What are Solar Renewable Energy Certificates (SRECs)?
SREC’s are certificates issued to owners of renewable energy systems. This is one way that government incentive programs will help to not only offset the initial costs of a solar energy system, but also serve as a wonderful and prudent source for investment throughout the life-span of your solar energy system. In New Jersey, for example, power generated by solar energy collectors can be tracked and registered on a state website. Every time the amount of power that has been generated reaches one mega-watt hour (MWh), equal to 1000 kilowatt hours, a certificate is issued and registered in the name of the system owner. Utility companies are required to show that a certain percentage of their power comes from renewable sources. The state will allow these utility companies to satisfy a portion of their renewable energy requirement by purchasing these SREC certificates from the system owners. Currently an average residential system can generate one 5 – 10 MWh (mega watt hours) a year, (there
