Latest NJ SREC Prices and Market Trends

Discover the latest NJ SREC prices and market trends to maximize your earnings from selling solar credits.

Last updated
June 30, 2024
Author: Matt from Currents
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What are SRECs?

Solar Renewable Energy Certificates (SRECs) are market-based instruments that represent the environmental benefits of generating electricity from solar energy. For every megawatt-hour (MWh) of electricity your solar panels produce, you earn one SREC. These certificates can then be sold or traded separately from the power itself, providing an additional revenue stream for homeowners with solar installations in New Jersey.

Credit Programs in New Jersey

SREC (Solar Renewable Energy Certificate)

  • System Connection Date: Before October 29, 2018
  • Participation:
    • Homeowners with solar panels installed and connected to the grid before the cut-off date would participate in the SREC program.
    • For every megawatt-hour (MWh) of electricity their solar panels generate, they earn one SREC.
  • Price: SREC prices were determined by the market and could fluctuate based on supply and demand. Historically, prices ranged between $200 to $300 per SREC but could vary significantly.
  • Duration: Homeowners could sell their SRECs in the market until the SREC program phased out for new installations.


  • System Connection Date: October 29, 2018, to April 30, 2020
  • Participation:
    • Homeowners who installed solar systems during this period were part of the SREC-II program.
    • Similar to the original SREC program, they earned one SREC-II for each MWh generated.
  • Price: The SREC-II prices also fluctuated in the market but aimed to be more stable. They typically ranged around the same as the original SRECs but with mechanisms in place to reduce extreme volatility.
  • Duration: The SREC-II program was a transitional phase, leading into the TREC program.

TREC (Transition Renewable Energy Certificate)

  • System Connection Date: May 1, 2020, to the present
  • Participation:
    • Homeowners with solar panels installed and connected from May 1, 2020, onward participate in the TREC program.
    • They earn TRECs based on their system’s energy production, with different TREC values assigned depending on the type and location of the installation.
  • Price: TRECs have a fixed price set by the New Jersey Board of Public Utilities (NJBPU). As of the latest update, the fixed price for TRECs is $152 per TREC, which provides more financial predictability compared to the SREC programs.
  • Duration: The TREC program is ongoing until a new long-term solar incentive program is established.

New Jersey TREC program is the current iteration of SRECs

Summary of System Connection Dates and Prices

  • SREC:
    • Connection Date: Before October 29, 2018
    • Price: $200-$300 per SREC (market-based)
  • SREC-II:
    • Connection Date: October 29, 2018, to April 30, 2020
    • Price: Similar to SREC, more stable (market-based)
  • TREC:
    • Connection Date: May 1, 2020, to present
    • Price: $152 per TREC (fixed price)

TREC Factors

The TREC factors are designed to account for the varying benefits and costs associated with different types of solar projects. Here’s how the factors are typically applied:

  1. Residential Rooftop Solar:
    • Factor: 0.6
    • Description: This factor applies to residential rooftop installations. For every MWh of solar energy produced, these systems earn 0.6 TRECs.
  2. Non-Residential Rooftop and Carport Solar:
    • Factor: 0.6
    • Description: This factor applies to non-residential rooftop and carport installations. Similar to residential rooftop systems, they earn 0.6 TRECs per MWh produced.
  3. Ground-Mounted Solar (on landfills, brownfields, or areas of historic fill):
    • Factor: 1.0
    • Description: These installations receive a full TREC (factor of 1.0) for each MWh produced, recognizing the additional benefits of using previously disturbed land.
  4. Ground-Mounted Solar (not on landfills, brownfields, or areas of historic fill):
    • Factor: 0.6
    • Description: For standard ground-mounted systems, the factor is 0.6 TRECs per MWh, similar to rooftop installations.
  5. Community Solar:
    • Factor: 0.85
    • Description: Community solar projects, which often serve multiple customers and provide broader access to solar energy, receive 0.85 TRECs per MWh produced.
  6. Grid-Supply Solar:
    • Factor: 0.6
    • Description: Large-scale solar projects that supply power directly to the grid receive 0.6 TRECs per MWh.

Process of Selling SRECs

  1. Register Your Solar System: Before you can sell SRECs, you need to register your solar energy system with the New Jersey SREC Registration Program (SRP).
  2. Track Your Energy Production: Once registered, your solar system's energy production is tracked. This can be done through a monitoring system that automatically reports the data to the SRP.
  3. Earn SRECs: For every 1,000 kWh (1 MWh) of electricity your system produces, you earn one SREC.
  4. Choose a Market to Sell: You have the option to sell your SRECs through:
  • Spot Market: Sell immediately at the current market rate.
  • Forward Contracts: Lock in a price for future delivery.
  • Auctions: Participate in scheduled auctions.
  1. Complete the Sale: Depending on the platform you choose, follow the specific steps to complete the sale and receive payment.

Use Currents to automate this process and maximize the sale of your New Jersey solar credits.

Factors Affecting NJ SREC Prices

Several factors influence the price of SRECs in New Jersey. Understanding these can help you make informed decisions when selling your SRECs.

Supply and Demand: The balance between the number of SRECs available and the demand from energy suppliers

State Regulations: Changes in New Jersey's renewable energy policies can impact SREC values

Compliance Obligations: Energy suppliers' requirements to meet renewable energy quotas can affect demand for SRECs

Market Trends: Broader market trends, including the availability of federal and state incentives.

For more details on SREC prices in different states, you can explore our pages on SREC Virginia, SREC Illinois, and SREC Maryland.

By keeping an eye on these factors and staying informed about the latest market trends, you can optimize your strategy for selling SRECs and maximize your earnings.

Earn passive income selling your solar credits.

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