{"id":14980,"date":"2025-05-12T07:05:16","date_gmt":"2025-05-12T07:05:16","guid":{"rendered":"https:\/\/finderica.com\/?p=14980"},"modified":"2025-05-12T07:05:16","modified_gmt":"2025-05-12T07:05:16","slug":"what-to-know-about-srecs-and-solar-panels","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=14980","title":{"rendered":"What to Know About SRECs and Solar Panels"},"content":{"rendered":"<div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">In certain states,  Solar Renewable Energy Certificates, or SRECs, provide an incentive to residential solar customers. SRECs are separate from grants or <\/span><span class=\"_28z5Fp _3-to_p\">solar tax benefits<\/span><span class=\"_28z5Fp _3-to_p\"> and offer a financial benefit beyond the potential savings homeowners might see by using their own solar energy. Here\u2019s what potential solar customers need to know about SRECs.<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">SRECs are digital documents that certify that energy was produced using solar power. They are tracked in databases and can be traded or sold, similar to stocks, as their value fluctuates with the market. In this way, homeowners with solar panels can earn money from their solar systems<\/span><button type=\"button\" aria-expanded=\"false\" aria-controls=\"nw-aria-ssr-6-4-1\" aria-haspopup=\"dialog\" data-currency=\"PopoverDisclosure\" class=\"Ay_QNo\"><span class=\"_32SMwQ\" aria-hidden=\"true\"><\/span><span class=\"_21EZtY _28z5Fp _2JIHTU vLzrnO\" data-currency=\"Link\" target=\"_self\"><sup>[0]<\/sup><\/span><\/button><span id=\"nw-aria-ssr-6-4-1\" hidden=\"\" style=\"display:none;position:fixed;left:100%;top:100%\" role=\"dialog\" tabindex=\"0\" data-dialog=\"true\" class=\"_3NQ2Lf\"><span style=\"font-size:30px;width:1em;height:1em;pointer-events:none;bottom:100%\" class=\"qytd5D _3c_2vo\" aria-hidden=\"true\"><\/span><\/span><span class=\"_28z5Fp _3-to_p\">.<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">Some states require utility companies to generate a certain percentage of their energy from sustainable sources (known as a renewable portfolio standard). However, once electricity is added to a power grid, it\u2019s impossible to determine where and how it was generated. <\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">These states can use SRECs to track <\/span><span class=\"_28z5Fp _3-to_p\">how much energy was produced with solar panels<\/span><span class=\"_28z5Fp _3-to_p\">, which helps energy providers hit their targets and lets consumers earn credits for producing solar energy. Currently, eight states and Washington D.C. use SRECs, including Delaware, <\/span><span class=\"_28z5Fp _3-to_p\">Illinois<\/span><span class=\"_28z5Fp _3-to_p\">, Massachusetts, Maryland, New Jersey, <\/span><span class=\"_28z5Fp _3-to_p\">Ohio<\/span><span class=\"_28z5Fp _3-to_p\">, Pennsylvania and Virginia. Other states, like Kentucky, Michigan, Indiana and West Virginia, have areas that are eligible to earn SRECs and sell them in another state\u2019s marketplace<\/span><button type=\"button\" aria-expanded=\"false\" aria-controls=\"nw-aria-ssr-6-10-1\" aria-haspopup=\"dialog\" data-currency=\"PopoverDisclosure\" class=\"Ay_QNo\"><span class=\"_32SMwQ\" aria-hidden=\"true\"><\/span><span class=\"_21EZtY _28z5Fp _2JIHTU vLzrnO\" data-currency=\"Link\" target=\"_self\"><sup>[0]<\/sup><\/span><\/button><span id=\"nw-aria-ssr-6-10-1\" hidden=\"\" style=\"display:none;position:fixed;left:100%;top:100%\" role=\"dialog\" tabindex=\"0\" data-dialog=\"true\" class=\"_3NQ2Lf\"><span style=\"font-size:30px;width:1em;height:1em;pointer-events:none;bottom:100%\" class=\"qytd5D _3c_2vo\" aria-hidden=\"true\"><\/span><\/span><span class=\"_28z5Fp _3-to_p\">. <\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<h2 class=\"_3P4ktl zeCuXk _28z5Fp _2w4PM3 _1My7YX\" data-currency=\"Text\"><span class=\"_3P4ktl zeCuXk _28z5Fp _3-to_p\">How do you earn solar renewable energy credits?