Solar Renewable Energy Credits (SRECs): How to Earn Them

What SRECs are and how they work

One SREC equals 1,000 kWh (1 MWh) of solar production. Utilities and other buyers purchase SRECs to meet state renewable energy requirements. This creates a market where your solar production has two separate sources of value: the electricity itself, which reduces your utility bill or earns you net metering credits, and the environmental attributes of that clean generation, which you can sell as SRECs.

Many states have a renewable portfolio standard (RPS) that requires a share of their electricity to come from renewables. That requirement is what makes utilities buy SRECs. SREC markets only exist in states whose RPS includes a solar carve-out, a rule that a set portion of power must come specifically from solar.

It’s important to understand that SRECs are separate from net metering. Net metering credits your bill for the power you export, while SRECs pay you for the environmental value of producing solar power in the first place. You earn both simultaneously. When your panels produce 1,000 kWh, you get bill savings or credits from your utility and one SREC you can sell for cash.

Which states have active SREC markets in 2026

As of late 2025, homeowners could earn and sell SRECs in Delaware, Washington DC, Illinois, Maryland, Massachusetts, New Jersey, Ohio and Pennsylvania. Virginia also runs an SREC program under the Virginia Clean Economy Act. Some systems in Indiana, Kentucky, Michigan and West Virginia can sell into Ohio’s market, depending on the utility and registry rules.

Not all of these markets are equal. Some states have closed their original SREC programs to new systems. New Jersey and Massachusetts, for example, moved new homeowners into successor incentive programs. If you installed before the program closed, you can still earn SRECs. New systems in those states may be eligible for successor programs with different structures.

California, Texas, Florida, Arizona, and most other states do not have SREC markets. If your state isn’t listed above, SRECs aren’t available to you — but you may have access to other state or utility solar incentives. Check current programs for your area through DSIRE, the national database of state incentives for renewables.

If you’re researching solar before installation, use our installer directory to connect with local solar companies who can confirm whether your state and utility currently support SREC enrollment for new systems.

What SRECs are worth: Prices vary dramatically by state

SREC prices are driven by supply and demand within each state’s market. The state sets the rules, and supply and demand set the price. When SRECs are scarce, prices rise and the incentive becomes worth more.

Washington DC is the most valuable SREC market by far, with 2025 bids around $383. New Jersey SRECs from both 2025 and 2026 have recently traded around $180. Pennsylvania’s 2026 SRECs are trading around $22. On the low end, Ohio SREC prices have historically ranged from $3 to $4 per megawatt-hour.

A typical 10 kW home system produces about 12 SRECs a year. In a high-price market like New Jersey, that can be worth around $2,000 or more annually, while lower-price states may pay somewhere between about $50 and $700 a year.

Each state caps prices through its solar Alternative Compliance Payment (ACP), the penalty a utility owes for every MWh it comes up short. Buying SRECs is cheaper for utilities than paying the ACP. This creates a price ceiling. Utilities won’t pay more for an SREC than they’d pay in ACP fines.

Prices fluctuate over time as new solar capacity comes online and state RPS requirements change. What you earn this year may differ from next year. That’s why some homeowners prefer fixed-price contracts that lock in a rate for multiple years, even if the rate is slightly lower than current spot prices.

How to register your solar system for SRECs

Before your system can earn SRECs, your state’s utility or public service commission usually has to certify it, and then it must be registered with the state’s approved tracking registry.

Once it’s registered with a tracking system such as PJM-GATS or, in Massachusetts, NEPOOL-GIS, SRECs are issued based on meter readings or estimates, depending on state rules. Most residential systems use actual meter data reported automatically from your monitoring platform.

Some installers register you with GATS as part of the job, and others send you to an SREC aggregator. Either way, credits aren’t issued until certification and registration are done. Some installers include this as part of their service. Others expect you to handle it yourself or work with a broker.

If your installer didn’t register your system and you need to do it yourself, you have two options: register directly with your state’s tracking system (PJM-GATS, NEPOOL-GIS, or your state-specific registry), or work with an SREC aggregator who will handle the registration as part of their service. Most homeowners choose the aggregator route because the registration process involves multiple steps, document uploads, and coordination between your state commission and the tracking system.

