Everything You Need to Know About SRECs in Maryland

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Solar Renewable Energy Certificates (SRECs) are an essential component of Maryland's solar energy market.

They provide financial incentives for homeowners and businesses who install solar panels, making it easier to recover the costs of solar installations. The SREC income flows to the owner of the rooftop solar system, not the person on the PPA or lease.

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The price for 2024 SRECs for systems located in Maryland is $58 as of writing (July 2024).

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Maryland SREC Facts

Markets for MD Systems: MD and PA Tier-I‍

Tracking Registry: GATS

Energy Year: Jan - Dec

Eligible System Locations: MD

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Overview of SRECs

SRECs represent the environmental benefits of generating solar power. For every megawatt-hour (MWh) of electricity your solar panels produce, you earn one SREC. These certificates can then be sold to utilities and electricity suppliers who need to meet Renewable Portfolio Standards (RPS).

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Eligibility for SREC Production

To participate in Maryland's SREC program, your solar facility must be sited within the state.

The useful life of an MD SREC is three years, meaning an SREC generated in 2022 can be counted towards the 2022, 2023, or 2024 compliance periods.

Additionally, certain Maryland-sited solar water heating systems are eligible to produce SRECs.

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Selling SRECs in Maryland

In Maryland, selling Solar Renewable Energy Certificates (SRECs) can be a lucrative way for homeowners to earn money from their solar energy systems.

Understanding the mechanisms behind the Solar Alternative Compliance Payment (SACP) and the factors influencing SREC prices is crucial.

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Solar Alternative Compliance Payment (SACP)

The Solar Alternative Compliance Payment (SACP) is a fee that electricity suppliers must pay if they fail to meet the state's renewable energy requirements.

In Maryland, the SACP was set at $400 per SREC through 2014 and has been declining since This payment acts as a ceiling for SREC prices, as suppliers are unlikely to pay more for SRECs than the set SACP.

For a comprehensive understanding of how SACP impacts SREC prices, visit Maryland.gov.