The DC SREC market has remained strong, with consistently high prices, largely due to a unique combination of factors. Ambitious solar energy targets, coupled with limited infrastructure for large-scale solar development, and the dense, urban nature of the District have created a naturally constrained supply of SRECs. This undersupply has helped maintain elevated market prices. Adding to this dynamic, the D.C. City Council enacted legislation in July 2011 that restricts participation in the DC SREC market to in-state solar systems only. Specifically, systems located outside of the District and registered after January 31, 2011 are not eligible to sell into the DC market. This policy further tightened the available supply and has played a significant role in preserving the market’s value over time.