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What are SRECs?
(SRECs)
SREC, (or Solar REC), stands for Solar Renewable Energy Certificate. An SREC is a tradable certificate that represents all the clean energy benefits of electricity generated from your solar electric system. SREC's will be issued to you regularly as your solar panels generate each 1000 kiloWatt hours. In rough numbers, a 5 kW system will usually earn you almost 6 SREC Credits each year.
What is the New Jersey SREC Program?
The New Jersey SREC Program provides a means for SRECs to be created and verified on your behalf. It also facilitates the sale of SRECs to electric suppliers (like PSEG or JCPL) that are required to invest in solar energy under New Jersey's Renewable Portfolio Standards. This investment can be their purchase of your SREC’s. All New Jersey electric suppliers are required to use the SREC Program to show compliance with this part of the State's renewable portfolio standard.
How Much Money is a New Jersey SREC Worth?
The market price of an SREC is determined by supply and demand for SRECs. A number of factors including the cost of a Solar Alternative Compliance Payment (SACP) that utility companies (PSEG, JCPL etc.) are required to pay if they do not buy enough SRECs. The SACP price effectively establishes a price ceiling for an SREC. In early energy year 2009, SRECs are selling for as high as $670 each.
How Do I Sell an SREC?
An SREC is a completely separate commodity from the electricity used in a household or commercial property. SRECs can be sold at auction, through an online broker, or directly posted on the NJ Clean Energy Web site.
Who is eligible to earn New Jersey SRECs?
All grid connected solar system owners in New Jersey can set up an internet electronic account for the sale and trade of SRECs on the NJCEP website.
What portion of my electricity is eligible for the program?
For every 1000 kWh produced, 1 SREC is generated. It does not matter if you use the electricity yourself, or sell it back to the utility company. Every watt that is metered (or is verified through another approved method of estimation) is eligible to earn SRECs.
How are SREC's generated and sold?
Once you have registered and established an account on the SREC website, SRECs will be generated each month and deposited in your account.
How long should I keep my SRECs?
We recommend that you sell your SRECs as you generate them. Solar RECs do not increase in value - they are expected to decrease in value at a predictable rate. SRECS have a two year lifespan to be sold, if not sold within that period of time they will lose all value.
On September 12, 2007 the Board approved the following increase in the SACP and established an 8 year rolling SACP Schedule. The schedule reflects a 3% annual decrease to account for an expected decrease in the cost of solar systems going forward and improved project economics:
Approved 8 Year SACP (Price Cap) Schedule
| Energy Year | SACP (SREC ceiling price) |
| 2009 | $711 |
| 2010 | $693 |
| 2011 | $675 |
| 2012 | $658 |
| 2013 | $641 |
| 2014 | $625 |
| 2015 | $609 |
| 2016 | $594 |
A balance has been struck which protects ratepayers in which solar projects can be financed based on the expectation that these SACP levels will not be modified by a future Board. The Board believes the above SACP schedule achieves such a balance, setting a ceiling for SRECs. (source NJCEP)
