What is an SREC?
A Solar Renewable Energy Credit (SREC) is a tradable certificate that represents 1,000 kilowatt-hours (kWh) of generated solar electricity. As long as your solar panels are generating power, you qualify for SRECs. You earn them regardless of your energy usage.
Power companies are required by state law to purchase SRECs to meet their renewable energy obligations. This creates a market for SRECs.
Frequently Asked Questions
Who makes SRECs?
+SRECs are minted in the GATS database. GATS is a generation attribute tracking system for the PJM power grid. They track all the renewable energy flowing through the power grid and create renewable energy certificates based on suppliers imported renewable generation.
When are SRECs created?
+GATS creates SRECs once a month for suppliers, always on the last business day of the month, and it's a month delayed from when you generate your renewable energy. For example, all the renewable power you generated in February gets minted into SRECs on the last business day of March.
Whether you generate more or less than 1,000 kWh, your remaining generation rolls over to the next month.
How can I sell my SRECs?
+You can sell your SRECs to aggregators like Flett Exchange. You can list your SRECs for sale on our platform, and when your bid is accepted, you transfer them to us on GATS.
How much is an SREC?
+SREC prices are driven by state Renewable Portfolio Standard (RPS) requirements and fluctuate daily based on supply and demand. The RPS creates the market for SRECs by requiring utilities to purchase renewable energy.
Currently, the price for a New Jersey SREC of vintage 2025 is $175.00. For a 2024 New Jersey SREC, it is $170.00. View our real-time SREC pricing on our homepage.
What is a Renewable Portfolio Standard or RPS?
+A Renewable Portfolio Standard (RPS) is a state regulation that requires utilities to obtain a specific percentage of their electricity from renewable sources like solar.
Each state sets its own RPS targets and timelines, typically increasing over time.
Utilities comply by either generating renewable energy themselves or purchasing SRECs from solar system owners. If they fail to meet their RPS obligations, they face significant penalties called Alternative Compliance Payments (ACPs).
How does GATS know what my solar array has generated?
+Generation data is submitted to GATS; this data comes from your solar monitoring system or inverter.
For our REC Manager clients, we handle the reporting. Every month, we submit generation data to GATS, ensuring your SRECs are created on time.
For DIY clients, you will need to submit your generation reports manually.
Who buys SRECs?
+SRECs are purchased by electric utilities, load serving entities, and retail electricity suppliers who need them to meet state RPS requirements.
Most solar system owners sell through aggregators like Flett Exchange, who consolidate SRECs from many generators and handle negotiations with utility buyers on their behalf.
How long can I hold onto my NJ SRECs?
+Under current New Jersey legislation, SRECs are valid for 5 compliance years. This includes the energy year they were generated plus the following 4 energy years. After this period, they expire and can no longer be sold or used for compliance.
What is a vintage year?
+A vintage year, also known as an energy year, is a 12-month period used to group solar generation for SREC purposes. Some markets use a calendar year (January through December), while others use June through May.
For your specific market's specifications, check the market information on Flett Exchange.