SREC credit stands for solar renewable energy credit. It is basically a specific credit whenever you have excess energy from your solar. Moreover, this helps you to earn credits accordingly. Therefore, we see SREC like the credits. Especially, the homeowners are eligible for such credits. Furthermore, we come across the fact that you need to have your own solar property. Here, let us clear the concept of SREC credits by following the representation.
1 SREC = 1 MWh = 1000 kWh of solar production
Here, the good thing is that one can sell such credits. The credible platforms two sells are open markets and supply on demand. Here, we observe a concern. It lies in the form of prices of credits. There are different states in the united states of America. Therefore, we need to keep such things fully in demand.
Some important terminologies for SREC
There are many important terms for SREC. Hence, let us discuss each on an individual note.
Solar Carve-out
It is basically a policy with solar credits. This policy explains the requirement for utilizing the state’s renewable energy. These carve outs are quite beneficial of solar owners. The reason is obvious in the form of incentives. Currently, solar carve outs range from 0.3% to 14.5% in USA. Yet, this percentage is different with different states. However, the target is to have maximum energy generation from 2025 to 2041.
Renewable Energy Certificates
These are crafted to meet renewable portfolio standards. Basically, these are credits that are purchased from utilities.
Renewable Portfolio Standards
We elaborate on this terminology as a sort of standard. So, these are used by utility companies to speed up the use of renewable energy sources.
Green Tag
When it comes to renewable energy sources then this certificate is important. However, it is tradable. The basic purpose of such tags is to maximize the renewable energy production. But, the important thing is to earn it. So, for doing so ou need to have a solar property. Further, your PV System should be capable of producing massive energy.
SREC Prices
The prices of SREC vary with respect to trends and states. Hence, we need to keep this thing in mind. Now for the price change, the value ranges from $3.58 – $390. The price pattern of SREC works exactly like Stocks.
Costs are followed by market and trend. In case there is an oversupply of credits, the prices also change. On the other hand with shortage the price increases. Now let us have a look at SREC prices for different states. However, the word sol out here represents the broker.
State |
SREC Market |
SREC Trade market price |
Price with the sol system |
|
Maryland |
Yes |
$59 |
$55 |
|
Ohio |
Yes |
$3.5 |
$4 |
|
Texas |
No |
– |
– |
|
Massachusetts 1 SREC |
Yes |
$332 |
$315 |
|
Delaware |
No |
– |
– |
|
Pennsylvania |
Yes |
$42 |
$40 |
|
Washington D.C. |
Yes |
$370 |
$330 |
|
Virginia |
Yes but lacks SERC trade |
N/A |
$45 |
|
Massachusetts 2 |
Yes |
$276 |
$260 |
|
Georgia |
No |
– |
– |
|
North Carolina |
No |
– |
– |
|
Type 1 SREC, New Jersey |
Yes |
$233.5 |
$215 |
|
New Jersey. Type 2 SREC |
Yes |
$85 |
$85 |
Here the 1 and 2 part show the two components of SREC. It is evident as different states work with different values of SREC. Further, parts 1 and 2 of SREC represent different policies. As with SREC 1, we come across the same process as SREC. While for Part 2 of SREC follows a program called SUSI. It stands for the successor solar incentive program. This program provides credits for every 1000 kilowatts of solar.
In New Jersey, we come to know that SREC has been ended up. The reason lies in the form of changing price patterns. Therefore, lawmakers have changed SREC to TRECS. It stands for trans renewable energy cooperation system. The best thing is that the values are fixed. However, the good news is that, the solar owners will not have to face issues with changing patterns.
How do I sell my SREC?
There are many ways to do so, but the things that matter are the steps. Further, there are two of the largest brokers in solar that can also help. However, these include SrecTrade and SolSystems. So, if you can’t handle the filing then these can be helpful. However, there are certain steps to sell SREC credits. Hence, let us have a look at each step as follows.
Registration
SREC registration is pretty simple. You can either do it on your own. Yet, there are companies that do this for you. Hence, Registration needs to be followed by Public Service Commission. Afterward, you need to follow SREC measures.
