Congratulations! Your solar energy system is now up and running, and if you purchased your system with cash or a loan, you’re ready to start earning Solar Renewable Energy Credits (SRECs). The next step in your solar journey is to choose the right SREC broker to manage and sell your credits. Like choosing a stockbroker, selecting the right SREC broker can significantly impact your returns.
In this post, we’ll discuss some popular SREC brokers available, including Sol Systems, SRECTrade, and Flett Exchange, to help you make an informed decision.
Understanding SREC Brokerage Fees
When you choose an SREC broker, it’s important to understand that they typically take a percentage of each trade, similar to how stockbrokers operate. This fee compensates them for managing the sale of your SRECs, navigating the market, and ensuring you get the best possible price. The exact percentage varies between brokers, but it’s a standard practice in the industry. Your goal should be to find a broker that balances fair fees with excellent service and market expertise.
Once you select one, Uprise will handle all the registration paperwork for you.
Sol Systems
Overview: Sol Systems is a Washington, DC-based company with a strong reputation in the solar industry. They’ve been in business for over 15 years. As DC’s SREC program officially launched in 2008, Sol Systems has been part of the local SREC market since the beginning. Most of Uprise’s customers go with Sol Systems.
Pros:
- Local Expertise: Based in DC, Sol Systems has an intimate understanding of the local SREC market, and can help you navigate specific regulations.
- Long-Term Stability: With years of experience and a solid reputation, Sol Systems offers reliability for long-term SREC management.
- Excellent Customer Service: Sol Systems receives great reviews on Google, with customers saying the team is responsive, professional, and helpful. In our experience, their team prefers email and responds faster that way.
- Monthly Payouts: Sol Systems makes payments to you monthly, albeit on a slightly delayed schedule (if your system generates an SREC in January, for example, you’ll receive the payment in March). That delayed schedule is due to the reporting window determined by the Generation Attribute Tracking System (GATS), which is the system that tracks whenever your solar array generates one megawatt.
- Reasonable Costs: Sol Systems’ brokerage fees are 7% of the SREC sale price (which works out to be around $28 in DC, assuming a $400 SREC price).
Cons:
- Variable Rates: Sol Systems’ rates seem to change more often than other brokers. The 7% brokerage fee mentioned above just went into effect last month.
- Less Flexibility: Sol Systems is less flexible with large group registrations, which won’t impact a single residential user, but can impact larger solar companies.
- In all honesty, it was difficult for our team to identify glaring cons for Sol Systems while writing this blog post.
SRECTrade
Overview: SRECTrade is one of the largest SREC brokers in the country, and they’ve also been around since 2008. They provide a streamlined and efficient platform for managing your SRECs. They also keep their website updated with the latest market prices, providing a useful tool for you as you research the SREC market.
Pros:
- User-Friendly Platform: SRECTrade’s online platform is designed for ease of use, making it simple to manage your SRECs and track your earnings without a steep learning curve.
- Extensive Network: As a major player in the market, SRECTrade has a wide network, which can lead to better pricing for your SRECs.
- Monthly Payouts: Like Sol Systems, SRECTrade pays you the money you made from your SRECs monthly, on that same schedule determined by GATS.
- Monitoring: SRECTrade has a dedicated reporting team who keep an eye on your system. They’ll catch equipment failures, such as a faulty microinverter or a WiFi disconnect. Since Uprise will be monitoring your system as well, you’ll be doubly covered.
Cons:
- Less 5-Star Reviews: SRECTrade doesn’t receive as many good reviews online as Sol Systems. They do have dedicated customer service teams for each state, and most of their employees are customer representatives. As DC isn’t a state, we’re covered by the Maryland team.
- Higher Brokerage Fee: SRECTrade’s brokerage fee for residential systems is 10% (which would be about $40 for a $400 SREC).
- Not Local: SRECTrade’s offices are in San Francisco, California, and Somerville, Massachusetts, with employees around the country.
Flett Exchange
Overview: Flett Exchange is a smaller, independent brokerage firm, and offers the lowest cost option of the three firms mentioned here. They’ve been around since 2007.
Pros:
- Transparent Pricing: Flett Exchange is committed to transparency, with clear and upfront pricing structures so you know exactly what you’re getting into.
- Competitive Fees: Their fees are more competitive than larger brokers, helping you maximize your overall earnings. Their brokerage fee is 3% of the SREC sale price (or $12 for a $400 SREC).
- Personalized Attention: As a smaller firm, Flett Exchange can offer customized service, benefiting homeowners who prefer a more hands-on approach. Flett Exchange receives mainly positive online reviews, with users noting how easy they make the process.
Cons:
- Limited Market Influence: Since they’re a smaller firm, Flett Exchange may not have the same market reach as larger brokers, which could impact the price you receive for your SRECs.
- No Online Portal: While Flett Exchange provides the essentials, they lack some of the advanced tools offered by larger competitors, notably an online portal. Instead, they provide email summaries of how much money you’ve made from your SRECs.
- Not Local: Flett Exchange is based in Hoboken, New Jersey.
Final Thoughts On Choosing Your SREC Broker
Choosing the right SREC broker involves balancing the cost of services with the level of expertise and support you’ll receive. Sol Systems offers local knowledge and excellent service, making it a great choice for those prioritizing support and reliability. SRECTrade’s user-friendly platform and extensive network make it a strong option for those looking to maximize returns. Finally, Flett Exchange offers competitive pricing and personalized attention, ideal for customers who appreciate transparency and a more tailored approach.
Take your time to research each option, and consider your long-term goals and personal preferences before making your decision. With the right broker, you can maximize the financial benefits of your solar investment. And we’re happy to talk with you more about your options or about SRECs! Call us at 202-750-5718 or schedule a free consultation here.