Astrum SRECs

A Solar Renewable Energy Credits Aggregator

Frequently Asked Questions

•  Why should I care about the SRECs my system produces?
•  What are SRECs?
•  What is a Renewable Portfolio Standard?
•  How many SRECs will my solar PV system produce?
•  How does a Renewable Portfolio Standard affect my solar PV system?
•  I have a solar hot water heating system, does that produce SRECs?
•  Are there steps I need to take to have my solar PV system produce SRECs?
•  How do I register my SRECs?
•  When do I begin producing SRECs?
•  How are my SRECs created and tracked?
•  Who needs my SRECs?
•  What are the utility companies’ Renewable Portfolio Standard requirements?
•  Can I just sell my SRECs directly to the utility companies?
•  When should I sell my SRECs? If I wait to sell, will the price I get for them go up?
•  How much are my SRECs worth?
•  How do I know I'm getting a good deal from Astrum Solar for my SRECs?
•  How is Astrum Solar different from a SRECs broker?
•  Ok, I am ready to sell my SRECs, what should I do?

Why should I care about the SRECs my system produces?

Whether you knew it or not when you installed your solar PV system, the electricity produced by your solar panels can make you money in two ways. The primary way of course is through the savings you see on your monthly electrical bill. But there is a second way your solar panels make you money – through the SRECs they produce.

In order to encourage the development of solar energy, many states have recently passed laws (called Renewable Portfolio Standards) mandating utility companies that sell electricity to provide a certain percentage of their power through solar energy or else pay a fine to the state. The utility companies can either build solar plants themselves and/or buy SRECs from homeowners and businesses like you who have already taken the step to go solar. Therefore, the SRECs your system produces can be sold to the utility companies, thus meeting the utilities' obligations and helping reduce the cost of going solar.

What are SRECs?

Solar Renewable Energy Credits, or SRECs, are credits which represent the environmental attributes associated with the generation of 1,000 kilowatt-hours (kWh) of emissions-free solar energy from a qualified solar renewable generating facility.

An SREC is in addition to the electricity produced by your solar panels and may be separately bought and sold. When Astrum Solar purchases your SRECs, you retain the full rights to all of the electricity your solar PV system produces.

What is a Renewable Energy Portfolio Standard?

A renewable portfolio standard, or RPS, is a regulatory regime designed to encourage the development of renewable energy and, in particular, solar energy. A RPS generally requires that an increasing percentage of all electricity sold by electricity suppliers comes from specific sources of renewable energy. Currently, 30 states, including Delaware, Maryland, New Jersey, Ohio, Pennsylvania, Washington, DC and West Virginia have a RPS in place.

How many SRECs will my solar PV system produce?

Generally, you can figure out the approximate number of SRECs your solar PV system will produce each year by multiplying the size of your system measured in kilowatts (kW) by 1.2. This factor may vary based upon the actual solar production of your system.

Example: 5 kW system * 1.2 = 6 SRECs produced per year.

The process for determining the exact number of SRECs that your system will produce each year varies by state. In many cases, an engineering estimate is calculated by your local public service commission using PV Watts software which takes into account your system's geographic location (zip code), size, tilt and orientation. Using an engineering estimate allows the owner of small solar PV systems to avoid the inconvenience of tracking and reporting actual production each month. In our experience, these estimates are favorable to the system owner. In other cases, the calculation is based upon your actual electricity production. This means that you will be required to track your monthly solar production using a revenue grade meter or a monitoring system and report those numbers to Astrum Solar each month.

How does a Renewable Portfolio Standard affect my solar PV system?

Each RPS has a solar "carve out" which requires that a certain percentage of all electricity sold in each state be derived from solar energy. Electricity suppliers can meet the solar carve out by either generating and selling the required percentage of solar energy, accumulating the equivalent amount of SRECs that equal the percentage of solar energy they are required to sell under the RPS, or paying a statutory fine called the Alternative Compliance Payment (ACP). When a utility company uses an SREC to comply with the RPS, the SREC is retired and cannot be used again.

I have a solar hot water heating system, does that produce SRECs?

Solar hot water heating systems are not currently eligible to produce SRECs in most states. In Delaware, a solar hot water system is eligible to produce credits only if the amount of electricity produced or displaced by the system is measured by a meter. Most hot water systems do not satisfy this standard and are thus not eligible to produce SRECs. Solar hot water heating systems may be eligible to produce SRECs in Washington, DC. For information about Washington, DC solar hot water heating system SRECs, please give us a call.

