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Establishment of a base price for the Solar Renewable Energy Credit (SREC) from the perspective of residents and state governments in the United States

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  • Lee, Minhyun
  • Hong, Taehoon
  • Yoo, Hyunji
  • Koo, Choongwan
  • Kim, Jimin
  • Jeong, Kwangbok
  • Jeong, Jaewook
  • Ji, Changyoon

Abstract

Solar Renewable Energy Certificates (SREC) in the United States (U.S.) have become an important driver for promoting the solar photovoltaic (PV) system. However, the SREC price volatility is considered the major barrier for installing the solar PV system due to the uncertainty of the revenue from selling the SREC. To address this challenge, this study aimed to establish a base price for SREC in order to encourage the installation of residential solar PV systems in the U.S. Toward this end, this study conducted the life cycle cost analysis to establish the minimum SREC prices required for reaching the target payback period of the residential solar PV system in the U.S. In addition, this study conducted the comparative analysis from the perspectives of residents and state governments by considering the SREC prices. This study was conducted in four steps: (i) target selection; (ii) data collection; (iii) defining assumptions; and (iv) establishing the minimum SREC prices. The results showed that Massachusetts and New Jersey are the most superior state from the perspective of both residents and state governments. This study can help both residents and state governments to get financial advice for installing solar PV system and improving the SREC-related policies.

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  • Lee, Minhyun & Hong, Taehoon & Yoo, Hyunji & Koo, Choongwan & Kim, Jimin & Jeong, Kwangbok & Jeong, Jaewook & Ji, Changyoon, 2017. "Establishment of a base price for the Solar Renewable Energy Credit (SREC) from the perspective of residents and state governments in the United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 1066-1080.
    • Handle: RePEc:eee:rensus:v:75:y:2017:i:c:p:1066-1080
    DOI: 10.1016/j.rser.2016.11.086
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    5. Lee, Minhyun & Hong, Taehoon & Jeong, Jaewook & Jeong, Kwangbok, 2018. "Development of a rooftop solar photovoltaic rating system considering the technical and economic suitability criteria at the building level," Energy, Elsevier, vol. 160(C), pages 213-224.
    6. Lee, Minhyun & Hong, Taehoon & Jeong, Kwangbok & Kim, Jimin, 2018. "A bottom-up approach for estimating the economic potential of the rooftop solar photovoltaic system considering the spatial and temporal diversity," Applied Energy, Elsevier, vol. 232(C), pages 640-656.
    7. Yoo, Hyunji & Hong, Taehoon & Jeong, Kwangbok & Ji, Changyoon, 2018. "Estimation of the optimal government rebate for promoting the photovoltaic system in multi-family housing complexes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 720-728.
    8. Martina Assereto & Julie Byrne, 2020. "The Implications of Policy Uncertainty on Solar Photovoltaic Investment," Energies, MDPI, vol. 13(23), pages 1-20, November.

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