Pennsylvania Market Details

Market Details

The PA SREC Market is an open market where prices are determined by market forces. Key factors include the Alternative Compliance Penalty along with supply and demand based on the Renewable Portfolio Standard (RPS). The market is divided into tiers, which also determine prices. The PA Solar Market is for in-state systems only, while the Pennsylvania Tier 1 market is open for all eligible systems located in the PJM Grid.

The Pennsylvania Tier I (PAT1) Market is an open market where prices are determined by market forces. Key factors include the Alternative Compliance Payment and supply and demand based on the Renewable Portfolio Standard (RPS).

This is a subsection of the Pennsylvania SREC Market open for all eligible systems located in the PJM Grid, which include all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Tennessee, Virginia, West Virginia and the District of Columbia.

CSG will register systems in the highest-priced market that your system is eligible to receive.

ACP and Market Trend

The PA SREC Market is ever-changing, which is reflected in the pricing for RECs. The market has been trending up into the 2024 energy year.

The RPS sets the Solar Alternative Compliance Penalty (SACP) and can be viewed as a soft benchmark for what the REC will be valued at. The SACP (or ACP) is a fee imposed on utilities and mandated purchasers for shortfalls in REC procurement. The ACP in Pennsylvania is 200% of the average market price of SRECs sold during the reporting period within the service region of PJM-GATS.

The Alternative Compliance Penalty (ACP) for Tier I (except solar) and Tier II is $45 per MWh.

Retroactivity and  Eligibility Start Date

Facilities on estimate will earn credit beginning with the first full month following application submission to the PennAEPS.

REC Shelf Life

PA SRECs have a shelf life of 3 years. Example: A SREC generated in 2022 can be counted towards the 2022, 2023, or 2024 compliance periods.

SREC Crash Course: The Basics

Frequently Asked Questions

Payment Options