Pennsylvania SREC Guide
How Pennsylvania SRECs Work for Solar Owners
SRECs are the second income stream that makes Pennsylvania solar one of the strongest investments in the country. Here's exactly how they work, what they're worth in 2026, and how to register your system to start earning them.
What is an SREC?
SREC stands for Solar Renewable Energy Certificate. One SREC is created for every 1,000 kWh (1 MWh) of electricity your solar system produces. SRECs are tracked separately from the actual electricity — the kWh you generate go to your home and the grid (and earn you net metering credits), while the SREC represents the "renewable attribute" of that energy and can be sold independently to electric utilities. It's the second income stream solar owners earn on top of bill savings.
Why SRECs exist: the AEPS program
Pennsylvania's Alternative Energy Portfolio Standards Act (AEPS), passed in 2004, requires electric utilities operating in PA to source a certain percentage of their electricity from solar each year. Utilities can either build their own solar — expensive and slow — or they can buy SRECs from anyone in PA generating solar power. That's where you come in. By installing solar on your home, you're producing the renewable certificates that utilities are legally required to purchase. The market sets the price.
What a typical PA system earns
| System Size | Annual Production | SRECs / Year | SREC Income / Year |
|---|---|---|---|
| 7 kW | ~8,400 kWh | ~8 SRECs | ~$240 |
| 10 kW | ~12,000 kWh | ~12 SRECs | ~$360 |
| 15 kW | ~18,000 kWh | ~18 SRECs | ~$540 |
| 20 kW | ~24,000 kWh | ~24 SRECs | ~$720 |
Production estimates based on Southeastern PA solar resource. SREC value as of 2026 PA market (~$30/SREC). Actual production varies by site, orientation, and shading.
How to register your system and start earning
SRECs are tracked through PJM-GATS (Generation Attribute Tracking System), the regional registry that handles all renewable energy certificates for the PJM grid region. To earn SRECs, your system must be:
- 1Pennsylvania-certified. Your installer files a certification application with the PA Public Utility Commission demonstrating your system is grid-connected and meets eligibility rules.
- 2Registered in PJM-GATS. Once certified, your system gets a generator account in the GATS registry where SRECs are minted as your meter records production.
- 3Linked to an SREC aggregator. Most homeowners sell through an aggregator (Sol Systems, SRECTrade, etc.) that bundles certificates from many residential systems and sells them to utilities. The aggregator handles the bidding and pays you quarterly or as SRECs sell.
Pennstar Solar handles steps 1 and 2 as part of every installation. We'll also recommend an aggregator and walk you through enrollment so you're earning SREC income from the moment your system turns on.
PA vs. NJ SRECs — why the gap matters
Pennsylvania SRECs trade around $30 each. New Jersey's successor program (SREC-II / SuSI) currently pays roughly $85 per certificate — almost three times higher. That's why our Jersey Shore service area sees even faster solar payback than equivalent PA systems. But PA SRECs are still meaningful: an extra $300-$700/year of pure income on top of bill savings can shave 1-2 years off your overall payback period.
SREC pricing: why it fluctuates
SREC prices are set by supply and demand. When utilities are short of meeting their AEPS solar requirements, they bid prices up. When more solar comes online than the requirements demand, prices fall. PA SREC prices have ranged from roughly $5 (early 2010s, oversupply) to over $300 (mid-2000s, undersupply) historically. Today's ~$30 reflects a relatively well-supplied market. Long-term contracts with aggregators can lock in pricing for 5+ years if you want predictability.
SRECs vs. net metering: two separate income streams
Net metering credits you for the electricity your panels produce — it reduces your PECO bill. SRECs pay you for the renewable attribute of that same electricity — it's separate cash income. You earn both simultaneously from the same system. Learn more about PECO net metering →
PA SRECs: frequently asked questions
How often do I get paid for SRECs?+
Most aggregators pay quarterly, though some pay monthly or as SRECs sell on the spot market. Your aggregator agreement specifies the payment cadence and method (check, ACH, or PayPal). You don't get paid the moment you generate a kWh — you get paid after the SREC is minted and sold.
Do I have to pay taxes on SREC income?+
Yes, SREC income is generally treated as taxable income by the IRS. Your aggregator will issue a 1099 if your annual SREC income exceeds the reporting threshold ($600). Consult your tax professional on how to report it.
How long do SRECs continue?+
Pennsylvania-certified residential systems can earn SRECs for up to 15 years. After that, the system stops minting new SRECs but your panels continue to produce electricity and earn net metering credits indefinitely.
Can I sell my SRECs directly without an aggregator?+
Technically yes — you can register a trader account in PJM-GATS and post SRECs for sale. In practice, the volume from a single residential system is too small for utility buyers to bother with, so virtually all residential SRECs are sold through aggregators who bundle and resell.
Do solar leases let me keep the SRECs?+
Usually no. Leased systems and most third-party PPA arrangements transfer SREC ownership to the leasing company as part of the financing structure. If SREC income matters to you, owning the system outright (cash purchase or solar loan) is the right path.
What happens to SREC value when more solar gets installed?+
When a lot of solar comes online and supply exceeds the AEPS requirement, SREC prices typically fall. PA periodically updates its solar carve-out percentage to keep the market balanced. Long-term aggregator contracts can hedge against price volatility.
See your projected SREC income alongside your bill savings
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