SRECs (Solar Renewable Energy Certificates)

Definition: Tradable certificates representing the environmental attributes of one megawatt-hour (MWh) of electricity generated from solar energy.

Relevance to energy: SRECs provide a financial incentive for solar energy production, encouraging the installation of solar panels and supporting the growth of renewable energy.

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Benefits:

• Provides additional income for solar panel owners
• Encourages solar energy adoption
• Helps states meet renewable energy goals

Drawbacks:

• Market prices can be volatile
• Not available in all states
• Can be complex for homeowners to understand and manage

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Statistics: In New Jersey, one of the leading SREC markets, the average SREC price in 2020 was around $220 per MWh, providing significant additional income for solar panel owners.