SREC in NJ

[morbidz]

Got a proposal from Tesla for 8.2 kW/2 powerwalls system.
Price includes $4500 discount for signing SREC over to them. Can someone from NJ explain to me like I'm 5 how to deal with SREC?

I also asked them to re-design the system with 12kW/3 powerwalls, even though some panel might end up on the "wrong" side of the roof.

thank you

 

[DrSmile]

You get 1 SREC for every 1000 KWh your system produces. You then sell this SREC on a website for ~$220. For a 8.2 KW system I'd expect you to get about 8-10 SRECs a year assuming you have decent sun exposure. You get paid SRECs for 10 years (currently). As you can see $4500 is way less than you'd make selling the SRECs, although the price of SRECs fluctuates daily. Assuming a steady $220 price for 10 years you should net about $20,000, more than covering the cost of your system after the 30% federal tax credit (never mind the electricity costs you save).

 

[AnonNJ]

DrSmile, my system has not yet been permitted to operate even though it is turned on and working, but I'm told that a production tally becomes available in the Tesla app that then I can use to convert into SRECs.

Can you tell me what the process is like? Right now it is really opaque on the transitioning generated energy into money part.

1. Generate 1000kW Solar.
2. ?
3. Profit.

 

[AnonNJ]

You get 1 SREC for every 1000 KWh your system produces. You then sell this SREC on a website for ~$220. For a 8.2 KW system I'd expect you to get about 8-10 SRECs a year assuming you have decent sun exposure. You get paid SRECs for 10 years (currently). As you can see $4500 is way less than you'd make selling the SRECs, although the price of SRECs fluctuates daily. Assuming a steady $220 price for 10 years you should net about $20,000, more than covering the cost of your system after the 30% federal tax credit (never mind the electricity costs you save).

Or if any other NJ residents know the process, that would be great too.

 

[DrSmile]

DrSmile, my system has not yet been permitted to operate even though it is turned on and working, but I'm told that a production tally becomes available in the Tesla app that then I can use to convert into SRECs.

Can you tell me what the process is like? Right now it is really opaque on the transitioning generated energy into money part.

1. Generate 1000kW Solar.
2. ?
3. Profit.

Operating a solar system without the permit to operate is a big no no. I'd definitely check with your utility before I'd throw the switch.

Once permitted you have to register your system, I think everyone in NJ is supposed to use PJM EIS - Home. You report your production there by the 15th of the month, and you get the SRECs in your account by the end of the month. From there you can sell them to anyone on the system. Tesla should be giving you instruction on all of this, My installer gave me this info after the system went operational. You definitely need the permit to operate letter to register.

 

[AnonNJ]

Operating a solar system without the permit to operate is a big no no. I'd definitely check with your utility before I'd throw the switch.

Once permitted you have to register your system, I think everyone in NJ is supposed to use PJM EIS - Home. You report your production there by the 15th of the month, and you get the SRECs in your account by the end of the month. From there you can sell them to anyone on the system. Tesla should be giving you instruction on all of this, My installer gave me this info after the system went operational. You definitely need the permit to operate letter to register.

This is very helpful information and the missing link. Thank you. I will not register until utility puts net meter and approval in. However, Tesla tells me it is fine that I'm "on" by way of supplying my powerwalls with power from the sun until utility throws the formal switch.