An SREC (Solar Renewable Energy Credit) is a tradeable certificate representing 1 megawatt-hour (1,000 kWh) of solar electricity generated by your home solar system. States with renewable portfolio standards require utilities to purchase a certain percentage of electricity from solar — utilities buy SRECs from homeowners to meet this requirement. Each SREC you sell is income on top of your electricity savings.

How much are SRECs worth in 2026?

SREC prices vary dramatically by state and market conditions. New Jersey SRECs trade at approximately $180–$230 each. Maryland SRECs trade at $60–$100. Massachusetts SMART program pays a fixed rate per kWh rather than a floating SREC price. Ohio SRECs have collapsed to under $10 each due to oversupply. Checking current prices on SRECTrade.com or SolarSREC.com before counting on this income is essential.

How many SRECs does a home solar system generate per year?

A typical 8 kW residential solar system generates approximately 9,000–12,000 kWh per year depending on location and climate. That translates to 9–12 SRECs per year (one SREC per 1,000 kWh). In New Jersey at $200/SREC, that is $1,800–$2,400 in annual SREC income on top of electricity savings.

Which states have active SREC markets in 2026?

Active SREC markets with meaningful prices in 2026: New Jersey ($180–$230/SREC), Maryland ($60–$100/SREC), Illinois (Illinois Shines program, declining prices), Pennsylvania ($5–$15/SREC, largely inactive), Washington DC ($300–$400/SREC, strong but small volume). Massachusetts uses the SMART program instead of a floating SREC market.

How do I register my solar system to earn SRECs?

Register through your state's renewable energy tracking system — GATS (PJM region), M-RETS (Midwest), NEPOOL GIS (New England), or WREGIS (West). Your installer typically handles initial registration. Once registered, SRECs are issued automatically as your system generates electricity and meter data is uploaded.

SREC Market Guide 2026: How to Earn Money Selling Solar Renewable Energy Credits

Most homeowners know solar saves money on electricity bills. Fewer know that in certain states, those same panels generate a second income stream through Solar Renewable Energy Credits (SRECs) — certificates you can sell to utilities for cash.

In New Jersey, an 8 kW solar system can generate $1,800–$2,400 per year in SREC income. In Maryland, $600–$1,000. These are real payments, separate from electricity savings, that significantly improve solar's financial case.

Here is how the SREC market works and how to maximize your earnings in 2026.

How SRECs Work: The Basic Mechanism

The policy background: Most states have Renewable Portfolio Standards (RPS) that require utilities to source a percentage of their electricity from renewable energy — including a solar carve-out that specifically requires solar-generated electricity.

The compliance mechanism: Utilities cannot easily build enough solar on their own. Instead, they buy SRECs from solar panel owners. Each SREC represents 1 megawatt-hour (1,000 kWh) of solar electricity generated and verified through a tracking system.

Your role as a solar homeowner:

Install solar panels and register with your state's tracking system
Your system generates electricity → tracking system issues you SRECs as production is verified
You sell SRECs to utilities or aggregators through a broker or online marketplace
You receive a check — typically quarterly or annually

The income is additive: You still save money on electricity. SRECs are paid in addition to your electricity bill savings, not instead of them.

Active SREC Markets in 2026

New Jersey — The Best SREC Market in the US

Current SREC price: $180–$230 per SREC

Annual SREC production (8 kW system): ~10 SRECs

Annual SREC income: $1,800–$2,300

Program duration: SRECs have no sunset — as long as the market exists

How to participate: Register through GATS (PJM's Generation Attribute Tracking System), then sell through SRECTrade, Sol Systems, or SunPower (now aggregates SRECs)

New Jersey's SREC market is the most valuable in the nation. The state's aggressive solar carve-out (requires 5.1% of electricity from solar by 2026, rising to 13% by 2030) keeps SREC demand high. Supply from new installations has grown, so prices have trended slightly down from peak ($300+) but remain strong.

New system eligibility: New solar installations may access NJ's Successor Solar Incentive (SuSI) program instead of the spot SREC market. SuSI provides a fixed payment per MWh for 15 years, which may be more or less valuable than spot SREC prices depending on market timing. Ask your installer which program to apply to.

Maryland — Strong Program with Growing Supply

Current SREC price: $60–$100 per SREC

Annual SREC production (8 kW system): ~10 SRECs

Annual SREC income: $600–$1,000

Program: SREC market plus SRECTrade, broker marketplace

Bonus: Maryland also offers a 30% state income tax credit (up to $5,000) — stackable with SREC income

Maryland's SREC market is meaningful but has seen price erosion as solar installations grew faster than utility demand. Current prices around $70–$85/SREC represent a solid income stream but a significant decline from $150+ in 2020–2021.

