A solar renewable energy credit or SREC is a tradable and intangible certificate that represents proof of the generation of 1,000 KWH of solar power.
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 thru the power grid and create renewable energy certificates based on suppliers imported renewable generation. 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 create your renewable energy. For example, all the renewable power you generated in February, GATS mints into a SREC(s) (if 1000 kwhs produced in that time frame. 1 SREC = 1,000 kwh or 1 mwh) on the last business day of March. The remaining generation will roll over to the next month if short of 1000 kwhs.
SREC pricing can fluctuate multiple times a day. The price for a New Jersey SREC of vintage 2018 is $195.00. For a 2017 New Jersey SREC, it is $193.00. Our real time SREC sell now pricing is located on our homepage.
SREC creation requires you to report your solar generation to the GATS portal. For our SREC RECmanager clients (our full service SRECs selling portfolio), we report your solar generation to GATS for SREC creation for you. For non-managed clients, you will need to create your own account with GATS and register your facility with them.
SRECS are sold to power companies. Any company who supplies electricity in New Jersey is obligated to buy SRECs under state law. As new vintages roll out, the buyers will pay more for the new ones than the old vintages. If they fail to do so, they are subjected to an Alternative Compliance Payment of $308 per New Jersey 2018 vintage SREC under quota and $315 per 2017 vintage.
SRECs are good for 5 compliance years when they expire, under current legislation, the energy year it was generated and the following 4 energy years. A "vintage", also know as an energy year is the grouping of 12 months of generation. A vintage starts with June's solar production and ends with May's.
A regulation that requires power companies to increase their renewable energy production in areas such as solar, wind, geothermal, etc.