SRECs are solar incentives based on your individual system's performance. They're issued individually, with owners earning one credit per megawatt-hour (MWh) of electricity the system produces.
Owners sell these renewable energy credits to utilities. For utilities, the purchase of these credits proves they've paid someone to produce renewable electricity, which allows them to claim that renewable energy under their own production to satisfy DC’s requirements for its renewable portfolio standard.
For solar owners, the benefit is as simple as getting paid for their system’s passive energy generation. SRECs have variable values depending on factors such as your state and supply and demand. Some states, like Maryland, get a decent annual earning in the $400 to $500 range.
Washington, DC’s aggressive portfolio standard means the average homeowner can earn well over $3,000 per year under current market conditions.