SOLAR RENEWABLE ENERGY CREDITS EQUALS REAL MONEY
In addition to individual state Solar Energy Grant Programs and the Solar Federal Income Tax Credit, Maryland and New Jersey residents who have installed a PV system can also earn and sell SRECs (Solar Renewable Energy Credits) to help offset the cost of their system.
What are Solar Renewable Energy Credits?
A Solar Renewable Energy Credit (or SREC), is a tradable instrument that represents the environmental benefits of electricity generated from renewable energy sources. One SREC represents 1 megawatt hour of electricity.
Electricity is generated from fossil fuels. Fossil fuels emit carbon monoxide (CO), carbon dioxide (CO2), sulfur dioxide (SO2), nitrogen oxide (NOx), particulate matter (PM), and volatile organic compounds (VOC). These emissions cause damage to our environment that increases global warming.
In response to the damage that is caused, local, state and federal governments have required electricity distributors to take measures to reduce the amount of fossil fuel generated electricity and increase the amount of renewable energy within their energy mix. This is called the Renewable Portfolio Standard.
Energy distributors can meet their requirements by:
1. Investing in renewable technology directly, or
2. They can purchase the renewable attributes from owners of renewable energy sources.
Because of the second option, the Renewable Energy Credit market has evolved. Power generated by renewable energy sources (like your solar electric system) is tracked by a third party and given a certificate of production. Then, the SREC can be traded on the open market to allow utilities to meet their Renewable Portfolio Standard that are required to
offset their carbon-emissions.
At Solar Energy World, LLC – you own the Renewable Energy Credits that your system will generate. These SCRECs are similar to stocks traded through brokers – and they have financial value. Many solar companies (also known as aggregators) have an interest in purchasing your Renewable Energy Credits at a reduced rate.
Renewable Energy Credits are designed to provide solar owners with an economic incentive to investing in solar electric systems that improve the electric distribution grid. They represent the renewable attributes from your solar facility, bundled in minimum denominations of 1 megawatt hour of production. The additional income received from selling the solar certificates increases the economic value of your investment.
How it works:
Once the installation of your solar electric system is complete, the system will be inspected and certified by a third-party. After the inspection, a state certification number is generated and is used to register an account to create and manage Renewable Energy Credits.
Solar Energy World partners with an organization that offers a service to manage your account – and they make all this completely hands-free. The entire process is automated so clients can enjoy all the benefits with no effort.
Their mission is to provide the critical final component of the Renewable Energy Credit program by establishing a public marketplace connecting sellers directly to suppliers in an easy, transparent and equitable way.
Our solar consultants will walk you through this process so you’re able to take full advantage of the credits, schedule a free in-home solar analysis to learn more about Renewable Energy Credits.