Solar Renewable Energy Credits (SRECs) are an incentive for homeowners who have solar. The homeowner will receive credits based on how much energy their system produces, which they can then sell back to their utility company. Of the states that offer SRECs, all have varying rates.
1 SREC = 1000 kWh
For example, your system generates 10,000kWh. This means you have 10 SRECs. If you are in a state that offers a rate of $260/ SREC, the total value of SRECs for their system would amount to $2,600.
(kWh x .001) x SREC rate = value of SRECs
(10,000kWh x .001) x 260 = $2,600