Delaware Market Details

Market Overview

The market for Delaware SRECs is one of the oldest in the country. It originated in 2005 and was subsequently amended in 2011.

The DE SREC Market is an open market where prices are determined by market forces. Key factors include the Alternative Compliance Penalty and supply and demand based on the Renewable Portfolio Standard (RPS). The DE market utilizes a bidding system and is also eligible to participate in the Pennsylvania Tier I (PATI) market. If your bid is not accepted in the DE market, it will be registered in the PA market. 


SRECDelaware: Bid Based System

Delmarva Power implemented SRECDelaware in 2012, which provides 20-year contracts to SREC sellers on a competitive basis. Delmarva plans to host at least one solicitation each spring in order to fulfill its long-term SREC needs.

DE works on a bid based system, meaning that the lowest bids are accepted in each tier. During each procurement, there is a two-week window when applicants can submit bids. Each bid includes information about the system and the price that the applicant would be willing to accept per SREC. 

At the end of the two-week window, the Program Administrator verifies that each bid is valid. All valid bids are ordered from lowest price to highest price, and the lowest price bids are accepted until the given tier is full. Winning bids are awarded a multi-year contract to sell their SRECs under the program. (Energize Delaware)


Out of State Market

DE-based systems are eligible to participate in the Pennsylvania Tier I (PATI) market, which has demonstrated more favorable pricing conditions. Consequently, to optimize pricing outcomes for our clients, CSG diligently facilitates the dual registration of Delaware systems in both markets, ensuring access to the most advantageous pricing opportunities. 


About Pennsylvania Tier I (PATI) market.

The Pennsylvania Tier I (PAT1) Market is an open market where market forces determine prices. Key factors include the Alternative Compliance Penalty 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.


ACP and Market Trend

The PAT1 Market is ever changing, which is reflected in the pricing for RECs. The market has been trended up throughout the 2022 energy year. The RPS sets the Solar Alternative Compliance Payment (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 Alternative Compliance Payment (ACP) for Tier I  is $45/SREC.  


Retroactivity / Eligibility Start Date

A bidding schedule determines start dates in DE. For PA, facilities on estimates will earn credit beginning with the first full month following application submission to PennAEPS.


REC Shelf Life

DE and 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

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