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Solar Renewable Energy Credits

SRECs Deliver Ongoing Income Generation

By generating your own electricity through solar power, you not only reduce or eliminate your power costs, but also have the opportunity to earn additional income through Solar Renewable Energy Credits (SRECs). These credits provide a periodic revenue stream on top of the savings from reduced electric bill payments. This means that you can enjoy immediate and long-term financial benefits by investing in solar energy. With SRECs, you can maximize the return on your solar investment and contribute to a more sustainable future.

What is an SREC?

SRECs (Solar Renewable Energy Credits) are a production-based solar incentive that allow you to earn additional income from your solar electricity generation. As a solar system owner, you can earn one SREC for every megawatt hour (MWh) or 1,000 kilowatt hours (kWhs) of electricity your solar panel system generates. It is a tradable and intangible certificate that represents proof of the generation of 1,000 KWH of solar power. SRECs exist because of state regulations known as RPS (Renewable Portfolio Standards), which require utilities to produce a specific percentage of their electricity from renewable resources. To meet these requirements, utilities must purchase renewable energy certificates (RECs) which are also known as renewable energy credits.

Who makes SRECs?

SRECs are minted in the GATS database. GATS is a generation attribute tracking system for the PJM power grid. They track all the renewable energy flowing through the power grid and create renewable energy certificates based on suppliers imported renewable generation. GATS create SRECs once a month for suppliers, always on the last business day of the month, and it’s a month delayed from when you create your renewable energy. For example, all the renewable power you generated in February, GATS mints into a SREC(s) on the last business day of March (if 1,000 kwh are produced in that time frame… 1 SREC = 1,000 kwh). The remaining generation will roll over to the next month if short of 1,000 kwh.

Solar Renewable Energy Credits (or Certificates), abbreviated SRECs, are created as any solar energy system generates electricity. In Pennsylvania, legislation defines Solar Alternative Energy Credits (SAEC), although most people continue to refer to SRECs within the state.

By definition, 1 SREC = 1 MWh of solar electricity. In metering and billing units that would be 1,000 kWh. The SREC value is derived from law in the following way:

  • Each state issues a Renewable Portfolio Standard (RPS), requiring most utilities to provide a specified amount (%) of renewable energy.
  • The utilities have the option to install capacity or to pay to meet the requirements. The homeowners’ SRECs tend to be the better value, and most states have very active trading markets between SREC owners and buyers. Alternately, compliance payments can be made, which are essentially penalties and more expensive.

Useful Facts about SRECs and Trading

  • Minimums: You must generate at least 1 MWh (1,000 kWh) before you are issued a certificate and able to trade or sell.
  • Maximums: You may sell as many valid credits as you have available. However, for Pennsylvania they expire after 3 years. For New Jersey, they expire after 5 years.
  • Trading Strategy: When selecting a trading partner, it’s important to consider how comfortable you feel with their information and advice regarding selling strategies.
  • Other Factors: Consider how each company allows you to track and visualize information you think important.
  • Fees: Companies charge flat fees, proportional fees, and combinations of the two. They provide this up front for easy comparison.

SRECs in New Jersey

New Jersey Solar Programs

The Successor Solar Incentive (SuSI) Program is the current solar program that allows new solar projects to register to earn New Jersey Solar Renewable Energy Credits II (SREC-II). This is the long-term program for providing incentives to new solar generation facilities connected to the transmission or distribution systems of New Jersey electric public utilities or local government units. The SuSI Program consists of two sub-programs:


  1. The Administratively Determined Incentive (ADI) Program provides administratively set incentives for net-metered residential projects, net-metered non-residential projects of 5 MW (dc) or less, all community solar projects, and, for an interim period, projects previously eligible to seek conditional certification from the Board under Subsection (t).
  2. The Competitive Solar Incentive (CSI) Program will provide competitively set incentives for grid supply projects and net metered non-residential projects greater than 5 MW (dc). The Board Staff is currently working with stakeholders to develop the design of the CSI Program with the goal of holding the first solicitation by early-to-mid 2022. For updates, please continue to check the Solar Proceedings page on New Jersey’s Clean Energy Program website.


Both the ADI and CSI Programs provide one SREC-II for each megawatt-hour of solar electricity produced from a qualifying solar facility. The value of each qualifying facility’s SREC-II will be set administratively in the case of the ADI Program, and via a competitive process in the case of the CSI Program.

REVISED ADI Incentive (SREC-IIs) Values Per Market Segment

Effective March 13, 2023

Solar Renewable Energy Credits Graph

SRECs in Pennsylvania

Pennsylvania has relatively new requirements and a recently created SREC marketplace compared to New Jersey. However, the market values are lower in comparison. This is primarily due to the earlier rule that permitted credits generated by out-of-state solar energy systems to be traded on the Pennsylvania market. Nevertheless, Act 40 has been introduced to remedy this situation. The Pennsylvania PUC has provided clarity on this new solar law. The positive news is that this new law could be just the beginning, as there is a significant public interest in improving renewable energy policy in the state. Therefore, it is expected that SREC values in Pennsylvania will continue to rise to some degree in the near future.

Trading SRECs

Established in 2007, Flett Exchange is a local firm that Exact Solar registers many clients with. They can handle your GATs account on your behalf, enter your solar arrays’ meter readings, sell your SRECs on a monthly basis, and remit funds monthly. They can also hold SRECs until the market price moves higher at the sellers’ discretion. Their live and transparent SREC markets give the homeowner the ability to achieve competitive market prices, on a secure network that is governed by the rules and regulations of a leading exchange.

SRECTrade Logo

Exact Solar is proud to partner with SRECTrade, one of the largest SREC transaction and management firms in the industry, with over 470 MW of solar assets under management. The company provides you with all needed brokerage services. Exact Solar handles all the paperwork to get you up and running so you can start turning your SRECs into income. Unique software developed by SRECTrade is used by solar owners to track their SREC generation and issuance, manage and execute transactions, and enroll facilities with state regulators.

Exact Solar also recommends Knollwood Energy, one of the earliest SREC aggregators in the country. Established in 2006, the company set out to represent only SREC sellers. They aim to maximize sales prices by bundling customers into large institutional sellers. Small and large solar energy generators alike benefit from this approach. Whichever SREC broker you choose, Exact Solar will help with your account setup so you will be making money from your SRECs quickly and with no stress.

Reviews from Family, Friends, and neighbors

Mark C.
Douglassville, PA
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Excellent company to deal with. Accessible by phone or email with no snags. I had a situation where my incoming voltage from the power company dropped and caused one of my inverters to shut down (as they are designed to do). Mark came out immediately, diagnosed the problem and notified the power company that they had a problem.
Bonnie H.
Drexel Hill, PA
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Exact Solar provided me with a stress-free and completely professional solar installation experience. They made it easy to get through the paperwork and to navigate the financial and permitting process. The folks I dealt with at Exact Solar if I did have any issues or was confused about anything, were quick to help me solve problems and very polite and gracious. I highly recommend them if you are looking to install solar!
Gary O.
Lansdale, PA
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We chose them because we felt confident in the sales team and proposal. The installation team did a great job. They communicated to me throughout the process, making sure I knew what was happening and getting my feedback. Overall they were very professional and I am very satisfied with the installation. I would recommend Exact Solar to anyone.