Upfront SREC Payments

An Upfront Payment gives solar owners the option to take a one-time lump sum payment instead of owning and selling SRECs in the market. SRECTrade partners with buyers interested in making upfront payments for SRECs to help solar projects complete their financing.

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Current Upfront Bids:
Upfront Payments are currently only available in the following states:

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How It Works
The standard Upfront Payment has a 10-year term, after which the owner will re-gain control of the SRECs produced by the facility. Although the term/price could vary depending on the interest of the buyer, the most common option is a simple 10-year Upfront.

Payments are calculated in $ per watt. For example, a 10 kW facility that is offered a 10-year Upfront Payment of $1.00 per watt will recieve $10,000 towards the installation of the solar facility. In return, the rights to the SRECs for 10-years are handed over to the buyer.

Size limitations may be placed depending on the preferences of the buyer. For example, in some states, such as New Jersey, a buyer may prefer to limit to facilities under 10 kW where estimated generation can be used to produce SRECs, alleviating the need for reporting. In other cases, buyers may not have the resources to fund the upfront payment of SRECs produced by large facilities. 

SRECTrade provides a standard contract that can be executed up to 30 days prior to installation. Payment is delivered to the customer upon approval in the SREC program which could be as much as 60-90 days after installation. 

Sellers
Despite the success that SRECs have played in promoting the growth of solar, they are still a complex and variable commodity that may be cause for hesitation for some potential solar owners. The upfront lump sum cash payment for the SRECs gives potential solar owners an option to avoid the SREC market all together and take down the upfront cost of the solar system significantly.   

Buyers
The upfront purchase of SRECs represents a triple bottom-line investment. Capital providers are able to invest directly in solar projects that have the environmental impact in reducing carbon emissions, while also having the social impact of reducing our dependency on foriegn energy. The upfront cash payment enables these solar projects and provides a future cash flow to the investor that results in strong positive returns. 

For more information, please contact us.