Solar Renewable Energy Certificates (SRECs) & Their Impact

solar renewable energy certificates srecs

Solar Renewable Energy Certificates (SRECs) have been there since the early 2000s and are a proven method to boost sustainable and renewable energy. In the US, states require electrical companies to buy some clean energy, reducing carbon emissions and promoting green energy growth due to SREC. 

According to the EPA, in 2021, renewable energy use in the US helped save 324 million metric tons of CO2 emissions. Solar Renewable Energy Certificates (SRECs) can change the energy industry by reducing pollution and making cleaner energy. Join us to learn how Solar Renewable Energy Certificates are crucial in taking the renewable energy sector one step towards a greener future. In this blog, we will explore SRECs & their Impact, why SRECs matter, and how they contribute to cleaner energy worldwide.

What are SRECs?

Solar Renewable Energy Certificates (SRECs) are incentives for producing solar electricity. You can get these incentives if you have solar panels at home and they make electricity. It’s like getting a stamp that proves your electricity is clean and good for the environment. If you’re a homeowner with solar panels, you can get one SREC for every 1,000 kilowatt hours (kWh) or one-megawatt hour (MWh) of electricity your solar panels produce.

SRECs exist because some states have rules known as RPS ( Renewable Portfolio Standards), according to which the electricity companies must make some of their electricity using clean sources like the sun. To follow these rules, electricity companies can either make clean electricity themselves or pay others who do it. To fulfill these requirements, utility companies buy renewable energy certificates (RECs), also called renewable energy credits. These certificates show that a company either made clean electricity or paid someone else to produce clean electricity. This way, they can say they’re using eco-friendly electricity as if they made it themselves. 

SRECs don’t change electricity prices; they just show that it’s clean energy. These certificates are sold independently and can help compensate for pollution from non-clean energy. Every state has its way of certifying, but the main idea is that SRECs are earned when a clean energy system makes a lot of electricity.

Why are SRECs Important?

SRECs are vital in reducing our carbon footprint and boosting clean energy growth. These certificates don’t show how much money the electricity is worth; instead, they show how environmentally friendly it is.

A Solar Renewable Energy Certificate is also created whenever clean electricity is made. The people who make this electricity can sell these certificates. So, if a solar panel makes one megawatt-hour of electricity, they earn one certificate. This certificate can be sold to others who want proof of using renewable energy. When these buyers get the certificate, they can legally say they’re using clean energy as per their state’s rules.

The Impact of Solar Renewable Energy Certificates 

Solar Renewable Energy Certificates (SRECs) are an excellent option for residential and commercial spaces to save on electricity bills by going solar. SRECs are tradable and act as proof that one MWH of electricity has been produced from a solar electric source. SRECs have a significant impact on the growth of sustainable energy practices. Let’s find out more about it.

Encourages Clean Energy

Solar Renewable Energy Certificates motivate the creation of renewable energy by giving money to those who make it. They also lead to new technologies using solar, wind, and geothermal power plants.

Reduction in Pollution

Thanks to the SREC, more renewable energy sources are used instead of fossil fuels to make electricity. This helps lower the amount of harmful emissions in the air.

Economic Benefits

SRECs are tradable and can be bought and sold. This helps people who generate renewable energy earn money and motivates more people and businesses to start using renewable energy.

Varied Sources of Energy

The SREC market’s growth means we can make renewable energy from different places like wind, sun, and heat from the earth. This makes our energy sources more varied and diverse.

Less Carbon Footprint

SRECs let businesses take credit for making clean energy. This helps them balance out their pollution and achieve their goals to be more eco-friendly.

Building Trust

When a business buys SRECs, it shows they care about renewable energy and sustainability. This makes people believe in their efforts and trust them more.

Saving Money

Putting money into solar projects for SRECs can lower a company’s energy bills over time. In some places, businesses can get tax credits or incentives to push them to invest in renewable energy.

Reaching Clean Energy Goals

As concerns about climate change increase, more people want renewable energy. Buying SRECs shows companies care about clean energy, use renewable power, and meet their clean energy goals.

Getting Green Certificate

When companies buy SRECs, they can say they’re using clean energy, which helps them get certified as environmentally friendly by organizations like Green-e®. This shows they follow strict rules to protect the environment and consumers.

Support for Local Economy

Solar Renewable Energy Certificates encourage people to invest in solar projects. This can create more jobs and help local businesses like developers, sellers, and installers.

Renewable Portfolio Standards ( RPS)

Many states now have rules called Renewable Portfolio Standards (RPS). These rules say a certain amount of energy must come from renewable sources by a specific time. If companies don’t follow these rules, they can get in trouble. Buying SRECs helps companies follow these rules and stay away from penalties.

Overall, As time has passed, SRECs have become an excellent choice to make solar panels affordable. Choosing to get SRECs is like investing money that can give benefits in the future.


Solar Renewable Energy Certificates (SRECs) have had a significant impact on making solar energy more popular and clean. SRECs have led to more solar panels being installed, more jobs in the clean energy industry, and less pollution. Purchasing SRECs can lead to Long-Term Savings.

If you want to reduce your carbon footprint or cut energy expenses, choosing SRECs is a super smart idea. Don’t wait – start now and enjoy SRECs’ incredible benefits. Avail the advantages of clean, sustainable energy and our solar services at Infinity Energy. Get an estimate today!