What Is an SREC? Solar Renewable Energy Certificates Explained

In a handful of states, your solar system doesn't just save you money on your electric bill — it can generate a separate income stream through SRECs.

The basic mechanism

A Solar Renewable Energy Certificate (SREC) is created for every megawatt-hour (1,000 kWh) of solar electricity your system produces, regardless of whether you use that power yourself or export it. Utilities in states with a Renewable Portfolio Standard (a legal requirement to source a percentage of electricity from renewables) need to acquire a certain number of SRECs each year to stay compliant, and they buy them from solar system owners like you through a marketplace, broker, or state-run auction.

Which states have active SREC markets

New Jersey, Illinois, Pennsylvania, Maryland, Massachusetts, Ohio, and Washington DC are the most established SREC markets as of 2026, though program specifics (registration process, certificate prices, program duration) vary meaningfully by state. New Jersey's SuSI program and Illinois Shines are two of the more structured, predictable programs currently running.

How much SRECs are actually worth

SREC prices fluctuate based on supply and demand within each state's specific market — historically ranging anywhere from roughly $20 to $400+ per certificate depending on the state and year. This is genuinely variable and market-dependent, so treat any specific dollar figure you're quoted as an estimate, not a guarantee, and ask whether your state's program locks in a price (like NJ's SuSI 15-year fixed rate) or floats with the market.

How to actually get paid

Most homeowners in SREC states use a broker or aggregator (sometimes arranged through the installer at signing) that registers your system, tracks production, and sells certificates on your behalf for a commission — genuinely handling it yourself through a state marketplace is possible in some states but adds administrative overhead most homeowners skip.