A solar renewable energy credit (SREC) encompasses all the renewable energy benefits of the electricity generated by a solar array. One SREC is equivalent to one Mwh of solar generated electricity. SRECs are sold separately from the electricity generated by the array. The SREC market constantly changes in direct correlation with the supply and demand.
The SREC market varies by state. In Massachusetts, there were two programs: SREC-I and SREC-II. SREC-I was created January 2010 and was the only class until April 2014, when SREC-II was introduced. This second program was needed to help Massachusetts reach its goal of installing 1,600 MW of solar by 2020. As of February 1, 2015, there are 752 MW installed.
The SREC-I and SREC-II programs are generally similar. One main difference is the pricing schedules for both programs.
Solar Alternative Compliance Payment (SACP) The SACP is a form of price ceiling for the SRECs. Companies interested in purchasing SRECs in compliance with the Renewable Portfolio Standard (RPS) set by their state take into account the SACP price before purchasing. Any SREC valued below the SACP is considered a reasonable price and will be purchased. When more SRECs are produced than are bought, the excess goes to the clearinghouse auction.
Solar Credit Clearinghouse Auction (SCCA) The SCCA is a platform where SRECs are sold. However, buyers are not required to purchase SRECs in the SCCA, so there is no guarantee that all SRECs will be sold. The SREC-I and SREC-II programs each have their own SCCA and prices are pre-determined by the Department of Energy Resources (DOER).
Information with more detail is available on the SREC Trade website.
Eliza is the Chief Learning Officer for Clean Footprint. As the Chief Learning Officer, she is responsible for writing and editing blogs, e-books, videos and white papers as well as other learning content created for Clean Footprint’s developer partners and clients. Eliza attended New York University in Paris, France and studied Global Liberal Studies before moving to Florida and joining the Clean Footprint team. She also studied Business and Entrepreneurship at the University of Central Florida.