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Understanding Solar Renewable Energy Credits (SRECS)

SRECS are an incentive to support solar power creation by increasing the economic gains from solar.

SRECs in Washington DC and some nearby areas of Maryland increase the benefits of solar power systems by thousands of dollars a year.

A typical homeowner will generate between $2,000 and $6,000 a year in gains from DC SRECs!

Learn what SRECS are, how SRECS work, and how you can benefit from SRECS.

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Why should I care about SRECS? What's in it for me?

If you own property in DC or qualifying areas of nearby Maryland, these valuable incentives allow you to either buy your own system and pay it off in as little as four years or you can choose to let our investors pay for a system for you and get the power for free or get free roof repair and half-price power.

The SRECs are valuable enough that our investors will give you the power for free, or pay to repair or replace your roof and deliver power to your for less than half the price that PEPCO charges.

If you are in Maryland but do not qualify for DC SRECs, you will still qualify for Maryland SRECs and, although they are less valuable than DC SRECs, they will increase your gains from solar.

What are SRECS?

SRECS are a way for utility companies to pay homeowners to help create solar power efficiently

Several states and Washington DC require public electric providers (like PEPCO) to meet renewable portfolio standards with a solar carve-out. This means they must produce a certain amount of power with solar or pay a penalty. 

It is more efficient to produce solar power on the roof where it is used so there is no need to build costly infrastrucutre for transmission.

To create the most solar power at the lowest cost, governments authorize Solar Renewable Energy Credits. These credits are created when someone generates solar power, one credit per megawatt hour of power generated.

Instead of building remote solar farms and expensive transmission infrastructure, utility companies can support creation of rooftop solar by buying SRECs from rooftop system owners.

How much are SRECS worth?

SREC values vary depending on the state where they are generated. SCREC values for Washington, DC and qualifying areas of nearly Maryland are the highest in the country, around $440 per 1,000 kw hours.

Currently, an average home in DC with rooftop solar will generate $2,000 to $6,000 worth of SRECS a year.

Some areas in Maryland near DC qualify for DC SRECS. For property owners outside the area that is eligible for DC SRECS.

Several other states already have SREC programs and many more are expected to follow. 

Maryland has its own SREC program.  Maryland SRECS are currently worth around $50 per kw.

DC 2024 SREC Prices

Bid prices by month for 2024 DC Solar Renewable Energy Credits

 The 2024 Solar Alternative Compliance Payment (SACP) is $480  per Megawatt.

Utilities must create new solar capacity, buy SRECs or pay the SACP.

graph showing months on y axis, value of Washington DC SRECS (Solar Renewable Energy Credits) on X axis

How are SREC prices set?

SRECs are tradeable. You can buy and sell them like any other asset. Why are they valuable? 

The main buyers are utility companies that need to either buy SRECS or build solar capacity to meet requirements set by the DC government. If they don’t, they have to pay a penalty that is set by law.

In 2024, that penalty amount is $480 per kw. So utility companies could pay up to $479 per SREC. But the actual price is the result of supply and demand in an open market. Currently, DC SRECS are selling for about $440.

In 15 years, the penalty will be $300. Our solar savings models estimate that DC SRECS will be worth $225 in 15 years.

 

How can I generate SRECS?

You can get a rooftop solar power system installed by Advanced Solar. We will help you register to get your SRECs. For every one 1,000 kw hour of power you generate in a year, you earn one SREC. A typical DC rowhouse will generate between 4 and 15 SRECs depending on size, shading, and roof obstructions. These will be worth between $2,000 and $6,000 a year.

This income, combined with energy savings and the federal renewable investment tax credit can pay for your system in as little as four years. And we can help you get loan financing for the entire project and pay your loan with cash flow from the system.

How can I sell my SRECS?

Utility companies are the only end buyers for SRECs, but they do not buy directly from system owners. System owners use brokers to sell their SRECs. Typically, SREC brokers can charge as much as 10%.

Advanced Solar’s partner company, Advanced SRECs, will sell your SRECs for you.

Our fees are much lower than our competition. If you would like to try us out for three years, we will charge you 6% the first year, 5% the second year, and 4% the third year. Contact us at info@advanced.solar for details.

Learn more about free power & free roof repair deals

Find out how much you can save with zero cost solar or free roof repair and half-price power and compare with the gains of owning your own system and selling SRECs.

We will design a system, model your solar savings and show you the best options.

Schedule your free consultation!