Loading NuWatt Energy...
We use your location to provide localized solar offers and incentives.
We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
Loading NuWatt Energy...
PA SRECs trade at $22-$35/SREC — the lowest in the region due to the 0.5% solar carve-out. But they still add $448+/year to your solar income. The pending PRESS Act could change everything.
SREC Value
$22-$35
per MWh
Solar Carve-Out
0.5%
weakest in region
Vintage Life
3 Years
from creation
Registry
PJM-GATS
tracking system
SRECs (Solar Renewable Energy Credits) are tradeable certificates that represent the environmental benefits of solar generation. They exist because of PA's Alternative Energy Portfolio Standard (AEPS).
Every time your solar system produces 1,000 kWh (1 MWh) of electricity, you earn 1 SREC. A 10 kW system in eastern PA earns about 12.5 SRECs per year.
PA's Alternative Energy Portfolio Standard (Act 213/Act 35) requires electricity suppliers to source 0.5% from solar. Suppliers buy SRECs to prove compliance.
SRECs are tracked via PJM-GATS (PJM Generation Attribute Tracking System). Your system is registered with a revenue-grade meter. SRECs are minted automatically as production data flows in.
PA SRECs expire 3 years after their vintage year. A 2026 vintage SREC can be used for compliance in 2026, 2027, or 2028, then expires.
Unlike NJ's fixed-price SREC-II ($85.90), PA SRECs trade on the open market at $22-$35/SREC. Price fluctuates based on supply and demand.
Most residential owners sell through aggregators like SRECTrade or Flett Exchange for a 3-10% commission. They handle registration, tracking, and market timing.
The 0.5% solar carve-out creates minimal demand for SRECs relative to supply. Compare this to neighboring states:
| State | Program | SREC Value | Solar Carve-Out | Notes |
|---|---|---|---|---|
| PA(you) | AEPS SREC | $22-$35/MWh | 0.5% | Weakest in region. PRESS Act pending. |
| NJ | SREC-II (ADI) | $85.90/MWh | 5.1% | Fixed 15-year payments. Strong demand. |
| MA | SMART 3.0 | $0.03/kWh | N/A (SMART) | Performance-based. 20-year term. |
| MD | MD SREC | $40-$55/MWh | 2.5% | Stronger carve-out than PA. |
| OH | OH SREC | $5-$15/MWh | 0.5% | Similarly weak carve-out to PA. |
| DC | DC SREC | $250-$350/MWh | 10%+ | Highest in PJM. Very strong carve-out. |
NJ SRECs are 3-4x PA SRECs
NJ's SREC-II program pays $85.90/MWh — about 3x PA's average SREC value. The difference is entirely driven by NJ's 5.1% solar carve-out vs PA's 0.5%. If the PRESS Act passes and raises PA's carve-out to 5.5%, PA SREC prices could approach NJ levels.
All PA SRECs must be registered through PJM-GATS. Here is the process.
Work with a qualified installer to design and install your solar system. Ensure a revenue-grade meter (production meter) is installed for SREC tracking.
Register at the PJM-GATS portal. You'll need your system specifications, production meter information, and interconnection agreement from your utility.
Submit your solar system details including nameplate capacity, location, installation date, and meter ID. PJM-GATS will verify and approve registration (typically 2-4 weeks).
As your meter reports production data, PJM-GATS automatically creates SRECs in your account. 1 SREC is minted for every 1 MWh (1,000 kWh) produced.
Sell through an aggregator (SRECTrade, Flett Exchange) or transfer directly to a compliance buyer. Aggregators handle market timing and maximize your return for a 3-10% commission.
Revenue depends on your system size, PA region (affecting production), and the SREC spot price.
