Home network, single server domain controller, .local domain: how to create my own SSL certs for my network?

[LloydGM]

I have a home network with a single Server 2012 R2 server, Active Directory configured with a .local domain, and all Win 7/8 workstations are domain members. I want to use SSL on my server so I can use HTTPS for my home web and also for media servers like Plex. I know I can buy a cert from VeriSign, etc., but can I configure my server so I can issue my own certs so they're trusted only on my network? If so, would I be going down the path of somehow installing my own root CA? Or is that what is meant by "self signed certs"?

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