How does SREC work in the Maryland market?
Tanzeel Rehman
Solar SME, Inc. (Director of Sales Marketing/ Solar Sales Consultant/NABCEP Associate)
Trading Solar Renewable Energy Certificates (SRECs) in Maryland offers an excellent opportunity to maximize the return on your solar investment. Each SREC represents one megawatt-hour (MWh) of electricity generated by your solar system and can be sold on the open market. The first step is to ensure your solar system is registered with the Maryland Public Service Commission, which will allow you to start generating SRECs. Once registered, you need to keep a close eye on the SREC market, as prices can fluctuate significantly based on supply and demand. Websites like SRECTrade provide real-time market data and can help you make informed decisions about when to sell your SRECs.
Selling your SRECs can be done in two primary ways: directly to utilities or through brokers. Utilities are often required to purchase SRECs to meet state renewable energy mandates, making them a reliable buyer. However, selling through brokers can sometimes yield better prices, as brokers can negotiate on your behalf and may have access to a larger pool of potential buyers.
During periods of high demand, such as when utilities are approaching compliance deadlines, SREC prices can skyrocket. By monitoring the market and selling during these peak times, you can significantly boost your profits. Additionally, understanding the policy landscape and staying informed about changes in renewable energy regulations can help you anticipate market trends and make smarter selling decisions.