| System | Annual kWh | SRECs/Year | Annual Income (low) | Annual Income (high) | 25-Year Total |
|---|---|---|---|---|---|
| 6 kW | 7,500 | 7.5 | $165/yr | $263/yr | $4,947 |
| 8 kW | 10,000 | 10 | $220/yr | $350/yr | $6,596 |
| 10 kW | 12,500 | 12.5 | $275/yr | $438/yr | $8,245 |
| 12 kW | 15,000 | 15 | $330/yr | $525/yr | $9,893 |
| 15 kW | 18,750 | 18.8 | $413/yr | $656/yr | $12,367 |
| Region | kWh/kW/Year | Annual kWh | SRECs/Year | Annual Income | 25-Year Total |
|---|---|---|---|---|---|
| Eastern PA (Philadelphia metro) | 1,250 | 16,013 | 16 | $448/yr | $10,561 |
| Central PA (Harrisburg, State College) | 1,150 | 14,732 | 14.7 | $412/yr | $9,716 |
| Western PA (Pittsburgh) | 1,050 | 13,451 | 13.5 | $377/yr | $8,872 |
| Erie region | 1,000 | 12,810 | 12.8 | $359/yr | $8,449 |
The PRESS Act (PA Renewable Energy Standard Strengthening) is pending in the PA legislature. If passed, it would fundamentally change PA's solar economics.
Status: PENDING
Would raise solar carve-out from 0.5% to 5.5%, likely boosting SREC prices significantly. Monitor PA legislature. The PRESS Act has bipartisan support but faces opposition from utilities and fossil fuel interests. Timeline is uncertain. Installing solar now means you benefit from any future SREC price increase — SRECs have a 3-year vintage life and new SRECs are minted every month your system produces.
A Solar Renewable Energy Credit (SREC) represents 1 megawatt-hour (MWh) of solar electricity generation. Under PA's Alternative Energy Portfolio Standard (AEPS), electricity suppliers must purchase SRECs to meet the solar carve-out requirement (currently 0.5%). When your solar system produces 1 MWh, you earn 1 SREC which you can sell on the market.
PA SRECs trade at $22-$35 per SREC in 2026, with an average around $28. This is the lowest SREC value in the northeastern region due to PA's weak 0.5% solar carve-out under the AEPS. For comparison, NJ SREC-II pays $85.90/MWh.
PA SRECs are tracked and traded through PJM-GATS (PJM Generation Attribute Tracking System). Your solar installer typically handles the initial registration. You will need to create a PJM-GATS account, register your solar system with its production details, and ensure a revenue-grade meter is installed to track generation. Most residential solar owners work through SREC aggregators like SRECTrade or Flett Exchange rather than selling directly.
PA SRECs have a 3-year useful life from the vintage year (the year they were created). An SREC minted in 2026 can be used to meet compliance requirements in 2026, 2027, or 2028. After 3 years, the SREC expires and has no value. This creates a rolling supply that prevents hoarding.
For residential solar owners, aggregators (like SRECTrade or Flett Exchange) are recommended. They handle the registration, tracking, and selling process for a commission (typically 3-10%). Direct sales require a PJM-GATS account and active monitoring of the SREC market. With PA SRECs at only $22-35 each, the low dollar amounts make self-management less practical compared to states like NJ or DC.
The PRESS Act (PA Renewable Energy Standard Strengthening) is pending legislation that would raise PA's solar carve-out from 0.5% to 5.5%. This 11x increase in demand would likely boost SREC prices significantly — potentially to $60-$100+ range based on supply/demand modeling. The timeline is uncertain.
SREC prices are driven by the solar carve-out requirement. PA requires only 0.5% of electricity to come from solar, creating minimal demand. NJ requires 5.1% and DC requires 10%+. Higher carve-outs create more demand for SRECs, pushing prices up. PA's weak carve-out is the primary reason its SREC market trails the region.
A typical 12.81 kW system in eastern PA produces about 16 SRECs/year, earning approximately $448/year at current prices. Over 25 years (with 0.5% annual degradation), that totals approximately $10,561. If the PRESS Act passes, this income could increase substantially.
No. With a PPA or lease, the third-party system owner (financing company) typically retains the SRECs. The value of the SRECs is factored into the lower rate they offer you. If you want to earn SREC income directly, you need to own the system (cash or loan purchase).
PA SRECs are tracked in PJM-GATS, which covers the PJM Interconnection region (PA, NJ, DE, MD, DC, VA, OH, WV, etc.). However, most states require SRECs generated within their borders for RPS compliance. PA SRECs generally can only be used for PA AEPS compliance, not for NJ, MD, or DC requirements. Some cross-state eligibility exists but is limited.
Every month you wait is SREC income you miss. Get a solar quote and start generating SRECs from day one. If the PRESS Act passes, your investment becomes even more valuable.