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Smith Sustainable Design
PA: 215-260-7905

Solar Power Resources

What is a renewable energy credit (REC)?

Renewable Energy Credit (REC) is any tax credit that is provided by the US federal or state authority as incentive for installing or operating any renewable energy system, such as solar or geothermal power. RECs are not actual measures of power, but they are also used in the United to prove that 1,000 kilowatt-hours (kWh) or one megawatt hour (MWh) of renewable-generated power has been produced. Solar Renewable Energy Certificates (SRECS) are RECs that prove the desired amount of solar energy is generated by an eligible solar power source. 

Renewable Portfolio Standard (RPS) is a requirement for utilities to produce a percentage of power from renewable resources. SRECs are the regulatory mechanism for enforcing RPS requirement. SRECs are the ‘safety valve’ option for utilities to purchase the renewable attributes from other renewable energy producers. This mechanism has created a market price and long‐term value for SRECs produced by residential and commercial solar installations.


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