Generating Income from Solar Renewable Energy Certificates (SREC’s)

Generating Income from Solar Renewable Energy Certificates

Looking to generate income from your renewable energy installation? Flexera can simplify the process, manage the transaction and sell your Renewable Energy Certificates for maximum cash! But first, let’s talk about REC’s….

What is a REC?

REC stands for Renewable Energy Certificate. RECs are tradable, non-tangible energy commodities in the United States that represent proof that 1 megawatt-hour (MWh) of electricity was generated from an eligible renewable energy resource (renewable electricity). These certificates can be sold and traded or bartered, and the owner of the REC can claim to have purchased renewable energy.

Where do RECs have come from?

The Renewable Portfolio Standard (RPS) laws are state specific laws requiring electricity suppliers to acquire a portion of their electricity from grid-tied renewable energy facilities. In these states, the electric companies are required to supply a certain percent of their electricity from renewable generators by a specified year. For example, in California the law is 33% renewable by 2020, whereas New York has a 24% requirement by 2013. Electric utilities in these states demonstrate compliance with their requirements by purchasing Renewable Energy Certificates (RECs); in the California example, the electric companies would need to hold RECs equivalent to 33% of their electricity sales.

Solar Renewable Energy Certificates (SRECs) or Solar Renewable Energy Credits are a form of Renewable Energy Certificate. SRECs are available in states where a Renewable Portfolio Standard (RPS) exists with a specific allocation for solar energy. Electric suppliers are required to use the SREC program to show compliance with this part of the State’s Renewable Portfolio Standard.

 In states that have a RPS law, a green energy provider (such as solar system or a wind farm) is credited with one REC for every 1,000 kWh or 1 MWh of electricity it produces (for reference, a 5 KW PV system will produce roughly 6 SRECs annually). A certifying agency gives each REC a unique identification number to make sure it doesn't get double-counted. The green energy is then either fed into the electrical grid or used by an onsite customer, and the accompanying REC can then be sold on the open market.

How can I generate income from RECs or SRECs?

REC value is determined by the market and subject to supply and demand constraints. RECs can be sold to electricity suppliers needing to meet their state’s RPS requirement. The market is typically driven by a fine or solar alternative compliance payment (ACP) paid by any electricity suppliers for every REC or SREC they fall short of the RPS requirement. The additional income received from selling the certificates provides an economic incentive to invest in renewable energy systems. However, selling RECs and SREC’s is a time consuming project. Getting the best price available is a complex process which requires constant monitoring of the various spot markets.

How can Flexera help me?

Flexera is an aggregator of RECs and SREC’s with a staff of in house professional brokers who constantly monitor spot markets and sell your RECS or SREC’s for top dollar. Because of our selling strength we have the ability to leverage your RECs SREC’s with our entire portfolio and secure the best prices.

Whether Flexera installed your renewable energy system or you are just looking to maximize your return on a system you own. Flexera’s experts are available to manage your renewable energy certificates. We take the stress out of REC aggregation, so you can enjoy your REC income.