According to NJCleanEnergy.com New Jersey is one of the fastest growing markets for solar photovoltaics in the United States and the second largest in the volume of install trailing only California. This volume can be attributed to NJ's strong secondary market of Solar Renewable Energy Certifcates or SREC's.
What is an SREC?
SRECs are clean energy certificates sold to companies on the open market. They completely separate from your Federal Tax Rebate as well as money saved form actual solar production. The price per SREC is determined by supply and demand and is derived from rising clean energy quotas that need to be meet. The demand is determined by individual state RPS solar requirements and the Solar Alternative Compliance Penalty (SACP) set by the state. The RPS solar requirement represents the number of SRECs that the electric suppliers are required to collect each year. The SACP represents a theoretical maximum value of an SREC, since it is the amount paid per SREC by the electric suppliers if they do not collect enough SRECs. In states, such as New Jersey, where the SACP in 2010 is $693 the market value of the SREC will be very high as well.
1 SREC = 1,000 kWh of solar electricity = 1 MWh of solar electricity
Each time a system generates 1,000 kWh of electricity, an SREC is earned and placed in the customer's electronic account. SRECs can then be sold on the SREC tracking system, providing revenue for the first 15 years of the system's life.
NJ SREC Outlook for the Next 5 Years
|Former RPS||Old RPS||New RPS||SACP|
How to earn SREC’s in NJ
Before installing solar panels or solar thin film in New Jersey you MUST register your project in the SRP program prior to the start of construction in order to establish the project’s eligibility to earn SRECs.
Metal Roofing NJ and Global Home Improvement include this we every project and will discuss this with you during your FREE consultation.