SOLAR INCENTIVES

SOLAR RENEWABLE ENERGY CREDITS (SRECs)

Understanding SRECs

As a business owner, you may be considering solar energy to help power your operations. Solar renewable energy credits (SRECs) can be a great way to offset the cost of installing and maintaining a solar array. But what are SRECs and how do they work? Let’s explain everything you need to know about SRECs so that you can make an informed decision about whether they’re right for your business.

What are SRECs and how do they work

Solar Renewable Energy Certificates (SRECs) are a widely used way to incentivize commercial solar projects. They provide economic benefits for those who participate in commercial solar projects, like reduced electricity bills and increased income. SRECs are tradable credits that increase the value of commercial solar investments. Every megawatt-hour (MWh) of commercial solar energy produced by a property owner generates one SREC, which can then be sold on a market or accepted as credit towards their utility bill or another incentive program. In some states offering strong incentives for commercial solar, the sale of SRECs can provide an additional financial return on commercial solar investments. By utilizing these certificates, businesses gain access to an additional stream of income while investing in clean and renewable sources of energy – both benefitting our environment and contributing to sustainable economic growth.

SRECs vs RECs

SRECs are certificates that indicate each megawatt-hour (1,000 kilowatt-hours) of renewable solar energy produced. SRECs can be bought and sold similarly to other tradable commodities. The SREC market is a valuable way to monetize clean power generation. SRECs differ from Renewable Energy Certificates (RECs) in that SRECs represent solar production exclusively, whereas RECs encompass all forms of renewable energy sources, including solar, wind, geothermal and hydroelectricity. Depending on the state they are issued in, SRECs may have additional requirements or qualifications attached to them. Ultimately though, SRECs help electric suppliers meet their renewable electricity goals while providing an economic incentive for investment in solar energy developments.

The benefits of owning SRECs

Owning SRECs can be a great asset for any property owner, as SRECs represent Solar Renewable Energy Credits which are generated from solar energy production and can be traded on certain markets. SRECs offer many benefits, including decreased dependency on the grid for energy needs, reduced utility bills due to producing your own electricity with solar power, market stability through SREC prices that remain consistent over time, greater return on investment as SREC values typically increase year over year, increased home equity when an SREC-generating system is installed, and better environmental stewardship by reducing your property’s carbon footprint. Owning SRECs can be an ideal way to maximize solar benefits while investing in a valuable and reliable source of renewable energy.

How to sell your SRECs

Selling SRECs can be a great way to make money while doing good for the environment. SRECs are credits given to individuals and businesses who install solar panels on their property, helping contribute clean energy to the grid. The SRECs are tradable on various markets, allowing you to sell your SREC for an attractive price. When selling SRECs, it is important to research the state laws that pertain to where you own land to understand any restrictions on SREC ownership or sale. Additionally, look into SREC registration fees and be sure that you have all paperwork in order so that your transaction will be seamless. With the right preparation and understanding of the regulations surrounding SREC trading, you will be well on your way to making money by selling your SRECs.

Solar Renewable Energy Credits (SRECs) provide an incentive for solar panel owners to generate electricity. SRECs can be sold in order to earn money back on your investment in solar panels. The benefits of owning SRECs include the potential to earn money, the environmental friendliness of solar energy, and the stability of the solar market. Despite these benefits, there is still room for improvement in terms of regulations and subsidies surrounding solar energy. As the United States continues to invest in renewable energy sources, it is important to understand how different incentives work in order to make informed decisions about investing in solar panels.

Genie Energy Ltd., (NYSE: GNE, GNEPRA) is a global energy solutions company. We supply customers in the US and Europe with electricity, including electricity generated from renewable resources and with natural gas. Through Genie Solar Energy and Prism Solar, we design, construct and install commercial solar energy solutions. We provide commercial and industrial clients with energy brokerage and consultative services through our Diversegy brand.

Case Studies

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    Wiley Property Management Case Study

    The installation of the solar array on the roof of storage facility is leveraging a limited regulation called “Group Hosting”. Group hosting is a method where a group of businesses or individuals share the installation and use of a larger solar array on a single property.

  • Bake Crafters Commercial Solar Case Study
    Bake Crafters Food Company

    Bake Crafters’ commercial solar array is a remarkable example of sustainability in action. With an output capacity of 800 kW and predictions of offsetting 770 metric tons of CO2 emissions.

  • Integra Commercial Solar Case Study
    Integra Biosciences

    Integra Biosciences’ Commercial Solar project achieves 22% IRR and aligns with the company’s global sustainability goals and commitments. The two installations total 572-kW and generate enough power to offset 844,000 kWh.

  • Commercial Solar Case Study - Kraft Power
    Commercial Solar Case Study – Kraft Power Power

    Kraft Power utilized American made solar panels to install a 57.5 kW system on their roof. The new rooftop solar system, will help Kraft Power offset 100% of the electricity usage every year.

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Testimonials

Convinced to go solar by the New Jersey incentives, PCS Wireless looked at several solar companies to provide the best overall value. Genie Solar was able to design a unique system to offset the largest portion of their electricity usage. Additionally, we combine it with an exclusive financial product which minimized the cash out of pocket and maximized the return on investment. The 494 kW system was constructed in minimal time, with no impact on the businesses operations.
PCS Wireless
A provider of engine-generator systems, Kraft Power was a pioneer of “Total Energy” (Combined Heat and Power). After seeing the financial and green benefits of solar at their headquarters in Massachusetts, Kraft wanted to capitalize on the lucrative state incentives in New Jersey at a distribution center. By installing a 57.5 kW system on the roof they were able to offset 100% of their electricity usage, take advantage of the Investment Tax Credit, accelerated depreciation, and collect revenue from the New Jersey SREC program. Genie Solar made it a smooth process and limited the need for internal resources to manage the project.
Kraft Power
A premier provider of water treatment in the New York and New Jersey area, Tower wanted to go solar to save money and generate clean energy. Upon reviewing the financial benefits available in New Jersey with the SREC program and the federal Investment Tax Credit, they wanted to safe harbor the project in 2019 and construct in 2020. Buying American Made panels was an important component of the project, and by utilizing their white roof, Genie Solar was able to leverage Prism Solar’s bifacial panels to minimize the square footage needed and maximize the electricity generated. Genie Solar helped them achieve all of their goals in an efficient manner with a 44.6 kW system.
Tower Water
Cardoza had both a showroom and a distribution center with exorbitant electricity costs in New Hampshire. As a legacy business, it was important to reduce costs and protect the business from increasing expenses prior to passing it on to the owner’s children. The show room’s roof and location made it a less than ideal location for solar; but the vast roof and direct sunlight on the distribution center could generate enough solar to power both facilities, plus the owner’s house. Leveraging New Hampshire’s group host program, Genie Solar built one 99.7 kW solar array to power all three locations. The owner is now considering converting more equipment to solar and building a second array.
Cardoza Flooring
A destination nursery in rural New Hampshire, HBTSR was a long standing customer of Genie Solar’s sister company, Diversegy. After helping the business reduce electricity expenses for the past number of years, HBTSR turned to Genie Solar to reduce their rising electricity expenses over the long run. “Between the federal and NH state incentives, I was paid $8,000 to install my solar array. On top of getting money back, I am going to realize over $300,000 in savings during the 25 year warranty period of the solar array.”
House By The Side of the Road