Renewable Energy Credits (RECs)
Renewable Energy Credits are credits that you earn by generating power from your alternative energy system. This can come from either commercial or residential renewable energy systems, and can be generated by a variety of green energy systems (GESs). Solair Systems deals primarily with RECs earned from solar and wind systems (SRECs and WRECs). Thirteen states, mostly in the Mid-Atlantic region, presently operate under a Renewable Portfolio Standard (RPS), which requires electricity suppliers to obtain electricity from renewable energy facilities connected to the local distribution grid in that state.
Popular SREC States:
- Maryland
- Delaware
- Pennsylvania
- Washington, DC
- New Jersey
- Ohio
- North Carolina
RECs are designed to provide homeowners and businesses with economic incentives to invest in GES, which improve the electric distribution grid. They represent the renewable attributes of your GES bundled in minimum denominations of one megawatt-hour of production. The additional income earned from selling alternative energy certificates increases the economic value of your investment.
How do you get started in the Renewable Energy Credit Program?
RECs are designed to provide homeowners and businesses with economic incentives to invest in GES, which improve the electric distribution grid. They represent the renewable attributes of your GES bundled in minimum denominations of one megawatt-hour of production. The additional income earned from selling alternative energy certificates increases the economic value of your investment. Monitor their usage, set pricing, conduct negotiations, agree to terms with a buyer, collect the funds, and transfer certificates; or they can simply call Solair Systems. This takes the entire burden off the individual or corporation’s shoulders, and does a great deal more. Solair Systems is not just a trading company. We are an alternative energy company with a broad expertise in both the financial aspects of the industry and the physical process of designing and installing systems. This gives us insight into the science of trading RECs, not just the process. We have dedicated financial experts who work with our field representatives and engineers to understand not just the trading logistics, but also the trends that help determine when a REC will demand the highest dollar value.
Additionally, Solair Systems has partnered with Birth Right Earth, a non-profit organization dedicated to educating individuals on the significant impact of the destruction of the South American rainforest on our environment. Through this partnership, an individual or company can choose to dedicate all or a portion of their profits to Birth Right Earth, with the complete transaction being free of charge to the seller and buyer.
So, how many SREC&s do I generate?
This first question most individuals ask is how many Renewable Energy Credits their wind or solar power system will generate. The answer is fairly straightforward: your REC earnings are based on the size of your system if it’s under 10kW. For systems over 10kW, you are required to submit electric meter readings. Once registered, the state certification agency will issue SRECs each month, based on the size of your energy system. One SREC is earned for every 1000kWh of electricity created. For example, a 5kW system can generate approximately 1 SREC every two months.
- 1 SREC = 1000kWh of solar electricity
- 5kW capacity = ~6 RECs per year
Depending on the state in which this system is generating RECs, this translates into potential earnings of approximately $1200 to $3960 per year.