Solar Renewable Energy Credits (Srecs):

What are srecs?:

SRECs are a performance-based solar incentive that allows you to earn additional income from solar electricity generation. Every megawatt hour (MWh), or 1,000 kilowatt hours (kWhs), of electricity your solar panel system generates earns you one SREC. These financial instruments are issued at the state level, giving you the opportunity to monetize the electricity produced by your solar panels.

Maximizing Your Solar Investment:

By leveraging the power of SRECs, you can enhance the financial returns of your solar installation. The additional income generated from selling SRECs can offset your initial investment, making solar energy more financially compelling. With the support of our experienced team, you can navigate the SREC market with confidence and unlock the full potential of your solar energy system.

The Power of SREC Markets:

SREC markets exist in states with a solar carve-out, where a specific portion of a state's renewable portfolio standard is dedicated to solar technologies. In these markets, SRECs can be bought and sold, transferring the right to count solar electricity. By participating in an SREC market, you can tap into a dynamic marketplace that rewards solar energy generation.

The Value of SRECs-
Supply and Demand Dynamics:

The value of an SREC varies based on supply and demand dynamics within your state's market. Similar to stock markets, SREC prices can fluctuate over time. An oversupply of SRECs leads to lower prices, while an undersupply results in higher-value SRECs. Additionally, alternative compliance payments (ACPs) set by the state can influence the price of SRECs, acting as a cap on their prices.

Working with SREC Aggregators and Brokers:

To effectively monetize your SRECs, you can partner with SREC aggregators or brokers who specialize in facilitating SREC transactions. These experts have the knowledge and connections to help you navigate the market, maximize the value of your SRECs, and ensure a seamless transaction process.

Can we monetize the sreCs if we don’t have the tax liability?

You might wonder, "Can we monetize the SRECs if we don't have the tax liability?" The answer is a resounding YES! Thanks to the Inflation Reduction Act of 2022 (IRA), businesses generating eligible renewable energy tax credits can transfer (sell) these credits to qualified buyers. This groundbreaking change allows businesses without sufficient tax liability to benefit from renewable energy tax credits through sales. It opens the door to a new world of financial possibilities for businesses like yours.

Prior to the IRA, the transfer of renewable energy tax credits was prohibited, and developers had to rely on tax equity partnerships, where a partner with sufficient tax liability would contribute capital in exchange for most of the tax benefits. However, these transactions were complex and required legal, advisory, and accounting expertise. Now, with the new provisions in the IRA, developers and business owners have more options to monetize their tax credits.