17 Aug What is an SREC?
There are so many incentives for switching to solar. As we navigate through our solar journey, we want to make sure our customers are aware of all of the benefits that come with their solar panels. Vision Solar knows many of these incentives can be tricky to understand at first. We will do our best to ensure that you have a full understanding of all of the good things coming your way. SREC’s are one of the major benefits that we will be explaining today.
What is it?
Solar Renewable Energy Certificates (SRECs) are a solar incentive that slows homeowners to sell certificates for energy to their utility. For every 1000 kilowatts hours produced with your solar panel system, you earn one SREC. Depending on which state your residential solar panels have been installed in, your SRECs can be worth different amounts. In some states, just one SREC can be worth up to $300.
Why Are SRECs Important?
SRECs are important because they are a part of the renewable portfolio goal (RPS). The renewable portfolio goal is a way to meet specific timelines and goals to create a cleaner and better future. These renewable portfolio goals are in place in over thirty states. To meet their RPS requirements, electricity providers must obtain renewable energy certificates (RECs). These certificates are then used as their proof to show that they are obtaining new, renewable energy sources for their energy production. Many renewable portfolio standards also have a solar carve-out, which requires that a minimum percentage of electricity sales in that state come specifically from solar power. In those cases, SRECs are used to account for solar electricity production.
Savings Over Time
Over time you can accumulate a large amount of SRECs. With this in mind, you can earn the money back that you spend on your solar panels. Your savings each month can be upwards of 20% on your electric bill. Then, you can earn the money back on your SRECs that you have accumulated over time. The payback for your solar panels is a great incentive for making such a good switch in your energy source.
With so many benefits in mind, it’s easy to see why purchasing a solar panel system is a wise financial investment for homeowners in New Jersey, Pennsylvania, and beyond. For more information, contact Vision Solar today.