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SREC Markets — How They Function and Trends

February 1, 2012

Title: Solar Renewable Energy Certificate (SREC) Markets: Status and Trends
Authors: Lori Bird, Jenny Heeter, and Claire Kreycik, NREL

This paper examines experience in solar renewable energy certificate (SREC) markets in the United States. It describes how SREC markets function—key policy design provisions, eligible technologies, state and regional eligibility rules, solar alternative compliance payments, measurement and verification methods, long-term contracting provisions, and rate caps. It also examines the trends of SREC markets—trading volumes, sourcing trends, trends in the size of solar PV systems driven by these markets, and trends in price and compliance. Throughout, the paper explores key issues and challenges facing SREC markets and attempts by policymakers to address some of these market barriers.

—Jim Leyshon