SREC Income Calculator

SREC Income Estimator

In some states, your solar panels generate cash, not just savings. Calculate your SREC checks.

Prices vary: DC ($400), MA/NJ ($200), PA ($40).
Auto-estimated based on size (1200 kWh per kW).

Passive Income Potential

SRECs Earned

0
Per Year (1 SREC=1MWh)

Annual Income

$0
Paid to you

10-Year Income

$0
Long term value
Note: SREC prices fluctuate based on supply and demand in your state's market. This is an estimate based on current prices.

How This Tool Works

The SREC Income Estimator calculates the monetary value of the green certificates your system generates. In specific US states, homeowners are granted 1 SREC for every 1,000 kWh of solar energy produced. Unlike net metering (which lowers your bill), SRECs are a form of actual cash income paid to you by utilities.

This tool multiplies your projected annual production by current market spot prices to estimate your quarterly or annual incentive checks, helping you factor this "hidden" income into your total solar ROI.

How to Use the Estimator

  • System Size (kW): Enter the total DC capacity of your array (e.g., 10kW).
  • SREC Market Price: Enter the current price for your state. Check a source like SRECTrade or SolSystems for today's spot rate.
  • Annual Production: For most of the US, a 1kW system produces ~1,200 kWh per year. You can adjust this based on your specific efficiency report.

Passive Income Example (NJ)

For a 10kW system in New Jersey ($200 per SREC):

  • Annual Production: 12,000 kWh
  • SRECs Earned: 12 per year
  • Annual Income: $2,400
  • 10-Year Total: $24,000
  • Verdict: In high-value SREC states, these payments alone can pay for the entire cost of the solar system in less than 7 years, making the electricity savings "pure profit."

Understanding SREC Market Dynamics

SREC markets are supply-and-demand driven, which means prices can be volatile:

  • RPS Requirements: State "Renewable Portfolio Standards" force utilities to buy SRECs. If utilities fall short of their goal, prices rise.
  • ACP (Alternative Compliance Payment): This is the 'ceiling' price. It's the fine a utility pays if they don't buy your SREC. Market prices usually hover just below the ACP.
  • Fixed vs. Spot: You can often choose to lock in a fixed SREC price for 10-15 years (lower but safer) or sell on the "spot market" (higher potential but risky).

Frequently Asked Questions

What is an SREC and how do I earn them?

An SREC (Solar Renewable Energy Certificate) represents 1 Megawatt-hour (1,000 kWh) of clean energy produced by your solar panels. In states with SREC markets, your utility company is required by law to buy these credits from you to meet their renewable energy mandates.

Which states have the best SREC markets?

Washington D.C. currently has the strongest SREC market, sometimes reaching $400+ per certificate. Other active markets include New Jersey, Massachusetts, Maryland, Ohio, and Pennsylvania.

Are SRECs the same as Net Metering?

No. Net Metering is a credit on your bill for the 'extra' energy you send to the grid. SRECs are a separate payment for the 'green value' of every electron you produce, regardless of whether you use it yourself or send it to the grid.
Pro Tip: Most homeowners use an "SREC Aggregator" to handle the monthly selling and paperwork for a small fee (usually 5-10% of the SREC value).