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 for their grid-tied solar installation.
What are SRECs
Solar renewable energy credits (SRECs) are credits based on how much energy a solar array produces. Utility companies here 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.
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.
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).
What this means for you?
By closing this loophole and forcing PA energy companies to buy only PA SRECs, those of us who own solar installations in PA are about to see our potential income rise significantly. Given that one SREC can be earned for every 1000 kWhs your solar array produces, the income can add up.
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 energy produced by the sun.