Solar Design and Installation
301 E. Harford Street, Milford, PA 18337
(570) 500-BEAR (2327)
The state of Pennsylvania offers a smart incentive program under SRECs for residential solar buyers in the state. As part of this program, Pennsylvania residents are given a credit for every megawatt-hour of solar power they generate through the year. Generally speaking, the more solar energy they produce, the more money they get. The SREC incentive is above and beyond the net metering incentive that residents receive by diverting their excess solar power to the grid.
How SREC's work
Solar renewable energy certificates (SRECs) are tradable certificates earned by home solar owners for every megawatt-hour of solar energy they produce. They are similar to carbon credits.
The state of Pennsylvania has mandated that all utility companies in the state produce at least 18% of their electricity from renewable sources. Further, 0.5% of this renewable energy target must be sourced from solar power.
Utilities fulfill this mandatory requirement by buying SRECs from home solar customers for a price. So, residents can sell the SRECs they earn to utility companies and pocket a substantial profit.
The SREC prices vary from time to time as per the demand-supply dynamics prevalent at the time of the trade. In the summer of 2021, the Pennsylvania SRECs were trading at around $40 each.
To give you an idea of how much money you can make by selling SRECs, let’s suppose that you have a 9kW solar system. You will generate roughly 10MW of power annually, which qualifies you for 10 SRECs.
Residents can then sell $40 per SREC, you get a flat $400 annually. When added over a decade, $4,000 of additional income is an appealing deal by any measure.