In addition to the Maryland Solar Energy Grant Program and the Solar Federal Income Tax Credit, Maryland residents who have installed a PV system can also earn and sell Solar Renewable Energy Credits to help offset the cost of their system.
A Solar Renewable Energy Certificate (or SREC), is a tradable instrument that represents the environmental benefits of electricity generated from renewable energy sources. One SREC represents one megawatt hour of electricity.
Electricity is generated from fossil fuels. Fossil fuels emit carbon monoxide (CO), carbon dioxide (CO2), sulfur dioxide (SO2), nitrogen oxide (NOx), particulate matter (PM), and volatile organic compounds (VOC). These emissions cause damage to our environment that increases global warming.
In response to the damage that is caused, local, state and federal governments have required electricity distributors to take measures to reduce the amount of fossil fuel generated electricity and increase the amount of renewable energy within their energy mix. This is called the Renewable Portfolio Standard.
Energy distributors can meet their requirements by:
1. Investing in renewable technology directly, or
2. They can purchase the renewable attributes from owners of renewable energy sources.
Because of the second option, the SREC market has evolved. Power generated by renewable energy sources (like your solar system) is tracked by a third party and given a certificate of production. Then, the SREC can be traded on the open market to allow utilities to meet their Renewable Portfolio Standard that are required to offset their carbon-emissions.
At Solar Energy World – you own the SRECs that your system will generate. These SCRECs are similar to stocks traded through brokers – and they have financial value. Many companies (also known as aggregators) have an interest in purchasing your SRECs at a reduced rate.
SRECs are designed to provide solar owners with an economic incentive to investing in solar electric systems which improve the electric distribution grid. They represent the renewable attributes from your solar facility, bundled in minimum denominations of one megawatt hour of production. The additional income received from selling the solar certificates increases the economic value of your investment.
HOW IT WORKS:
Once the installation of your solar system is complete, the system will be inspected and certified. After the inspection, a state certification number is generated and is used to register and account to create and manage SRECs.
Solar Energy World has a partner who offers a service to manage your account – and they make all this completely hands-free. The entire process is automated so clients can enjoy all the benefits with no effort.
Their mission is to provide the critical final component of the SREC program by establishing a public marketplace connecting sellers directly to suppliers in an easy, transparent and equitable way.
Our solar consultants will walk you through this process so you’re able to take full advantage of the credits, schedule a free in-home solar analysis to learn more about SRECs.