California Market Overview

California

Market Overview 

Carbon Solutions Group (CSG) is focused on helping solar owners monetize Solar Renewable Energy Credits (SRECs).

What is an SREC?

SRECs are, or will be, generated by your solar array for every MWh your system produces. These credits only represent the environmental attributes of the power you produce, and we are not seeking to purchase the power. 

How does this process work?

We partner with your solar installer to ensure a seamless process. We receive information about your system from your solar installer and provide you with a customized contract proposal for your system. 

Our contract proposals are emailed via DocuSign straight to your email. If you have any questions about the proposal or the SREC process, please do not hesitate to contact us (contact information listed below). 

The registration process begins after a system has been interconnected and the solar owner has signed a REC contract. California requires systems to be registered with the state of California and WREGIS (A REC generating and tracking system). This process generally takes between 1 - 3 months. Upon system registration, CSG will send payment to the customer within 60 days of all registrations being approved and the first REC being delivered.

Contract Terms

Full Upfront - One Upfront Lump-Sum Payment

This option is one payment upfront. This is a “pre-payment” for 15 years of SRECs generated. We calculate this payment based on your DC size. Payment occurs within 60 days of all registrations being approved and the first REC being delivered. $40 kW DC. 

Market Based -Current Market Rate Minus Brokerage

The payment amount will fluctuate with the market pricing. We will sell your SRECs (based on the actual production) at least once per year. CSG charges 10% brokerage to fulfill these contracts and a $5 per transaction processing fee per transaction. Market rates are volatile but have traded around $10-15 per REC recently but have been as low as $5. This is a 15 year contract with auto-renewal. 

Short Term Locked-In Rate -Fixed Price per SREC with a shorter term

This option has a locked-in price per SREC and offers a shorter term. You will be paid annually between December and February based on your previous year’s actual production.

California Market Details

Market Overview

The California SREC Market is an open voluntary market where prices are determined by market forces. 

Eligibility Start Date

Facilities will be eligible to generate renewable energy credits upon system registration with WREGIS (REC generating and tracking system).

Frequently Asked Questions

Q: Who is CSG?

A: Carbon Solutions Group (CSG) is an Aggregator of SRECs across the US. CSG has been working in the renewable credit industry for over 15 years. Our focus is on helping solar array owners monetize their Renewable Energy Credits (RECs). CSG partners with local installers to create a seamless offering that gives you options with regard to how and when you receive the value generated by the RECs from your array. We currently service approximately 20,000 customers across 12 states. 

Q: What are SRECs?

A: SRECs are, or will be, generated by your solar array for every MWh that your system produces. These credits only represent the environmental attributes of the power you produce, and we are not seeking to purchase the power from the system itself. A short video provides more information here.

For clarification, we do not buy solar generation but rather the green attributes that your system production represents. You will retain all energy production. What we buy is the Solar Renewable Energy Credits (SRECs). Think of SRECs as certificates that represent that 1 MWh of solar energy was produced.

Q: How is my power bill impacted?

A: Your power bill is unaffected by SRECs. SRECs are "Solar Renewable Energy Credits," representing the environmental attributes of the power you produce. You will not see any changes on your utility bill. Selling your SRECs has no impact on Net Metering.

You can participate in both Net Metering and sell SRECs at the same time. This is because Net Metering involves excess energy production, whereby you can receive a credit from your electricity supplier. SRECs are solely the environmental attributes, so if you use all of your production or put it back on the grid for others to consume, it does not impact your SREC production or ability to sell them. SREC brokering and Net Metering are separate incentive programs that allow solar owners to make back money.

Q: How does this impact Net Metering?

A: Selling your SRECs has no impact on Net Metering. You can participate in both Net Metering and sell SRECs at the same time. This is because Net Metering involves excess energy production, whereby you can receive a credit from your electricity supplier.

SRECs are solely the environmental attributes, so if you use all of your production or put it back on the grid for others to consume, it does not impact your SREC production or ability to sell them. SREC brokering and Net Metering are separate incentive programs that allow solar owners to make back money.

Q: What are CSG Fees?

A: Depending on the contract option you select, we'll either offer a bundled fixed price offering that includes our commission, a market based-price that we would deduct our commission from, or a one time prepay upfront payment.  

Q: What are my obligations?

A: If you agree to a contract, then you would be agreeing to provide meter readings from your array on a consistent basis for the term of your contract. Depending on your inverter, online monitoring may satisfy this requirement.

Q: Can I sell my SRECs in a state market I don't live in?

A: It depends! Some markets do allow for systems located outside that state to participate. However, it is usually at a lower tier or class of the market, substantially less than the "in-state" price. CSG will register your system in the highest-priced market that your system is eligible to receive. Every state market has different eligibility requirements, and your system may not qualify. Check out our SRECS by State sections for more information.