Last Updated on August 13, 2024 by bhanu prakash
Understanding Solar Renewable Energy Certificates (SRECs) in Washington DC
Solar Renewable Energy Certificates (SRECs) are an essential part of the solar energy market, especially in states that focus on the use of renewable energy such as Washington. SRECs in Washington DC offer a great way for solar panel owners to boost their income. An SREC is earned when you generate 1 megawatt-hour of electricity in your solar system every time. 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 Washington DC’s strong support for renewable energy, now is the perfect time to learn about SRECs.
In this article, we will explore Washington’s 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 tradeable commodities which are evidence that 1 MWh of electricity was produced by the generation of renewable power. You can sell or trade these certificates independently from the electricity, making them a good source of income for solar system owners. The state of Washington 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. They contribute to reducing the cost difference between solar energy and fossil fuels. This increases the appeal of solar investments for businesses and homeowners.
Solar Renewable Energy Certificates (SRECs) in Washington DC : How does it work?
In the DC SREC market, SREC prices remain high due to undersupply. To achieve sustainability, a solar strategy including solar ambitions, specifics, and the district’s demographic limitations is made. In July 2011, the D. C. City Council adopted a new rule that limited the supply even more by excluding out-of-state systems registered after January 31, 2011, from practicing the DC SREC Market.
New activities to prompt higher access to solar- the 2015 RPS Expansion Act, a 2013 community net metering law, and attempts to achieve a higher percentage of low-income solar programs will enhance the solar installations across the district.
What is the market price of SRECs in Washington DC?
The latest bid price for SRECs in Washington DC is $435 for August 2024. However, this price is not a fixed one. It depends on specific circumstances in the SREC market concerning supply and demand. SREC prices can be helpful for investors in predicting the returns of solar energy systems.
What are the WA SREC market requirements for trading?
The following are the requirements for trading SREC in Washington DC:
Solar Requirement:
The SREC market requirement for Washington DC is 5.00%. This percentage is for the electricity the solar power systems generate in 2032.
Meter Readings:
Every system should have a revenue grade meter and the readings need to be submitted every month.
Eligibility Start Date:
The eligible start date of a system is the first day of the current calendar year or the date of interconnection of the system, whichever occurs first.
Solar Alternative Compliance Payment (SACP):
If the power suppliers fail to register the required quantity of SRECs by the end of each compliance period, they will incur in a penalty charge of “Solar Alternative Compliance Payment (SACP)”. The price for DC SACP is set at $480 per SREC up to the year 2023, after which the rates drop.
SREC Useful Life: SRECs in DC are good for five 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 Washington DC 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. There are 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 solar 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.
SRECs in the Washington 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.
For more information on solar energy and SRECs in Washington, 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!
