Solar Incentives for Homeowners

Residential Solar Incentives

As a homeowner, below is a program that may be available to you. In the process of working with you to create your unique solar system design and meet your specific needs, we will help to walk you through financing options & incentives, and we are always available for any questions that you may have.

SRECS - Solar Renewable Energy Certificates

What are SRECs?

  • Renewable Energy Certificates (RECs) are tradable, market-based instruments representing proof that 1 megawatt-hour (MWh) of electricity was generated from a renewable source (e.g., solar, wind) and fed into the grid. RECs certify the environmental attributes of green energy, allowing entities to track, sell, or claim the use of renewable power, and are used for compliance with state standards or voluntary sustainability goals. 

  • 1 Solar REC (SREC) is created for every 1,000 kilo-watt hours of electricity generated by a solar energy system. 

  • Many states (including VA) have created SREC markets to spur the development of solar by requiring electricity producers or companies wanting to acquire a Green Energy Portfolio to purchase SRECs produced by in-state solar systems as part of their obligation under the state's Renewable Portfolio Standard (RPS). Virginia's RPS.

  • Through the purchase of SRECs, electricity suppliers are ensuring that their products meet the RPS-mandated amount of solar power. 

  • The owner of the SREC is the person or entity that owns the solar system, or ability to generate electricity from solar. 

  • The monetary value of an SREC in these state markets is determined by supply and demand.

  • Similar to the stock market, the SREC rates will go up and down year to year, due to supply and demand.

Who Is Eligible?

Anyone who owns a solar system in a state that participates in SRECS, like Virginia.

  • This applies to homeowners and business owners.

Click the questions boxes for answers to more FAQs.

    • Many people think that since they generate solar energy on a monthly basis, they will get paid for SRECs monthly, but that is not accurate. 

    • SRECs are purchased by companies (described in the “What are SRECs?” section) whenever they need to purchase them. This is not regularly, though it is often at least annually. 

    To summarize, you can likely make some money from this annually, but it's best not to depend on this as a regular monthly income source.

  • You can technically hold on to your SRECs and try to sell them yourself, but we recommend that you sell through an SREC aggregator.

    This is because companies are extremely unlikely to seek out individual solar system owners to purchase SRECs, preferring to purchase in bulk, or from larger producers whenever possible. An SREC aggregator bundles many SRECs together and sells them for a better price, offering you a better chance to ensure you sell yours regularly.

  • No, this is separate from your electric bill and is available to anyone, so long as you own a solar system.

  • There are some fees associated with selling your SRECS through an aggregator, so your payback will be a bit lower than the going market rate.