Are there steps I need to take to have my solar PV system produce SRECs?

Yes, there are a few steps you need to take to have your system produce SRECs. The first step is to have your solar PV system installed and approved by your local building and electrical inspectors and your interconnection agreement approved by your local utility company. Second, you need to certify your solar PV system with your local public service commission. Then, the SRECs your solar PV system generates are created and tracked. Eventually, the SRECs can be bought and sold. These are all steps Astrum Solar can perform for you to make SRECs production a hassle-free process. Astrum Solar handles your entire SRECs registration free of charge. There are no fees for an application or processing.

How do I register my SRECs?

The first step to begin producing SRECs is to apply to your state public service commission to have your solar PV system certified as a Solar Renewable Energy Facility. Once your solar PV system is certified by your local public service commission, your solar PV system must be registered with the PJM-EIS Generation Attribute Tracking System (PJM-GATS), the renewable energy generation tracking system. The certification process with your local public service commission and the registration process with PJM-GATS can be time consuming and confusing. At Astrum Solar, we handle the entire process from start to finish free of charge for our customers.

When do I begin producing SRECs?

Your system starts producing SRECs on the first day of the month after your solar PV system is operational. Your solar PV system is typically deemed operational when it has been installed, all required building and electrical inspections have been approved and the local utility company has approved the interconnection agreement for the system. This means that if your system is operational on January 5, 2010, you will begin producing SRECs on February 1, 2010. When your system is approved by your local public service commission and registered in PJM-GATS, you will get retroactive credit back to the first day of the month after your solar PV system was operational.

For example, if a system in Maryland is operational on January 5, 2010, but is not certified by the Maryland Public Service Commission and registered in PJM-GATS until March 30, 2010, the system owner will receive retroactive SREC credit beginning on February 1, 2010. However, a system cannot generally receive retroactive credit before January 1 of the calendar year in which it was certified by the local public service commission and registered in PJM-GATS. For example, if a system in Maryland is operational on July 1, 2009, but is not certified until March 30, 2010, the system owner will only receive retroactive SREC credit beginning on January 1, 2010.

In certain states like Delaware and Pennsylvania, your system starts producing SRECs on the first day of the month after the state’s public service commission receives an application for certification, as opposed to the date upon which your system is operational. Since your system will not create credits retroactively, you should get your system certified as soon as possible. As a general rule, no matter which state you live in, the sooner you certify your system, the sooner you will get paid and the more money you will make.

How are my SRECs created and tracked?

The creation and transfer of your SRECs takes place through PJM-GATS. PJM-GATS will monitor the generation of your SRECs and create certificates monthly based on actual or estimated output. When we purchase your SRECs, you will authorize Astrum Solar to create and track the SRECs production from your system, and the SRECs will be automatically transferred to Astrum Solar in exchange for the agreed upon payment to you. If your SRECs production is based on actual production, you will simply have to send us an email every month with your actual production which we will then report to PJM-GATS.

Who needs my SRECs?

Any utility supplier selling electricity in your state is required to comply with your states’ recently passed RPS and can satisfy their state specific RPS solar requirements by purchasing SRECs generated in your state. Generally, only SRECs generated in your state can be used to satisfy your state’s RPS requirement, although in some instances states will accept SRECs from other states if there are not enough SRECs produced in that state in a given year.

What are the utility companies’ RPS requirements?

Delaware
In Delaware, the solar carve out began at 0.011% in 2008 and increases each year until it hits 2.005% in 2019. The yearly solar requirements for Delaware are set forth here.

Maryland
In Maryland, the solar carve out begins at 0.005% in 2008 and increases each year until it hits 2.0% in 2022. The yearly solar requirements for Maryland are set forth here.    

As the solar carve out increases in Maryland, the ACP gradually decreases. The yearly ACP in Maryland per SREC is set forth here.        

Pennsylvania
In Pennsylvania, the solar carve out began at 0.0013% in 2007 and increases each year until it hits 0.5% in 2021. The yearly solar requirements for Pennsylvania are set forth here.

Washington, DC
In Washington, DC, the solar carve out began at 0.011% in 2008 and increases each year until it hits 0.4% in 2019. The yearly solar requirements for Washington, DC are set forth here.

