How do SRECS work?

Solar Renewable Energy Certificates

For a comprehensive overview of SRECs in Maryland, check out our online guide!

In states with Renewable Energy Portfolio Standards (RPS), utilities are required to obtain a certain portion of their electricity from renewable energy. This creates a market for renewable energy credits. Solar Renewable Energy Certificates (SRECs) are credits you receive for every 1,000 kWh of electricity produced by a solar energy system.

So, for every 1000 kWh of electricity that your system produces, you receive one SREC that you can sell to your utility. You can sell them indirectly to the utility through SREC “aggregators”, or companies that buy and sell SRECs. There are usually options for selling your SRECs, such as selling your rights to SRECs upfront for a one time larger payment, selling them through a contract overtime at a fixed price, or selling them individually at the current market price.


SREC trade and the Local Energy Alliance’s guide to REC’s are both great resources for learning more about SRECs.