SRECs for Pennsylvania Residents
The program enables system owners to earn additional income from their production.
Pennsylvania SRECs Explained
As a Pennsylvania resident, you have the opportunity to participate in the state’s solar energy program, which includes a system called Solar Renewable Energy Certificates (SRECs).
When you install a solar energy system on your property and generate electricity, you also create SRECs. These certificates represent the environmental benefits of your solar production, and you can sell them to energy suppliers to help them meet their renewable energy requirements.
Essentially, by generating solar power, you can earn credits that you can sell to energy companies. The value of these credits varies depending on market demand and supply. By participating in the SREC program, you not only contribute to a cleaner environment but also have the potential to earn additional income from your solar energy system.
PECO, for example, is required to source a certain percentage of its electricity from renewable energy sources. By participating in the SREC program, you can help PECO meet its renewable energy requirements and earn money in the process.
How is the value of an SREC determined?
The value of an SREC is determined by the market forces of supply and demand. The supply of SRECs is dependent on the amount of solar energy that is generated and the corresponding amount of SRECs that are created. The demand for SRECs is determined by the state’s Renewable Portfolio Standard (RPS) requirements, which mandate that a certain percentage of electricity sold in the state must come from renewable energy sources, such as solar.
If the supply of SRECs is greater than the demand, then the price of SRECs will decrease. Conversely, if the demand for SRECs is greater than the supply, then the price of SRECs will increase. Additionally, other factors such as the cost of solar installation, government incentives, and market regulations can also affect the value of SRECs. Overall, the value of an SREC is subject to fluctuations based on various market factors, making it a variable component of a solar energy system’s financial benefit.
How do I sell my SRECs?
Solar States will set you up through an online brokerage, SRECTrade.
What is the price of a PA SREC at this moment?
How do Pennsylvania SREC prices compare to other states?
Lower, at the time of this writing. New Jersey SRECs are currently (as of writing) valued at $223. Pennsylvania: $48. Still, the additional income adds up and accelerates the payback period of your investment.
What is the Pennsylvania Alternative Energy Portfolio?
The Pennsylvania Alternative Energy Portfolio Standards (AEPS) is a state policy that was enacted in 2004 to encourage the development and use of alternative energy sources in Pennsylvania. The AEPS requires that a certain percentage of the electricity sold in Pennsylvania must come from alternative energy sources, such as wind, solar, geothermal, and low-impact hydroelectric power.
The percentage of electricity that must come from these sources gradually increases over time.
To comply with the AEPS, electric distribution companies like PECO are required to purchase a certain number of Alternative Energy Credits (AECs) each year, which are created when alternative energy is generated and delivered to the grid.
(Video) What your PECO bill looks like after going solar
Questions?
About Solar States
Solar States is a solar installer and educator based in Philadelphia, Pennsylvania. We are a certified B-Corp and Best for the World Nominee in both 2018 and 2019. We can install solar on any roof – residential or commercial – in Pennsylvania, New Jersey, or Maryland. If you have any questions about a transition to a sustainable energy system for your property, we can answer them.
Founded with a dual mission to install solar and educate the next generation.
