Washington DC Market Details
Market Overview
The Washington DC SREC Market is a voluntary market where prices are determined by market forces.
The market has remained under-supplied due to ambitious yearly solar targets coupled with challenging infrastructure and demographic factors. Initiatives aimed at enhancing solar accessibility, including a community net metering law introduced in 2013 and efforts to boost solar adoption among low-income households, have elevated the rate of solar installations in the District. Additionally, the enactment of the CleanEnergy DC Omnibus Amendment Act in 2018 has further accelerated the pace of solar installations throughout the area.
Washington, DC, is easily the strongest solar SREC market in the nation, and local policy has recently been expanded to reinforce the long-term confidence in SRECs. The CleanEnergy DC Omnibus Amendment Act of 2018 increased the District’s renewable energy mandate to 100% by 2032 and extended the solar mandate from 5% to 10% by 2041. This means that the Alternative Compliance Penalty (ACP), the underlying driver of SREC prices, is also extended out to 2041.
DC has the most lucrative SREC program in the country. Pricing for a Washington DC SREC in 2024 is around $440.
Washington DC systems are also eligible for the Pennsylvania Tier I (PATI) market.
CSG will register your system in the highest-priced market that your system is eligible to receive.
Pennsylvania Tier I (PAT1) 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 trending up throughout the 2022 energy year. The Solar Alternative Compliance Payment (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 Alternative Compliance Payment (ACP) for Tier I is $45/SREC.
Retroactivity / Eligibility Start Date
Facilities on estimates will earn credit beginning with the first full month following application submission to the PennAEPS.
REC Shelf Life
DC SRECs have a shelf life of 5 years. Example: A SREC generated in 2024 can be counted towards the 2024, 2025, 2026, 2027 or 2028 compliance periods.
PA SRECs have a shelf life of 3 years. Example: A SREC generated in 2024 can be counted towards the 2024, 2025, or 2026 compliance periods.
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