SRECs in Washington, DC: How Solar Owners Earn Money Beyond Energy Savings
By Team Faseeh Lall
Installing solar panels in Washington, DC can reduce how much electricity a property needs to buy from the grid. But electricity savings are only one part of the financial value an eligible solar system may create.
DC solar owners may also be able to generate and sell Solar Renewable Energy Certificates, or SRECs.
For every megawatt-hour of qualifying solar electricity recorded, one SREC can be created. That certificate is separate from the electricity itself and can be sold into the renewable-energy market.
Washington, DC remains an especially important SREC market because the District's Renewable Portfolio Standard requires electricity suppliers to increase their use of renewable energy, with a goal of 100% renewable electricity by 2032 and a local-solar requirement reaching 15% by 2041.
For solar owners, that creates an important opportunity:
Your solar system can potentially create value through electricity savings and through the SRECs associated with eligible solar generation.
But getting that value requires more than simply having panels on your roof.
The system must meet applicable eligibility requirements, production must be properly recorded, certificates need to be created and tracked, and the SRECs ultimately need to be sold.
This guide explains how the process works in Washington, DC in 2026.
What Is an SREC?
SREC stands for Solar Renewable Energy Certificate.
An SREC represents the renewable-energy attributes associated with one megawatt-hour (MWh), or 1,000 kilowatt-hours (kWh), of qualifying solar electricity generation.
PJM Environmental Information Services' Generation Attribute Tracking System—better known as PJM GATS—creates one electronic certificate for each MWh of qualifying generation reported for registered generating units.
For example:
If an eligible solar system produces:
1,000 kWh → approximately 1 SREC
5,000 kWh → approximately 5 SRECs
10,000 kWh → approximately 10 SRECs
The exact number of certificates ultimately available depends on eligible and properly reported generation.
The Electricity and the SREC Are Separate
This distinction is important.
Your solar panels generate electricity.
That electricity may be consumed by your home or business or exported to the electric grid.
The SREC represents the renewable attribute associated with that generation.
So a solar owner can use the electricity while separately selling the certificate associated with qualifying generation.
Why Do DC SRECs Have Value?
Washington, DC's Renewable Portfolio Standard requires electricity suppliers to obtain an increasing portion of the electricity they sell from qualifying renewable resources.
The District's current target is 100% renewable electricity by 2032, while its local-solar requirement rises to 15% by 2041.
Electricity suppliers use renewable energy certificates to demonstrate compliance with these requirements.
That regulatory demand creates a market for qualifying certificates.
Solar owners generate the certificates.
Suppliers and other market participants purchase them.
The SREC market therefore turns qualifying solar generation into a separate tradable asset.
How Do SRECs Work in Washington, DC?
The process can be understood in five stages:
Generate → Report → Create → Sell → Get Paid
1. Your Solar System Generates Electricity
Your photovoltaic system produces electricity throughout the year.
The amount generated depends on factors such as:
System size
Panel orientation
Shading
Weather
Equipment performance
Inverter availability
System downtime
Soiling and other site conditions
This is why two solar systems with the same installed capacity will not necessarily generate exactly the same number of SRECs.
The better calculation is based on actual eligible electricity generation:
Eligible annual generation in kWh ÷ 1,000 = approximate SRECs generated
If a qualifying system generates 7,000 kWh, for example, that represents approximately 7 MWh and therefore approximately seven certificates.
2. The System Must Meet DC Eligibility Requirements
Solar panels do not automatically become DC SREC-generating assets simply because they have been installed.
The generating facility must satisfy the applicable Renewable Portfolio Standard requirements.
The Public Service Commission of the District of Columbia administers the RPS certification process.
The DCPSC currently requires As Built Construction Drawings to accompany solar RPS applications. It also notes that changes effective January 1, 2025 affected the eligibility of certain systems located outside the District.
For a Washington, DC homeowner or property owner, this makes proper certification an important early step.
3. Generation Is Tracked Through PJM GATS
After the appropriate certification and account setup, generation is tracked through PJM-EIS GATS.
GATS records generation information and creates electronic certificates associated with qualifying MWh of production.
Each certificate has identifying information associated with the generator, fuel type, and generation period, helping create a traceable record of certificate ownership.
For solar owners, accurate production reporting is therefore essential.
If production data is missing or incorrect, certificate administration can become more complicated.
4. Your SRECs Can Be Sold
Once certificates have been created and are available for sale, owners have different ways to monetize them.
Depending on the arrangement, an owner might:
Manage certificate sales more directly
Work with an SREC broker
Use an SREC aggregator
Enter into a fixed-price arrangement
Sell based on prevailing market conditions
Each structure has different advantages and tradeoffs.
