PA Market Overview

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 determines 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.

ACP and Market Trend

The PA SREC Market is ever changing which is reflective in the pricing for RECs. The market has been trending up throughout the 2022 energy year. The Solar Alternative Compliance Penalty (SACP) is set by the RPS 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.

Frequently Asked Questions

Q: How is my power bill impacted?

A: Your power bill is unaffected by SRECs. SRECs are "Solar Renewable Energy Credits" and they represent the environmental attributes of the power that you produce. You will not see any changes on your utility bill.A: Selling your SRECs has no impact on Net Metering. You can participate in both Net Metering and sell SRECs at the same time. This is because Net Metering has to do with excess energy production, whereby you can receive a credit from your electricity supplier. SRECs are solely the environmental attributes, so if you use all of your production, or put all of it back on the grid for others to consume, it has no impact on your SREC production or ability to sell them. SREC brokering and Net Metering are separate incentive programs that allow solar owners to make back money.

Q: How does this impact Net Metering?

A: Selling your SRECs has no impact on Net Metering. You can participate in both Net Metering and sell SRECs at the same time. This is because Net Metering has to do with excess energy production, whereby you can receive a credit from your electricity supplier. SRECs are solely the environmental attributes, so if you use all of your production, or put all of it back on the grid for others to consume, it has no impact on your SREC production or ability to sell them. SREC brokering and Net Metering are separate incentive programs that allow solar owners to make back money.

Q: Can I sell my SRECs in a state market I don't live in?

A: It depends! Some markets do allow for systems located outside that state to participate. However, it is usually at a lower tier or class of the market which is substantially less than the "in-state" price. CSG will register your system in the highest-priced market that your system is eligible to receive. Every state market has different eligibility requirements and your system may not qualify. Check out our SRECS by State sections for more information.

For additional PA SREC market and information, please visit the guides below.

SREC Process Start to Finish

PA SREC Process