Strategic note: Forward contracts — selling SRECs at a fixed price for multiple years — provide certainty and often better aggregate value than chasing spot prices. Sol Systems and SRECTrade both offer forward contract options in Maryland.

Washington D.C. — Highest SREC Price, Small Volume

Current SREC price: $300–$450 per SREC

Annual SREC production (8 kW system): ~9 SRECs (DC has less sun than MD/NJ)

Annual SREC income: $2,700–$4,050

Eligibility: DC SRECs (DC-SRECs) must be generated from systems in DC proper — Maryland or Virginia systems do not qualify for DC-SREC prices

DC's SREC price is extraordinary because the solar carve-out requirement is high relative to the small amount of solar physically possible within the District. Supply is permanently constrained. If you own a property in DC with solar potential, the SREC income significantly changes the financial case.

Massachusetts — SMART Program (Fixed Rate, Not SREC Market)

How it works: Massachusetts replaced its SREC market with SMART (Solar Massachusetts Renewable Target) — a fixed price per kWh generated, paid monthly for 10 years.

SMART rates: $0.03–$0.16 per kWh depending on utility territory, system size, and adders (low-income, storage, dual-use)

Annual income example (8 kW, average rate $0.07/kWh):

9,000 kWh production × $0.07 = $630/year for 10 years = $6,300 over the program lifetime

SMART is not technically an SREC market, but the income is real and meaningful. Registration through your utility; your installer should handle this.

Illinois — Illinois Shines (Declining Prices)

Illinois Shines is the state's Adjustable Block Program — a predecessor to flat SREC payments through 20-year renewable energy credit contracts.

Current status in 2026: Earlier program blocks with high credit values (some at $70–$85 per REC) have been allocated. Newer blocks have lower credit values as supply has grown. Check current block availability with your installer.

Pennsylvania — Largely Inactive

Pennsylvania has an SREC market but prices have collapsed to $5–$15 due to oversupply and low solar carve-out requirements. The income is negligible and many homeowners do not bother registering.

Ohio — Inactive

Ohio's SREC prices are near zero. The state's RPS requirements are weak relative to solar supply. Do not factor SREC income into Ohio solar economics.

Other States — No Active SREC Market

The following states do not have meaningful SREC markets: California, Texas, Florida, Arizona, Colorado, New York (uses a different incentive structure), Georgia, Virginia. Solar in these states earns money through electricity savings only (and utility VPP programs where available).

How to Register Your System and Start Earning

Step 1: Confirm your state has an active market. Only worth pursuing in NJ, MD, DC, MA (SMART), and a few others.

Step 2: Register with your state tracking system.

PJM region (NJ, MD, PA, DC, OH, and others): GATS (Generation Attribute Tracking System) at gats.pjm-eis.com
New England (MA, CT, NH, ME, RI, VT): NEPOOL GIS
Midwest: M-RETS
Your installer typically initiates this registration — confirm it is included in their process

Step 3: Choose a broker or marketplace.

SRECTrade: Largest US SREC marketplace, available in most active markets
Sol Systems: Strong in NJ, MD, offers forward contracts
Flett Exchange: Active in PJM markets
Direct utility: Some utilities purchase SRECs directly — often below market rate

Step 4: Choose spot or forward contract.

Spot market: Sell each year's SRECs at prevailing market price — higher potential but price variability
Forward contract: Lock in a fixed price for 2–5 years — lower ceiling but predictable income

For most homeowners, spot market + an aggregator like SRECTrade is the most practical approach. Forward contracts make sense if current prices are near historic highs.

Step 5: Receive quarterly or annual payments. Payments are taxable income — report on Schedule E or as miscellaneous income on your federal return.

How Much SREC Income Can You Expect Over 25 Years?

New Jersey example (8 kW system, $190/SREC average, 10 SRECs/year):

Year 1–10: $1,900/year = $19,000
Year 11–25: Impossible to predict (market price may change significantly)

Realistic planning approach: Model SREC income for 10 years at current market prices, then treat any income beyond year 10 as a bonus. Markets change — NJ prices have ranged from $50 to $300+ over their history.

Get quotes from installers who know your state's SREC program

EnergySage installers in NJ, MD, and MA factor SREC income into your proposal. Compare solar economics including your state's incentive programs.

Learn More

Key Takeaways

SRECs are tradeable certificates representing 1 MWh of solar production — utilities buy them to meet state renewable requirements
New Jersey ($180–$230/SREC) and Washington DC ($300–$450/SREC) have the strongest markets
Massachusetts uses SMART (fixed per-kWh payment) instead of a floating SREC market
Maryland offers $60–$100/SREC with meaningful but declining prices
Pennsylvania and Ohio markets are essentially inactive — no meaningful income
Register through your state's tracking system (GATS for PJM states) — your installer should help
SREC income is taxable; model conservatively (10 years at current prices)

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