SREC Prices in Pennsylvania: What You Should Know

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Understanding SRECs

Solar Renewable Energy Credits (SRECs) are tradable credits that represent the environmental benefits of generating solar electricity.

In Pennsylvania, your solar system generates one SREC for every megawatt-hour (1,000 kWh) of electricity it produces. For example, if you have a 5-kilowatt system, it is projected to produce around 6 SRECs annually. This estimate is based on multiplying the system's size by 1.2.

To start generating SRECs, your solar system must be registered with the Public Service Commission's Alternative Energy Credit Program and submitted to the Generation Attribute Tracking System (GATS), administered by PJM. Once approved by GATS, your system will begin generating credits.

Don't fret, Currents will handle this for you, saving you hours of frustration because it's simple and fully automated. Use Currents to generate passive income for your SRECs every month!

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Selling SRECs in Pennsylvania

Selling Solar Renewable Energy Certificates (SRECs) can be a lucrative opportunity for homeowners and businesses with owned solar panels.

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As of writing (July 2024), SRECs in PA (also known as AECs) were priced at $35 per SREC.

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Earning Potential

The earning potential from selling SRECs in Pennsylvania varies based on several factors, including market demand and legislation. As of recent data, Pennsylvania SRECs are valued at approximately $31. This is significantly lower than the prices in neighboring states like New Jersey, where SRECs can fetch between $90 to $110.

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SREC Market in Pennsylvania

Understanding the SREC market in Pennsylvania can help you make informed decisions when selling your solar credits.

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Historical Pricing Trends

The price of Solar Renewable Energy Certificates (SRECs) in Pennsylvania has experienced significant fluctuations over the years. At the start of 2023, SREC prices in Pennsylvania were around $45 per certificate (A1 Energy). However, this was not always the case.

In the summer of 2010, the Pennsylvania SREC market reached a peak with prices above $300. This surge was short-lived, as the market quickly became oversupplied. Systems built in other PJM interconnection states exported their SRECs to Pennsylvania, causing a drastic drop in prices. By the summer of 2017, PA SREC prices had plummeted to a low of $4.

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Impact of Legislation

Legislation has played a crucial role in shaping the SREC market in Pennsylvania. On October 31, 2017, Governor Tom Wolf signed House Bill 118 into law. This bill closed the state to the import of out-of-state SRECs, although existing out-of-state contracts were honored until their termination date.

The passing of House Bill 118 had a significant impact on market pricing. By 2021, the price for freshly minted PA SRECs had risen close to $40 due to the undersupply caused by the lack of SREC imports. This legislation continues to pressure in-state SREC prices upwards.

Another important legislative factor is the PA SACP (Solar Alternative Compliance Payment). The SACP is set at 200% of the average SREC price paid by power providers in a given year. This penalty price is imposed on electricity suppliers if they fail to submit the required number of SRECs by the end of each compliance period.

To maximize your earning potential from SRECs, it's essential to stay informed about market trends and legislative changes. For more information on selling SRECs and the factors influencing their prices, check out our sections on earning potential and factors influencing prices.

By understanding historical pricing trends and the impact of legislation, you can make well-informed decisions about selling your SRECs in Pennsylvania. For further reading on SRECs in other states, visit our articles on SREC in NJ, SREC in Maryland, and SREC in Massachusetts.

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By staying informed about the market trends and legislative changes, you can make better decisions when selling your SRECs, ensuring you get the best possible return on your investment.