SRECs: What are solar renewable energy credits?

Solar renewable energy certificates (SRECs) can add significant income for solar energy system owners in eligible markets. That said, SRECs are a state-level incentive that only exists in places where the policy framework supports them.

If you do live in a state that has an SREC market, the extra income you can earn is just one example of how going solar can benefit you financially for years to come. When you invest in a solar energy system, you're signing up for additional monetary benefits—like SRECs—that go beyond saving on your monthly electric bill.

Let's break down the basics of buying and selling SRECs, where active markets exist, and a few different ways to sell yours.

Solar renewable energy certificates (SRECs) are performance-based solar incentives that allow you to earn additional income from your home's solar energy production. As a homeowner, you earn one SREC for every megawatt-hour (MWh), or 1,000 kilowatt-hours (kWh), of electricity your solar panel system generates.

SRECs exist because of state regulations known as renewable portfolio standards (RPS), which require utilities to produce a specific percentage of their electricity from renewable energy sources. To meet those requirements, utilities must earn or purchase renewable energy certificates (RECs).

RECs prove that a utility has either produced renewable electricity or paid someone who is producing it for the right to "count" that electricity toward its own generation activities. An SREC is simply the solar-specific version of a REC.

SRECs and system ownership

This is worth noting clearly: You must own your solar system to claim SRECs directly. If you financed your system with a loan or paid cash, the SRECs are yours. But if you signed a solar lease or a power purchase agreement (PPA), or during the first six-ish years of a pre-paid lease or PPA, the company that owns the system collects any SRECs your panels generate. They can pass those savings onto you in the form of lower payments, but it's worth asking how that's handled if you live in an area with an active SREC market.

If you live in a state with an SREC market, you typically won't sell your certificates to a utility directly. Instead, you'll work with an SREC aggregator or broker—like Xpansiv Managed Solutions (formerly SRECTrade) or Sol Systems—to monetize your SRECs.

The value of an SREC varies from state to state and primarily depends on two factors:

Not every state has a renewable portfolio standard, and even those that do may not have a solar carve-out. Depending on where you live, a 10 kW solar panel system will produce roughly 11 to 16 MWh of electricity annually, which translates to 11 to 16 SRECs per year. As shown in the table below, this can dramatically improve the financial return of solar in some markets—and be worth less than $100 annually in others.

Below is a list of states with active SREC markets, along with the average SREC price and estimated annual earnings:

*SREC prices reflect current 2026 market values sourced from Flett Exchange and Xpansiv Managed Solutions. Prices fluctuate and may vary by vintage year and system registration date.

**Annual earnings assume 11–13 certificates per year based on a 10 kW system.

A few notes on specific markets worth knowing:

Another option is pre-selling your SRECs. Some SREC brokers, solar installers, and financing companies offer options to pre-sell the rights to your SRECs for a lump sum. Essentially, you lock in a fixed price per certificate for a set number of years (typically three to 15 years).

There are several trade-offs to consider.

Advantages of pre-selling SRECs

Disadvantages of pre-selling SRECs

Before deciding whether to sell your SRECs on the spot market or pre-sell them, it's worth understanding your state's current market conditions and long-term trajectory. Markets that look lucrative today—like D.C.—may see prices shift as more solar comes online and the ACP schedule declines over time. Markets that look modest today—like Virginia—may grow as the state's RPS carve-out continues to increase.

To research current prices and historical trends, Xpansiv Managed Solutions (formerly SRECTrade) and Flett Exchange are good starting points. Ultimately, your decision comes down to how much market risk you're comfortable with versus how much certainty you need.