What is it that SRECs do for you? Make you money! Once you register your system with the SREC Tracking System, you’ll create an online account that will log your green power generation. You’ll be issued energy credits, which you can then post onto a message board on the website and negotiate the terms of your sale directly with utility buyers. For those who’d prefer to let someone else handle the negotiations, you can arrange to have an agent or “aggregator” handle the sales of SRECS.
Electricity suppliers, the primary purchasers of SRECs, are required to pay a Solar Alternative Compliance Payment (SACP) if they do not meet the requirements of New Jersey’s Solar RPS. One way they can meet the RPS requirements is by purchasing SRECs. The actual price of an SREC during a trading period can and will fluctuate depending on supply and demand.
How much can you expect to make? Well, in New Jersey the state has issued what’s known as a Solar Alternative Compliance Payment. It’s the penalty per mWh that utilities have to pay if they don’t have enough SRECs relative to their target. So if you’re generating 7 SRECs per year, that’s money in cash coming in to you every year. Not bad!