REC Solar

The Value Of REC Solar

Solar renewable energy credits (SRECs) are fundamental to the success of the solar industry. Entrenched interests are now mandated to subsidize REC solar and the development of this exciting and rapidly developing technology.

REC solar are a form of a financial instrument that provides documentation that a particular amount of electrical energy was generated via a renewable resource such as the sun. Simply put, they are certificates that can be bought, sold or traded to other parties to offset their carbon footprints and is one of the corporate tax credits available.

Any serious solar farm entrepreneur must become an expert in the development, processing and sale of these financial instruments. They are the difference between a meager income and a substantial one. In short, they level the playing field with the large energy producing corporations.

Rec solar provides an augmentation of income for the solar farm owner. The generated electricity is sold as usual into the grid. Subsequently, the certificates are sold to companies needing the carbon credits or to companies embracing a nobler civic responsibility.

Who Needs Them?

Prodigious amounts of money has been poured into the existing infrastructure of the U.S. energy industry. Many of those dollars were subsidized by the citizens of this country. As such, the energy industries has a responsibility to repay this largesse by subsidizing the next generation of energy producing technologies. Unfortunately, their stockholders and trustees do not always see the urgency in this responsibility.

Instead, to promote further expansion of the solar industry, the majority of state governments have found it necessary to impose the Renewable Portfolio Standards. The standards are different in each state but all aim at the same goal; self sufficient energy production for the United States. Regulations and ethical concerns have produced a substantial demand in the United States for these certificates.

Regulations in 29 U.S. states mandate that electric companies generate a certain percentage of their delivery from renewable sources. The electric companies can directly meet this REC solar requirement by running their own solar farms or indirectly through the purchase of certificates. The purchase of these certificates is the focus of the compliance market.

The other states do not have Renewable Portfolio Standards although all are contemplating their implementation. In these states, corporations and individuals voluntarily purchase REC solar to reduce or completely offset their own carbon footprints. Without the driving force of regulation, demand is significantly diminished. Regardless, REC solar is still a reliable and regular method of increasing a solar farm’s income.

Why You?

Solar electric generation is on the cusp of a radical leap forward. It is destined to grow over the next few decades as is the need for solar RECs.

For an unbiased look at this technology, visit the website of the Union of Concerned Scientists, at www.ucsusa.org/clean_energy/solutions/renewable_energy_solutions/renewable-electricity.html. They are a nationally recognized, non-profit organization that provides views on the feasibility and desirability of developing renewable energy sources.