Yes, the income from the SRECs is taxable. While the IRS does not mention SRECs specifically, in IRS Pub. 525 - Taxable and Nontaxable Income they state that "an amount included in your income is taxable unless it is specifically exempted by law."
You can enter this income as Miscellaneous Income using these steps.
- Click on Federal > Wages & Income
- In the Less Common Income section , click on the Start/Update box next to Miscellaneous Income, 1099-A, 1099-C
- On the Miscellaneous Income screen, click on the Start/Revisit box next to Other reportable income.
- On the Any Other Taxable Income? screen, click the Yes box.
- Enter the income on the Other Taxable Income screen, along with a description. Click Continue.
- You will be brought to the Other Miscellaneous Income Summary. If you have no more miscellaneous income to report, click Done.
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