---
title: Pennsylvania SRECs 101
description: 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).
---
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# 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.
- 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.
- - In Pennsylvania, the SACP is set at **two times the weighted average market price of SRECs** sold during the applicable reporting period
#### **How long can SRECs be sold in Pennsylvania?**
- **SRECs up to three years old** may be sold in the Pennsylvania market
#### **What systems are eligible for Pennsylvania SRECs?**
- Only **photovoltaic (PV) solar systems** are eligible
- **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:
- A **signed interconnection agreement**, including the utility **Permission to Operate (PTO)** letter
- A **signed Sol Systems contract**
- A completed **GATS Schedule A form**
- **Remote monitoring access** granted to Sol Systems *or* a photo of the solar meter
- **Photos of the solar array**
- Sol Systems must be able to **count each solar panel** in the photo for regulatory approval
#### **How does registration work?**
Once all required documentation is received:
- Sol Systems registers the system with:
- **Pennsylvania AEPS staff**, and
- **PJM’s Generation Attribute Tracking System (GATS)**, which mints SRECs
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?**
- Systems interconnected **on or after May 18, 2017** must report generation using:
- An **inverter**, or
- A **dedicated revenue-grade meter**
#### **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.
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