New Jersey Solar Incentives
SREC: A Powerful Commercial Solar Incentive
New Jersey is currently the most attractive market for large commercial solar installations in the United States. The New Jersey Solar Renewable Energy Credit (SREC) program has made the economic benefits of solar power impossible for leading New Jersey businesses to ignore.
What are Solar Renewable Energy Credits (SRECs)?
SRECs are credits earned by solar power system owners, based on the amount of solar electricity produced – 1 SREC for every 1,000 kWh generated. New Jersey Renewable Portfolio Standards require energy companies to deliver a portion of their electricity from renewable sources. Purchasing SRECs is an innovative way for these entities to meet RPS requirements.
The Value of SRECs
SRECs can be sold or traded similarly to the way a stock is sold on the stock market. They provide additional revenue to owners of commercial solar power systems, helping to subsidize their investment while providing an incentive that encourages the development of solar energy.