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 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.