Solar Renewable Energy Credits

Solar Renewable Energy Certificates (SRECs) are an important concept to understand when thinking about our clean energy future. At Sun Tribe, we’re committed to being a full-scale advisor to our energy partners. Below is a helpful rundown on SRECs from our experts.

What is an SREC?

SREC 101

Here is the most common definition of an SREC: it’s a promise or a guarantee that the electricity you’re using came from a renewable resource. But while SRECs are intangible – a critical concept – they are also a commodity which can be bought and sold like a physical good. An “SREC” is an official certificate of authentication for renewable energy that has value in a market.

In fact, when your solar system generates electricity, that electricity is added to the “grid,” at which point differentiating it from energy that comes from other sources (like coal or natural gas) is impossible. An SREC is a document that serves as a proof of record that the energy indeed came from the renewable generation.

Here are some useful concepts:

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    1 megawatt-hour (1,000 kilowatt-hours) of electricity produced by a solar energy system represents one SREC that enters the market. Rule of thumb: a 10kW system produces about 12 SRECs on annual basis.

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    Once your system has been interconnected, certified, and registered, your SRECs become eligible for sale. Companies like Sun Tribe can help you with this process.

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    SRECs are sold separately from electricity. As a result, it does not matter if you use or sell the electricity to the “grid”, you are still entitled to receive SRECs for 100% of your production.

State SREC Markets

SRECs are sold and traded as a commodity within independent state markets in the United States. Prices of SRECs fluctuate frequently, and vary across states due to state-specific policies, such as:

  • A specific state’s Renewable Portfolio Standard (RPS), which requires electricity suppliers to secure a portion of their electricity from renewables
  • The value of the state’s Solar Alternative Compliance Payment (ACP) or Deficiency Payment (DP) – these are effectively penalties which need to be paid (often per megawatt-hour) when an electricity supplier (like a utility) fails to meet their RPS requirements
  • Supply & demand of SRECs in that state.

How Does Sun Tribe Work with Customers on SREC Solutions?

Efficiency. Trust. Results.

Partnering with Sun Tribe offers customers the opportunity to work with a trusted partner directly and efficiently – avoiding additional third-party involvement or added service costs. We’re here to ensure you’re getting the most of your solar project development, and we are happy to support your strategic thinking on all value components of your solar systems.

Sun Tribe serves as an SRECs asset manager, working closely with customers on optimal pricing, creative financial preferences, and monetizing the value of SRECs against the projects they are developing with us.

Thanks to sophisticated metering and interconnection equipment, we know exactly how much electricity is generated by every solar system we install, which allows us to accurately measure SRECs for our partners.

Roof Mount Solar System

Steps we take with customers in determining a tailored SREC plan include:

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    Looking at your broader sustainability goals and understanding how clean energy attributes like SRECs fit into your short- and long-term plans.

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    Working on financial preferences focused on developing a market competitive SREC price and customer accommodating payment schedule to develop liquidity solutions for our partners.

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    Registering customer SRECs with the PJM Generation Attribute Tracking System (GATS). Sun Tribe will assume registration costs.

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    Facilitating the purchase and sale of SRECs on behalf of our customers.

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    Reporting energy production accurately to ensure correct SREC tracking.

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    Providing ongoing customer education via quarterly updates and reports on the SREC market.

Sun Tribe’s SREC team is committed to delivering a strategy that empowers our customers in achieving long term sustainability across the entirety of their services or business.



Want to learn more about how Solar Renewable Energy Certificates (SRECs) can impact your solar project? Send us a note and one of our resident experts will reply with an answer.


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