A broker or aggregator may handle tasks such as:
Account administration
Production reporting
Certificate tracking
Finding buyers
Transaction coordination
Payment administration
In return, the provider may charge a fee, commission, or earn a margin through its transaction structure.
Solar owners should understand the net amount they receive, not just the advertised SREC price.
5. The Owner Receives Payment
Once certificates are sold according to the agreement, the solar owner receives payment subject to the applicable fees and payment schedule.
The exact timing varies by provider.
Some arrangements may pay after individual transactions, while others may follow monthly, quarterly, or other settlement schedules.
Before selecting a provider, understand:
How your SRECs will be priced
What fees apply
How often certificates are sold
When you receive payment
Who controls the certificates
How long the contract lasts
What happens if you sell the property
What Are DC SRECs Worth in 2026?
SREC prices are not fixed.
They change according to market conditions, including certificate supply, compliance demand, regulatory requirements, and buyer activity.
As of the DC Public Service Commission's August 1, 2026 update, DC SRECs were trading at approximately $330 on Flett Exchange, while the recent SREC Trade bid price was $345. The Commission also reported 22,076 District solar systems eligible for the DC RPS solar requirement at that time.
These prices should be treated as a dated market snapshot, not a guaranteed future value.
Example
Suppose an eligible solar system generates 7 MWh during the year.
That could result in approximately:
7 SRECs
At an illustrative market price of $330 per SREC:
7 × $330 = $2,310
At $345:
7 × $345 = $2,415
This example demonstrates why SRECs can represent meaningful additional value.
However, neither the amount of generation nor the market price should be treated as guaranteed.
Production and SREC prices both vary.
Why DC SREC Prices Change
Several factors influence certificate pricing.
Supply
As more eligible solar systems generate electricity, more certificates may become available.
Compliance Demand
Electricity suppliers need qualifying renewable-energy certificates to satisfy the District's RPS obligations.
Solar Requirements
Changes to the District's solar carve-out can influence certificate demand over time.
Alternative Compliance Economics
The cost of noncompliance can influence how much suppliers are willing to pay for qualifying certificates.
Market Timing
Buyer demand and available supply can change throughout a compliance period.
For these reasons, a statement such as “DC SRECs are worth $X” should always include a date.
What About the Federal Residential Solar Tax Credit in 2026?
This is an important change for any article labeled a 2026 guide.
The federal Residential Clean Energy Credit under Internal Revenue Code Section 25D is not available for expenditures made after December 31, 2025.
The IRS states that qualified residential clean-energy property installed through December 31, 2025 could qualify under the previous rules, but the residential credit is not available for property installed after that deadline.
Therefore, a homeowner installing solar in 2026 should not assume the former 30% residential federal solar credit remains available.
This does not change the basic DC SREC mechanism.
SREC eligibility and federal income-tax incentives are separate programs.
Owners with tax questions involving older installations, carryforwards, businesses, or other incentive structures should consult a qualified tax professional.
How to Start Earning DC SRECs
Confirm Your System's Eligibility
Determine whether your solar installation satisfies current DC RPS requirements.
Do this early rather than assuming that ownership of panels automatically creates eligible DC SRECs.
Complete DC RPS Certification
The DC Public Service Commission operates the Renewable Portfolio Standard certification portal.
Current solar applications require appropriate documentation, including as-built construction drawings.
Establish the Required GATS Tracking
Once the system has the appropriate certification, the relevant generator information and production need to be properly tracked through PJM GATS.
Maintain Accurate Production Reporting
Certificate creation depends on qualifying generation data.
Owners should make sure monitoring, meters, and required reporting processes remain functional.
Decide How You Will Sell
Compare direct participation, brokers, aggregators, and other available transaction structures.
Do not compare providers based on headline price alone.
Consider:
Fees
Net payment
Contract length
Payment timing
Reporting transparency
Customer support
Certificate ownership
Transfer provisions
Can DC SRECs Be Created Retroactively?
This is an area where generic advice can be misleading.
It is not accurate to say that all generation before the certification date is automatically lost.
Under current DC regulations, a newly certified renewable generator can generally produce RECs beginning January 1 of the year in which it is certified. A generator certified in January can, under the rule, produce retroactive RECs beginning January 1 of the preceding year.
The exact treatment depends on current rules and the specific certification.
So while owners should still avoid unnecessary delays in registration, the correct advice is:
Confirm the eligible generation start date under the DCPSC certification rules rather than assuming that all pre-certification generation is automatically ineligible.
How Long Is a DC SREC Valid?