Confirmation Email
Whatever SREC broker you select, you need to provide your Email. Now, follow the correct Email address to start the process. Hence, wrong information can lead you toward failure.
Create the account
This is an important step for SREC credit. Here, you need to start the application. All you need is your accurate details. Further, you need the proper documentation of the applications. So, make sure to add proper pieces of information.
Select the suitable option
Here, we come across different options. All of these depend upon the status of your contract. Yet, there the brokers will guide you with the options. Moreover, the selection depends upon your budget and the volume of credits. Normally there are four options as contracts.
Annuity
It includes guaranteed and fixed payments. Here, we observe terms of 3 to 5 years
Profit Share
The base price per credit is the benchmark of this credit. However, it has the potential to increase credit with market trends
Upfront
It is a one-time sum payment. Hence, it exists for the expected production of a PV System
Brokerage
Here, we observe the selling of SRECs. It varies on a quarterly basis and market trends.
Give permission
Here, you will receive the contract via DocuSign. It contains all of the instructions and specifications. It is necessary to read the details fully. In case you ignore a section the department will not be answerable. Further, this contract contains the basic steps. It is credible for those, who are filing credits on their own.
Provide access to the account
After signing the contract the other thing is the account. However, with a broker, you need to provide access. Here, you need an Enphase account. Thus, it plays a valuable role in getting SREC credits. Yet, If you do not have this account then you should create it first. But, if you don’t know the criteria, we provide you with a reliable link below.
Cross-check the details
All of the details should be checked fully before submission. Normally, it takes about 40 to 80 days for different states. Yet, there the misleading information will affect your chances. Hence, before getting SREC credits do claim your system. Otherwise, you cannot grab the credits.
Allow accessing your meter reading
Whether there is a broker or homeowner doing it on their own, this step is mandatory. Thus, you need to provide your meter reading. Here, you need to provide your lifetime reading of the meter. Therefore, it is a crucial step. However, it seems useless to follow this step. Hence, you need to provide the lifetime meter reading. If you have an enphase enlighten app then you are lucky. However, this app has all of the features of calculation. So, all you need to do is to follow certain illustrations.
My Enlighten view> Energy> Lifetime
Note: The steps clearly represent the filing by a broker. But, these are similar if you file on your own. Further, these steps show the filing for a solar property to avail of SREC credits.
How long does it take to generate SRECs?
Normally the individuals receive their first payments within 3-6 months. Here, the thing that matters fully is the different contract options. So, these include the representation below.
Sol Annuity, Profit Share, and Brokerage systems are paid quarterly. Yet, there are specific months too. Hence, these consist of February, May, August, and November. Here, the concept of quarterly payment is also evident. These are posted by the last business day of the month. So, For Sol upfronts the payments are paid within 15 days. Further, there are certain necessary conditions as:
- Timeline of Interconnection Approval
- The filing date of the SREC
- Specific year of project completion
- Accurate filing of SREC application
Project completion is extremely important. For example, the date at which your solar project was completed. Therefore, you need to provide the correct data for the year. It is important as the costs of credits change every year.
How do homeowners sell SRECs?
There are many conditions to have SREC credits. However, the first and foremost is to own a solar. Afterward, there are a set of conditions like.
- A resident of an area with a visible SREC market
- Avoid leased panels
- Complete avoidance of power purchase agreements
- Selling to a utility company
Apart from that, we come across installers and buyers. Here, this statement relates to the specific requirements. However, there are some installers who work by contract. Further, some utilities wish you to follow the registration.
So, it fully depends on you whether you sell to installers, utilities, or the open market. But, be assured to complete the requirements.
Conclusion
Renewable energy is the need of the hour. Especially, environmental pollution is motivating people to avail it. But, if we get the credits for such sources then it is totally worth it. So, one such credit like SREC seems extremely beneficial. This article is especially focused on SREC. There is the presence of complete details out there. However, if you need to have more information about renewable energy and such credits then Clean Power Store is there for you. You can visit the website to get some valuable information about solar.