If you’ve been researching solar energy in Washington, DC, you’ve likely come across the term SREC, which stands for Solar Renewable Energy Credit. These credits are one of the biggest reasons solar is so valuable here. Let’s break it down.
What Is an SREC?
An SREC is a tradable certificate tied to the environmental benefits of solar power. For every 1,000 kilowatt-hours (kWh) of electricity your solar system produces, you earn 1 SREC. Homeowners and businesses can then sell these credits on the SREC market.
Why Do SRECs Exist?
SRECs are part of Washington, DC’s Renewable Portfolio Standard (RPS). The law requires utilities to get a certain percentage of their electricity from renewable sources. If they can’t meet those targets directly, they must buy SRECs from solar owners in the District.
How Much Is an SREC Worth?
In DC, SRECs are especially valuable because of aggressive clean energy goals. At the moment, each SREC is worth around $400. A typical home system can generate about 10 SRECs per year—meaning thousands of dollars in additional income for homeowners, on top of bill savings. Over time, that can add up to tens of thousands of dollars.
How Long Do SRECs Last?
Homeowners in DC can generate and sell SRECs until at least 2041. Prices may change over time, but DC is home to one of the strongest SREC markets in the country, thanks to policies that keep demand high.
How Homeowners Benefit from SRECs
- Extra income: Selling SRECs can mean thousands of dollars per year.
- Faster payback: Earnings from SRECs help offset the cost of the system more quickly.
- Supports access programs: Valuable SRECs also make it possible for companies and investors to offer no-cost solar options, where families can go solar without paying upfront.
SRECs vs. Net Metering
SRECs are separate from net metering.
- Net metering reduces your Pepco bill by giving you credit for the extra power your system sends back to the grid.
- SRECs represent the environmental value of your solar production, and you can sell them for cash in addition to your monthly bill savings.
Why SRECs Matter for DC’s Solar Future
DC’s SREC program is one of the strongest in the nation. It helps homeowners save more, gives solar companies the financial tools to expand access, and drives the city closer to its climate goals.
At the Empower Solar Coalition, our role is to make sure families understand how incentives like SRECs work, so they can make informed choices and avoid misleading promises. SRECs are proof that clean energy in DC doesn’t just benefit the environment—it benefits your household too.