Customer Market Overview
The MD 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).
ACP and Market Trend
The Alternative Compliance Penalty (ACP) is set by the RPS and can be viewed as a soft benchmark for what the REC will be valued at. The ACP is a fee imposed on utilities and mandated purchasers for shortfalls in REC procurement.
Maryland’s SREC market is seeing a trend of a stable and downward decline. Their current SREC pricing is set around $57 per RECs that, are not expired and is set to decline as the ACP drops. Maryland’s market is considered established. However, with supply and demand, we can see adjustments in pricing in this undersupplied market.
Retroactivity and Eligibility Start Date
Facilities on the estimate will earn credit beginning with the first full month following application submission to the Maryland Public Service Commission.
REC Shelf Life
MD 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," representing the environmental attributes of the power you produce. You will not see any changes on your utility bill.
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 MD SREC market and information, please visit the guides below.