Sol Systems launched an innovative new renewable energy market product, Sol Profit Share, that dedicates at least 5 percent of the net profit to non-profit organizations focused on increasing renewable energy access and sustainability initiatives. Sol Profit Share is now available for all solar renewable energy credit (SREC) owners throughout the United States.
How it works. Sol Profit Share gives customers a way to shield themselves from the price risks of an unpredictable SREC market, while allowing SREC owners to profit when SREC rates increase and simultaneously contribute to equitable clean energy access in underserved communities across the nation. The new product provides the financial security of a fixed price SREC annuity contract, as well as the ability for customers to split the profit with Sol Systems when SREC prices exceed a set threshold, known as the strike price.
“This product changes the playing field in state markets where policy outcomes are uncertain and creates a new option for owners who rely on their SRECs as a source of predictable income,” said Kate Brandus, Sol Systems’ Director of SREC Asset Management. “Perhaps even more importantly, as our nation begins the path toward economic recovery, Sol Profit Share provides solar owners with predictable income and a way to potentially increase that income over time, all while giving back to communities.”
“It’s always been Sol Systems’ mission to expand solar, serve our customers, and improve our communities — and this product accomplishes those objectives,” said Jason Cimpl, Sol Systems’ Vice President of Trading. “We’re especially looking forward to working with our solar installer partners to expand the value of SRECs to include community impact.”
In 37 states across the country, SRECs provide homeowners, small business owners, and municipalities with an income stream from their solar energy systems, which helps to offset their electric bills and pay for their solar arrays. SRECs are a state market-based financial incentive to build solar, enabling customers to go solar by providing them with cash flows that make solar energy a sustainable, financially responsible, and cost-effective choice.
Other options. Sol Profit Share is just one contract option Sol Systems offers to SREC owners. Other options include:
Sol Brokerage: Sol Systems sells your SRECs at the highest prices available on the open market and provides routine payment for each SREC produced based on the sale price.
Sol Annuity: Sol Systems provides a long-term contract that gives customers a fixed, quarterly payment for each SREC produced, even if the SREC market falls.