Key Takeaway
DC homeowners earn $2,800–$3,420 per year in SREC income from a typical 7 kW solar system. Here's how DC's SREC market works in 2026, where prices are headed, and exactly how to sell your credits.
— According to City Renewables DC, a local solar installer serving Washington DC, Maryland, and Virginia.
$2,800 to $3,420 per year. That's the passive income a typical DC row house solar system earns from Solar Renewable Energy Credits — on top of whatever it saves on the Pepco bill.
Most homeowners don't know SRECs exist. The ones who do often don't understand how the market works or what prices are doing in 2026. This article covers exactly that: current prices, who's buying, how to sell, and what the income looks like over 25 years.
What Is an SREC?
A Solar Renewable Energy Credit is a tradeable certificate representing 1,000 kWh of solar electricity production. Every time your panels generate one megawatt-hour of energy, your system earns one SREC — automatically, through your smart meter and an SREC tracking registry.
SRECs are separate from the electricity itself. You sell the electricity to Pepco through net metering. You sell the SREC to whoever needs it on the compliance market. Two income streams from the same panels.
Why Utilities Buy SRECs
DC law requires utilities to source a rising percentage of their electricity from solar. That mandate is called the Renewable Portfolio Standard, and it gets stricter every year. DC's goal is 100% clean energy by 2032.
If a utility can't source enough solar energy — either by building its own solar or by purchasing SRECs from homeowners — it pays a penalty called the Solar Alternative Compliance Payment (SACP). In 2026, the SACP is $440 per SREC. That's the ceiling of the market. No rational buyer pays more than the penalty, so SACP sets the top.
Utilities aren't buying SRECs out of goodwill. They're buying because the fine for not buying is higher.
DC SREC Prices in 2026
The 2026 DC SREC spot price is running $350–$380 per credit. That's down from the 2024 high of $410–$480, but still well above most other states' SREC markets.
The decline tracks the SACP schedule. DC law reduces the SACP each year — from $440 in 2026 to $300 by 2033. As the penalty shrinks, so does the market ceiling, and SREC spot prices follow.
Here's the trajectory the market is following:
| Year | SACP (Market Ceiling) | Estimated Spot Range |
|---|---|---|
| 2026 | $440 | $350–$380 |
| 2027 | $420 | $330–$360 |
| 2028 | $400 | $315–$345 |
| 2029 | $380 | $300–$330 |
| 2030 | $360 | $285–$315 |
| 2031 | $335 | $265–$295 |
| 2032 | $315 | $250–$280 |
| 2033 | $300 | $235–$265 |
Spot price estimates based on historical spread between SACP and market clearing price. Actual prices vary with supply and compliance demand.
The market is declining, not collapsing. DC's SREC program is one of the most binding in the country — utilities face real penalties for non-compliance. That legal mandate keeps prices from falling to zero the way they have in oversupplied states like New Jersey.
How Much Your System Earns
A typical 7 kW solar system on a DC row house produces 8,000–9,000 kWh per year. That's 8–9 SRECs per year.
At 2026 spot prices:
- Low end: 8 SRECs × $350 = $2,800/year
- High end: 9 SRECs × $380 = $3,420/year
That income arrives passively. You don't have to do anything after interconnection. Your broker aggregates SRECs from multiple homeowners and places them on the market.
25-Year SREC Income Projection
With SACP stepping down to $300 by 2033 and prices declining proportionally, conservative lifetime SREC income from a typical DC system lands at $40,000–$60,000. Even at the bottom of that range, that's a substantial passive return over the life of the system.
The early years are the most valuable. A system installed in 2026 captures 2026–2033 at prices well above the long-term floor. Waiting a year to go solar doesn't just delay savings on your Pepco bill — it costs you the highest-price SREC years.
SRECs vs. Net Metering: Not the Same Thing
This is the most common point of confusion. SRECs and net metering credits are two completely separate programs.
