SRECs in 2026: What Solar Renewable Energy Credits Are and How to Earn and Sell Them

Quick takeaways

• An SREC is a “proof-of-generation” credit for solar electricity. In most programs, 1 SREC = 1 MWh (1,000 kWh) of solar production. (This is the same basic unit used for renewable energy certificates generally.)
• SRECs exist because many states require utilities to buy a certain amount of renewable (and sometimes solar) electricity. Utilities can meet part of that requirement by buying credits like SRECs.
• Markets and rules vary a lot by location, and programs change. Always confirm eligibility and rules for your state before assuming SREC revenue.

What is an SREC?

A Solar Renewable Energy Credit (SREC) is a certificate that represents a fixed amount of solar electricity generated—most commonly 1 megawatt-hour (MWh). Homeowners (or system owners) can sell these credits in markets where utilities need them for compliance [blocked]. The underlying idea is simple: solar generation is measured and verified, and the “credit” can be traded separately from the electricity itself.

Why do SRECs exist?

Many U.S. states use renewable portfolio standards (RPS)—policies that require utilities to supply a minimum share of their electricity from renewable sources. Some states also add a solar-specific requirement, which is where SRECs commonly show up.

Utilities can comply by:

• building or buying renewable electricity, and/or
• buying verified credits (RECs/SRECs) tied to renewable production.

If a utility can’t meet its requirement, it may have to pay a penalty (often called an alternative compliance payment), which tends to create an upper bound on how high SREC prices can go in that market.

Where do SRECs apply?

SRECs are not universal. Some places have:

• tradable SREC markets (credits bought/sold at market prices), while others use
• fixed-price solar REC programs or other incentive structures, and some have none.

A practical way to confirm what applies to you:

• Start with the U.S. Environmental Protection Agency overview page on SRECs: EPA: Solar Renewable Energy Certificates (SRECs).
• Then check a market operator or broker page for your state (examples below).

Examples of market pages (useful for eligibility checks and program basics):

• SRECTrade: Washington, D.C. SREC market page
• SRECTrade: Maryland SREC market page

(Programs change. Treat any single list you find online as a starting point, not a guarantee.)

Who “owns” the SRECs: you, or someone else?

This depends on who owns the solar system [blocked] and what your contract says:

• If you own the system, you usually keep the SREC rights unless you sign them away.
• If your system is under a lease or PPA, the third-party owner often keeps SRECs (but not always—contracts vary).

Before you assume SREC income, check your:

• installer agreement,
• financing/lease/PPA terms,
• and any SREC assignment language.

How to sell SRECs (typical process)

The exact workflow differs by state, but the steps are usually:

1) Confirm your system is eligible

Eligibility can depend on:

• system type (roof/ground, behind-the-meter),
• interconnection status and permissions,
• install date (some programs have “vintages”),
• metering and reporting requirements.

Use your state program page or broker page to confirm requirements (examples above).

2) Register production in the correct tracking system

SRECs are tracked through official registries. Which one you use depends on your region. Two common examples are:

• PJM Interconnection’s Generation Attribute Tracking System (GATS) (often used across parts of the Mid-Atlantic/Midwest)
• NEPOOL’s Generation Information System (GIS) (commonly referenced for parts of New England)

(Your installer or broker can often help with registration because the setup can be paperwork-heavy.)

3) Choose how you’ll sell: spot market vs contract

Most homeowners sell through a broker/aggregator rather than directly to a utility.

Two widely known options:

• Sol Systems (often offers structured contract options): Sol Systems SREC services.
• SRECTrade (broker platform by state): SRECTrade SREC markets.

Common selling structures you’ll see:

• Brokerage / spot sales: sell credits periodically at market price
• Fixed payment / annuity style: a predictable price for a defined term
• Upfront payment: a lump sum based on expected production (higher risk if prices later rise)

4) Understand taxes and reporting

SREC revenue may be taxable income depending on your situation. If the amounts are meaningful, it’s worth confirming with a tax professional.

What are SRECs worth in 2026?

Prices fluctuate with supply/demand and policy rules, and can vary dramatically between states and over time. A few practical points matter more than any single number:

• Market design matters: Some markets are liquid and transparent; others are thinly traded.
• Supply/demand matters: If many systems come online quickly, prices can fall.
• Penalty caps matter: Alternative compliance payments can act like a ceiling on SREC prices.

To check current/near-current pricing trends, use a market data source such as Flett Exchange (example: SREC market charts).

What happens to SRECs if you move?

Most commonly:

• the solar system transfers with the home sale, and
• the SREC rights transfer too (because they’re tied to the system/registration).

But there are real exceptions:

• If you signed an SREC contract with a term longer than your homeownership, you may need the buyer to accept an assignment, or you may need to close out the agreement.
• Some contracts allow the original owner to retain rights; others do not.

Treat SRECs like any other asset/right attached to the system: it needs to be addressed explicitly in the sale paperwork.

FAQs

Are SRECs the same as RECs?

An SREC is a type of REC that is specifically associated with solar generation in programs that distinguish solar from other renewables. Most RECs (including SRECs) represent 1 MWh of verified renewable generation.

How many SRECs does a home system produce per year?

Rough estimate:

• Example: 9,000 kWh/year ≈ 9 SRECs/year.

Is SREC income guaranteed?

No. It depends on eligibility, market rules, and prices—which can change. Use program pages and registry/broker guidance to validate assumptions before building SREC revenue into ROI calculations.