Solar Renewable Energy Credits (SRECs) are performance-based incentives that let homeowners earn credits for every megawatt-hour (MWh) of electricity their solar system generates. Homeowners can sell these credits to aggregators, who then sell them to utilities to help meet state Renewable Portfolio Standard (RPS) requirements — providing income on top of energy savings.
SRECs are separate from net metering — they represent an additional revenue stream for the homeowner, not a bill credit.
Not all states offer SRECs. If your project is in an eligible state, Aurora may already have the relevant incentive pre-loaded in the Incentives database.
This article covers:
How SRECs work
SRECs are issued based on system production:
- 1 SREC = 1,000 kWh (1 MWh)
- Once your system is installed and registered, generation is tracked in a state monitoring system that issues SRECs as the system produces.
- You can sell SRECs to aggregators, who then sell them to utilities to meet state RPS requirements. Prices typically range from $4–$300 depending on the state and market conditions.
- SREC rates vary by state and market — check your state's program for current pricing.
Example: A system that produces 10,000 kWh/year generates 10 SRECs per year. At a rate of $260/SREC, that's $2,600 in annual SREC income.
Formula:
(Annual kWh ÷ 1,000) × SREC rate = Annual SREC value
Modeling SRECs in Aurora
Aurora includes many state SREC programs in its Incentives database. To apply an SREC incentive to a project:
- Open the project in Sales Mode.
- Navigate to the pricing page and select the Incentives tab.
- Click Add Incentive and search for the relevant SREC program.
- Select the incentive to apply it to the proposal.
By default, Aurora calculates the total expected SREC savings and subtracts that amount from the system cost. This is not factored into the monthly post-solar bill comparison unless you enable the setting below.
Show SREC income on the monthly bill
To display SREC income in the homeowner's post-solar monthly bill comparison, an admin must enable the setting in the proposal template:
- Navigate to Database > Proposal Templates
- Select the template where you want SREC income to appear
- Add the Post Solar Card Interactive element
- Enable Show Incentive Income
Once enabled, an Incentive income line item will appear in the post-solar card in Sales Mode, factoring expected monthly SREC income into the bill comparison and savings chart. Note: this only changes how the value is visualized — it does not affect overall savings calculations.
SREC disbursement types
SRECs can be paid out in two ways depending on the program:
Incremental payments
The most common structure. The homeowner receives SREC payments over time as the system produces energy — typically monthly, quarterly, or annually.
Lump-sum payments
Some programs, most notably Illinois SRECs, pay out the full credit value upfront based on system size rather than actual production. To model this correctly in Aurora, the incentive’s Disbursement Type must be set to Lump Sum.
Account admins can configure this in the Incentives database:
- Go to the Incentives database (Admin settings)
- Find the incentive and click the three-dot menu to duplicate it
- In the duplicate, set Disbursement Type to Lump Sum and adjust any other parameters
- Save. The updated incentive will be available to apply to new projects
State-specific SREC programs
Aurora includes pre-configured incentives for several active SREC markets. A few notable programs:
Illinois SRECs
Illinois offers upfront lump-sum SRECs for systems 10 kW AC or smaller under the Illinois Power Agency’s long-term renewable resources plan. The credit value is based on system size ($/W AC) and the rate group (Group A or Group B). See Illinois SRECs: What they are and how to model them in Aurora for detailed modeling instructions.
Massachusetts SMART Program
Massachusetts’ Solar Massachusetts Renewable Target (SMART) program is a performance-based incentive that pays a fixed rate per kWh of solar generation. See Massachusetts SMART Program: What is it and how to model it in Aurora for details.