional to how much solar power you generate. Specifically, for home owners, every 1,250 kWh generated, and for businesses between 1,429 and 1,818 kWh (our chart below explains more) you will earn one SREC. This translates into about $150-$270 of income for every SREC generated. These SRECs are guaranteed to be paid out every quarter for the next 10 years once your solar system is installed. If the market drives up the price of SRECs beyond the price of non-renewable energy, then you’ll earn more money selling solar than the savings you’re getting on your electric bill!
Can you explain what category I'm in if I'm a business owner?
Here is a table that explains how much 1 SREC is worth for various size, location, and types of solar systems.
This sounds too good to be true!
We know, but it's true! If you purchase a solar system, you're guaranteed a payment every quarter for the next 10 years for the solar energy your solar system produces. However, in Massachusetts, SRECs will go away mid 2018. Go Solar now before they do! Contact us today to talk to one of our experts.
Director of Marketing at Boston Solar