Maryland SRECs: How the Solar Incentive Works
It is no secret that making the switch to solar energy comes with an abundance of financial savings. With the lower energy bill and solar incentives, Maryland SRECs are another valuable opportunity to maximize your solar savings. SRECs or solar renewable energy credits are a way for companies to reach their renewable energy quotas without producing the energy themselves. Solar owners can sell their Maryland SRECs for a profit to these companies. But just how do SRECs work and how can solar owners take advantage of them? By gaining an understanding of SRECs, you will be able to get the most out of your solar panel system and increase your solar savings.
How do Maryland SRECs Work?
SRECs are like stocks, fluctuating in value with supply and demand, and are sold separately from the actual electricity. Instead of selling your solar-generated electricity to the company that is trying to meet its renewable energy quota, you sell them a certificate that qualifies as renewable energy generated by their company. Essentially, they are paying you to subsidize the clean energy they are required to produce by the state government. 1 SREC is equal to 1 megawatt-hour and currently, Maryland SRECs are selling at a rate of $59 per certificate. To fully grasp the process, you must understand the four steps. First, your solar panel system generates clean and renewable solar energy. Then, your previous months’ production is registered on an SREC brokerage platform such as SRECTrade. Your SRECs are created and issued by the registry. Finally, your SRECs are sold for their current value and you receive a payment within 15 business days.
Maryland SREC Marketplace
As previously mentioned, SRECs are sold like stocks on marketplaces such as SRECTrade. The price per certificate depends on the supply and demand, and with the Maryland state government increasing the percentage of solar energy required by companies by a half percent every year, the demand is steadily increasing. SREC costs can fluctuate depending on the market and current energy usage throughout the state. Today, companies are required to source a minimum of 5.5% of their energy from solar and by 2030, companies will be required to source at least 14.5% of their energy from solar.
Make Solar More Affordable with Maryland SRECs
SRECs essentially qualify you for passive income, but how much can one expect to earn in a year? A 10kW system provides enough solar energy to power most homes in the United States and is a common size chosen by homeowners. With a 10kW system, you will produce around 10-13 MWh per year, equal to the same number of Maryland SRECs. If you sold 13 SRECs at the current price of $59, that means you would have earned $767 in one year and $7,670 over the course of ten years, greatly offsetting the initial expense of the solar panel system. That number could easily grow with the demand increase for solar energy and the fluctuation of the SREC value.
Get the Most Out of Your Solar
When you decide to make the smart switch to clean and renewable solar energy, it is important to find a solar provider that will proficiently guide you through the process. At Lumina Solar, our expert solar representatives will formulate a personalized solar plan that works with your energy needs and budget. With our variety of payment plans starting at $0 down, going solar can be an option for anyone aspiring to make the switch, regardless of their financial situation. If you are ready to reduce your carbon footprint, increase your energy savings and take advantage of Maryland SRECs, call or contact Lumina Solar to get started today.
