SRECs explained — how DC, MD, and VA solar credits work

A Solar Renewable Energy Credit is a tradeable certificate you earn for every 1,000 kWh of solar electricity your system produces. Utilities buy these credits from you to meet state-mandated renewable energy quotas. That is separate income on top of the electricity bill savings.

Here is how it works in the DMV.

DC

DC has the most valuable SREC market in the country, generally in the $350 to $430 range as of early 2026. The price comes from DC's Renewable Portfolio Standard, a law that requires utilities to source a rising percentage of their power from solar each year, with steep penalties if they miss. Utilities buy SRECs from homeowners to satisfy that requirement, which keeps demand high.

A typical 8 kW DC system generates 8 to 10 SRECs per year. At $350 each, that is $2,800 to $3,500 per year, for 15 years (the DC SREC eligibility window).

Maryland

Maryland SRECs trade much lower, generally $50 to $70 each. The Maryland market is oversupplied relative to its quota, which keeps prices down. The same 8 kW system in Montgomery or PG County earns roughly $400 to $700 per year in SREC income. Meaningful, but nowhere near DC's number.

Virginia

Virginia's SREC market is newer (the SCC approved the program in 2020) and prices are typically $30 to $50. Income from a residential system runs roughly $250 to $500 per year.

Why your monthly SREC check changes

The check comes from production, and production is not even across the year. A January SREC payment will be smaller than a July payment because the system produced less. Most homeowners are paid quarterly, so the swing is partially smoothed, but you will still see a January through March payment that is lower than July through September.

If you got zero this month, check:

• Was production unusually low? Check your monitoring app.
• Did the SREC aggregator switch payment cycles? We register most DC customers with SREC Trade, which pays after your meter reading certifies the production.
• Has your system reached its 15-year DC eligibility cap? Most systems installed in the last five years have a decade or more of SREC income left.

How registration works

Both City Renewables and most other DC installers handle SREC registration as part of the install. You will be enrolled in:

• The DC PSC's SREC tracking system (PJM-GATS)
• An aggregator (commonly SREC Trade) that bundles your credits and sells them on your behalf

Once it is set up, you do not have to do anything. The aggregator pulls your production data, mints SRECs, sells them, and deposits the proceeds in your bank account.

What changes the value of an SREC

Three things move SREC prices:

1. State quota changes. When DC raised its 2032 solar requirement, prices spiked. When prices spike, utilities lobby for lower quotas, and prices ease.
2. Solar penetration. As more DC homes install solar, supply increases, which can soften prices unless quotas are raised in step.
3. Utility compliance penalties. When the alternative compliance payment (the fine for utilities that miss the quota) goes up, SREC prices tend to follow.

You cannot control any of these. The good news: DC's market has stayed strong for over a decade and looks structurally tight through at least 2030.