This is different from asking how long a solar system can continue generating SRECs.
Under current District regulations, qualifying SRECs generated on or after March 22, 2019 are generally valid for five years from the date of generation.
Once an REC is used for RPS compliance, it is retired and cannot be reused.
How Long Can Your Solar System Generate SRECs?
That is a separate question.
A solar system may continue generating certificates while it remains eligible under the applicable program, continues producing qualifying electricity, and satisfies the relevant certification and reporting requirements.
Because energy regulations can change, owners should monitor current DCPSC requirements rather than assuming today's rules will remain unchanged throughout the full life of the solar system.
Why Solar Monitoring Matters for SREC Income
Your certificate opportunity starts with physical electricity production.
If an inverter remains offline, the system generates less electricity.
If the system generates less qualifying electricity, fewer certificates may ultimately be created.
This is why SREC management should be connected to solar asset monitoring.
Useful monitoring can identify:
Inverter outages
Communication failures
Unexpected production drops
Repeated faults
Meter problems
Long-term underperformance
The relationship is straightforward:
Monitor production → identify problems → restore performance → protect eligible generation
SREC management does not increase production by itself.
It helps ensure the financial value connected with actual qualifying production is not overlooked.
Common DC SREC Mistakes to Avoid
Assuming Installation Automatically Means SREC Eligibility
Solar installation and DC RPS certification are different steps.
Confirm certification requirements.
Ignoring Monitoring Problems
A monitoring or reporting problem can make certificate administration more difficult and may hide actual system underperformance.
Focusing Only on SREC Price
A high market price does not help if the physical solar system is underperforming.
Protect production first.
Choosing a Broker Based Only on the Advertised Price
Review fees, contract terms, reporting, payment timing, and net proceeds.
Losing System Documentation
Keep certification information, GATS records, meter information, warranties, production reports, and transaction history organized.
Assuming the Installer Manages Everything Forever
Confirm exactly which party is responsible for RPS certification, GATS, production reporting, certificate sales, and ongoing administration.
Who Owns the SRECs?
Do not assume certificate ownership solely from the fact that solar panels are installed on your property.
Ownership can depend on:
How the system was purchased
Financing terms
Lease or power-purchase agreements
Installation contracts
Previous SREC agreements
Property-transfer documents
If you purchased the system, you may retain the renewable attributes but the actual contract should be checked.
With leases, PPAs, or other third-party ownership structures, another party may have contractual rights to the SRECs.
Confirm ownership before attempting to sell certificates.
What Happens to SRECs When You Sell Your House?
A property sale creates several questions:
Who owns SRECs already generated?
Who receives future SRECs?
Does an existing brokerage agreement transfer?
Does the GATS account need to be updated?
Does DC certification require an ownership update?
Are any unsold certificates retained by the seller?
Do not leave these questions until after closing.
Solar-system documents and SREC rights should be reviewed as part of the property-transfer process.
Are SREC Payments Taxable?
Tax treatment depends on the owner's circumstances and applicable tax rules.
SREC revenue should therefore not automatically be described as tax-free.
Keep records of certificate transactions and payments and consult a qualified tax professional about how the income should be reported in your particular situation.
Should You Sell SRECs Yourself or Use a Broker?
There is no single answer for every owner.
Selling More Directly
This may provide greater control but can require the owner to manage:
Certificate accounts
Buyers
Pricing
Transactions
Reporting
Administration
Working With an SREC Broker or Aggregator
A provider may handle more of the process, including tracking, transactions, paperwork, and payments.
The tradeoff may be fees or a spread between market pricing and the amount paid to the owner.
The best option depends on how involved you want to be and how much administrative work you are comfortable handling.
The Bottom Line
For eligible Washington, DC solar owners, SRECs can add another layer of financial value beyond electricity savings.
The process is relatively easy to understand:
Generate qualifying solar electricity → record it correctly → create SRECs → sell the certificates → receive payment
But the details matter.
Eligibility matters.
Certification matters.
Production reporting matters.
Market prices matter.
Contracts matter.
And the performance of the solar system itself matters.
As of August 1, 2026, the DCPSC reported DC SREC trading around $330 on Felt Exchange and a recent SREC Trade bid of $345 showing why the District remains an important SREC market while also demonstrating that prices should always be treated as time sensitive.
For owners who already have solar, the first questions should be:
Is my system certified?
Is all eligible production being properly recorded?
Are my SRECs being created and tracked?
Who owns them?
And do I have a clear strategy for selling them?
Answering those questions can turn a solar installation from simply an electricity-saving system into a better-managed long-term energy asset.