<\/span><\/h2>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">When you have solar panels in an eligible state, you earn one SREC for each megawatt-hour (1,000 kilowatt-hours) of electricity you generate<\/span><button type=\"button\" aria-expanded=\"false\" aria-controls=\"nw-aria-ssr-6-12-1\" aria-haspopup=\"dialog\" data-currency=\"PopoverDisclosure\" class=\"Ay_QNo\"><span class=\"_32SMwQ\" aria-hidden=\"true\"><\/span><span class=\"_21EZtY _28z5Fp _2JIHTU vLzrnO\" data-currency=\"Link\" target=\"_self\"><sup>[0]<\/sup><\/span><\/button><span id=\"nw-aria-ssr-6-12-1\" hidden=\"\" style=\"display:none;position:fixed;left:100%;top:100%\" role=\"dialog\" tabindex=\"0\" data-dialog=\"true\" class=\"_3NQ2Lf\"><span style=\"font-size:30px;width:1em;height:1em;pointer-events:none;bottom:100%\" class=\"qytd5D _3c_2vo\" aria-hidden=\"true\"><\/span><\/span><span class=\"_28z5Fp _3-to_p\">. For example, if you have 10 solar panels that can produce 500 watts each, you could generate up to 6,000kWh per year in Ohio. That equals 6MWh, which earns six SRECs. <\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">Your system\u2019s output determines how many SRECs you\u2019ll earn, which depends on how sunny your location is, the angle of your roof and how many solar panels you install. <\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<h2 class=\"_3P4ktl zeCuXk _28z5Fp _2w4PM3 _1My7YX\" data-currency=\"Text\"><span class=\"_3P4ktl zeCuXk _28z5Fp _3-to_p\">What can you do with SRECs?<\/span><\/h2>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">State SREC programs vary, but state programs and independent SREC brokerages allow you to trade or sell your SRECs. Similar to stocks, you can hold the SRECs until their value changes or sell them for cash, allowing companies to hit their renewable generation targets<\/span><button type=\"button\" aria-expanded=\"false\" aria-controls=\"nw-aria-ssr-6-15-1\" aria-haspopup=\"dialog\" data-currency=\"PopoverDisclosure\" class=\"Ay_QNo\"><span class=\"_32SMwQ\" aria-hidden=\"true\"><\/span><span class=\"_21EZtY _28z5Fp _2JIHTU vLzrnO\" data-currency=\"Link\" target=\"_self\"><sup>[0]<\/sup><\/span><\/button><span id=\"nw-aria-ssr-6-15-1\" hidden=\"\" style=\"display:none;position:fixed;left:100%;top:100%\" role=\"dialog\" tabindex=\"0\" data-dialog=\"true\" class=\"_3NQ2Lf\"><span style=\"font-size:30px;width:1em;height:1em;pointer-events:none;bottom:100%\" class=\"qytd5D _3c_2vo\" aria-hidden=\"true\"><\/span><\/span><span class=\"_28z5Fp _3-to_p\">.<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<div>\n<div class=\"_3LOQui PIqV0k wnPEbn BgIPML _1WkR_n paYFr8 _1SNXHI _1voSX6 _3xUsF1 oE4ByK _119vwC knwpyt aylhii\">\n<p><span class=\"_3P4ktl zeCuXk _28z5Fp _1My7YX\" data-currency=\"Text\">\ud83e\udd13<\/span><span class=\"_3P4ktl _2LuWPZ _28z5Fp N36gAq\" data-currency=\"Text\">Nerdy Tip<\/span><\/p>\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">Some SRECs have a shelf life and can expire, so you might need to sell them within a few years or miss out entirely on a profit.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"_3VJt4n\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">Common options for SRECs include:<\/span><\/p>\n<\/div>\n<div class=\"_3VJt4n\">\n<ul data-currency=\"List\" class=\"_2cGsD8\">\n<li class=\"_3ho7K- _1pCihN olf-Ig\">\n<div class=\"_3wlVa6 _2247K8\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_3VmbAf _28z5Fp _3-to_p\"><span class=\"_3VmbAf _28z5Fp _3-to_p\">Preselling SRECs to offset the cost of installation. <\/span><\/span><span class=\"_28z5Fp _3-to_p\">Some state programs like Illinois Shines let you pre-sell your SRECs as part of your installation. Instead of receiving a check for your SRECs, you can use the value to defray some of <\/span><span class=\"_28z5Fp _3-to_p\">the cost of installing solar panels<\/span><span class=\"_28z5Fp _3-to_p\">.<\/span><\/p>\n<\/div>\n<\/li>\n<li class=\"_3ho7K- _1pCihN olf-Ig\">\n<div class=\"_3wlVa6 _2247K8\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_3VmbAf _28z5Fp _3-to_p\"><span class=\"_3VmbAf _28z5Fp _3-to_p\">Preselling SRECs for upfront payment.