What is an SREC and how do I earn money from it?

A Solar Renewable Energy Certificate (SREC) represents one megawatt-hour (1,000 kWh) of solar electricity produced. Utilities in some states must purchase SRECs to meet renewable portfolio standards. A 10 kW system producing 12,000 kWh/year generates about 12 SRECs annually. SREC prices range from $5 in oversupplied markets to $300+ in states like New Jersey and Massachusetts.

Which states have the best SREC programs?

New Jersey, Massachusetts, Maryland, Washington DC, and Pennsylvania have historically offered the highest SREC prices ($50–$400/SREC). Illinois and Ohio have active SREC markets as well. California, Texas, and Florida do not have SREC programs. SREC prices fluctuate with supply and demand — check current spot prices on SREC brokerage platforms before projecting income.

What states have SREC markets?

Active SREC markets exist in New Jersey, Massachusetts, Maryland, Ohio, Pennsylvania, Washington DC, and several other eastern states with Renewable Portfolio Standards (RPS) requiring utilities to source a percentage of power from solar. SREC prices vary dramatically by state — from $20–50 in oversupplied markets to $200–400+ in constrained markets like NJ and DC.

How often do SRECs pay out?

Your solar system generates one SREC for every 1,000 kWh produced. A typical 8 kW system in NJ generates about 9–10 SRECs per year. You can sell SRECs through aggregators, brokers, or bilateral contracts. Most homeowners sell quarterly or annually. In strong markets, SREC income can add $500–3,000+/year to your solar financial return.

SREC Value Calculator

Calculate how much revenue your solar system can earn by selling Solar Renewable Energy Credits (SRECs). One SREC is generated for every 1,000 kWh your system produces and can be sold in eligible state markets.

Production (kWh/yr)

SREC Price ($/MWh)

Years (yrs)

About This Calculator

Solar Renewable Energy Credits (SRECs) are tradable certificates that represent the environmental attributes of 1 megawatt-hour (1,000 kWh) of solar electricity generation. In states with Renewable Portfolio Standards (RPS) that include a solar carve-out — including New Jersey, Maryland, Massachusetts, Ohio, Pennsylvania, and Washington D.C. — utilities must purchase a certain number of SRECs each year or pay a Solar Alternative Compliance Payment (SACP). Homeowners with registered solar systems earn one SREC per MWh produced and can sell them on the open market, creating a significant additional revenue stream on top of electricity savings.

SREC prices are highly volatile and vary dramatically by state. New Jersey SRECs have traded anywhere from $150 to over $300 per MWh in recent years; Massachusetts SRECs (under the SMART program) operate on a fixed tariff rather than an open market; D.C. SRECs have traded above $400/MWh due to a high SACP. Price depends on supply (how many systems are registered), demand (utility compliance requirements), and market mechanics. Because prices fluctuate, many homeowners choose to aggregate their SRECs through a broker or aggregator who provides price stability in exchange for a small commission.

To register for SREC trading, your system must be enrolled in your state's SREC program through a certified registrar — typically SRECTrade, FlexEnergy, or your state's PUC portal. Registration is usually free and your installer may handle it. Your meter data is used to generate SRECs quarterly or annually. SREC eligibility typically requires the system to be no more than 10–15 years old (varies by state), and some programs cap eligible system sizes. Check your state's program rules carefully before counting on SREC revenue in your financial projections.

In states with active SREC markets, this income stream can reduce effective payback period by 1–3 years and add $2,000–$5,000 in total additional revenue over a 10-year horizon on a typical residential system. It is one of the most overlooked financial incentives in solar — and one of the most state-specific, making local research essential.

Calculations based on NREL solar modeling data and industry-standard assumptions, built and maintained by the independent SolarToolsOnline research team.

Estimates only — not financial, tax, or legal advice. Verify important results with a licensed solar installer or financial professional before making decisions.