8 Things You Need To Know About PA SRECs
PA SREC Overview
What Is An SREC?
SREC stands for Solar Renewable Energy Credit. 1 SREC is generated every time your solar system generates 1,000 kilowatt-hours of power. Taking advantage of PA SRECs is a great way to get an extra return on your solar system investment. Your SREC broker will credit you for every SREC your solar system generates throughout the calendar year. For instance, if you have a 10-kilowatt system that generates 10,000 kilowatt-hours over the course of a year then you have generated 10 solar renewable energy credits. PA SRECs generated throughout the year are sold by your broker and then you receive the revenue from your broker.
Why Do PA SRECs Exist?
Pennsylvania power companies are required, by the state, to have 0.5% of their electricity sales be from “alternative-energy resources” in 2021. PA SRECs generated from residential grid-tied solar installations qualify as approved sources of electricity to meet this state requirement. Because of this requirement, you can use a solar broker to sell your PA SRECs for you if you live in Pennsylvania. Click here for a more in-depth explanation of Pennsylvania’s Alternative Energy Portfolio Standard requirements.
The future of solar energy is bright (no pun intended). It is very likely that PA and other states will require more and more power to come from renewable energy sources. This means that the power companies will face larger fines if they do not meet these energy requirements. The demand for solar renewable energy credits will increase and subsequently drive up the value of PA SRECs. As more people go solar and see the benefits of relying more on naturally occurring renewable energy sources
How To Track Your PA SREC Production
Most solar installations come with the ability for you to monitor your power production and solar panel performance through apps on your smartphone or through a website you can log in to. You can also manually check your production meter to see how much power your solar system is generating. Regardless of how you choose to monitor your system’s performance, you will enjoy watching your kilowatts of power accumulate and seeing those 1,000-hour milestones tick off knowing that each one is a renewable energy credit you will benefit from.
A lot of modern solar system inverters allow you to connect to them digitally through the internet or an app on your smartphone. You can see, in real-time, how much power your solar panels are generating, what hours of the day they are most productive, and which panels are performing the best. You will be able to see the total kilowatt-hours your system has produced and use that number to track how many PA SRECs it has created. For every 1,000 kilowatt hours produced you have 1 SREC.
How Much Are PA SRECs Worth?
The value of your PA SRECs will fluctuate based on the SREC market. In 2021 the value of 1 PA SREC hit a high of $41 over the summer and then dropped back down into the upper 30s. How much PA SRECs are worth changes based on the availability of SRECs on the PA market. The more saturated the market is, the lower the value of solar renewable energy credits. PA SREC prices go up when there is a higher demand for them.
Can I Make Money With My PA SRECs?
Yes, you can! Depending on how large your home solar installation is and how it is positioned, you could make money with your solar renewable energy credits. Let’s say that you have a 13kW (kilowatt) solar system, you will probably create between 13 and 14 SRECs in one year with a system that size. At $40 per SREC, that would net you about $500 per year.
The states with the greatest SREC earning potential are Deleware, New Jersey, Massachusetts, and Washington D.C. according to an article on Energy Sage. That may change over time as more states adopt renewable energy requirements.
Even in a state like Pennsylvania where the value of SRECs is lower than in some other states you can still make money by selling them. Now, if the market changes in the next five or ten years, which it likely will, and the value of SRECs goes up, then your profit grows. All this happens while you’re passively collecting power from naturally occurring sunlight every day.
How Long Are My PA SRECs Good For?
Currently, PA SRECs are good for 3 calendar years. This means that you can accumulate them, wait to sell them, and potentially receive more payment for them if the market changes a year or 2 later. There are some states where they may be recognized for 5 years or more after being created.
Can I Use My PA SRECs To Pay Off My Solar Installation?
Yes! SRECs are literally cash in your hand. You can do anything you want when your solar broker sends you the revenue from selling your solar renewable energy credits. They can be a great way to make extra payments on your solar installation, save for a rainy day emergency, or start a savings account.
Ready To Get Your PA SRECs?
Are you convinced yet that creating and selling solar renewable energy credits is a good idea? If you’re ready to talk about the possibilities in PA or MD then contact us today. We’ll help you sort all the information out and get a comprehensive plan together for free.