8 Things You Need To Know About PA SRECs PA Solar Renewable Energy Credit Guide
PA SREC Overview
What Is An SREC?
SREC stands for Solar Renewable Energy Credit, which is earned each time your solar system generates 1,000 kilowatt-hours (kWh) of electricity. Taking advantage of PA SRECs can provide an additional return on your solar investment. Your SREC broker will credit you for each SREC produced by your system throughout the year. For example, if your 10-kilowatt system produces 10,000 kWh annually, you’ll generate 10 SRECs. These credits are sold by your broker, and you receive the revenue from the sales.
Why Do PA SRECs Exist?
Pennsylvania power companies are required, by the state, to have 0.5% of their electricity sales be from “alternative-energy resources” in 2021. PA SRECs generated from residential grid-tied solar installations qualify as approved sources of electricity to meet this state requirement. Because of this requirement, you can use a solar broker to sell your PA SRECs for you if you live in Pennsylvania. Click here for a more in-depth explanation of Pennsylvania’s Alternative Energy Portfolio Standard requirements.
The future of solar energy is bright (no pun intended). As states like Pennsylvania continue to increase renewable energy requirements, power companies will face steeper fines for non-compliance. This will increase the demand and value of solar renewable energy credits (SRECs), making them even more valuable. As more people adopt solar energy, they’ll experience the growing benefits of relying on naturally occurring, renewable energy sources.
How To Track Your PA SREC Production
The future of solar energy is looking incredibly bright (pun intended!). One of the most excellent perks of going solar is the ability to easily track your system’s performance. Most solar installations now come with apps or websites where you can monitor your power production and see how your panels are doing in real-time. If you prefer, you can also check your production meter manually.
No matter how you choose to monitor your system, there’s something so satisfying about watching your kilowatt-hours accumulate, knowing that every time you hit 1,000 kWh, you’re earning a valuable solar renewable energy credit (SREC). It’s like watching your investment grow while doing something great for the planet! So whether you’re logging into a website or checking your phone, seeing those energy milestones tick by is a rewarding experience for any solar enthusiast.
Many modern solar system inverters come with the awesome feature of digital connectivity, letting you access them through the internet or a smartphone app. This means you can monitor your solar panels’ power generation in real time, see which hours of the day are most productive, and even identify which panels are performing best. You’ll also be able to track the total kilowatt-hours your system has produced, which is key for keeping track of your PA SRECs. Remember, for every 1,000 kilowatt-hours your system generates, you earn one SREC—a great way to maximize your solar investment!
How Much Are PA SRECs Worth?
The value of your PA SRECs can vary depending on the SREC market, and it’s something to keep an eye on if you want to maximize your solar investment. For example, in 2021, the price of one PA SREC peaked at $41 during the summer before dropping back into the upper $30s. The value of SRECs fluctuates based on supply and demand. When there’s an oversupply of SRECs on the market, prices drop, but when demand increases, so does the price. It’s a bit like the stock market for solar, and staying informed can help you get the most out of your credits.
Can I Make Money With My PA SRECs?
Absolutely! Depending on the size and positioning of your home solar installation, you could earn money from your solar renewable energy credits (SRECs). For example, if you have a 13kW system, you’re likely to generate around 13 to 14 SRECs annually. At $40 per SREC, that could bring in about $500 a year—just by going solar!
States like New Jersey, Delaware, Washington D.C., and Massachusetts currently offer the highest SREC earning potential, according to an article on Energy Sage. But as more states implement renewable energy requirements, the opportunities to earn from SRECs could expand even further! So, your solar panels might pay off in more ways than one.
Even in a state like Pennsylvania where the value of SRECs is lower than in some other states you can still make money by selling them. Now, if the market changes in the next five or ten years, which it likely will, and the value of SRECs goes up, then your profit grows. All this happens while you’re passively collecting power from naturally occurring sunlight every day.
How Long Are My PA SRECs Good For?
Currently, PA SRECs are good for 3 calendar years. This means that you can accumulate them, wait to sell them, and potentially receive more payment for them if the market changes a year or 2 later. There are some states where they may be recognized for 5 years or more after being created.
Can I Use My PA SRECs To Pay Off My Solar Installation?
Yes! SRECs are literally cash in your hand. You can do anything you want when your solar broker sends you the revenue from selling your solar renewable energy credits. They can be a great way to make extra payments on your solar installation, save for a rainy day emergency, or start a savings account.
Ready To Get Your PA SRECs?
Are you convinced yet that creating and selling solar renewable energy credits is a good idea? If you’re ready to talk about the possibilities in PA or MD then contact us today. We’ll help you sort all the information out and get a comprehensive plan together for free.
