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Solar Renewable Energy Credits (SRECs) Explained

Avatar for Dave Llorens
Updated 02/17/2017

Even among the solar-savvy, many people do not know what Solar Renewable Energy Credits (SRECs) are or what potential benefits they represent. As we’ve mentioned before, SRECs (or often simply RECs) allow generators of renewable energy to sell credits to businesses like utilities who need them to comply with government regulations. These credits accrue automatically to solar panel owners and often can be traded and sold like stocks on the stock market. 

The team over at 1bog created this video that explains SRECs and how they can yield financial benefits to owners of solar panels.

Last modified: February 17, 2017

5 thoughts on “Solar Renewable Energy Credits (SRECs) Explained

  1. Avatar for Anonymous Anonymous says:

    CAN SOMEONE TELL ME IN SIMPLE TERMS WHETHER OR NOT I CAN ACTUALLY TURN A PROFIT GENERATING CERTIFICATES FROM MY PANELS HERE IN CONNECTICUT WITH SRECS?

    1. Avatar for Ben Zientara Ben Zientara says:

      I can. Connecticut utility companies are allowed to offer very low prices for the ZRECs that solar owners earn for their panels’ production. The better bet in Connecticut is taking the state’s excellent solar rebates: https://www.solarpowerrocks.com/connecticut/#rebates

      Between rebates and tax incentives, Connecticut solar has a 7-year payback time.

  2. Avatar for Greg Greg says:

    I purchased a solar system and sold the rights of my SRECs to my installer. Do I need to reduce the cost of my system by the SREC purchase when calculating the Federal tax credit?

  3. Avatar for Christopher Lollini Christopher Lollini says:

    A well-done video guys; you made an overly complicated topic quite reasonable for the layperson to understand. Keep the information coming. I love your blog by the way.

  4. Avatar for JR JR says:

    1BOG Team,

    This well done video is one of the best on the net! Thanks! One critisism: the video promotes the idea that RECs can be purchased through state and local rebate programs. Installers need more support from community organizers such as 1BOG to force utilities to call these “rebate” programs by what they actually are => upfront purchases of REC rights. Labelling these programs as “rebates” intimidates accountants from writing off the 30% of total system cost. A $3/W “rebate” program at a 2009 $6/W install would result in a $2.1/W cost after incentives. A $1/W REC Purchase at a 2010 $4.50/W install would result in a $2.15/W cost after incentives. Restructuring this policy would stretch the local utility budget 3 times as far for no budget increase and increase federal investment dollars 600%!

    We teach these optimized solar concepts at our online training website CleanTechTraining.com

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