Solar Renewable Energy Certificates (SRECs) incentivize Maryland homeowners to switch to more sustainable energy sources with a state-funded revenue stream. These certificates, called “credits” or “vouchers,” are purchased by utility companies to meet Maryland’s renewable energy portfolio standards. They are made and sold separately from the electricity produced by the homeowner’s solar panels.
Since SRECs have a value and a dedicated market, many homeowners struggle to recognize how many certificates their solar panel system can generate and how to sell them to recoup their energy costs.
This guide aims to help homeowners translate their SRECs into income by reviewing the terms and processes needed to sell solar renewable energy credits in Maryland.
What is an SREC?
As mentioned, SRECs are solar energy credits produced by power-generating residential and commercial solar arrays. Unlike the power generated, these credits do not have a concrete value. Instead, they are created and sold on a dedicated market, similar to a financial stock. One SREC is equivalent to 1 MWh of solar electricity generated.
Only nine states have dedicated SREC markets, so Maryland homeowners are fortunate to have the chance to use solar utilities to their financial advantage. However, since SREC sales are similar to stock trades, with fluctuating credit values and dedicated markets, ma`ny homeowners have trouble tracking and selling the SRECs they generate yearly. Experienced solar energy providers partner with in-state solar credit brokers to make sure the process of buying and selling solar renewable energy credits is as simple as possible.
How Many SRECs are Generated in a Year?
The essential question on many homeowners’ minds is challenging to answer since solar systems are made, sized, and installed differently. However, the accepted rule is to multiply the system size in kW by 1.2 to find the number of SRECs that should be generated annually. In practical terms, this means that a 5 kW system should generate 6 SRECs per year, a 10 kW system should generate 12 SRECs, etc.
This average can change depending on real-world factors such as the panel quality, panel orientation, sunlight exposure, weather patterns, and system losses due to wear and tear or electrical issues. An experienced solar provider can help clarify how much the system should produce based on these and other factors.
How Much Are SRECs Worth?
Similar to financial stocks, SRECs fluctuate in value based on market demand and other factors. At the time of writing, 1 SREC is worth $52, according to a major SREC trader. The price for an SREC is dictated by Maryland law. Electricity suppliers are mandated to meet specific solar energy production targets. The main mechanism for compliance is through the purchase and retirement of SRECs.
Should a supplier fail to acquire the required number of SRECs, they must pay a Solar Alternative Compliance Payment (SACP) as a penalty for the shortfall. This dual-structure creates a direct economic relationship that governs SREC pricing.
The SACP effectively functions as a price ceiling for the SREC market, as a supplier would logically choose to pay the fixed penalty rather than purchase an SREC at a price that exceeds the SACP level. In 2021, the SACP was increased, as the solar production did not meet the state mandated minimums.
Homeowners inexperienced in dealing with SRECs should use dedicated SREC aggregators such as Solsystems. These brokers charge a small fee to track the home’s production data, register the credits, and sell them on dedicated markets to save the homeowners the hassle. All homeowners must do is track their savings in their energy bills and bank accounts.
Additionally, the value of an SREC can be enhanced with state-sponsored programs. Since being signed in 2024, the Brighter Tomorrow Act has given eligible Maryland homeowners the chance to increase the value of their SRECs by 50% to help utility providers meet the Renewable Portfolio Standard.
Read about the act here to learn more.
How to Maximize the Value of SRECs in Maryland
Homeowners receive several benefits for owning SRECs in Maryland. Energy suppliers are incentivized to avoid legislative penalties by meeting portfolio standards. Therefore, there is always a healthy demand for consumer-generated solar credits. Even when homeowners don’t use the energy, they can accumulate and trade credits to reduce the overall cost of their solar installations.
To maximize this benefit, homeowners should follow these five simple steps:
- Verify your system is eligible for Certified SRECs, allowing for a greater return on investment without having to get a larger system.
- Orient the system for maximum sun exposure and minimal shading
- Partner with experienced solar energy providers to maintain a reliable metering and maintenance process
- Find an accredited SREC aggregator to handle credit sales and array registration
Partner With Energy Select to Make the Most of Your SRECs in 2025
By recognizing the earning potential of their solar arrays, Maryland homeowners can earn extra money, reduce their energy costs, and qualify for state benefits. However, solar credit generation is not set in stone and can depend on many factors, including the array’s sunlight exposure and orientation.
Our experienced team at Energy Select helps homeowners in Maryland maximize their SREC benefits by efficiently generating, recording, and selling credits at market value with the help of our trusted partners. Contact our team today to learn how a modern solar array can be your ticket to energy independence in 2025 and beyond.