An increasing number of states are developing markets that allow people to buy and sell green energy. The mid-Atlantic states lead the way. Currently DC, DE, MA, MD, NC, NJ, OH, and PA have SREC (solar renewable energy certificate) markets. However, many other states are eligible to sell SRECs into these markets. Namely, VA, WV, KY, TN, IL, IN, MI, WI, and NY. Renewable Portfolio Standards (RPS) are big driver of these markets. In states that have an RPS, utilities are required to produce a certain amount of their electricity through renewable means. If they do not have renewable sources, then they must buy SRECs in the market or pay a fine. Utilities buy SRECs from owners of renewable energy systems, which quite often are average homeowners that invested in a solar power or solar thermal system. One SREC is issued to the owner of a PV system every time the system produces 1,000 kWh. Depending on the state, SRECs have been selling between $200 and $400. New Jersey is the notable exception where SRECs sell for over $600. This means the homeowner gets $0.20 – $0.40 per kWh – that’s about 2 to 4 times as much as homeowners can buy it from the utility. As an owner of a solar power system, I can assure you it’s nice to have the electric company pay me more for power than I pay them.
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