What are Solar SRECS?
An SREC, or Solar Renewable Energy Credit, is given to a homeowner for every MW hour of solar electricity their system generates. A 7kW system generating 8.5MWh would, therefore, earn 8.5 credits annually. Homeowners can sell their credits to a utility in an open market in which credit value is dictated by market supply and demand.
For example, if utilities face a shortage of credits, homeowners selling credits will receive a higher price for each MW hour of energy they generate. On the other hand, if many homeowners are trying to sell their credits, the price will drop.
The states that have active SREC markets are:
- New Jersey
- Massachusetts (not accepting new systems)
- Washington D.C.
- North Carolina