The solar paycheck most homeowners never hear about
Most people think solar pays off one way: a smaller electric bill. In Washington, DC, there’s a second payoff that can be just as big. Every time your panels produce 1,000 kWh of electricity, you earn a certificate you can sell for cash, often more than $300 apiece.
These certificates are called SRECs, and DC has the most valuable SREC market in the country. For many DC homeowners, SREC income does much of the work of paying off the system, especially now that the federal tax credit for homeowners has ended.
Here’s how SRECs work, what they’re worth in DC and Maryland today, and how to make sure you get paid.
What is an SREC, and who buys it?
An SREC (Solar Renewable Energy Certificate) is proof that a solar system produced 1,000 kWh, or one megawatt-hour, of clean electricity. It’s tracked electronically through PJM’s Generation Attribute Tracking System (GATS), the regional registry for energy credits.
Here’s why it has value:
- The law sets a solar requirement. DC and Maryland require electricity suppliers to source a growing share of their power from local solar.
- Suppliers must prove they met it. They do that by buying and retiring SRECs.
- Falling short is expensive. A supplier without enough SRECs pays a penalty, the Solar Alternative Compliance Payment. In DC that penalty is $440 per missing SREC in 2026.
- So suppliers buy from homeowners. Buying your SREC for less than the penalty is their cheaper option, and that’s where your income comes from.
You keep using your own solar power and earning net metering credits as usual. The SREC is a separate payment for the environmental value of what you produce.
What SRECs are worth: DC vs. Maryland
DC SRECs are worth roughly eight to nine times as much as Maryland’s. DC limits eligibility to systems located inside the District, which keeps supply tight and prices high.
| Washington, DC | Maryland | |
|---|---|---|
| Recent market price | About $330–$380 per SREC | About $40 per SREC |
| Price ceiling (penalty) in 2026 | $440 | $45 |
| Penalty trend | Falls $20 a year, to $400 in 2028 | Falls to $22.50 by 2030 |
| How long you earn | 15 years from interconnection | Ongoing, at market prices |
| Bonus for small systems | None | About $60 for qualifying systems of 20 kW or less, under the Brighter Tomorrow Act |
In November 2026, one major broker offered DC homeowners $378 per SREC at variable market rates, or $300 locked in for two years. DC’s regulator reported that suppliers paid an average of about $407 per SREC for 2024 compliance.
Because the DC penalty steps down each year, expect the ceiling on SREC prices to drift lower over time. Even so, DC remains far ahead of every other market.
What could a DC home earn? A simple example
A rough rule of thumb in this region: each kilowatt of panels produces about 1,200 kWh a year, or 1.2 SRECs. Here’s what a typical 6 kW DC rowhouse system might earn.
| Locked-in rate ($300) | Market rate ($378) | |
|---|---|---|
| SRECs per year (about 7) | $2,100 | $2,646 |
| Over 15 years, if prices held | $31,500 | $39,690 |
That’s on top of what you save on your electric bill. Real results depend on your roof, shading and future SREC prices, which are likely to ease as the penalty ceiling falls. A custom quote will estimate your system’s actual production.
For comparison, the same 6 kW system in Montgomery or Prince George’s County would earn roughly $290 a year at Maryland’s current prices.
Three ways to sell your SRECs
You don’t sell SRECs one at a time on your own. A broker or aggregator handles the sales, and you choose how you want to be paid.
| Option | How it works | Best for |
|---|---|---|
| Market rate (brokerage) | You get the going price each time your SRECs sell, minus a broker fee. | Homeowners comfortable with ups and downs who want the highest typical price |
| Fixed-price contract | You lock in one price per SREC for a set term, often two to five years. | Homeowners who want predictable income for budgeting |
| Upfront payment | You sell years of future SRECs for one lump sum when the system is installed. | Homeowners who want cash now to lower the system’s net cost |
An upfront payment trades some long-term value for immediate cash. Earlier in 2026, one broker offered DC homeowners about $1,384 per kW of system size for 15 years of SRECs. Offers change monthly, so compare current quotes before you commit.
Fine print worth knowing
- Register promptly. In DC, SREC eligibility counts back to your system’s interconnection date only if you register within the same calendar year. Waiting can cost you months of credits.
- Ownership decides who gets paid. If you buy your system, with cash or a loan, the SRECs are yours. With most leases and power purchase agreements, the company that owns the panels keeps them.
- Small systems may not need a special meter. Systems of 10 kW or less in DC can often earn SRECs from an engineering estimate instead of a revenue-grade meter.
- SRECs don’t expire right away. DC SRECs can be sold up to five years after they’re created, so there’s flexibility in timing.
- SREC income may be taxable. Talk to a tax professional about how to report it.
- Prices can change. SREC values follow supply, demand and the penalty schedule. Plan around a conservative estimate, and treat higher prices as a bonus.
Let us handle the paperwork
SRECs are one of the best reasons to go solar in DC, but only if your system is designed, certified and registered correctly from day one.
At Revolution Solar, we’ve installed hundreds of systems across DC and Maryland and are rated A+ by the Better Business Bureau. We design your system for strong production, handle permits and utility approval, and help you get registered so you start earning SRECs from the start. Financing with no money down is available.
Find out what your roof could earn. Call (202) 827-6527, email info@revolutionsolar.energy, or request a free quote online.