Did you know you get paid to have a solar electricity system?
And, you can even use this money as up-front financing.
This is due to SREC’s. The term SREC stands for Solar Renewable Energy Credit and it represents the clean energy generated from your solar electric system. Each time your system generates 1000kWh (1MWh) of electricity, you’ve earned an SREC. You can then sell it just like a stock. SREC‘s are completely seperate from the credit you’ll receive from your local utility company for creating more electricity than you need during the day. They are an entirely new benefit but one you definitely want to know about because they can pay for a significant portion of your solar system.
Who buys SREC’s? How can I get them to buy from me?
You don’t have to worry about who buys them or how to sell them – we partner with a Solar Aggregator who takes care of all the details for you. This company, Sol Systems will provide you with the best in SREC contract services by locking a utility into a contract with you to purchase your credits.
Why would a large utility want to purchase my renewable energy credits? SREC’s are purchased by electrical utilities in order to meet their state’s Renewable Portfolio Standard (RPS) requirements. Their value is quantified by (1) the state RPS requirements for which they are purchased, (2) the value of the state’s Solar Alternative Compliance Payment (ACP), and (3) the supply and demand of SRECs in a specific state. Because SRECs may be produced in one state and utilized in another, their values can vary dramatically. In other words, they’ll pay you for allowing them to take credit for the clean energy you produce, and they pay you at a rate equal to about 80% of what they’d have pay in fines for not meeting their mandate.
A practical example of how much SREC’s benefit your pocketbook
A 10 kW system is considered to be at or close to 100% electricity generation for the average home (according to DOE estimates). For a system in Virginia, for example, here’s how the SREC’s will provide you with either yearly income or one large upfront payment :
- A 10 kW system will generate about 12 MWh a year.
- This amount registers on the web monitoring software that comes with your system.
- Each MWh is a Solar Energy Renewable Credit that sells on the open market for a variable rate.
- A Solar Aggregator will contract a utility company to purchase your SREC’s for 5 years.
- These utility companies will purchase your SREC’s at a rate equal to about 80% of the fee they are assessed for not producing a MWh with renewable energy as mandated by their state. In Virginia, this price is currently $200.
- You choose to either receive a check on a quarterly basis for each MWh of energy your system has produced, or take a one time upfront lump sum payment equal to about 80% of what your system is expeced to produce over a decade.
- Over a 5 year period, you can expect to receive payments totalling over $12,000.
- This is completely seperate from Federal and State incentives, as well as any local credits your utility company gives you.
When you add up all three major benefits, Federal, Residential, and SREC’s, the incentives today can pay for nearly 80% of a system. And this doesn’t include the added value of your home once the system is installed, typically, this is a $20 increase for every $1 in annual savings.
SREC’s are the best kept secret in solar energy and we’re here to tell you all about them!