Solar Renewable Energy Credits (SRECs)

What Is an SREC?

When your solar system generates electricity, it also produces regional benefits such as energy security and positive environmental impact. The value placed on these benefits to the community when your system generates power is measured in SRECs.

How Do I Earn and Sell My SRECs?

The Approved Vendor (installer) you contract with is responsible for selling the estimated number of SRECs your system will generate in the first 15-year period. In Illinois, credits are earned at a standard rate of 1 SREC per 1000 kilowatt hours (kWh).

How you receive payment from your Approved Vendor depends on the size of your system:

• If your system size is less than 25 kW, you will receive the full amount after installation.
• If your system is larger than 25 kW, you will receive equal payments over the next 7 years.

Who Buys SRECs and Why?

By purchasing SRECs, organizations can claim the community contribution they represent. The Illinois Power Agency (IPA) has committed to reach 40% renewable energy by the end of 2030, as required by the Illinois Renewable Portfolio Standard (RPS). To make the process more efficient, Approved Vendors and Designees must submit projects to the Illinois Shines program, where utilities can then buy their share of SRECs in bulk.