Before revision:  We provide a characterisation of the optimal strategy using the stochastic maximum principle and develop a numerical algorithm to solve this control problem , Based on this numerical solution, we provide detail and intuition for the optimal strategy for a regulated firm .
After revision:  We provide a characterisation of the optimal strategy using the stochastic maximum principle and develop a numerical algorithm to solve this control problem . Through numerical experiments, we explore how a firm who acts optimally behaves under various conditions. We find that an optimal firm's generation and trading behaviour can be separated into various regimes, based on the marginal benefit of obtaining an additional SREC, and validate our theoretical characterization of the optimal strategy. We also conduct parameter sensitivity experiments and conduct comparisons of the optimal strategy to other candidate strategies .