If you’re looking to turn your rooftop solar system into income, understanding the latest trends in Solar Renewable Energy Credits (SRECs) in Washington, DC is key. This article breaks down what SRECs are, how their prices fluctuate, and what current values mean for solar owners in the District.
What’s an SREC?
Here’s the simple version: when your solar array generates one megawatt-hour (MWh) of electricity, you earn one SREC. These credits can then be sold to utilities or companies that must meet the District’s renewable energy requirements.
Washington DC’s SREC market is one of the strongest in the country because of its aggressive renewable energy goals and limited solar supply. Homeowners who own their systems (not lease them) can sell their SRECs and earn passive income from their clean energy production.
How Much Are SRECs in DC Worth Right Now?
Let’s get into numbers — because that’s what most people want to know.
As of 2025, the average market rate for DC SRECs sits around $400 to $440 per credit, depending on the broker or contract terms. Prices have remained strong for the past few years, with some fluctuations based on supply and compliance demand.
In simple terms, if your system generates 10 MWh per year, you could be earning $4,000 annually from selling your SRECs alone, not counting savings on your electricity bill.
Why Are SREC Prices So High in DC?
Several factors drive the consistently high SREC prices in Washington DC:
- Aggressive Renewable Energy Goals – DC aims for 100% renewable electricity by 2032, including a required portion from solar energy.
- High Solar Alternative Compliance Penalty (SACP) – Utilities that fail to meet solar energy quotas must pay penalties. The high penalty cap (which was $500 per SREC in 2023 and steps down slowly each year) keeps SREC prices strong.
- Limited Local Supply – DC is a small area with restricted rooftop space. That means fewer solar installations compared to demand.
- SREC Lifetime – Each SREC has a five-year lifetime, meaning a credit generated in 2024 can still count toward compliance through 2028. This flexibility helps maintain market value.
All these factors create an environment where solar system owners can earn substantial returns from SRECs.
Are SREC Prices Going Up or Down?
Here’s where it gets interesting. While the current market is strong, prices might gradually decline over the coming years.
The primary reason? The SACP, which caps how high SREC prices can go, decreases slightly each year. For instance, it drops from $480 in 2024 to $460 in 2025 and continues to lower in the following years.
However, despite this expected decrease, prices aren’t expected to crash anytime soon. DC’s market remains under-supplied, meaning demand will likely keep SRECs valuable for years to come. Experts predict a gradual drop to around $300 per SREC by the early 2030s, but that’s still much higher than most other states.
In short, if you’re producing SRECs now, you’re in a great position to maximize profits.
What This Means for Solar Owners in DC
If you already have solar panels or are considering installing them, here’s what SREC prices mean for you:
- Each MWh = 1 SREC, which currently earns about $400.
- A typical residential system can generate around 8–12 SRECs per year, depending on size and efficiency.
- That’s an extra $3,000–$5,000 annually, purely from selling SRECs.
- When combined with electricity bill savings, solar becomes a strong long-term investment.
Many homeowners choose between two options:
- Sell SRECs on the spot market at current rates for maximum short-term value.
- Lock in a fixed-rate contract (often slightly lower per SREC) for stability and predictable income over a few years.
Both approaches have benefits depending on your risk tolerance and long-term goals.
Steps to Start Selling Your SRECs
If you’re new to the process, here’s a quick overview of how to get started:
- Install a qualified solar system – Make sure your panels and inverters meet DC’s certification standards.
- Register your system with the local renewable energy tracking program.
- Start generating electricity – Once your system produces power, it begins creating SRECs.
- Work with an SREC aggregator or broker – They’ll help you sell your credits to the right buyers at market rates.
- Get paid – Depending on your contract, payments may occur monthly, quarterly, or annually.
Some homeowners prefer to manage sales independently, but most find it easier to work with professional SREC aggregators who handle trading, certification, and compliance paperwork.
Key FAQs About DC SRECs
Q: How long are SRECs valid in DC?
A: Each SREC remains valid for five years after it’s generated.
Q: Can I sell my SRECs if I lease my solar system?
A: Usually not. The company that owns the system typically retains the rights to the SRECs.
Q: What happens if DC’s SREC market becomes oversupplied?
A: Prices would gradually decrease, but given the city’s size and current policies, that risk remains low in the near future.
Q: Should I sell now or hold for better prices?
A: Since prices are near their historic highs, most experts suggest selling now or securing a short-term contract. Holding too long could mean losing out if prices start to dip.
The Future of SREC Prices in Washington DC
Looking ahead, DC’s SREC market will remain one of the most lucrative in the United States. While the long-term trend points to mild declines as more solar projects come online, policy-driven demand will keep prices strong for the next several years.
The city’s goal of full renewable energy transition ensures that SRECs will continue playing a key role in compliance and sustainability efforts. As the solar landscape evolves, smart homeowners can continue earning solid returns while contributing to a cleaner energy future.
Final Thoughts
If you’re generating solar power in Washington DC, your SRECs are more than just certificates. They’re a valuable asset that can bring in thousands of dollars every year. With current prices hovering around $400 per credit, the opportunity is significant.
However, timing matters. Register your system quickly, monitor price trends, and decide whether to sell or lock in a contract. The earlier you act, the more value you’ll capture before gradual declines begin.
At SAMs, we help homeowners and businesses maximize the financial return on their solar investments. From SREC aggregation to solar asset management, our experts ensure you get the best value for every watt your panels produce.
Visit www.samsmd.com to learn how you can start earning from your solar energy today.