---
title: Why are Sol Profit Share fixed prices lower than Sol Brokerage?
description: Sol Profit Share offers lower fixed SREC prices than Brokerage to provide price protection while still allowing upside when market prices rise.
---
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# Why are Sol Profit Share fixed prices lower than Sol Brokerage?
Why are Sol Profit Share fixed prices lower than Sol Brokerage?
The Sol Profit Share contract provides a guaranteed, fixed price per SREC, plus additional profit when SREC market prices rise above a set threshold. The fixed price is often lower than the current market price (used for Sol Brokerage) because it may account for declining market prices in the coming years, and is adjusted for general market risk.
SREC prices have a tendency to decline because (1) the solar alternative compliance payment (SACP) in many states declines each year and (2) SREC supply is set to grow. This projected pricing decline will leave the unprotected seller exposed to lower prices.
The Sol Profit Share contract offers protection against declining or otherwise uncertain SREC prices, yet still provides customers with the **added benefit** of receiving higher SREC payments when market prices rise.
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