SREC (Solar Renewable Energy Certificate)
A Solar Renewable Energy Certificate earned for each megawatt-hour your system produces, which you can sell for income in certain state markets.
An SREC represents the environmental attributes of 1 MWh (1,000 kWh) of solar generation, separate from the electricity itself. In states with SREC markets — such as New Jersey, Maryland, Massachusetts, and D.C. — utilities buy them to meet renewable-portfolio mandates, creating an extra income stream for system owners.
SREC prices swing with supply and policy, from a few dollars to a few hundred per certificate. Where they exist, they can meaningfully shorten payback; most states, however, have no SREC market at all.
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See also