SREC Knowledge Center

Learn About Solar Renewable Energy Credits

We enable homeowners, businesses, installers and developers to fully realize the value of their solar energy systems by registering their systems to produce solar renewable energy credits (SRECs) and then purchasing these SRECs. We also assist large-scale energy suppliers and utilities in investing in the solar community by managing their state-mandated solar Renewable Portfolio Standard (RPS) requirements and SREC portfolios. Learn more about solar renewable energy credits and how they can work for you.

What are SRECs

The term SREC stands for Solar Renewable Energy Credit and is a tradable credit that represents all the clean energy benefits of electricity generated from a solar electric system. Each time a solar electric system generates 1000kWh (1MWh) of electricity, an SREC is issued which can then be sold or traded separately from the power.

SRECs are purchased by electrical utilities or energy suppliers who need to meet a Renewable Portfolio Standard (RPS). The value of SRECs are quantified by three major factors:

1.  State RPS requirements

2.  Value of the state’s Solar Alternative Compliance Payment (ACP)

3.  Supply and demand of SRECs in that specific state

Because of these factors, SREC values can vary dramatically from state to state.