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. Learn more about SRECS.