Wouldn’t it be wonderful to earn some money without lifting a finger?
That dream can become a reality for property owners who invest in solar technology. In some states, when you install a solar photovoltaic system and start generating power, you can earn money back from the local utility company in the form of Solar Renewable Energy Certificates (SRECs , pronounced “Ess-Rex”).
Over time, these credits—which are traded in their own market (you can go through a broker to make the process easier)—will help offset the initial cost of your investment. An average residential system might earn 5–7 credits each year, and credits can range in value from $150-$600 or so, which translates to a significant savings for property owners. New Jersey is one of the fastest-growing markets for PV in the country; you can see average values for SRECs over the past few years here.
Here’s a map of the current and potential SREC states:
Keep in mind that the money you can earn from SRECs is in addition to any other federal or state credits that may be available. All together, these incentives can make solar systems an affordable proposition for property owners.
So How Does It Work?
The process varies slightly by state, but generally solar-project owners register their systems, and once they are approved, owners earn an SREC each time their installation generates 1,000 kilowatt-hours (kWh) of electricity. Electricity suppliers in these states are mandated to meet certain renewable-energy standards, and purchasing SRECs from individual project owners is an easy way for them to meet those requirements. It’s a win/win for both utility companies and solar-project owners.
We can help you understand what’s involved, from the initial investment to finding an SREC broker. Contact Sunetric to find out more.