SRECs in Maryland

Earning credits from your solar panels

Maryland homeowners with solar panels can earn solar renewable energy credits (SRECs) that can then be sold for cold, hard cash. Here’s how it works: after getting your solar system certified by the state, you can earn a certificate every time you generate one megawatt-hour of power. These certificates, or SRECs, can be sold online either within the Maryland system or in the Pennsylvania or DC markets. The SRECs are completely separate from the energy you’re generating, and just represent the environmental benefits of producing renewable electricity. Check out this video on SRECs for more information on how they work in general.

Who buys SRECs?

Maryland has a law requiring utilities serving the state to get a certain percentage of energy from solar power every year. By 2020, utilities will have to get 2% of energy from solar sources. That doesn’t mean the utilities have to produce that solar power themselves– they can meet the requirement by buying SRECs from small producers, including homeowners with solar panels. Utilities in Pennsylvania and DC are allowed to meet their own requirements by sourcing from Maryland (among other states), so they are also potential buyers.

How much are SRECs worth?

The value of SRECs depends on market supply and demand. Maryland has set the “alternative compliance payment” at $400– that’s the price that utilities have to pay if they don’t buy enough SRECs to meet the state requirement. So, in Maryland, you’ll earn less than $400 for SRECs. This chart shows average prices for SRECs at auction.

Who’s eligible to sell SRECs in Maryland?

Unlike some other places that allow out-of-state producers, the Maryland market is only open to renewable energy systems located inside the state. After your solar system is installed, you’ll need to submit an application for certification from the Maryland Public Service Commission. The state has a requirement that you make your SRECs available for utilities to purchase for a 15-year contract. The regional Generation Attribute Tracking System (GATS) monitors your energy production and creates SRECs that you can sell.

Other incentives

Learn more about the financial reasons to get solar panels on our page about the economics of solar, including info about the federal solar tax credit.