SREC Customers

Sell Your SRECs FAQ

  1. When will I receive my SREC payments?
  2. What fees do you charge?
  3. Why would I choose a long term contract when spot market prices are significantly higher?
  4. Can I try Sol Brokerage without a long term commitment?
  5. How will I get paid for Sol Brokerage?
  6. How much will my SRECs be worth in the future?
  7. What are the risks of selling SRECs using Sol Brokerage?
  8. Can I convert my Sol Brokerage account to a longer term, fixed price contract?
  9. Does Sol Systems offer electronic funds transfer via an automated clearinghouse, also called “direct deposit”?
  10. Do I have to pay taxes on my SREC income?
  11. How do I start producing SRECs?
  12. How many SRECs will my system produce?
  13. How will Sol Systems know how many SRECs my system is producing?
  14. My system is already operational, will I receive SREC credit for past energy production?
  15. What happens to my SRECs if I move?
  16. Does my system need to be grid-tied in order to produce SRECs?
  17. Can I sell electricity back onto the grid and also sell SRECs?
  18. What are meter requirements for systems?
  19. What are the remote monitoring requirements for systems?
  20. When do customers submit meter readings?

 

1. When will I receive my SREC payments?

Customers typically receive their first SREC payment within three (3) to six (6) months after signing up with Sol Systems (large systems that have not been registered with the state may require additional time). This timeline is a function of complex and time-consuming state regulatory registration processes.

The following is a typical timeline:

  • Registration: We receive your system information and contract. When all information is provided, we will process your application within 5 business days.
  • Submit Application to Regulators: We submit your application to regulatory entities for review. This process may take up to three (3) months from the time we receive your contract. You will receive an email when each step of the regulatory approval process is completed.
  • Assignment of SRECs: We create a Sol Systems sub-account for you on GATS or NEPOOL (the regulatory bodies that award SRECs).
  • SREC Production: You begin to accumulate SRECs that are eligible for sale. The SRECs are placed in your account one month after production. For example, if your system is installed in July, you will not begin producing SRECs until August. Additionally, GATS produces SRECs in arrears, so SRECs  produced in August will not appear in your account until the end of September.  The generation start date for a system on GATS is deemed to be the first day of a month. Therefore, if your eligibility start date according to state law was sometime in April, GATS would begin awarding credit for generation starting May 1st. Please check with the Sol Systems’ SREC team to determine your specific generation start date.
  • Sale of SRECs: Sol Systems will sell SRECs  and pay customers in the months of May, August, November and February. You will be eligible to receive payment from Sol Systems at the end of each payment month, providing at least one SREC is generated prior to quarter close.

​If your system is located in the PJM territory, you will be paid according to the schedule below:

SREC Generation Period Payment Month
January – March May
April – June August
July – September November
October – December February

If your system is located in the NEPOOL territory (Massachusetts), you will be paid according to the schedule below.

SREC Generation Period SREC Creation Payment Month
January – March July 15 August
April – June October 15 November
July – September January 15 February
October – December April 15 May

2. What fees do you charge?

There are no fees for our Sol Annuity or Sol Upfront services, so if you contract for a Sol Annuity fixed SREC price of $250, when you generate an SREC, you get $250.

Sol Brokerage fees vary depending on system size and location. Contact our customer service team at 888-235-1538 x1 or info@solsystems.com for more information.

3. Why would I choose a long term contract when spot market prices are significantly higher?

Sol Systems provides long-term contracts and upfront payments to our customers because we believe this is the best way to finance solar energy systems. We also think that market risk should be handled by companies with the expertise to do so. Although guaranteed long-term SREC pricing is sometimes lower than current year open market prices, this pricing takes into account declining prices in the coming years, as well as general market risk. The Sol Systems team posts our quarterly spot market SREC prices in order to provide transparency to the SREC marketplace and to help customers decide the best SREC financing solution for their risk appetite.

SREC prices have a tendency to decline because (1) the alternative compliance payment (ACP) in many states declines and (2) SREC supply is set to grow. This projected pricing decline will leave the unprotected seller exposed to lower prices. Sol Systems’ contracts offer protection against declining or otherwise unstable SREC prices.

4. Can I try Sol Brokerage without a long term commitment?

Sol Brokerage customers have a one year minimum commitment. After that, the contract will automatically renew unless the customer provides Sol Systems with notice of termination within 30 days of the contract termination date. Sol Brokerage customers also may choose to switch to a Sol Annuity or Sol Upfront agreement at any time.

5. How will I get paid for Sol Brokerage?

Sol Brokerage customers are paid a weighted average of prices for all SRECs sold for all our SREC customers in that quarter multiplied by the number of yours SRECs sold in that quarter, less our transaction fee.

The value of SRECs will fluctuate as market factors change, but you can expect your SREC sales price to be less than the Solar Alternative Compliance Payment (ACP) applicable in the state where your system is located. Sol Systems posts our quarterly spot market SREC prices to provide transparency to the SREC marketplace for both our Sol Brokerage customers and developers in the solar industry.

6. How much will my SRECs be worth in the future?

SRECs are a commodity with prices subject to the laws of supply and demand, meaning the future value of SRECs is unknown. SRECs are also subject to the influence of RPS legislation and Solar Alternative Compliance Payments (ACP).  In many states, the ACP is set to decline; therefore, it is likely that SREC prices will decrease in the future.

If you are concerned with the risk of dropping SREC prices, you may want to consider a fixed rate contract. One of the advantages of working with Sol Systems is that you can seamlessly switch from a Sol Brokerage contract to a fixed price contract such as Sol Upfront or Sol Annuity, as your tolerance for risk changes.

