The Commonwealth of Pennsylvania is one of a few states where homeowners who own solar power systems can use solar renewable energy credits or SRECs to make money on power you send to the grid. Credits for power from your home solar panels help you maximize your solar investment.
If you’re thinking about going solar in Pennsylvania, SRECs can be a part of the money you’ll save.
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What’s the Difference Between an SREC and an AEC?
With so many acronyms flying around the growing solar energy industry, it is always important to do the necessary research to understand exactly what you’re getting into.
Solar renewable energy credits (SRECs)
In the United States, SRECs (sometimes called solar renewable energy certificates) are used to compensate solar energy system owners for the electricity they produce. SRECs are specifically related to solar energy, but the acronym can also be used whenever solar power generation allows homeowners to cash in on another locally available green energy credit.
As of January 2025, eight states in the eastern US have an active SREC marketplace. Although some states allow for the sale of SRECs generated outside of state lines, PA SRECs can only come from solar energy systems that are installed and operating within Pennsylvania itself.
Alternative energy credits (AECs)
An alternative energy credit is another renewable power generation incentive that can be earned when system owners produce electricity from a qualified alternative energy source, including solar panels.
The key difference between AECs and SRECs is SRECs are solar-specific, whereas alternative energy credits can be generated through electricity produced by wind, hydropower, biomass, biologically derived methane gas, waste coal, solid waste conversion, and more.
When generating solar electricity at home, Pennsylvania producers can earn solar alternative energy credits (SAECs), which is a solar-specific AEC that is essentially the same thing as solar renewable energy credits (SRECs). Thus, the acronyms “SREC” and “SAEC” are often used interchangeably.
How Does the PA SREC Market Work?
Qualified solar energy system owners earn one SREC for every megawatt-hour (MWh) of electricity that they generate. One megawatt-hour of solar electricity is equal to 1,000 kilowatt-hours (kWh), and in 2020, residential electricity users in Pennsylvania consumed an average of 854 kWh per month.
That’s equal to 10,152 kWh (or just over 10 MWh) per year. A solar energy system designed to power an average home in Pennsylvania will create about 10 SRECs every year it is eligible.
Once created, Pennsylvania solar producers are free to sell their SRECs (or SAECs) on the open market. Alternative energy credits in Pennsylvania are registered and tracked within the PJM Generation Attribute Tracking System (GATS). PA SRECs are also eligible for sale in Ohio.
Redeemable for real cash payments, SRECs are a valuable Pennsylvania solar incentives homeowners can take advantage of to maximize the value of their renewable energy system.
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SREC program history
PA SRECs were developed to incentivize solar development and help Pennsylvania achieve its renewable energy and greenhouse gas emission goals.
Under the Alternative Energy Portfolio Standards Act (AEPS), electricity distribution companies and electricity generation suppliers in Pennsylvania must retain a percentage of their electricity portfolio to be produced by alternative energy resources, including a specific carve-out incentivizing PV solar installations.
Today, Pennsylvania’s solar alternative energy credits (SAECs) allow utilities and other energy entities to purchase solar power directly from the homes and businesses that produce it.
Getting started with SRECs or SAECs
To begin earning SRECs or SAECs in Pennsylvania, solar producers must submit an application to the Pennsylvania Public Utility Commission's (PUC) Alternative Energy Credit Program to become a qualified alternative energy facility. Once approved by the PA PUC and registered on the Generation Attribute Tracking System (GATS) trading platform, solar energy system owners can earn and sell SRECs to interested buyers.
By participating in the PA SREC program, you can:
- Earn income for your solar energy system’s power generation
- Help Pennsylvania achieve its renewable energy goals
- Maximize the value of your clean energy installation
The Market Price of SRECs in Pennsylvania
Much like utility electricity rates, Pennsylvania SREC prices are always changing. At the start of 2023, PA SREC prices were being sold for an average market rate of $45.00 per Solar Alternative Energy Credit. In January 2025, the rate is $31.25.
PA SRECs have a useful life of three years. Any solar credit earned in 2023 can be sold in 2023, 2024, or 2025 before it expires. By partnering with Palmetto, we help you ensure your solar credits are sold at a fair market value.
How to Sell Energy Credits to Utility Companies
After you install solar, you can only accumulate and sell energy credits to utility companies if you own your solar panel system, whether bought outright or financed. If you lease or rent your solar panels from a third-party provider, then you will not be able to earn energy credits and sell them to utility companies.
Once registered with the Pennsylvania Public Utilities Commission and activated within the Generation Attribute Tracking System (GATS), solar producers can safely sell their energy credits to utility companies through any trusted platform. Palmetto customers can work directly with SRECTrade, a respected credit broker leading the way in the solar industry.
Earn More From Your Solar With Palmetto
Palmetto works with Pennsylvania solar energy producers to coordinate their SRECs through SRECTrade and create a simple, stress-free experience.
SRECTrade gives customers the option to lock in a set rate for a term of three to five years, or sell their SRECs at the market value when each SREC is created.
If you’re interested in seeing what solar can save you in Pennsylvania, contact Palmetto today, or use our free solar savings estimator.
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Frequently Asked Questions
Does Pennsylvania have SRECs?
Pennsylvania has SRECs. Solar system owners in PA can earn one SREC for every 1,000 kWh of electricity generated by their solar panels and sent to the grid.
How much are SRECs worth in Pennsylvania?
As of mid-January, 2025, one SREC in Pennsylvania is $31.25. Prices on the market change with supply and demand.
Are Pennsylvania SREC prices dropping?
The SREC price in the Pennsylvania market dropped in December 2024. It has risen and fallen from its founding in 2004 to today.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew GiermakWriter and EditorAndrew joined Palmetto in Charlotte in August 2024. He’s been a writer in journalism, then in business, going back to almost the 20th century. He’s lived in Indiana, Virginia, Pennsylvania, Virginia again, and now North Carolina for the last 12 years. He likes golf. Is he good at it? Not so much.
