What are Solar Renewable Energy Certificates (SREC’s)?
SREC’s, or ‘green tags’ are certificates issued to owners of renewable energy systems. In New Jersey, 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 MW (mega watt), a certificate or tag is issued and registered in the name of the system owner. Utility companies are requires to show that a certain percentage of their power comes from renewable sources. Building renewable energy generating systems statewide takes time, so the state allows these companies to satisfy a portion of their renewable energy requirement by purchasing these ‘green tags’ from the system owners. Currently an average residential system can generate one MW (mega watt) a year, and the resulting SREC can currently be sold for as much as $600 to an utility company or private investor. This helps pay off existing solar power systems even faster, and the trading value of green tags continues to rise as energy c