 7. What are the risks of selling SRECs using Sol Brokerage?

Sellers should understand that there is an inherent risk and reward in choosing any non-fixed SREC pricing option. SREC prices fluctuate depending on supply and demand, as well as regulatory changes.

If we are unable to sell your SRECs for what we determine to be an optimal price, your SRECs will be held until the next quarter, when we will attempt to sell them for a higher price. If you are concerned with the risk of dropping SREC prices, you may want to consider a fixed rate contract such as Sol Upfront or Sol Annuity.

8. Can I convert my Sol Brokerage account to a longer term, fixed price contract?

Yes, one of the benefits of working with Sol Systems is that you can take advantage of our suite of SREC services. At any time, you may convert your Sol Brokerage account to a long-term contract agreement such as Sol Annuity or Sol Upfront. Availability varies with market conditions. These products provide a fixed price for your SRECs.

9. Does Sol Systems offer electronic funds transfer via an automated clearinghouse, also called “direct deposit”?

Yes. Starting in November 2016, Sol Systems will be offering SREC customers EFT payments (direct deposit) through our partner, OnPay Solutions, Inc. Customers can sign up by following the instructions provided in the resources section of the dashboard. Customers will receive paper checks in the mail if they do not opt-in for EFT payments.

10. Do I have to pay taxes on my SREC income?

Please note that Sol Systems is not a tax advisor and cannot give tax advice. We recommend that you speak with your tax professional.

11. How do I start producing SRECs?

After you create a Sol Systems account and register your system through our company’s easy online tool, your solar installer will verify your system details. At this point, a contract will be sent to you at the email address you provided. Once the signed contract is returned, we will proceed to register your solar energy system as a qualified renewable energy generator with the appropriate regulatory authorities. You can view the other additional required registration materials for your state on your Sol Systems owner dashboard.

Once this process is complete, we will certify your system with the relevant trading platform, such as the PJM Generation Attributes Tracking System (PJM-GATS) or the NEPOOL Generation Information System (NEPOOL-GIS). These regional trading platforms track the energy generated by each system and award the appropriate number of SRECs to your account so that Sol Systems can sell and pay you for your SRECs accordingly.

12. How many SRECs will my system produce?

SREC production directly correlates to the solar system size, location, and equipment used, among other factors. To obtain a rough estimate of production, you can use PV Watts, an online tool developed by the National Renewable Energy Laboratory. PV Watts estimates the amount of electricity produced by a solar PV system based on nameplate capacity, location, tilt, and azimuth. Please visit PV Watts and enter your system specifications in order to receive a production estimate.

13. How will Sol Systems know how many SRECs my system is producing?

Sol Systems tracks your SREC production through PJM-GATS or, in the case of Massachusetts, NEPOOL-GIS, to determine how many SRECs your system is producing. Depending on your location and system size, PJM-GATS and NEPOOL-GIS will award SRECs based on meter readings or production estimates. Only small residential systems, generally less than 10 kW in size, can qualify for estimated energy production, and only in selected states.

14. My system is already operational, will I receive SREC credit for past energy production?

It depends. Each state has different regulations for awarding retroactive credits for past production. Please double check with Sol Systems to receive state specific information. You may email Sol Systems at info@solsystems.com.

15. What happens to my SRECs if I move?

Please note that SREC rights belong to the owner of the solar asset from which they originate. If you sell your home during your contract to Sol Systems, SREC income rights and Sol Systems contract will be assigned to the new homeowner, unless the contract is cancelled. Please contact Sol Systems at info@solsystems.com if you are planning to move to obtain necessary paperwork. We will also require the Agreement of Sale for the property between the buyer and seller.

16. Does my system need to be grid-tied in order to produce SRECs?

Yes, only grid-tied systems qualify for SRECs at this time.

17. Can I sell electricity back onto the grid and also sell SRECs?

Yes. Most states have net metering rules, which provide you with a certain amount of money per kWh that your solar energy system produces. Selling your electricity back to the grid does NOT prevent you from selling your SRECs. You can sell your electricity to the grid and also sell your SRECs to Sol Systems.

18. What are meter requirements for systems?

Many states require a separate solar meter that measures a system’s solar energy production information. This solar meter records the number of Megawatt-hours (i.e. SRECs) that the system produces.

The solar meter requirements vary from state to state. For more information about the solar meter requirements in your state, please refer to your solar installer. Sol Systems partners can find more detailed information on the “Solar Meter and Monitoring Requirements” document on their Sol Systems Installer Dashboard.

19. What are the remote monitoring requirements for systems?

Sol Systems encourages all of our customers to install a remote monitoring system and to provide us with access to the solar production data. By doing so, customers will know when their system is operating efficiently, and they will not have to worry about providing Sol Systems with monthly meter readings.

The solar meter requirements vary from state to state. For more information about the solar meter requirements in your state, please refer to your solar installer. Sol Systems partners can find more detailed information on the “Solar Meter and Monitoring Requirements” document on their Sol Systems Installer Dashboard.

20 . When do customers submit meter readings?

Customers who have a dedicated solar energy meter are required to submit monthly meter readings. We ask for these readings to be updated as close to the first of each month as possible. Customers should log into their account on the Sol Systems’ website to enter meter readings, and automatic email reminders will be sent to customers with missing meter readings on the 5th and 27th of each month.

Customers are not required to enter monthly meter readings if they:

1.    Qualify for estimated production

2.    Provide Sol Systems with access to a qualified remote monitoring system for the duration of the contract term

If a customer qualifies for estimated production, Sol Systems will utilize SREC estimated production information according to PV Watts. If a customer provides our SREC team with access to remote monitoring, we will login and obtain the SREC production information ourselves.