What is SRECTrade?

Turn your solar investment into extra cash with Currents, the fastest-growing SREC aggregator. Sign up today to effortlessly generate and sell your SRECs, maximizing your solar panel's financial benefits with our hassle-free platform.

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SRECTrade is an online market in which homeowners can sell solar renewable energy credits. The company has been involved in over $600 million credit transactions and covers all market participants.

Let’s take a closer look at what SRECTrade does and what solar renewable energy credits (SRECs) are. 

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What Are SRECs?

SRECs, or Solar Renewable Energy Certificates, are a way to incentivize and track the production of solar energy. Here's a breakdown:
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1. Solar Energy Production: When a solar energy system produces electricity, it generates two things: electricity itself and environmental benefits in the form of renewable energy.
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2. Renewable Energy Attributes: These environmental benefits can be quantified and separated from the electricity itself. They represent the "green" aspects of solar power, such as reduced greenhouse gas emissions and dependence on fossil fuels.
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3. SRECs: Solar Renewable Energy Certificates are created for every megawatt-hour (MWh) of solar electricity generated. Each certificate represents the environmental benefits of that MWh of solar power.
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4. Trading and Compliance: Utilities and other entities that have renewable energy requirements can buy SRECs to meet those requirements. By purchasing SRECs, they can demonstrate compliance with regulations mandating a certain percentage of their energy come from renewable sources.
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5. Market Dynamics: The value of SRECs can fluctuate based on supply and demand dynamics in the market. Factors such as changes in renewable energy policies, the cost of solar technology, and overall energy market conditions can influence SREC prices.

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What Does SRECTrade Do?

SRECTrade is an online marketplace with offices in California and Massachusetts that is known as being a leading source for environmental commodities and regulatory updates.

The company is involved in trading solar renewable energy credits with market participants such as: 

• Electricity and fuel suppliers
• Utilities
• Clean transportation fleet operators
• Project developers
• Financing companies
• EV charging networks
• Installation firms
• Commercial asset owners
• Industrial asset owners
• Residential asset owners

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The company also has markets in alternative energy credits (AECs) and low carbon fuel standards (LFCS).

Alternative energy credits involve renewable thermal energy in which there is an incentive for MA companies for every megawatt-hour of thermal energy generated, whether it’s generated by solar thermal or a fuel cell.

As for low-carbon fuel standards, California and Oregon markets are eligible for 1 LCFS credit per metric ton of CO2 equivalent reduced.

So, the site does not just trade in SRECs but two other certificates as well.

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Solar Renewable Energy Credits by State

SRECTrade is most known for being the most trafficked website for solar renewable energy credits (SRECs), in addition to markets like AECs and LFCS.

You can create an account on the website and have access to their marketplace as a corporate, residential, or installer account.

For homeowners, you'll typically find out about the marketplace through your installer who earns a commission for referring SRECTrade to you.

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SRECs are a solar incentive for you to earn additional income directly from your solar energy production at home. 1 SREC is equivalent to 1 MWh (1,000 kWh) of solar electricity, and SREC prices are dictated by supply and demand.

In layman's terms, your home produces energy from solar panels which can offset utility companies renewable requirements. They pay you cold, hard cash for this right rather than paying compliance taxes to the state government.

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Turn your solar investment into extra cash with Currents, the fastest-growing SREC aggregator. Sign up today to effortlessly generate and sell your SRECs, maximizing your solar panel's financial benefits with our hassle-free platform.

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The states that have SRECs are as follows, with each credit equaling the amount shown as of October 2024:

• Washington D.C.: $445

• Delaware: $4

• Illinois: $150

• Maryland: $58 

• Massachusetts: $40 (Class I RECs)

• New Jersey: $85 (new ADI program)

• Pennsylvania: $36

• Ohio: $36 (selling into PA program)

• Virginia: $40

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These states exist within PJM, one of the major grid operators in the US. Not all states in the United States offer solar renewable energy certificates.

These latest bid prices come from SRECTrade | SREC Markets, with Illinois being under a Long-Term Renewable Resources Procurement Plan in which procurements are held for utility-scale wind and solar.

The average home generates 10 SRECs per year. Using the information above, annually you would make $4,350 if you sold 10 credits in the D.C. market and $30 if you sold 10 credits in the Ohio market. 10 credits, or certificates, is 10 MWh of solar electricity.

This information is a good example of how the market varies by state, and also, Ohio’s prices have dropped while D.C.’s have increased, an example of market fluctuation. 

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Is Selling an SREC Considered Income?

Yes, selling your SRECs for cash or checks should be considered income on your personal taxes. However, please consult a tax professional for any questions related to taxes and income. SREC Trade may or may not provide income forms in order to report these SRECs as income.

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Your Home is an Energy Asset

Some homeowners have asked us what the downsides to using SREC Trade are. SRECTrade, while providing a platform for trading Solar Renewable Energy Certificates (SRECs), presents complexities and uncertainties due to market volatility and geographic limitations. In terms of pure SREC experience, they provide a great experience.

In contrast, Currents offers a streamlined alternative, addressing these downsides while providing additional income and savings opportunities to homeowners beyond SRECs. We're talking about additional money-making opportunities through VPPs, demand response, etc.

Through innovative features and a user-friendly interface, Currents simplifies renewable energy credit trading, enabling users to easily navigate the market and access a wider range of opportunities. Without talking our book too much, Currents provides a more comprehensive approach to your whole home's energy and devices.

That concludes this article on what an SRECTrade is. Using a marketplace like SRECTrade allows you to pay down the cost of your home's solar much faster, resulting in a quicker return on investment and additional income opportunities.

If you're curious to learn about other ways to monetize your home energy assets (solar, batteries, EV and more), learn about it here on Currents and explore our other articles. 

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Sources

SRECs: What are Solar Renewable Energy Credits? | EnergySage

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