A Solar Renewable Energy Credit (SREC) is a tradable commodity representing the non-polluting value of 1,000-kilowatt hours (kWh) of electricity produced by a solar electric system. The SREC is separate from the value of the electricity itself and permits the owner or purchaser to claim the benefits of the clean energy production by effectively subsidizing the cost of the installed system.

Twenty-nine states and the District of Columbia have enacted Renewable Portfolio Standards (RPS) legislation that requires electric utilities, electricity suppliers and/or electric distribution companies to produce a certain amount of the electricity they sell from renewable sources.

A number of these jurisdictions, including Maryland, have a “solar carve-out” within the RPS requiring a specific percentage for solar production within the state . Any company in Maryland that sells electricity must either produce the required amount of solar electricity from its own assets, purchase SRECs from PV system owners or pay an Alternative Compliance Payment (ACP) into a fund that will be used to support the construction of solar systems in the state.

Maryland’s solar requirement took effect in 2008 requiring approximately 2,500-megawatt hours of solar electric production or 2,500 SRECs. The amount of solar electricity required to be produced increases each year until 2022 at which time solar electricity should account for a full 2% of all the electricity consumed in Maryland.

Suppliers not meeting their obligations are required to pay an Alternative Compliance Payment which effectively sets the maximum value of an SREC on the open market. Maryland’s ACP is $400 per MWh through 2014. A 5 kW solar PV system will produce approximately 6 SRECs per year. Current market prices are approximately $275 per SREC and are likely to remain in the upper $200s for the next several years barring an oversupply of SRECs relative to the utility requirements.

To earn and sell SRECs a system owner needs to apply and be certified as a Renewable Energy Facility by the state Public Service Commission. Once certified, a system owner has several options for selling their SRECs, including agents, brokers, auctions and exchanges.

SRECs are an important part of the financial analysis of a solar investment. It’s a good idea to ask installers and brokers about the current market value of SRECs and how they can help you to maximize your return on investment. [2011 Western MD Solar Tour]

In Thurmont, Maryland Denis and Brienne Superczynski have been working quietly for years on a remodel of their three bedroom home. The couple purchased the 1950’s bungalow style home in 2005. The house is located in a quiet neighborhood in Thurmont Maryland.

They gained 75% more space and, taking advantage of state and federal incentives, spent comparatively little money while massively reducing their energy usage through a variety of active and passive green energy technologies.

Thoughtfully designed, the remodel includes LED lights, clerestory windows and passive solar lighting. Windows are positioned to take best advantage of the sun’s natural heat in the winter months, while roof overhangs block direct sun and help to keep the home cooler in the summer.

 

 

On the roof of the house are six solar panels providing the household with heat and warm water. During the day, water is pumped through a closed system of water tubes that run through the panels, heating water from ground temperature, about 55 degrees, to 165 degrees.

At night the water drains back into a holding tank in the basement. The heated water circulates beneath the floors of the house, providing radiant heat in the winter. Though there is a gas-powered, high-efficiency backup water heater, its use is generally limited to the sunless, shortened days of mid-winter.

Every detail, down to positioning the air conditioning vents in the ceiling (because cool air falls while hot air rises), seems to have been taken in to consideration during the remodel.

Throughout the project the family tried to keep as much of the original hardwood flooring as possible. Some of what had to be removed became a butcher-block style kitchen countertop. Aluminum siding, copper wiring and old roofing shingles removed during construction were all recycled.

The Superczynskis have certainly accounted for nearly every detail. From the obvious solar panels on the roof, to the specifically chosen concrete driveway (asphalt driveways become massive heat islands in the summer), this family has interwoven their comfortable living with 21st century energy technology. [2011 Western MD Solar Tour]

In the countryside of Dickerson, Maryland there are almost as many wind turbines as there are horses. With 10 wind turbines generating about 36 kilowatts, Dr. Carlos Fernandez-Bueno’s farm might be the template for the Frederick County of the twenty first century.

His company, Potomac Wind Energy, sells, installs and services wind turbines for residential, farm and business use in the continental United States and Puerto Rico.  The sky over Dr. Fernandez-Bueno’s farm is shared by windmill designs that span more than a century, and surprisingly very little has changed.

The 1906 Aermotor Windmill, refurbished by Dr. Fernandez-Bueno, provides 2kW with a 10’ diameter and is almost identical to the 2007 Aermotor design. The 2007 Aermotor is larger, and produces more energy, but the form is unchanged in over one hundred years. This 19th century design is still producing energy in the 21st century at recent installations in Adamstown and Finksburg. These windmills wouldn’t look out of place grinding grain in a Hollywood western. The refurbished 1906 model creaks and groans in the wind, while the 2007 design produces little more than a low and gentle whisper.

Towering over the Aermotor windmills are turbines from ReDriven and SkyStream. The largest Redriven turbine on the farm sits atop an 80’ tall tower produces 20kW in the gentle breeze. It’s long, straight blades sprout from an extremely compact nacelle that blends pleasingly into the white clouds and blue sky over the farm. The SkyStream turbines are similar in form, but the fins have a sleek, futuristic curve.

Potomac Wind Energy provides information on state and federal grant and rebate programs on their website at www.potomacwindenergy.com. The also provide professional onsite wind analysis. Special pricing is available for non-profit organizations. [2011 Western MD Solar Tour]