SRECs, solar renewable energy credits, are some of the most valuable credits within the carbon offset market. Why does that matter? Everyday people can cash in on SRECs.

Why They Exist

Generally, carbon offsets put a cap on a particular industry’s pollutants and emissions. If one company pollutes below their limit, they can sell the rest of their allowance in the form of vouchers. Other companies who pollute over their limit can offset their emissions and avoid fines with vouchers. As long as the whole industry stays below the required emission cap, companies can trade vouchers. This has been developed as a methodology to reduce carbon emissions, while trying not to drastically disrupt the economy.

SRECs Are More Specific

Although similar, SRECs exist in a slightly different territory, states have set up renewable portfolio standards that require utilities to produce a certain amount of energy from renewable resources. In this case there are particular solar requirements. Utilities can meet requirements with their own production, or meet requirements through vouchers from SRECs. If utilities don’t have enough credits through SRECs, they face fines. The reason SRECs are so valuable is that the fines for missing the renewable energy portfolios SRECs quotas can be hundreds of dollars per missed SREC. So usually utilities buy them for around what the fine would be.

Governments, utilities, energy experts, solar experts, among other shareholders came up with numbers that would consider the markets, environment, and what the value of SRECs should be to transition the adoption of residential solar technology.

How SRECs Work For You

1000 kWh is one megawatt. One megawatt of energy produced equals one SREC. SRECs are a way to put monetary value to carbon emission reduction. It acts separately from the energy credits and energy people use for their home when producing solar energy. SRECs are a way for utilities to report to the state that there is the required amount of non-carbon-emitting energy being produced. Luckily, utilities sometimes calculate future energy production, which gives homeowners with solar or wishing to go solar a serious advantage. Residential solar energy producers can have their future clean kWh production calculated. This means they can redeem tens of thousands of dollars worth of srecs upfront upon purchase of a solar system.

To find out how many SRECs you qualify for, click here to talk to an expert.

Which States Qualify

Unfortunately, only a few states have these incentives in place. They also are very dynamic. They come and go depending on markets and quotas, they can be paused or not reinstated after meeting deadlines. Many people are going solar without these incentives in their states. Which makes the people who live in the states with srecs very lucky. There is a lot if information to sift through, however there is a solution. Meeting with an expert to discuss what you are eligible for is the fastest and easiest way to figure it all out.

How to Get Started

Sustainable Solutions Advisors helps people navigate this and find all the right information for their situation. We have made it our mission to help people get the best solar system at the lowest cost. We represent you and your goals, and make sure you get every bit of the incentives that exist for solar. Srecs are an amazing opportunity and people go solar without them everyday. So don’t miss out on the solar lottery because it won’t last forever. Click here and put in some basic info that will allow us to figure out the best route for you going solar.