The registration process generally requires: proof of system ownership, interconnection approval from your utility, inverter make and model, system size in kilowatts, and access to your monitoring platform so production can be reported. If you’re missing any of this information, contact your installer — they should have all of it on file.

How to sell your SRECs: Aggregators, brokers, and contracts

Homeowners rarely sell straight to a utility. Most go through an aggregator or broker such as Xpansiv Managed Solutions (formerly SRECTrade) or Sol Systems. Aggregators pool credits from many homeowners, handle all the paperwork and reporting, and sell to utilities on your behalf.

You can sell all of your system’s future SRECs for one upfront payment, lock in a contract for a set term (often 3, 5 or 10 years), or sell on the spot market as credits are issued.

Spot market sales give you maximum flexibility and the potential for higher earnings when prices spike, but you’re exposed to price drops. Contracts give you a fixed price, which is usually a bit below spot prices. An upfront lump-sum payment eliminates all future earnings but removes all market risk and gives you cash immediately.

When comparing aggregators, pay attention to fees, payment speed, contract flexibility, and customer service. Fees may be flat, a percentage or a mix of both. A flat $2 to $4 per SREC fee may be better than a 5-6% percentage fee if your state has high SREC prices. In lower-priced markets, the percentage fee might cost you less.

Common aggregators include Flett Exchange, Xpansiv Managed Solutions (formerly SRECTrade), Sol Systems, RECmint, and Knollwood Energy. Each operates slightly differently. Some automate everything and require minimal homeowner involvement. Others give you more control over when and how to sell. Compare at least two before choosing.

What happens to SRECs if you lease your panels or sell your home

If you lease your system or have a PPA, the company that owns the panels usually keeps the SRECs too. This is one of the hidden costs of leasing. The leasing company often builds SREC revenue into their financial model, which helps them offer you a lower monthly payment, but you don’t see that income directly.

If you own your system and sell your home, the panels normally go with the house, and the buyer collects the SRECs from then on. However, this isn’t automatic. The system registration and aggregator account are still in your name until you transfer them.

You have two options: transfer the SREC rights to the new homeowner as part of the home sale, or retain the rights yourself if you negotiated that in the purchase agreement. Most buyers expect the SRECs to convey with the home, and including them can make your home more attractive. If you want to keep the rights, make that clear in the listing and purchase contract — and expect it to affect your home’s value.

If you’re buying a home with solar, confirm who owns the system (the homeowner or a lease company) and whether SREC rights transfer with the sale. These details should be in the purchase agreement. For more guidance on solar and home sales, see our article on buying a home with solar panels.

Selling? See selling a house with solar panels.

Tax treatment and common mistakes that cost you money

SREC income is taxable. You’ll receive a 1099 form from your aggregator at the end of the year, and you must report it on your federal and state tax returns. This is ordinary income, not capital gains. If you’re in a high tax bracket, factor that into your projections — a $400 SREC in Washington D.C. might net you $240 to $280 after federal and state taxes.

One of the biggest mistakes homeowners make is failing to register their system at all. If you had panels installed two years ago and never set up SREC registration, you’ve likely lost those credits. Most states have vintage year restrictions — you can only sell SRECs from the year they were generated. Credits from 2024 can’t be sold in 2026 in most markets.

Another common error: signing away your SRECs to your installer for a flat upfront payment without understanding what you’re giving up. Some installers offer $500 to $1,000 cash at installation in exchange for all future SREC rights. In a strong market like D.C. or New Jersey, your system might generate $3,000 to $5,000 or more in SREC income per year for 10 to 15 years. Do the math before you sign.

Finally, don’t assume your installer handled registration unless you’ve confirmed it. Ask directly: “Did you register my system for SRECs? With which aggregator? Do I need to do anything?” If they didn’t, and you want the income, you’ll need to register yourself or hire an aggregator to do it retroactively if your state allows it.

For federal and state credits on the system itself, see our guide to solar and storage tax credits in 2026.