Most of you Solar Guru’s already know about SRECs (Solar Renewable Energy Certificates), but for those still learning, here’s a quick breakdown provided by our friends at Recmint:
⚡ What Are SRECs?
- SRECs are a state-supported incentive program that provides an additional way to get paid for going solar.
- To sell them, most solar owners work with an SREC aggregator (that’s us!).
- Each SREC is a digital certificate that proves how much renewable energy your system has produced.
- SRECs are valuable in states with Renewable Portfolio Standard (RPS) laws, which require utilities to buy renewable energy.
In short:
When your solar system produces 1 megawatt-hour (1,000 kWh) of electricity, you earn 1 SREC. A 10kW residential solar system typically generates about 12 SRECs per year.
These certificates are separate from the electricity itself— you use the electricity at home, but you can sell the SRECs to utilities who need them to meet renewable energy targets.
🏛️ What Changed with the Big Beautiful Bill (BBB)?
The recent One Big Beautiful Bill (BBB) didn’t change SREC programs directly. SRECs are still managed at the state level, and your ability to earn and sell them remains the same.
However, the bill does change the federal solar tax credit (ITC) structure, which will affect the solar market as a whole:
- The 30% Residential Tax Credit (25D) now ends after December 31, 2025.
- For third-party owned systems (leases/PPAs), the tax credit is available only if construction starts by July 4, 2026 and finishes by the end of 2027.
📉📈 Indirect Impacts on the SREC Market
While the bill doesn’t touch SRECs themselves, these changes in tax incentives will shape the supply and demand dynamics:
- Decline in new solar installations → With fewer homeowners adopting solar, SREC supply could shrink.
- Changing economics for solar installs → Higher upfront costs may slow down adoption, affecting overall production.
- Possible SREC price shifts → With supply potentially dropping while state compliance demand remains steady (or grows), SREC prices could rise—or fluctuate more than usual.
✅ Bottom Line
SRECs remain one of the most powerful incentives for solar owners. While the Big Beautiful Bill doesn’t eliminate them, the changes to federal tax credits may shift the balance of how many SRECs are generated in the future—and that could impact their value.
For now, if you own solar, you can keep generating and selling your SRECs just as before. And if you’re thinking about installing solar, the time to capture both the 30% tax credit and future SREC income is now, before the credits begin to phase out.
