As an authorized SREC aggregator, Solect will manage your SRECs and notify you of any updates or changes to the SREC production associated with your system.
SRECs are sold and minted on a quarterly basis.
An SREC is a Solar Renewable Energy Certificate. In Massachusetts, the Green Communities Act of 2008 requires utilities in the state to generate at least 15% of their electricity from renewable sources by 2020. One way they can meet this requirement is by purchasing SRECs from solar PV system owners. SREC values are determined by fundamental supply and demand dynamics in the marketplace. One SREC equals 1000 kilowatt hours (kWh) of electricity produced and can range in value from $250 to $385.
Rebates and incentives vary by state, but most have some type of solar incentive program in place. State incentives include SRECs, net-metering, sales tax exemptions, and more. The federal Investment Tax Credit (ITC) is in place at current levels until the end of 2019, and you can also accelerate depreciation on a solar purchase.
A PPA is a Power Purchase Agreement. It’s a financing model in which the solar installation company – in this case Solect – or a third-party investor would build and own the solar PV system on your property and then sell you the electricity generated at a pre-negotiated, discounted rate. The owner of the system is able to take advantage of all tax incentives, Solar Renewable Energy Certificate (SREC) revenue, and other benefits related to owning the system. Hosting a solar PV system and purchasing the power through a PPA is an excellent way for entities such as schools and non-profits to benefit from solar energy without using capital to purchase a system outright.
There are multiple financial options available, including direct ownership, a capital or operating lease, a Power Purchase Agreement (PPA), a rooftop lease, and community solar. We’ll work with you to determine the best financial solution based on your specific needs and goals.