What are solar renewable energy credits (SREC)?

 SRECs are credits that are associated with the production of megawatt -hour of electricity.  Electric companies and suppliers in many states are required by law to supply a percentage of their electricity from solar energy.  They can achieve this by producing their own solar power or by purchasing SRECs. As a solar system owner, you can sell SRECs to electric suppliers. An aggregator company would issue you quarterly checks based on the amount of credits your system produces.