<\/span><\/span><span class=\"_28z5Fp _3-to_p\"> Instead of applying the value of future SRECs to the cost of installation, working with an SREC aggregator allows you<\/span><span class=\"_3VmbAf _28z5Fp _3-to_p\"><span class=\"_3VmbAf _28z5Fp _3-to_p\"> <\/span><\/span><span class=\"_28z5Fp _3-to_p\">to sell the advanced rights to your SRECs for the next 15 years. You get paid upfront but are hedging that the price of SRECs won\u2019t go up.<\/span><\/p>\n<\/div>\n<\/li>\n<li class=\"_3ho7K- _1pCihN olf-Ig\">\n<div class=\"_3wlVa6 _2247K8\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_3VmbAf _28z5Fp _3-to_p\"><span class=\"_3VmbAf _28z5Fp _3-to_p\">Locking in an SREC price.<\/span><\/span><span class=\"_28z5Fp _3-to_p\"> If you\u2019re worried about the value of SRECs dropping, you can lock in a price for one to five years with SREC aggregators.<\/span><\/p>\n<\/div>\n<\/li>\n<li class=\"_3ho7K- _1pCihN olf-Ig\">\n<div class=\"_3wlVa6 _2247K8\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_3VmbAf _28z5Fp _3-to_p\"><span class=\"_3VmbAf _28z5Fp _3-to_p\">Holding and trading SRECs as prices change.<\/span><\/span><span class=\"_28z5Fp _3-to_p\"> You can also hang on to your SRECs and sell them when the market value is higher, but you risk their value falling in the future.<\/span><\/p>\n<\/div>\n<\/li>\n<\/ul>\n<\/div>\n<div class=\"_3wlVa6 _2247K8\">\n<div class=\"_3wlVa6 _2247K8\">\n<p><span class=\"_3P4ktl zeCuXk _28z5Fp _1My7YX\" data-currency=\"Text\">Frequently asked questions<\/span><\/p>\n<div class=\"_3wlVa6 _2247K8 _2_3eV4 ebRntp\">\n<div class=\"_3wlVa6 _2247K8 _2_3eV4 _2xadhC\"><span class=\"_28z5Fp _2yIVG9\" style=\"font-weight:325\" aria-expanded=\"false\" role=\"button\" tabindex=\"0\"><\/p>\n<div class=\"_3wlVa6 _2247K8 PIqV0k _1hjp6k _2lZbKL _2vcpA4 _1TDqyw VvvxU3\">\n<div class=\"_3wlVa6 _2247K8\">\n<p>What is a solar renewable energy certificate (SREC)?<\/p>\n<\/div>\n<p><svg viewbox=\"0 0 16 16\" aria-hidden=\"true\" class=\"_2VV_pT _3wDFNi _2ulGkX\" fill=\"currentcolor\" focusable=\"false\" style=\"font-size:1.3em;min-width:1em\"><path d=\"M7.557 10.854a.5.5 0 00.707 0l4.59-4.59a.5.5 0 00-.708-.707l-4.239 4.24-4.244-4.245a.498.498 0 10-.704.704l4.598 4.598z\"><\/path><\/svg><\/div>\n<p><\/span><\/p>\n<div class=\"ReactCollapse--collapse\" style=\"overflow:hidden;height:0\">\n<div class=\"ReactCollapse--content\">\n<div class=\"_3wlVa6 _2247K8 _3ZnmUT paYFr8\" style=\"font-weight:325\">\n<div class=\"_3wlVa6 _2247K8\">\n<div class=\"_3wlVa6 _2247K8\">\n<div class=\"_3wlVa6 _2247K8\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">An SREC is a credit that homeowners can sell, certifying that their solar systems produced 1 megawatt-hour of electricity. In states that have an SREC market, utility providers who don\u2019t meet the Renewable Portfolio Standard by their own production choose to buy SRECs to avoid penalties for not reaching their renewable energy targets.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"_3wlVa6 _2247K8 _2_3eV4 _2xadhC\"><span class=\"_28z5Fp _2yIVG9\" style=\"font-weight:325\" aria-expanded=\"false\" role=\"button\" tabindex=\"0\"><\/p>\n<div class=\"_3wlVa6 _2247K8 PIqV0k _1hjp6k _2lZbKL _2vcpA4 _1TDqyw VvvxU3\">\n<div class=\"_3wlVa6 _2247K8\">\n<p>Which states have REC markets with a solar carve-out?<\/p>\n<\/div>\n<p><svg viewbox=\"0 0 16 16\" aria-hidden=\"true\" class=\"_2VV_pT _3wDFNi _2ulGkX\" fill=\"currentcolor\" focusable=\"false\" style=\"font-size:1.3em;min-width:1em\"><path d=\"M7.557 10.854a.5.5 0 00.707 0l4.59-4.59a.5.5 0 00-.708-.707l-4.239 4.24-4.244-4.245a.498.498 0 10-.704.704l4.598 4.598z\"><\/path><\/svg><\/div>\n<p><\/span><\/p>\n<div class=\"ReactCollapse--collapse\" style=\"overflow:hidden;height:0\">\n<div class=\"ReactCollapse--content\">\n<div class=\"_3wlVa6 _2247K8 _3ZnmUT paYFr8\" style=\"font-weight:325\">\n<div class=\"_3wlVa6 _2247K8\">\n<div class=\"_3wlVa6 _2247K8\">\n<div class=\"_3wlVa6 _2247K8\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">As of May 2025, there are SREC markets in Ohio, Illinois, Maryland, Delaware, Massachusetts, New Jersey, Pennsylvania, Virginia and Washington, D.C. Other states, like Kentucky, Michigan, Indiana and West Virginia, have areas that are eligible to earn SRECs and sell them in another state\u2019s marketplace.