Solar Renewable Energy Credits
SREC programs are a key component of making solar energy affordable in a growing number of U.S. states. A SREC is credited for every megawatt-hour of electricity produced by a solar facility and can be sold to utility companies who need them to meet statewide solar energy requirements.
SRECs represent the environmental attributes from a solar facility, and are produced each time a solar system produces one thousand Killowatt-hours (KWh) of production. For every 1000 killowatt-hours of electricity produced by an eligible solar facility, one SREC is awarded. In order for a solar facility to be credited with that SREC, the system must be certified and registered.
In order to produce SRECs, a solar system must first be certified by state regulatory agencies, usually public service commissions or public utility commissions, and then registered with the registry authorized by the state to create and track SRECs. Once a solar system is certified with the state agency and registered with a registry, SRECs can be issued using either estimates or actual meter readings depending upon state regulations.In some cases, smaller installations may be able to use estimates, while actual meter readings are required for large installations. Massachusetts has one of the highest buy back rates making photovoltaic a viable opportunity.