Renewable Energy Credits Price

The processes timelines and obligations for purchasing tier 1 recs and zecs.

Renewable energy credits price.

Solar renewable energy certificates srecs are a solar incentive that allows homeowners to sell certificates for energy to their utility. An overview of the renewable energy credits market. How recs are generated a rec is produced when a renewable energy source generates one megawatt hour mwh of electricity and delivers it to the grid. Renewable energy credit rec the california energy commission cec has determined the eligibility of net energy metering customer facilities for the rps and developed an ownership verification tracking and certification process for recs created by net surplus generators which is set forth in the cec s rps eligibility guidebook available.

Srecs exist as a result of a regulation known as the renewable portfolio standard rps. When it comes to buying recs states can be divided into either compliance or voluntary markets. One rec renewable energy credit or renewable energy certificate represents the generation of one megawatt hour mwh of electricity from a renewable energy source. The clean energy standard pdf requires two approaches for utilities electric companies and other load serving entities lses to help new york meet clean energy and climate goals.

A renewable energy certificate or rec pronounced. In other words renewable energy credits paired with electricity from the grid are renewable energy that is being generated on your behalf. Meeting a renewable energy standard through the purchase of tier 1 recs and a requirement to purchase zero emissions credits zec. In compliance states electrical companies must generate a certain percentage of their electricity from renewable sources.

Rec prices vary from state to state and depend on a variety of factors including where you purchase your recs. Recs are issued when one megawatt hour mwh of electricity is generated and delivered to the electricity grid from a. One renewable energy credit rec is equal to 1 megawatt hour of energy produced 1 000 kilowatt hours which means that the average solar panel installation garners anywhere between three and seven srecs in a given year. A homeowner earns one srec for every 1000 kilowatt hours kwhs produced by their solar panel system an srec can be worth over 300 in certain states.

Depending on the price offered in your state cashing in on your srecs could be a yearly payoff of several thousand dollars. What is an srec. Rěk is a market based instrument that represents the property rights to the environmental social and other non power attributes of renewable electricity generation.