New Jersey's newly revised Renewable Portfolio Standard (RPS) requires electricity suppliers provide a percentage of their electricity sales from solar generation. The Board of Public Utilities requires use of the Office of Clean Energy's Solar Renewable Electricity Certificate system to satisfy this mandate. Solar Renewable Energy Certificates (SRECs) represent the renewable attributes of solar generation, bundled in minimum denominations of one megawatt hour of electricity production. New Jersey's SREC program provides a means for solar certificates to be created, verified, tracked, sold to and eventually retired by electric suppliers to meet their solar RPS requirement. All electric suppliers are required to use the SREC program to show compliance with this part of the State's renewable portfolio standard. Launched on June 25, 2004, New Jersey's on-line marketplace for trading SRECs is the first of its kind in the world.

SRECs began accruing from solar generating facilities connected to New Jersey's electric distribution system starting March 1, 2004. This website was established by the Office of Clean Energy to serve as the registry where all solar generators in New Jersey have an electronic account for their SRECs. Solar system owners (generators) that wish to participate in this program must submit a signed Attestation before SRECs will credited to their accounts. For solar generators smaller than 10 kW, an engineering estimate is used to calculate the monthly SREC generation. For solar systems larger than 10 kW, the website allows you to upload monthly meter readings and/or production information into the site. Once SRECs are credited to an individual's account, the solar generator can use an electronic bulletinboard on this website to let others know they have SRECs for sale. Interested buyers can also make a request to buy SRECs on the registry's bulletin board. Buyers and sellers contact each other offline to execute a sale. Once a sale is transacted, the seller will use the website to transfer SRECs to the buyer. Electricity suppliers will also use the website to retire SRECs that have been used to meet their RPS requirements.

The maximum price for an SREC is forecast to be approximately $250 based upon supply and demand forecasts as well as the establishment of a solar alternative compliance mechanism. Solar Alternative Compliance Payments (SACP) allow suppliers to satisfy their requirements by paying $300 per MWh to the NJBPU fund. SRECs are anticipated to compensate New Jersey solar generators at an average rate of $0.20 per kWh generated with a rate impact to individual ratepayers estimated to be $0.00002 per kWh. SREC owners also have the option of recording and retiring SRECs as a personal statement about the need for more clean energy or as a contribution to the environment.