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"_3wlVa6 _2247K8 _2_3eV4 _2xadhC\"><span class=\"_28z5Fp _2yIVG9\" style=\"font-weight:325\" aria-expanded=\"false\" role=\"button\" tabindex=\"0\"><\/p>\n<div class=\"_3wlVa6 _2247K8 PIqV0k _1hjp6k _2lZbKL _2vcpA4 _1TDqyw VvvxU3\">\n<div class=\"_3wlVa6 _2247K8\">\n<p>How much are SRECs worth?<\/p>\n<\/div>\n<p><svg viewbox=\"0 0 16 16\" aria-hidden=\"true\" class=\"_2VV_pT _3wDFNi _2ulGkX\" fill=\"currentcolor\" focusable=\"false\" style=\"font-size:1.3em;min-width:1em\"><path d=\"M7.557 10.854a.5.5 0 00.707 0l4.59-4.59a.5.5 0 00-.708-.707l-4.239 4.24-4.244-4.245a.498.498 0 10-.704.704l4.598 4.598z\"><\/path><\/svg><\/div>\n<p><\/span><\/p>\n<div class=\"ReactCollapse--collapse\" style=\"overflow:hidden;height:0\">\n<div class=\"ReactCollapse--content\">\n<div class=\"_3wlVa6 _2247K8 _3ZnmUT paYFr8\" style=\"font-weight:325\">\n<div class=\"_3wlVa6 _2247K8\">\n<div class=\"_3wlVa6 _2247K8\">\n<div class=\"_3wlVa6 _2247K8\">\n<p class=\"_28z5Fp _3-to_p\"><span class=\"_28z5Fp _3-to_p\">As of May 2025, the lowest price for an SREC was $2.50 in Ohio, and the highest was $415 in Washington, D.C., but these prices change frequently.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"_3wlVa6 _2247K8\">\n<div class=\"_3wlVa6 _2247K8\" style=\"display:none\">\n<p>What is a solar renewable energy certificate (SREC)?<\/p>\n<div class=\"_3wlVa6 _2247K8\">\n<p class=\"_28z5Fp _3-to_p\">An SREC is a credit that homeowners can sell, certifying that their solar systems produced 1 megawatt-hour of electricity. In states that have an SREC market, utility providers who don\u2019t meet the Renewable Portfolio Standard by their own production choose to buy SRECs to avoid penalties for not reaching their renewable energy targets.<\/p>\n<\/div>\n<\/div>\n<div class=\"_3wlVa6 _2247K8\" style=\"display:none\">\n<p>Which states have REC markets with a solar carve-out?<\/p>\n<div class=\"_3wlVa6 _2247K8\">\n<p class=\"_28z5Fp _3-to_p\">As of May 2025, there are SREC markets in Ohio, Illinois, Maryland, Delaware, Massachusetts, New Jersey, Pennsylvania, Virginia and Washington, D.C. Other states, like Kentucky, Michigan, Indiana and West Virginia, have areas that are eligible to earn SRECs and sell them in another state\u2019s marketplace.<\/p>\n<\/div>\n<\/div>\n<div class=\"_3wlVa6 _2247K8\" style=\"display:none\">\n<p>How much are SRECs worth?<\/p>\n<div class=\"_3wlVa6 _2247K8\">\n<p class=\"_28z5Fp _3-to_p\">As of May 2025, the lowest price for an SREC was $2.50 in Ohio, and the highest was $415 in Washington, D.C., but these prices change frequently.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.nerdwallet.com\/article\/mortgages\/solar-renewable-energy-credit-srec\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In certain states, Solar Renewable Energy Certificates, or SRECs, provide an incentive to residential solar customers. SRECs are separate from grants or solar tax benefits and offer a financial benefit beyond the potential savings homeowners might see by using their own solar energy. Here\u2019s what potential solar customers need to know about SRECs. SRECs are<\/p>\n","protected":false},"author":1,"featured_media":14981,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[195],"tags":[345,344,6156],"class_list":{"0":"post-14980","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-panels","9":"tag-solar","10":"tag-srecs"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/14980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14980"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/14980\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/14981"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}