Understanding Solar Renewable Energy Credits (SRECs)

As solar energy expands across the U.S., understanding SRECs—Solar Renewable Energy Credits—has become essential for system owners and energy market watchers alike. In this quick guide, we break down what SRECs are, how they work, how much they’re worth in different states, and the key facts you need to know in 2025.

WHAT ARE SRECs?

Solar Renewable Energy Credits (SRECs) represent the clean environmental attributes produced by a solar PV system. 

1 REC = 1 megawatt-hour (or 1,000 kilowatt-hours) of solar PV energy produced. SRECs are intangible digital certificates and separate from the electricity

generation component. Solar system owners

can sell their SRECs for additional revenue.

KEY SREC FACTS 

1. 1 SREC = 1 MWh of solar electricity.

2. A typical 10 kW rooftop solar system generates around 12 SRECs per year.

3. SRECs are sold separately from electricity—meaning you can keep the power but still sell the environmental value.

4. Value is determined by market supply and demand mechanics

5. Facilities must be certified by a state to sell SRECs—you must register your solar system with the local SREC market (e.g., Maryland PSC for Maryland SRECs).

WHAT'S AN SREC WORTH? (AS OF APRIL 2025)

Prices vary significantly by state based on policy strength and market maturity. Here’s a snapshot of estimated SREC values across different U.S. states:

📥 Download the 1-Page SREC Overview

SREC 1-pager.pdf

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