Pennsylvania SRECs 101
Pennsylvania’s Solar Renewable Energy Certificate (SREC) market has experienced declining prices over time, largely due to an oversupply of SRECs combined with a relatively modest Alternative Energy Portfolio Standard (AEPS).
What is Pennsylvania’s Alternative Energy Portfolio Standard (AEPS)?
Pennsylvania’s AEPS encourages electricity suppliers to source a portion of their energy from renewable resources.
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In 2022, more than 18% of electricity sold to retail customers in Pennsylvania came from renewable energy sources
What is the Solar Alternative Compliance Payment (SACP)?
The Solar Alternative Compliance Payment (SACP) is the penalty paid by compliance buyers that do not meet Pennsylvania’s solar requirements.
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In Pennsylvania, the SACP is set at two times the weighted average market price of SRECs sold during the applicable reporting period
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How long can SRECs be sold in Pennsylvania?
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SRECs up to three years old may be sold in the Pennsylvania market
What systems are eligible for Pennsylvania SRECs?
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Only photovoltaic (PV) solar systems are eligible
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Solar thermal systems are not eligible for SRECs in Pennsylvania
What is required to register a Pennsylvania solar system?
Before Sol Systems can register your system, customers must provide:
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A signed interconnection agreement, including the utility Permission to Operate (PTO) letter
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A signed Sol Systems contract
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A completed GATS Schedule A form
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Remote monitoring access granted to Sol Systems or a photo of the solar meter
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Photos of the solar array
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Sol Systems must be able to count each solar panel in the photo for regulatory approval
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How does registration work?
Once all required documentation is received:
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Sol Systems registers the system with:
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Pennsylvania AEPS staff, and
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PJM’s Generation Attribute Tracking System (GATS), which mints SRECs
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The combined registration process may take up to 2-4 months.
When does SREC eligibility begin in Pennsylvania?
In Pennsylvania, SREC eligibility begins the month the system is registered with AEPS, not the PTO date.
Example:
If a system receives PTO in January but all required documentation is submitted in early March, SREC eligibility will begin March 1, not January.
How must generation be reported?
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Systems interconnected on or after May 18, 2017 must report generation using:
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An inverter, or
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A dedicated revenue-grade meter
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Does Sol Systems charge a registration fee?
No. Sol Systems does not charge a registration fee.
When are SREC payments made?
Sol Systems issues payments to Sol Annuity and Sol Brokerage customers on a monthly basis, according to the applicable payment schedule.