By generating your own electricity through solar power, you not only reduce or eliminate your power costs, but also have the opportunity to earn additional income through Solar Renewable Energy Credits (SRECs). These credits provide a periodic revenue stream on top of the savings from reduced electric bill payments. This means that you can enjoy immediate and long-term financial benefits by investing in solar energy. With SRECs, you can maximize the return on your solar investment and contribute to a more sustainable future.
SRECs (Solar Renewable Energy Credits) are a production-based solar incentive that allow you to earn additional income from your solar electricity generation. As a solar system owner, you can earn one SREC for every megawatt hour (MWh) or 1,000 kilowatt hours (kWhs) of electricity your solar panel system generates. It is a tradable and intangible certificate that represents proof of the generation of 1,000 KWH of solar power. SRECs exist because of state regulations known as RPS (Renewable Portfolio Standards), which require utilities to produce a specific percentage of their electricity from renewable resources. To meet these requirements, utilities must purchase renewable energy certificates (RECs) which are also known as renewable energy credits.
SRECs are minted in the GATS database. GATS is a generation attribute tracking system for the PJM power grid. They track all the renewable energy flowing through the power grid and create renewable energy certificates based on suppliers imported renewable generation. GATS create SRECs once a month for suppliers, always on the last business day of the month, and it’s a month delayed from when you create your renewable energy. For example, all the renewable power you generated in February, GATS mints into a SREC(s) on the last business day of March (if 1,000 kwh are produced in that time frame… 1 SREC = 1,000 kwh). The remaining generation will roll over to the next month if short of 1,000 kwh.
Solar Renewable Energy Credits (or Certificates), abbreviated SRECs, are created as any solar energy system generates electricity. In Pennsylvania, legislation defines Solar Alternative Energy Credits (SAEC), although most people continue to refer to SRECs within the state.
By definition, 1 SREC = 1 MWh of solar electricity. In metering and billing units that would be 1,000 kWh. The SREC value is derived from law in the following way:
The Successor Solar Incentive (SuSI) Program is the current solar program that allows new solar projects to register to earn New Jersey Solar Renewable Energy Credits II (SREC-II). This is the long-term program for providing incentives to new solar generation facilities connected to the transmission or distribution systems of New Jersey electric public utilities or local government units. The SuSI Program consists of two sub-programs:
Both the ADI and CSI Programs provide one SREC-II for each megawatt-hour of solar electricity produced from a qualifying solar facility. The value of each qualifying facility’s SREC-II will be set administratively in the case of the ADI Program, and via a competitive process in the case of the CSI Program.
REVISED ADI Incentive (SREC-IIs) Values Per Market Segment
Effective March 13, 2023
Pennsylvania has relatively new requirements and a recently created SREC marketplace compared to New Jersey. However, the market values are lower in comparison. This is primarily due to the earlier rule that permitted credits generated by out-of-state solar energy systems to be traded on the Pennsylvania market. Nevertheless, Act 40 has been introduced to remedy this situation. The Pennsylvania PUC has provided clarity on this new solar law. The positive news is that this new law could be just the beginning, as there is a significant public interest in improving renewable energy policy in the state. Therefore, it is expected that SREC values in Pennsylvania will continue to rise to some degree in the near future.
Established in 2007, Flett Exchange is a local firm that Exact Solar registers many clients with. They can handle your GATs account on your behalf, enter your solar arrays’ meter readings, sell your SRECs on a monthly basis, and remit funds monthly. They can also hold SRECs until the market price moves higher at the sellers’ discretion. Their live and transparent SREC markets give the homeowner the ability to achieve competitive market prices, on a secure network that is governed by the rules and regulations of a leading exchange.
Exact Solar is proud to partner with SRECTrade, one of the largest SREC transaction and management firms in the industry, with over 470 MW of solar assets under management. The company provides you with all needed brokerage services. Exact Solar handles all the paperwork to get you up and running so you can start turning your SRECs into income. Unique software developed by SRECTrade is used by solar owners to track their SREC generation and issuance, manage and execute transactions, and enroll facilities with state regulators.
Exact Solar also recommends Knollwood Energy, one of the earliest SREC aggregators in the country. Established in 2006, the company set out to represent only SREC sellers. They aim to maximize sales prices by bundling customers into large institutional sellers. Small and large solar energy generators alike benefit from this approach. Whichever SREC broker you choose, Exact Solar will help with your account setup so you will be making money from your SRECs quickly and with no stress.