30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·
::SREC
SRECs Explained: How to Earn Money From Solar Energy
Solar Renewable Energy Certificates (SRECs) are tradable credits issued for every megawatt-hour your solar system produces. In states with active SREC markets, homeowners can sell these certificates to utilities or compliance buyers — generating ongoing income separate from electricity bill savings.
States With SRECs
9 states currently offer srecs. Click into any state for the specific terms.
Your solar system's production is metered (typically by an independent reading service). For every 1 MWh produced, one SREC is generated. SRECs are sold on state-specific markets — either spot prices or under multi-year contracts — to utilities required to meet a state Renewable Portfolio Standard.
How SRECs Combines With Federal ITC
SREC income stacks fully with the federal 30% credit and any state incentives. SREC payments are taxable as ordinary income in most states. The federal credit reduces installed cost; SRECs are recurring revenue.
Frequently Asked Questions
Which states have active SREC markets?
As of 2026, the active markets are New Jersey (TREC successor), Massachusetts (SMART), Maryland, Pennsylvania, Ohio, Illinois, Delaware, the District of Columbia, and Connecticut. Other states use alternative incentive structures.
How much can I earn from SRECs?
Highly variable. New Jersey clears at $80-$220 per SREC; Pennsylvania at $30-$60. A typical 8 kW residential system produces ~10 SRECs per year, so annual income ranges from $300 to $2,200 depending on state and clearing price.
Do I sell SRECs myself or use an aggregator?
Most homeowners use an aggregator who handles registration, metering, and sale to compliance buyers in exchange for a percentage of revenue. DIY sale is possible but requires registering with the state's tracking system and finding institutional buyers directly.