Understanding Solar Renewable Energy Certificates (SRECs) In Delaware
Solar Renewable Energy Certificates (SRECs) are an essential part of the solar energy market, especially in states focused on using renewable energy. SRECs in Delaware offer a great way for solar panel owners to boost their income. You can earn 1 SREC when you will generate 1 megawatt-hour of electricity from your solar system every time. Also, you can sell these certificates to utility companies that need to meet green energy targets. So, by switching to solar, you can save on energy bills and make extra money from your solar investment with SRECs. With Delaware’s strong support for renewable energy, now is the perfect time to learn about SRECs.
In this article, we will explore the Delaware SREC market, its benefits, and how businesses and homeowners can take advantage of these energy credits.
What Are Solar Renewable Energy Certificates (SRECs)?
SRECs are traded commodities that provide evidence that 1 MWh of electricity was produced by the generation of renewable power. These certificates are a good source of income for owners of solar energy systems. Explore how homeowners earn SRECs!
The state of Delaware has set ambitious targets for renewable energy, hoping to produce 100% clean electricity by 2045. SRECs, which offer financial solar incentives for the use of solar energy, are essential to this shift. Also, they contribute to increasing the appeal of solar investments for businesses and homeowners.
Solar Renewable Energy Certificates (SRECs) In Delaware: How Does It work?
In 2011, the Delaware legislature amended the solar portion of the state Renewable Portfolio Standard (RPS) to switch the burden of acquiring SRECs away from the state power providers to the electric distribution companies. This amendment drastically reduced the number of buyer participants, effectively making Delmarva Power, the largest electric distribution utility in Delaware, the de-facto long-term buyer for the majority of the DE SREC requirement. In response, Delmarva Power proposed the implementation of an SREC procurement program, called SREC Delaware, which provides 20-year contracts to SREC sellers on a competitive basis. Moreover, a pilot version of the program was conducted in the spring of 2012, and a revised solicitation was conducted in the spring of 2013. Delmarva plans to host at least one solicitation each spring to fulfill its long-term SREC needs.
What Are The DE SREC market Requirements For Trading?
The following are the requirements for trading SREC in Delaware:
Solar Requirement:
The SREC market requirement for Delaware is 3.5% of total electricity by solar in the June 2025 – May 2026 energy year.
Meter Readings:
Every system should have a revenue grade meter and you must submit the readings every month.
Eligibility Start Date:
The Delaware PSC bases a system’s eligibility start date on the date of final SREC certification approval.
Solar Alternative Compliance Payment
SACP The Solar Alternative Compliance Payment (SACP) is the penalty price that electricity suppliers must pay per SREC if they fail to file the required number of SRECs by the end of each compliance period. The DE SACP is set at $400 per SREC but increases to $450 per MWh if the electricity supplier has opted for the ACP in any previous year, and then increases to $500 for subsequent years. The Delaware Energy Office has the authority to review and adjust the ACP and SACP given certain market conditions. So, the DE SREC spot market is limited due to the Procurement Program.
SREC Useful Life:
DE SREC’s useful life is 3 years (i.e., SRECs generated in the energy year 2024 will be eligible through years 2024, 2025, or 2026 compliance). This 3-year life is “tolled”, or suspended, during any period in which a REC is held by the Delaware Sustainable Energy Utility (SEU).
How To Trade SREC In Delaware 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 has links with different solar installation companies. Usually, you can subscribe to EasyREC directly by the system installer. Otherwise, if the service is not provided by your solar installer, then you can visit the official website of the SRECTrade company.
Sign Up with SRECTrade:
If you register your system with SRECTrade then you can have less difficulty in connecting your system to other regulatory bodies. SRECTrade manages all SREC related processes so that soon you can start generating and selling SRECs.
Understand the Timing:
Your system will generate the first SRECs after two months of system setup.
SRECs in the Delaware market are the key opportunity for solar energy systems owners to generate income from clean energy sources. Thus, by knowing the mechanism of trading with SRECs, keeping up-to-date on the market shifts and amendments, as well as solar incentives, one can improve the ROI of solar investments. The SRECs will continue to have importance, as Delaware goes forth in an efficient strategy towards a sustainable energy future in the state for increased renewable energy initiatives.
For more information on solar energy and SRECs in Delaware, SolarSME is the best company to contact. Our consultants can assist in the analysis of the financial initiatives and the benefits of SREC certification and trading of SRECs. Book your FREE consultation!
