RECs (renewable Energy Certificates) are green commodities that absorb the costs of solar panels on roofs. These RECs can also bring in substantial income for the owner of the system. Due to the popularity of renewable energy, there is an oversupply. Fortunately, these credits can be sold directly on the state market. Some solar financing companies, SREC aggregators and others offer partnerships with solar contractors.
RECs are a green energy commodity
Renewable energy certificate (REC) are tradable units derived from solar panels. One REC can have a value of up to $300 in some markets. A typical 5 kW home solar installation can generate up to six SRECs a year. These credits can be used to meet the requirements of your state's renewable energy regulations.
RECs are a wonderful way to support the production of renewable energy. They encourage energy companies to produce more renewable energy and therefore make it more affordable. They are great for businesses looking to reduce greenhouse gases, like Whole Foods or Starbucks.
They cover the cost of solar system installation on rooftops.
Solar panels can be used to increase the home's value. The average home will be worth $5,911 more for each kilowatt of solar power installed. A 3.1 kilowatt solar panel could bring a home almost $18,000 more value.
Installing solar panels requires the expertise of a professional. Installers will make sure that roofing tiles are properly fastened and that wiring is connected to the power supply. Installers will then mount solar panel racks that can hold the panels. Next, connect the arrays of solar panels to the inverter. The inverter is responsible for converting solar energy into AC energy and storing any excess.
They can generate significant income for the system owner
An excellent way to make additional money is to obtain a SREC (Solar Renewable Energy Credit) for your solar system. These credits are available for sale on the spot market and through contracts. Contracts sell credits for a specified period of time while the spot market sells credits each month or quarter. Spot market prices can fluctuate widely, but are generally higher than those in the spot market. Contractual sales can provide system owners with predictable and stable earnings. An average solar system owner can earn between $10 to $100 per credit.
A utility can also be a good way to make extra income from your solar systems. Many utilities offer green power incentives to encourage customers using renewable energy. These programs allow participating customers to purchase renewable energy from a utility and claim the corresponding RECs. At least 850 utilities offer green power programs as of 2017.
Due to the success of Renewable Energy, they are already oversupplied
The sale of unbundled renewable electricity certificates (RECs), has been booming. These certificates are now one of the most commonly used forms of green-power procurement in voluntary markets. The United States has seen a significant increase in RECs being sold, with sales increasing from 19.8million MWh per year in 2010 to more that 68million MWh for 2019. Companies such as Apple, Google and Salesforce are the biggest purchasers of RECs.
Pennsylvania's market is saturated because of the overlap of up-front incentive programs. This has led to a significant expansion of state solar capacity. The key to maintaining stable Pennsylvania's solar market is coordination between these up-front incentives, and future SREC revenues. Additionally, the solar market in Pennsylvania is an open one, and a large percentage of SRECs retired in Pennsylvania are from out-of-state facilities. This can create problems for the market as it could result in an oversupply.