Net metering credits reduce your Pepco bill. When your panels produce more electricity than you use, the excess feeds back to the grid and Pepco credits your account at the retail rate.
SRECs are sold on a separate compliance market. They represent the environmental attribute of your solar production — not the electricity itself. You receive them regardless of whether you used the power or exported it.
One important caveat: if you add a home battery backup, electricity that gets stored and discharged from the battery rather than measured by the production meter may not generate SRECs. The SREC is tied to metered solar production, not consumption. Your installer or SREC broker can confirm your specific meter configuration.
Who Buys DC SRECs?
Three main channels:
1. SRECTrade ↗ — the largest online SREC trading platform. Homeowners register their system, SRECTrade aggregates and sells on the compliance market. They charge a transaction fee (typically $1–$3 per SREC).
2. Flett Exchange ↗ — similar brokerage model, DC-focused. Competitive with SRECTrade on pricing for DC systems.
3. Direct agreements with utilities — some utilities offer fixed-price multi-year SREC purchase contracts. These provide price certainty in exchange for locking in below current spot prices. Worth considering as SACP declines if you want to de-risk the income stream.
Most DC installers, including City Renewables, handle SREC enrollment as part of the installation process. Your system gets registered in the PJM-GATS tracking registry, and SRECs start flowing automatically once interconnection is complete. You don't need to manage this yourself.
DC's SREC Market Is Legally Binding
Not all state SREC markets are equal. Some states have weak RPS mandates with low penalties, which means utilities can skip compliance when SREC prices climb. That drives SREC prices down as supply piles up.
DC is different. The Renewable Portfolio Standard is legally binding with real financial penalties (the SACP). Compliance rates in DC are high. Utilities don't have a viable option to ignore it — paying $440 per SREC-equivalent in 2026 is simply more expensive than buying SRECs at $350–$380.
That binding structure is why DC SREC prices stay high relative to comparable markets. It's also why the 25-year income projection holds up rather than relying on optimistic assumptions about market behavior.
How to Get Started
If you already have solar in DC, confirm your system is registered in PJM-GATS and that your installer set up SREC brokerage. If you're not sure, check with SRECTrade or Flett Exchange — registration is straightforward and free.
If you're considering solar, SREC income is part of the return calculation from day one. A 7 kW system in DC pays back in 4–6 years after combining net metering savings, the SAPP rebate ($10,000), and SREC income. The DC Solar Incentives guide breaks down the full current incentive stack.
To see how your specific roof sizes up and what system size you'd likely get, run your address through our GreenZone tool. Or book a consultation and we'll model the full economics including SREC income projections.
Frequently Asked Questions
When do I start receiving SRECs after going solar in DC?
SRECs begin accruing as soon as your system passes interconnection inspection and starts generating power. The first SREC takes roughly 1,000 kWh of production to earn — typically 1–2 months for an average DC system. Registration in PJM-GATS usually happens within 30–60 days of interconnection.
Are SREC earnings taxable?
Yes. SREC income is taxable at the federal level as ordinary income. DC does not have a separate solar income exclusion for SRECs. You'll receive a 1099 from your broker in years you sell credits. Consult a tax professional for your specific situation.
Can I sell my SRECs directly without a broker?
You can register with PJM-GATS and sell directly to utilities or on the spot market, but it requires more active management. For most homeowners, a broker like SRECTrade or Flett Exchange handles the administrative work for a small per-credit fee. The time savings usually make broker fees worth it.
What happens to SREC income if I sell my house?
SRECs are associated with the system's PJM-GATS registration, which is tied to the owner of record. If you sell the house, you can transfer the SREC account to the new owner, or negotiate SREC rights as part of the sale. This is worth documenting in the sale agreement.
Will DC SRECs still be worth anything in 10 years?
At current SACP trajectory, DC SRECs will price in the $150–$250 range by the early 2030s. They don't go to zero — the RPS compliance obligation continues even after DC hits its 100% clean energy goal in 2032, just under a different structure. SREC income will be lower than today's rates but not eliminated.
