FAQs

Use the navigation bar below to view answers and explanations for some of our Frequently Asked Questions regarding:

Renewable Energy Credits (RECs) and Solar Renewable Energy Credits (SRECs)
Requirements for electric meters and solar monitoring solutions
Partnerships with Sol Systems
Payments for SRECs
Sol Brokerage

About Payments

1. When will I receive my SREC payments?

3. Why would I choose a long term contract when spot market prices are significantly higher?

4. Do I have to pay taxes on my SREC income?

1. When will I receive my SREC payments?

Customers will typically receive their first solar credit payment within three (3) to six (6) months after signing up with Sol Systems (large systems that have not been registered with the state may require additional time). This timeline is a function of a fairly complex and time-consuming state regulatory registration process.

Here is a typical process:

• Registration: We receive your system information and contract. When all information is provided, we will process your application within 5 business days.

• Submit Application to Regulators: We submit your application to regulatory entities for review on a monthly basis. This process may take up to three (3) months from the time we receive your contract. To keep you appraised of the process, you will receive an email when each step of the regulatory approval process is completed.

• Assignment of SRECS: We create a Sol Systems sub-account for you on GATS (the regulatory body that awards SRECs). This allows us to transfer solar credits from your account (1-2 business days).

• SREC Production: You will begin to accumulate SRECs that are eligible for sale. SRECs will be created in your account one month after production. For example, if your system is installed in July you will not begin producing SRECs until August. Additionally, GATS produces SRECs in arrears, so that the SRECs that you do produce in August will not actually appear in your account until the end of September. In terms of the generation start date on GATS, it is always the first of a month. Therefore, if your eligibility start date according to state law was sometime in April, GATS would begin awarding credit for generation starting May 1st.

• Sale of SRECs: Sol Systems will sell SRECs on a quarterly basis according to our Payment Schedule. SRECs are sold in the months of May, August, November and February.

• Customer Payment: You will receive payment from Sol Systems (within 8 weeks after quarter close) providing at least 1 SREC is generated prior to quarter close. Payments are typically sent the third week of the payment month.

If your system is located in the PJM territory, you will be paid according to the schedule below:

SREC Generation Period           Payment Month
January – March                         May
April – June                               August
July – September                       November
October - December                   February

If your system is located in the NEPOOL territory (Massachusetts), you will be paid according to the schedule below.

SREC Generation Period             SREC Creation            Payment Month
January – March                         July 15                       August
April – June                               October 15                  November
July – September                       January 15    February
October - December                   April 15    May

2. What fees do you charge?

There are no fees for our Sol Annuity or Sol Upfront services. That means if you contract for a Sol Annuity fixed price of $250, when you generate an SREC, you get $250.

There is a 5% seller fee for our Sol Brokerage service; this fee is deducted from the SREC clearing price.

3. Why would I choose a long term contract when spot market prices are significantly higher?

Sol Systems provides long-term contracts and up-front payments to our customers because we believe this is the best way to finance solar energy systems. We also think that market risk should be handled by companies in the field with the expertise to do so. Although guaranteed long-term pricing is sometimes lower than current year open market prices, this pricing takes into account declining prices in the coming years, as well as general market risk.

Solar credit prices have a tendency to decline because (1) the alternative compliance payment (ACP) in many states declines and (2) SREC supply is set to grow. This projected pricing decline will leave the unprotected seller exposed to lower prices. Sol Systems' contracts offer protection against declining or otherwise unstable SREC prices.

4. Do I have to pay taxes on my SREC income?

Please note that Sol Systems is not an official tax advisor and cannot give tax advice. We recommend that you speak with your accountant before making a final decision on this matter.