SRECs are certificates stating legal rights to the environmental benefits of solar power that has been generated. In SREC states, the Renewable Portfolio Standard (RPS) requires electricity suppliers to secure a portion of their electricity from solar renewable energy. The SREC program provides a means for Solar Renewable Energy Certificates (SRECs) to be created for every megawatt-hour of solar electricity created.
SRECs are needed to track solar power generated because once an electron is delivered to a power station, it becomes indistinguishable from other electrons. Therefore, SRECs are sold separately from the electricity and represents the “solar” aspect of the electricity that was produced. The value of an SREC is determined by the market value based on electricity usage and percentages of renewable energy sources enforced by the government. SRECs are sold to electricity suppliers needing to meet their solar RPS requirement to offset the amount of energy created by fossil fuels. The electricity suppliers are mandated to maintain a certain percentage and that mandate is enforced by a fine or solar alternative compliance payment (SACP) paid by any electricity suppliers for every SREC they fall short of the requirement.

The government allowed solar power generators to sell SRECs to electricity suppliers to help achieve a quicker return on their investment hoping to increase higher interest in solar power generation and to offset the price difference found overseas. Once the installation of a solar system is complete, the system must then be certified by the state(s) in which it is eligible to sell SRECs and then must create an account with the tracking platform used by that state. Once registered, every month, the tracking platform will issue SRECs based on the generation of your system. In some states, estimated generation is used for systems under 10kW, while all other systems are required to submit generation on a monthly basis. One SREC is created for every megawatt-hour of electricity created. Then the government will issue certificates within RPS systems and track compliance/ownership.

Initially, a solar power generator owns the SREC. An SREC can be bought and sold multiple times from its initial creation until it application or use at an electricity supplier facility. SRECs are given a unique identification and is tracked from creation to use via a Renewable Portfolio Standard tracking system. Buyers can and often do ascertain third-party audit companies to verify chain of ownership. There can never be two owners of the same SREC at one time. Ultimately, after use at a facility the SREC is officially and permanently retired. Often times, suppliers will enter into agreements with buyers to be their sole provider and in that case buyers can retire SRECs in their name.

Each state or region will have their own Renewable Portfolio Standard (RPS) tracking system. You can check with the EPA to determine what system your SRECs would belong to. These systems track an SREC from creation till it is used/redeemed at a electricity facility. The SRECs can never be owned by two or more people at the same time and the traceability from sellers-buyers-electricity suppliers is complete. Once the SRECs are redeemed they are officially and permanently retired. However, tracking systems are not substitutes for certification verification but are used by audit companies or research staff to verify legality.

You, other solar power generators, third party brokers and electricity suppliers. Certificates can be bought and sold alone or bundled with electricity but can be sold/bought by anyone.

You, other solar power generators, third party brokers and electricity suppliers. Certificates can be bought and sold alone or bundled with electricity but can be sold/bought by anyone.

Our auction is designed to put solar power generators together with electricity suppliers/SREC brokers and facilitate the use of SRECs into electric facilities. Our auction will post SRECs that are available and also post a target market price. You will then place a bid for SRECs that tells us your price and the quantity of SRECs you need. At the end of the auction, the auction winners will be notified and the process to transfer SRECs will take place. During that time, the buyers funds will be requested. Once funds are transferred, the seller will be paid and SREC transfer is completed. Our fees are a small percentage of the sellers and buyers funds.