A Solar Renewable Energy Credit (SREC) represents the environmental and social benefits of generating one megawatt-hour (MWh) of electricity from solar energy. SRECs are separate from the actual electricity your panels produce — they are tradeable certificates that can be sold on an open market for additional income.
Many states have Renewable Portfolio Standards (RPS) that require utilities to source a certain percentage of their electricity from renewable sources. To meet these requirements, utilities can either generate renewable energy themselves or purchase SRECs from solar system owners like you. This creates a market where homeowners can sell their SRECs for real money.
The value of SRECs varies significantly by state and market conditions. In states with strong solar mandates — like New Jersey and Maryland — SRECs have historically been worth $50 to $300 or more per credit. Over a year, a typical 8 kW residential system might generate 8–10 SRECs, providing meaningful supplemental income.
To participate, homeowners register their solar system with their state's SREC tracking platform. Credits are automatically generated based on verified electricity production data from your system's meter. You can sell SRECs through an aggregator, broker, or directly to utilities.
SREC programs effectively lower the total cost of solar ownership and can shorten the payback period by several years, making solar accessible to more homeowners across the Northeast.