Solar Renewable Energy Certificates or SREC's
New to Massachusetts in 2010, the Department of Energy Resources has
implemented a Solar Credit market. This program offers an on-going
production incentive for homeowners and businesses with photovoltaic
systems. For every megawatt hour (mWh) of electricity produced,
participants earn one SREC, or Solar Renewable Energy Certificate,
which can then be sold to electric utilities needing to meet state
renewable energy mandates. In 2010, its first year, this market
projects to add a minimum of 30 cents and a maximum of 60 cents to the
value of each kilowatt hour of electricity produced, dramatically
reducing payback periods and skyrocketing return on investment for
solar system owners.
What is an SREC?
SREC stands for
Solar Renewable Energy Certificate and is a tradable certificate that represents the clean energy benefits of electricity generated from
your solar electric system. SREC's will be issued to you regularly as your solar panels generate each 1000kiloWatt
hours (1MWh).
An SREC is sold
separately from the electric power the system generates.
Read more on The Official Website of the Executive Office of Energy and Environmental Affairs
