Back to: Maximizing Solar Profits: Solar Renewable Energy Certificates
How to Generate and Track SRECs
To participate in the SREC market, follow these steps:
Step 1:
Install a Solar Energy System
Ensure your system is eligible for SRECs by installing grid-connected solar panels that meet state requirements.
Step 2:
Register in an SREC Tracking System
Most states require solar owners to register with an SREC tracking platform, such as:
✔ PJM-GATS (Pennsylvania, Ohio, Maryland, D.C.)
✔ NEPOOL-GIS (Massachusetts, New England region)
These platforms verify and track the number of SRECs you generate.
Step 3:
Earn SRECs for Every Megawatt-Hour (MWh) of Solar Power Generated
For every 1,000 kilowatt-hours (kWh) or 1 MWh, you receive one SREC.
Step 4:
Sell Your SRECs
Once SRECs are created, they can be sold in several ways:
✔ Direct sales: Sell SRECs individually on the spot market for the current price.
✔ Aggregators/brokers: Companies bundle multiple SRECs from different owners and sell them in bulk.
✔ Long-term contracts (forward contracts): Secure a fixed price by signing a multi-year agreement with a buyer.
Who Buys SRECs?
The primary buyers of SRECs include:
🔹 Utilities & Energy Suppliers: To meet state solar requirements.
🔹 Corporations & Businesses: Companies with sustainability goals purchase SRECs to offset their energy use.
🔹 Brokers & Aggregators: Organizations that resell SRECs at higher prices in the market.
What Determines SREC Prices?
SREC prices fluctuate based on supply and demand. Key pricing factors include:
📌 State Policies & Alternative Compliance Payments (ACP):
✔ If utilities fail to meet solar requirements, they must pay an ACP fine.
✔ This fine sets the maximum price of an SREC in that state.
✔ States with high ACP rates tend to have higher SREC values.
📌 Supply of Solar Energy in the Market:
✔ More solar installations mean more SRECs available, which can lower prices.
✔ If fewer solar systems exist, SRECs become scarce and more valuable.
📌 Market Speculation & Future Demand:
✔ Buyers and investors may drive up prices if they believe future SREC demand will increase.
SREC values can range from $5 to over $400 per certificate, depending on the state and market conditions.
