Solar SREC Revenue Calculator

Plan SREC cashflow for solar installations and upgrades. Adjust production, pricing, escalation, and downtime today. Print tables, export files, and share results with teams.

Calculator Inputs

Enter project values to estimate SREC revenue and NPV.
Choose how annual energy is defined.
Example: 100 kW rooftop array.
Used when selecting annual energy method.
Annual kWh = kW × yield × (1 − downtime).
Accounts for outages, shading, curtailment, or reporting gaps.
Commonly 1 SREC = 1,000 kWh. Adjust if required.
Use your market price or contract value.
Limit set to 40 years for planning realism.
Typical PV degradation ranges 0.3%–0.8% per year.
Use positive for growth, negative for decline.
Optional cost to estimate net revenue.
Used to compute NPV of net cashflows.
Results appear below the header after you calculate.

Example Data Table

Sample scenarios for quick comparison. Values are illustrative.
Scenario System (kW) Annual kWh SREC Price kWh/SREC Year 1 SRECs Year 1 Gross
Rooftop retail 100 140,000 $30.00 1,000 140.000 $4,200.00
Warehouse canopy 250 350,000 $22.50 1,000 350.000 $7,875.00
Construction office trailer 25 33,000 $45.00 1,000 33.000 $1,485.00
If your program uses a different SREC definition, update kWh per SREC.

Formula Used

  • Effective annual energy: kWh₁ = kWh × (1 − downtime)
  • Annual degradation: kWhᵧ = kWh₁ × (1 − d)^(y − 1)
  • SRECs generated: SRECᵧ = kWhᵧ ÷ (kWh per SREC)
  • SREC price trend: Priceᵧ = Price₁ × (1 + g)^(y − 1)
  • Gross revenue: Grossᵧ = SRECᵧ × Priceᵧ
  • Net revenue: Netᵧ = Grossᵧ − O&M
  • Present value: PVᵧ = Netᵧ ÷ (1 + r)^y
  • NPV: NPV = Σ PVᵧ
d = degradation rate, g = price change rate, r = discount rate, y = year number.

How to Use This Calculator

  1. Enter the system size and choose an energy input method.
  2. Provide annual energy or specific yield, then set downtime.
  3. Enter your kWh-per-SREC rule and the SREC market price.
  4. Set the term, degradation, and any annual price change.
  5. Add annual O&M cost and a discount rate for NPV.
  6. Click Calculate to show results below the header.
  7. Use Download CSV or Download PDF to save the report.

SREC revenue drivers in project finance

SREC revenue is governed by eligible production, reporting rules, and contract pricing. This calculator converts annual energy into certificates using the selected kWh-per-SREC factor, then applies downtime to reflect outages, curtailment, and monitoring gaps. For construction budgets, treat Year 1 results as a baseline for bid comparisons and owner payback discussions. Include any broker fees or registry charges separately if they are deducted from SREC proceeds.

Energy estimation for installed systems

When meter data exists, use annual kWh to mirror verified performance. For early-stage planning, specific yield links array size to expected kWh, useful for rooftop and canopy designs. Downtime can be set to match commissioning delays or seasonal access constraints. The example table shows how system scale and price shifts change first-year gross revenue materially.

Degradation, escalation, and term effects

Annual degradation reduces kWh each year, lowering SRECs even when pricing stays flat. Price change can model declining market values or contractual escalators. Over longer terms, small percentage changes compound, so the yearly breakdown helps identify inflection years. Use term length to match program eligibility windows or negotiated contract durations on multi-year projects. For conservative estimates, apply a negative price change and shorter terms to stress-test cashflow.

Net revenue and O&M budgeting

Gross revenue is reduced by annual O&M to estimate net cash available to the project. Enter cleaning, inverter servicing, monitoring fees, or insurance adders as a single yearly amount. If O&M is seasonal, use an average value to keep cashflow comparable across alternatives. Net figures support budget forecasts, change-order justification, and lifecycle cost narratives for stakeholders.

NPV and reporting for approvals

NPV discounts yearly net cashflows using the selected rate to reflect time value of money. Higher discount rates reduce present value, which can be important for capital committee reviews. Export CSV for full audit trails and handoff to estimating teams, and export PDF for quick client summaries. Store reports alongside project files to keep assumptions transparent during procurement and closeout.

FAQs

What does kWh per SREC mean?

It is the energy required to create one certificate. Many programs use 1,000 kWh per SREC. If your registry uses a different conversion, enter that value to keep SREC counts correct.

When should I use annual kWh versus specific yield?

Use annual kWh when you have metered or modeled production for the exact site. Use specific yield during early design, when you only know system size and an expected kWh per kW-year.

How do I account for commissioning delays or seasonal shutdowns?

Increase downtime to represent months not producing or not reported. For a half-year start, a 50% downtime is a quick approximation, then refine with measured data once the system operates.

Why is NPV lower than total net revenue?

NPV discounts future net cashflows to today’s value using your discount rate. Cash received later is worth less in present terms, so NPV will usually be below the simple sum of net revenue.

Can I include broker, registry, or verification fees?

Yes. Add recurring fees into annual O&M, or reduce the SREC price to a net price after deductions. Use one consistent approach so CSV and PDF reports remain easy to audit.

Does the calculator guarantee actual market revenue?

No. It estimates revenue based on your inputs and assumptions. Market prices, eligibility rules, and production vary by program and site. Use it for planning, then confirm with local program documents and contracts.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.