Solar Renewable Energy Credit allows New Jersey Homeowners to Earn Big Money for Solar Power
Solar Renewable Energy Credit has recently made installing rooftop solar panels a very profitable upgrade for homeowners in New Jersey. Not only can New Jersey residents eliminate their monthly electric bills by installing solar panels on their roofs, they can also earn a surprising amount of income by selling the energy that these panels generate through Solar Renewable Energy Credit.
How does this work? To meet a Renewable Portfolio Standard, utilities in New Jersey are required to add some renewable energy to their grid each year. By 2020, the utilities must add 200 megawatts of solar power, representing 3% of total energy sold. To meet this standard, New Jersey utilities have started buying this energy through Solar Renewable Energy Credit auctions from homeowners who have installed solar panels on their roofs.
What is Solar Renewable Energy Credit? For the first 15 years after installing solar panels, homeowners in New Jersey receive a Solar Renewable Energy Credit, or SREC, for each megawatt hour of energy that they produce, which they can auction off at SRECTrade. The average price for a single Solar Renewable Energy Credit (1,000 kWh) this month is $665. Most roofs in New Jersey produce between four and ten Solar Renewable Energy Credits, thereby earning between $2,660 and $6,665. These earnings would offset the cost of installing most solar arrays within only four years, leaving New Jersey homeowners with pure profits and no electricity bills for eleven more years.