If you’ve recently gone solar or are considering making the switch, you may have heard about Solar Renewable Energy Credits (SRECs). But what exactly are SRECs, and how do they impact your solar investment? Let’s break it down.
What is an SREC?
An SREC, short for Solar Renewable Energy Credit, is like a voucher that proves your solar energy is renewable. For every 1,000 kilowatt-hours (kWh) your solar panels produce, you earn one SREC. These credits hold value because utilities in Virginia are required to buy a certain number each year to meet clean energy standards set by the state.
Does every state buy / sell SRECs?
No. SRECs can only be sold in states that have an SREC market. This is typically created by state laws requiring utilities to use a certain precent of renewable energy or solar. Some states with SREC markets include DC, DE, IL, MD, NJ, OH, PA and VA.
The Value of SRECs in Virginia
In Virginia, the SREC market is healthy, meaning SRECs can add significant value to your solar investment. In fact, they can boost your savings by 15% to 40%, depending on market conditions.
Understanding SREC Income
It’s important to note that SREC income is entirely separate from your electric bill savings. SRECs are based on how much energy your solar panels generate, not how much you use or put back on the grid. Even if you consume all the energy your solar system produces, you’ll still generate SRECs based on your system’s output. This means you can benefit from SREC income regardless of your energy consumption habits, making it a valuable additional revenue stream for solar system owners in Virginia.
How to Sell SRECs
Selling SRECs is simple. Your local solar installer (hopefully us), will handle most of the process for you. We’ll prefill your solar system information and invite you to sign a contract with a broker like SolSystems or SRECTrade. SREC value fluctuates based on supply and demand, so signing a 3 or 5-year contract can lock in your rate. If your system has online monitoring, the broker can remotely track your energy production, so you don’t need to provide any additional information. This means you get paid for each transaction without lifting a finger.
I installed solar a long time ago. Can I still sell SRECs?
Yes! If you installed solar before the SREC market was available in Virginia (Pre-2022), you are still eligible to sell your SRECs. You may need to install an additional meter, or “revenue-grade meter”, depending on your inverter and monitoring setup, but the additional cost of the metering equipment is usually paid for by the SRECs within a year or two. Just provide your system information to a broker, and they’ll get you signed up!
Conclusion
Solar Renewable Energy Credits (SRECs) are a valuable incentive for going solar in Virginia. By understanding how SRECs work and leveraging them to your advantage, you can maximize the financial benefits of your solar investment. If you’re considering solar, be sure to explore the potential of SRECs and how they can enhance your savings and contribute to a cleaner energy future.