Turn Sunshine into Money with Solar Renewable Energy Credits (sRECs)
Jackie Harrison-Jewell, 8/1/19
Solar electricity is worth more than just clean power. It has externalized benefits that are worth money, so the concept of Solar Renewable Energy Credits (SRECs) was created to credit producers for those benefits. Every time 1,000 kWh of electricity is generated, it is recorded as an (SREC). The SREC is sold separately from the electricity and represents the “solar” aspect of the electricity that was produced. Why bother doing this? Several states have a Renewable Portfolio Standard (RPS) for solar – a mandated percentage of total energy that must be generated by solar energy. In states that have this mandate, the value of an SREC is determined by the market subject to supply and demand constraints. SRECs can be sold to electricity suppliers needing to meet their solar RPS requirement. Read more