How Solar Renewable Energy Certificates Work in PA and How Much They’re Worth
Pennsylvania is one of the better states in the country for installing solar panels thanks in part to the state’s Solar Renewable Energy Certificate (SREC) program.
If you own a solar system in Pennsylvania or are considering installing one—SRECs can provide ongoing cash payments for the electricity your system produces, improving the overall economics of going solar.
In this guide we’ll explain:
- What Pennsylvania SRECs are
- How much PA SRECs are worth in 2026
- How many SRECs a typical solar system produces
- How to register and sell your SRECs
- How installers help manage the process
What Are SRECs?
SRECs (Solar Renewable Energy Certificates) are tradable renewable energy credits created each time a solar system generates electricity.
In Pennsylvania:
1 SREC = 1,000 kWh (1 MWh) of solar electricity produced.
So every time your solar panels generate 1,000 kilowatt-hours of electricity, you earn one SREC.
These certificates can then be sold on the market to utilities and energy suppliers.
Why Utilities Buy SRECs
Pennsylvania utilities must comply with the state’s renewable energy law called the Alternative Energy Portfolio Standards (AEPS).
Under AEPS, utilities are required to generate or purchase a portion of their electricity from renewable energy sources. A portion (.05%) of that requirement must come specifically from solar energy.
Rather than building solar themselves, utilities often purchase SRECs from solar system owners to meet this requirement.
This is why SRECs have real monetary value.
The Pennsylvania AEPS Solar Requirement
Pennsylvania’s Alternative Energy Portfolio Standards (AEPS) law requires utilities to source 0.5% of their electricity from solar energy.
To comply with this requirement, energy suppliers must either:
- Generate solar electricity themselves
- Purchase SRECs from solar system owners
This creates a market demand for SRECs, allowing homeowners and businesses with solar to earn additional income.
Improvements to the PA SREC Market
Prior to 2017, Pennsylvania allowed solar systems located outside the state—such as in Ohio—to sell SRECs into the Pennsylvania market.
This created an oversupply of SRECs and significantly lowered prices.
However, the passage of Pennsylvania Act 40 of 2017 changed this.
The law restricted SREC eligibility to solar systems physically located within Pennsylvania.
This helped:
- Stabilize the SREC market
- Reduce oversupply
- Support Pennsylvania’s in-state solar industry
How Many SRECs Does a 10 kW Solar System Produce in Pennsylvania?
A 10 kW solar system is one of the most common residential solar system sizes installed in Pennsylvania. Many homes install systems in this size range to offset most or all of their annual electricity usage.
Because 1 SREC is created for every 1,000 kWh of electricity produced, the number of SRECs a system generates depends on how much energy the system produces each year.
Typical Production of a 10 kW Solar System in Pennsylvania
In Pennsylvania, a well-designed 10 kW solar system will typically produce:
11,000 – 13,000 kWh per year
Production varies depending on several factors including:
- Roof direction (south-facing roofs produce the most)
- Roof pitch
- Shading from trees or nearby structures
- Equipment efficiency
- Weather patterns
Using the midpoint of that range:
12,000 kWh per year
Since 1 SREC = 1,000 kWh, that means a 10 kW solar system would generate approximately:
12 SRECs per year
Example SREC Earnings
As of March 6, 2026, the approximate spot market price for a Pennsylvania SREC is about $22.50.
Using the example above:
12 SRECs × $22.50 = $270 per year
While $270 per year might not seem large, solar systems typically last 25 years or more.
Over time:
$270 × 25 years = $6,750 in SREC revenue
This income is in addition to the savings from reduced electric bills through net metering.
SRECs Are Separate From Net Metering
One important thing to understand is that SRECs are different from net metering.
Solar owners in Pennsylvania receive two separate financial benefits.
Net Metering
If your solar system produces more electricity than your home uses, the excess electricity is sent to the grid. Your utility then credits you for that electricity in a billing mechanism known as Net Metering.
SRECs
SRECs are separate credits earned based on total solar production, regardless of how much electricity your home consumes.
This means solar owners benefit from:
- Lower electricity bills through net metering
- Additional income from SREC sales
How Do You Register for Pennsylvania SRECs?
To earn SRECs, your solar system must be registered and certified.
There are three main steps.
Step 1: PA PUC Certification
Your solar system must be certified with the Pennsylvania Public Utility Commission (PUC) through the AEPS program.
Once approved, the system receives a Certification Number, which confirms that the system qualifies to generate renewable energy credits.
The application typically includes:
- Solar system specifications
- Installation documentation
- Interconnection approval
- Final inspection documentation
Step 2: Register With PJM-GATS
After certification, the solar system must be registered with PJM-GATS (Generation Attribute Tracking System).
PJM-GATS is the platform used to track solar production and create SRECs.
Every time the system produces 1,000 kWh, one SREC is automatically issued.
Step 3: Sell Your SRECs
Once SRECs are generated, they can be sold on the open market.
Most homeowners choose to work with an SREC broker or aggregator to simplify the process.
Popular SREC brokers include:
- SRECTrade
- Sol Systems
- Flett Exchange
These companies handle:
- Production tracking
- SREC sales
- Market transactions
- Payments to the solar system owner
They typically charge a small fee for managing the process.
How Long Does SREC Approval Take?
After installation is completed and the system receives final inspection and utility interconnection approval, the SREC registration process begins.
Typical timeline:
- Application submitted after final inspection
- PA PUC certification issued
- PJM-GATS account created
Most systems begin generating SRECs within 1–3 months after installation.
Do Solar Installers Handle SREC Registration?
Many reputable solar installers offer turnkey SREC registration services for their customers.
At Public Service Solar, we help customers with:
- PA PUC certification
- SRECTrade account setup
- Production tracking
This ensures customers begin receiving SREC income as quickly as possible.
However, not every installer handles this process, so it’s always a good idea to confirm before signing a contract.
Are SRECs Taxable?
In most cases, SREC income is considered taxable income.
Homeowners should consult with a tax professional to determine how SREC payments should be reported.
Why Pennsylvania Is Still a Strong Solar Market
Even as incentives change over time, Pennsylvania continues to be a strong market for solar thanks to:
- Net metering policies
- The SREC marketplace
- Rising electricity rates
- Improved solar technology
Together, these factors allow solar systems to provide strong long-term value for homeowners and businesses.
Final Thoughts
The Pennsylvania SREC program provides ongoing financial rewards for producing clean solar energy.
Each time your solar system generates electricity, it creates additional value beyond just reducing your electric bill.
For homeowners considering solar in Pennsylvania, SRECs can provide:
- Additional income
- Faster solar payback
- Improved return on investment
When combined with net metering and rising utility rates, solar continues to make strong financial sense across Pennsylvania.
The get started on your solar journey in Pennsylvania, contact Public Service Solar today!
