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SREC in Virginia Market: A Complete Guide to SRECs and SRECTrade

Solar Renewable Energy Certificates (SRECs) have become a vital source for encouraging the adoption of solar energy as demand for renewable energy sources rises. Also, SRECs provide a financial incentive to solar energy system owners in Virginia to obtain and exchange certificates for the electricity they produce. This article explores the complexities of Virginia’s SREC market, offering a thorough overview of SRECTrade’s functions, advantages for market participants, and procedures for selling and trading SRECs. Owners of solar energy systems in Virginia can optimize their return on investment and help the state to meet its renewable energy targets by becoming aware of the SREC in the Virginia market.

What are Solar Renewable Energy Certificates (SRECs)?

The Renewable Portfolio Standard (RPS) in SREC state markets mandates that electricity providers obtain some electricity from solar producers. With SREC program, one can generate Solar Renewable Energy Certificates (SRECs) for each megawatt-hour of solar electricity. Moreover, the SREC is an indicator of the “solar” component of the generated electricity. The market supply and demand limitations determines an SREC’s value. Energy suppliers who must meet their solar RPS mandate can purchase SRECs. Explore how homeowners earn SRECs!

SREC in Virginia Market: How does it work?

Governor Ralph Northam signed the Virginia Clean Economy Act (VCEA) into law on April 12, 2020. It requires the Renewable Portfolio Standard (RPS) in the service areas of Dominion and Appalachian Power Company (APCo). One of the main requirements of the VCEA is that distributed generation solar resources (DG) with a listed capacity of less than 1 MW inside the state must account for 1% of Dominion’s RPS compliance obligation. However, this mandate, which will amount to roughly 90 MW in 2021 and rise to about 250 MW by 2030, will help build nearly 160 MW of distributed generation solar power over the coming nine years.

What is the market price of SREC in Virginia?

The effective price for the SRECs in Virginia stands at $34.50 – $43.00 for a bid over the last 6 years. However, this price varies depending on market circumstances such as the supply and demand factors. Also, SREC prices are useful for estimating the profitability of solar energy system investors’ investments.

What are the Virginia SREC market requirements for trading?

The following are the requirements for trading SREC in Virginia:

Solar Requirement:

Virginia SREC market requirement is set as 0.75% of total electricity generated in 2025.

Eligibility Start Date:

The start of the current calendar year or the date of the system’s interconnection—whichever came first at the time of application submission—determines the eligible start date for a system. If, for instance, a system that was up and running in November 2023 applied late in February 2024, it would only be eligible for credit as of January 1, 2024.

Solar Alternative Compliance Payment (SACP)

If power suppliers do not register the required quantity of SRECs before the end of each compliance period, they will be penalized by a fee known as the Solar Alternative Compliance Payment (SACP). The VA SACP will start at $75 in 2021 and rise by 1% every year after that.

SREC Useful Life:

An SREC in the Virginia market is good for 5 years; that is, an SREC from 2024 can be used for compliance periods in 2024, 2025, 2026, 2027, or 2028.

How to trade SREC in the Virginia with SRECTrade?

SRECTrade, Inc. is an environmental commodity management and transaction platform that makes complex markets transparent, equitable, and accessible. SRECTrade has been active in more than 10 North American renewable energy and clean fuel markets within over 20 commodities; as of now, the total amount of transactions it has made is over $600,000,000.

Steps to Trade SRECs with SRECTrade

Install Your System:

Start by installing your solar energy system. SRECTrade interacts with different installation companies. Typically, you can sign up for their EasyREC service through your installer. However, if your installer does not provide this service, you can register at the SRECTrade company’s website.

Sign Up with SRECTrade:

If you register your system with SRECTrade then it will be easier to get your system connected with other regulatory authorities. SRECTrade takes care of all the processes so that you can start producing and selling SRECs quickly.

Understand the Timing:

The first SRECs for your system will be generated after two months of system setup. However, if your system is in Massachusetts, the period will be up to six months. This delay accounts for the necessary registration and certification processes.

In this way, you will be able to enter the SREC market through SRECTrade enjoying their knowledge and effectively serving to enhance your participation in selling SRECs.

The current market of SREC in Virginia offers a great opportunity for the owners of solar systems to add value to their finances and support the state toward its goals concerning renewable energy sources. Solar system owners can therefore effectively engage in the process of SREC generation, sale, and trading by exploring the dynamics of the SREC market as well as using online trading platforms such as SRECTrade. The SREC market is a revolutionary opportunity for Virginia as the state makes an effort to advance the use of renewable energy sources like solar power.

For more information on solar energy and SREC in Virginia, SolarSME’s consultants can assist with the benefits of SREC certification and trading of SREC in the Virginia market. Book your FREE appointment!

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