SREC Solar: What They Are and How They Work

 Have you ever considered earning money from your solar panels besides lowering your electricity bills? If you live in a state with an SREC solar market, you may be able to earn income by selling solar renewable energy certificates, or SRECs.

Are you curious about SRECs, renewable energy credits, and how they function? In this article, we will go over all the details concerning SRECs, including their description, generation process, trading procedures, and possible earnings.

 What is an SREC?

SREC, or Solar Renewable Energy Certificate, is a financial mechanism that indicates the positive impact of producing solar power. Your solar system generates one SREC solar for every 1,000 kilowatt-hours (kWh) of electricity. For example, if your solar system produces 5,000 kWh of electricity each year, you will receive five SRECs.

 You should understand that your solar panels produce electricity and SRECs separately. This means you can use all of the solar panel electricity you generate while still collecting SRECs. You can also sell your SRECs to utilities or other buyers who need to meet their renewable energy obligations.