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Solar Renewable Energy Certificates (SRECs)


Solar Renewable Energy Credits are only available in states with Renewable Portfolio Standards exist. This means that specific states have made solar electricity production a requirement. There are two ways the Renewable Portfolio Standards can be met:

    • Producing Solar Energy
    • Purchasing a Solar Renewable Energy Credit

Currently, 30 states have a solar portfolio standard. Here is a list of states with a solar renewable portfolio standard:

    • Arizona
    • California
    • Delaware
    • Illinois
    • Indiana
    • Kentucky
    • Maryland
    • Massachusetts
    • Michigan
    • New Hampshire
    • New Jersey
    • New Mexico
    • North Carolina
    • Ohio
    • Pennsylvania
    • Tennessee
    • Texas
    • Virginia
    • West Virginia
    • Washington D.C.

SRECs are trading just like stocks. Their value increases and decreases based on supply and demand. In addition, their value is also based on how much electricity production from solar is required by the state.

A property owner gets a SRECs by getting the solar system certified by state regulations. One this is processed, the solar system must be registered with a trading service. SRECs are based on actual meter readings. Each SREC is created by 1 MWh of solar electricity.

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