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What are Solar Renewable Energy Credits (SRECs)?

You can get paid for the renewable attributes of your grid-tied PV energy source by registering with a broker such as SRECTrade or Sol Systems.  Participating utility companies purchase renewable energy credits to meet state required renewable portfolio quotas. Indiana has no such requirements; Ohio and Illinois do, and they buy credits from Indiana solar owners. As the actual energy producers, solar owners receive a check for market value solar production credited to the utilities.  One SREC is awarded for each 1,000 kWh (kilowatt hours) of solar energy produced. This benefit is separate from the reduction in electric bills resulting from the energy value of your solar array.

Midwestern market values for SRECs have been trending down as laws change and renewable energy becomes more of a commodity. As of July 2018, Ohio SREC values are about $7 per 1,000 kilowatt hour of solar energy produced (one SREC). A home producing 10,000 kWh per year with solar PV would earn $70 annually at $7/SREC.

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