Solar Renewable Energy Credits In PA
What Are Solar Renewable Energy Credits?
Solar Renewable Energy Credits (SRECs) are energy credits you get every time your grid tied solar panel system produces 1 Megawatt Hour (MWh) of solar energy. 1 SREC equals 1 MWh. Solar panel system owners can sell their SRECs back to power companies. This means you can literally make money off of the solar energy you are producing with a Grid Tied Solar Panel System!
A typical 9 Kilowatt solar panel system (9K system) produces 10 megawatt hours (MWh) per year or 10 SRECs. Over a 20 or 25 year lifespan of the average solar panel system this means you could sell between 200 and 250 solar renewable energy credits back to your utility company.
Utility companies in PA are required by law to generate a percentage of their energy from renewable sources like solar; buying SRECs from homeowners is one way they meet this law.
How Much Are Solar Renewable Energy Credits Worth?
Mid-way through 2020 Pennsylvania SRECs were valued at over $30 per credit and in 2021 they are still around $33 per credit according to this article from Energy Sage. Solar renewable energy credit prices do fluctuate. In recent years, electric distributors have been able to purchase SRECs from outside PA sources. This greatly increases the available market, causing rates to plummet: SREC rates in 2010 were over $300; in 2017, they fell below $4.
SRECTrade is an excellent source of information regarding SRECs, the current SREC rates in PA, and how you can get into the game and begin making money with your grid tied solar panel installation. Visit their website for more in depth information regarding SREC rates and changes.
On October 30, 2017, Governor Tom Wolf signed into law a bill that will have a positive impact on solar throughout Pennsylvania. Now, homeowners throughout Pennsylvania have the opportunity to earn more income through the sale of SREC’s for their grid-tied solar installation.
Now, thanks to this recently passed law, PA utilities must purchase SRECs from only PA sources. This will be a great boost to the already-vibrant solar industry here in Pennsylvania. “Solar energy isn’t a niche industry anymore, it is a viable addition to our diverse energy portfolio,” said State Sen. Mario Scavello, sponsor of this bill (source).
How Much Money Can You Earn With Solar Renewable Energy Credits?
With an SREC rate of $30 per credit you would earn $6,000 over 20 years if your grid tied solar panel system was producing 10 MWh (equal to 10 SRECs) per year. Now, let’s assume that your solar panel system will last for 25 years, your solar renewable energy credit earnings would increase to $7,500! You would make even more if the SREC rate increases over those 20 years which is very very likely.
The point is that there is a lot of potential for earning when it comes to SRECs in Pennsylvania. Not only are you able to reduce or completely eliminate your electricity bill by installing a grid tied solar panel system but over the 20-25 years of your solar system functioning you could also be making money.
Solar Renewable Energy Credits: Your Next Step
If you are considering a solar installation for your home, now is the perfect time to invest. These SRECs can be used to offset your payments for the system, which means it will cost less to enjoy clean, renewable, and free energy produced by the sun.
Belmont Solar specially designs each solar panel system to fit specific needs. Whether you own a business that you want to power with solar energy or a home that you want to begin operating with solar power, we can help you get started. We can design a grid-tied solar panel system that will allow you to begin reaping the amazing benefits of clean energy and solar renewable energy credits! Contact us today and we can begin a conversation or answer more of your questions.