New Jersey is the fastest growing markets for solar photovoltaics in the United States and one of the largest in terms of installations and installed capacity, second only to California. Much of this success is due to New Jersey’s Solar Financing Model, which relies on high renewable energy standards and the use of Solar Renewable Energy Credits (SRECs).

What is the SREC Registration Program?
The SREC Registration Program (SRP) is used to register the intent to install non-rebated solar projects in New Jersey. Owners of non-rebated solar projects MUST register their projects in the SRP program prior to the start of construction in order to establish the project’s eligibility to earn SRECs.  Registration of the intent to participate in NJ's solar marketplace provides market participants with information about the pipeline of anticipated new solar capacity and insight into future SREC pricing.

After the registration is accepted, construction is complete, and final paperwork has been submitted and is deemed complete, the project is issued a New Jersey Certification Number which enables it to generate New Jersey SRECs.

Rebated projects being developed through the Renewable Energy Incentive Program (REIP) do not need to submit SRP materials, but will still be registered with the SREC tracking system upon system and REIP process completion.

How did New Jersey Become a Leader?
New Jersey’s Clean Energy Program^TM was established in 2001. That year there were only 6 solar installations in the state. Since that time New Jersey has established a model program and integrated approach to solar development that includes:

• A strong Renewable Portfolio Standard (RPS) with a solar electric set aside that has helped create sustainable demand and investor confidence in the market.  Learn more.
• Excellent interconnection and net metering standards that have made it easier for systems to connect to the distribution system and be compensated for their contribution.  Learn more.
• An SREC financing model that provides energy credits and additional long term financing for those who invest in solar.

How do SRECs work?
Each time a system generates 1,000 kWh of electricity, an SREC is earned and placed in the customer's electronic account.  SRECs can then be sold on the SREC tracking system, providing revenue for the first 15 years of the system's life.

Electricity suppliers, the primary purchasers of SRECs, are required to pay a Solar Alternative Compliance Payment (SACP) if they do not meet the requirements of New Jersey’s Solar RPS.  One way they can meet their RPS is by purchasing SRECs.  As SRECs are traded in a competitive market, the price may vary significantly.  The actual price of an SREC during a trading period can and will fluctuate depending on supply and demand.  See recent SREC trading prices.

What is the SREC tracking system?
The SREC tracking system enables account holders to track solar energy production from their installations.  SRECs are issued to account holders based or recorded or estimated production of the solar energy system.  Once your solar energy system has been installed and your online SREC tracking system account has been established, SRECs will be deposited monthly.  The SREC tracking system also records the sale of SRECs from generators to purchasers.

New Jersey's Clean Energy Program recently transitioned its SREC tracking system to PJM-EIS-GATS.  Learn about this transition.