srec prices ma nj and dc

2019 SREC prices: explaining how to sell your RECs in the U.S.

Reading Time: 3 minutes

What are SRECs?

If you’ve been researching the best solar energy incentives available in 2019, you have likely heard something about solar renewable energy credits (SRECs). SRECs are a tradable commodity that you obtain from owning a solar panel system and producing clean energy. Because of a common state requirement known as the Renewable Portfolio Standard (RPS), many utilities must generate a certain percentage of their energy from renewable sources, typically at least 20 percent. In several states and Washington D.C., the RPS specifies that a certain percentage of the renewable energy produced must come from solar power. States with this type of “solar carve-out” are willing to pay significant amounts of money to take credit for the power generated by solar homeowners.

One renewable energy credit (REC) is equal to 1 megawatt hour of energy produced (1,000 kilowatt hours), which means that the average solar panel installation garners anywhere between three and seven SRECs in a given year. Depending on the price offered in your state, cashing in on your SRECs could be a yearly payoff of several thousand dollars. If you’re considering solar, you’re probably wondering: where are the best available SREC prices, and what causes those prices to fluctuate?

Why do SREC prices change?

One important concept that can help you understand how SREC prices are determined is the alternative compliance payment (ACP), which can be understood as a fine given to utilities who do not meet the state’s Renewable Portfolio Standard targets. A state’s solar ACP, or SACP, has a determinant impact on the price of SRECs. The SACP effectively sets a price ceiling for SRECs – utilities will buy SRECs to meet their RPS requirements, but they won’t pay more for them than the fine would cost. Thus, some of the best markets for SRECs are those that have the highest ACPs and the steepest incentive for utilities to buy from solar homeowners.

Like other intangible commodities such as a share in publicly traded stock, SRECs are bought and sold online through an intermediary, often referred to as SREC aggregators. The top platforms for buying and selling SRECs are SREC Trade and Knollwood Energy. Some solar installers, financing companies, and other organizations will also purchase SRECs from you up front to reduce your out-of-pocket installation costs. For example, Delaware’s SREC market is now entirely run through it’s retail electricity behemoth Delmarva Power. The primary benefit of selling your SRECs through an installer or solar financier is that you reduce your risk in exchange for immediate returns. You will likely get a lower payout for an SREC when selling directly to an installer or financing company, but you will get the immediate cash without any uncertainty.


Similar to stock prices, SRECs that are sold through aggregators have volatile pricing and will fluctuate over time. Policy changes such as increases or decreases in a state’s RPS goal or changes to ACPs for utilities can have immediate and drastic impacts on SREC pricing in a specific market. In other words, a state can become a commodity market for SRECs, or an unattractive market, practically overnight. Thus, the pro of using an online aggregator is the potential for greater returns for your SRECs but the con is increased risk.

Top SREC markets: NJ, MA and DC

If we use price as the key indicator, the best SREC markets in the U.S. for homeowners are Washington D.C., New Jersey and Massachusetts. To date, these are all the active SREC markets in the United States and the current and former prices for SRECs in each market:

Active U.S. REC markets with solar carve-out programs

SREC Market2019 SREC Price
Washington DC$405
New Jersey$230

*Prices accurate as of July 2019

In general, SREC prices fall each year, although there are always exceptions. This is to be expected as more solar power is installed in each of these states – it signals that there is a greater supply of SRECs in the market, which means that utilities are closer to reaching their RPS goals. Low prices can also indicate that the fines for not submitting RECs specifically for solar are unsubstantial. The other takeaway, however, is that the NJ, MA and D.C. SREC markets are still paying off major dividends for your PV credits and with prices likely to continue to fall, there is no better time to go solar than now.

It should be noted that for homeowners considering solar in states that have active SREC markets, you are only eligible to sell SRECs if you own your solar panels. Thus, if you choose to finance your PV system with a lease or power purchase agreement, you will not be eligible for this incentive that can net you $1,000 or more a year in top SREC states.

The typical solar homeowner in an SREC market like NJ, MA or DC is likely to see somewhere between $1,000 and $2,000 from SRECs on top of their federal ITC rebate, state rebate and net metering bill credits. To see what solar would cost you based on your roof and competing offers in your town, try our Solar Calculator. If you’re ready to start looking at real quotes from pre-screened local installers, register your property on the EnergySage Solar Marketplace.


10 thoughts on “2019 SREC prices: explaining how to sell your RECs in the U.S.

  1. Frank K.

    House Bill 1436 became Law – June 2016. ACT 40 was inserted into it to stop all out of state generated House Bill 1436 became Law – June 2016. ACT 40
    Was made law to stop all out of state generated PV solar SRECS from being sold in PA. This measure is one way in which our state officials (Godshall) are trying to correct the poorly functioning and badly designed solar market place in PA. But as of today (17 Mar 2017) no enforcement is being done to stop complete without any grandfather clause electric supplier in PA from buying SREC from out of state.
    At this point I believe Act 40 lack of enforcement has been is due to the out of state interest which has deliberately stalled ACT 40 and making this a legal battle. Again the solar investors, business and people of PA have not been represented properly over the years and are disregarded and bullied by interest from other states and electric companies. Now is the chance to correct things!!
    Act 40 of the House Bill 1436 was written and intended to stop out of state generation purchases by electric suppliers for the good of the PV solar in PA. This Idea of having SRECS made and purchase within PA is the basis almost all PJM members (a regional transmission organization (RTO) in the United States. It is part of the Eastern Interconnection grid operating an electric transmission system serving all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia) market place.
    If the Electric supplier in PA are continued to be allowed to buy SRECS from out of state the people in PA will be allowing their solar efforts and jobs to go to other states where they will develop their own solar jobs on our dime.
    I have repeatedly heard that other states solar suppliers have targeted PA because we allow our electric suppliers. This is how the system in PA has been incorrectly structured and Act 40 is a way to correct this mistake and allow PA to stop sending our solar jobs to other states. Right now Solar is run by each state rules not by the Federal government or ruling body. It’s the duty of state government and Public Utility Commission and advocacy groups to fight for PV solar here in PA. The sprite of alternative energy protocol standard of 2014 was to build solar in PA should be upheld and is a good thing to do.

    Frank K.

  2. Will Dean

    Another reason for the drop in SREC prices is because there are solar installations that do not sell their SRECs and the default position is the local utility picks up those unclaimed SRECs for free.

  3. Pete S.

    In late 2017 I had paid in full for my 20 panel 6500W system here in Massachusetts and had it turned on Jan 2018. I was not aware there was a deadline to sell my credits. On Feb 12 2019 I created an account on SRECTrade and they told me that unfortunately I will loose all my SREC-II credits previous to Oct 2018 since there are deadlines for selling my RECs (Renewable Energy Credits).

    Has anyone had a similar experience and is there any way to get these credits back?

  4. Roger Robbins

    Just got my $2.75 for my latest sold SREC in Va. Why the vast difference in prices from one state to another?
    Selling SREC’s factor into figuring payback on a solar system, we get much less than our estimated sales figure. I understand it varies, but why are they bring over $300. in Mass and DC, but less than $3.00 in Va, anybody know?

  5. charles Creancy

    I am selling my house and have REC’s.
    I am in nevada to whom should I sell them

Leave a Reply

Your email address will not be published. Required fields are marked *