What is an SREC?
An SREC is a renewable energy certificate that represents one MWh (1,000 kWh) of solar energy generation. In states that require a certain proportion of electricity come from renewable sources, utilities can purchase SRECs to meet the requirement rather than build the generation capacity themselves.
Created to encourage investment in solar power, SRECs are separate from the actual power a system produces. Whether you own, lease or purchase power from a rooftop solar system, SRECs can help lower the overall cost of the power that system generates
How much are SRECs worth?
SRECs, like anything sold in a market, have a fluctuating value based on supply in demand in the market.
Does every state have an SREC market?
No. While many states encourage solar power generation, not every state chooses to do so through an SREC market.