As the solar carve out increases in Washington, DC the ACP remains constant until 2018. Beginning in 2018, the Washington, DC City Council will have the authority to set a new ACP. The yearly ACP in Washington, DC per SREC is set forth here.       

Can I just sell my SRECs directly to the utility companies?

In theory, yes you can. There is nothing to stop you from registering your solar PV system with the appropriate state agencies and selling your SRECs to a utility company serving your state. In reality however, this does not happen. Utility companies need many thousands of SRECs every year to comply with their RPS requirements and are not willing to buy SRECs from individual homeowners or even smaller commercial owners who each produce very small quantities of SRECs every year. Instead, SREC aggregators like Astrum Solar do the work of buying up SRECs from many different small solar PV systems, aggregating the SRECs together, and then negotiating SRECs contracts with utility companies.

When should I sell my SRECs? If I wait to sell, will the price I get for them go up?

Pricing for SRECs is determined largely by the Alternative Compliance Payment, or ACP, that utility companies pay as a fine if they do not acquire enough SRECs.

Delaware
In Delaware, the solar ACP begins at $300 and increases to $350 if the electricity supplier has opted for the ACP in any previous year. The ACP then increases to $400 with subsequent uses. The Delaware Energy Office has the authority to review and adjust solar PV ACP given certain market conditions. Thus, the value of your SRECs will change as the ACP for each company fluctuates. Delaware SRECs are good for three years unless retired earlier.

Maryland
In Maryland, the ACP has been set for at least the next 15 years by the law that created the Maryland RPS. In 2010, the ACP will be $400 and starting in 2015, it decreases by $50 every other year until the ACP is $50 in 2023 and each year thereafter. This was done on purpose to reward early solar buyers more than those who wait to purchase solar. Because utility companies need SRECs to satisfy their RPS requirements, the SRECs system was designed to discourage saving SRECs. This means that your SRECs are the most valuable in the year in which they are produced and that the longer you wait to sell your SRECs, the less value you will receive in return. Maryland SRECs are good for three years unless retired earlier.

Pennsylvania
In Pennsylvania, on December 31 of each year, a separate ACP for solar PV is set at 200% of the average market value of the solar credits sold during the previous energy year. So the ACP, and thus the price of your SRECs, will fluctuate from year to year depending on the average market value in that energy year. Since the value of SRECs may decline over time as more systems are installed, it is important to lock in your price today. Pennsylvania SRECs are good for two years unless retired earlier.

Washington, DC
In Washington, DC, the ACP has been set until 2018 by the law that created the Washington, DC RPS. From 2008 to 2018, the ACP is set at $500 per SREC. Even though the ACP remains the same, SRECs in Washington, DC only last for three years, so your SRECs will generally be most valuable in the year in which they are produced.

How much are my SRECs worth?

There is no fixed market price for your SRECs and the value varies from state to state. Rather, the value of your SRECs is based on several factors including the percentage of the solar carve out under the RPS in any given year, the then current value of the ACP and the level of supply and demand for SRECs in your state.

How do I know I'm getting a good deal from Astrum Solar for my SRECs?

We have made a commitment to offer the best value for SRECs in the areas in which we operate. Our long-term view of the SRECs marketplace allows us to offer significantly higher prices than anyone else in the market. We believe that by aggregating more SRECs than any other company in the region we can negotiate the best prices from the utility companies. Our goal is to aggregate as many SRECs as our funding allows.

But don't just take our word for it, explore the marketplace for yourself. Talk to your installer and ask who they recommend. Let us know if you find a better offer. Just please don’t wait and let your SRECs devalue or expire.

How is Astrum Solar different from a SREC broker?

When you sell your SRECs to Astrum Solar, we pay you the value of the credits in cash and take full ownership of the credits. When you sell your SRECs to us, there is no brokerage fee. Your SRECs revenue is guaranteed at a fixed price.

On the other hand, a SRECs broker will only arrange to sell your SRECs to another company and then take a percentage of your profit for itself. A broker will not guarantee you a price so your price may vary greatly from year to year. Astrum Solar is able to consistently offer you the best overall value for your SRECs by eliminating this step.

Ok, I am ready to sell my SRECs, what should I do?

Fill out the online quote request so that we can prepare a personalized quote. The quote will value your SRECs using the appropriate adjusted basis for whatever your size system produces. Once you decide to move forward, we will execute a short contract and take care of the rest of the paperwork necessary to transfer your SRECs to us. And, when it is time, we will mail you a check.