In Pennsylvania, Solar Renewable Energy Credits (SRECs) are used as a way to encourage the use of solar power by providing a financial incentive to individuals and businesses that generate electricity from solar. SRECs are calculated using Net Metering Policies.
Net Metering is available to most homes & business in PA. Enter your zip code below to see if your home qualifies for Net Metering and how much you could save with solar energy!
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Solar Renewable Energy Credits in Pennsylvania
The SREC program in Pennsylvania was established in 2004 as part of the state's Alternative Energy Portfolio Standards (AEPS) program. Under this program, electricity suppliers are required to provide a certain percentage of their electricity from renewable sources, such as solar, wind, and hydroelectric power. To help them meet this requirement, suppliers can purchase SRECs from solar power generators.
To participate in the SREC program in Pennsylvania, individuals and businesses must first install a solar power system that meets certain technical specifications. Once the system is installed and operational, the owner can register it with the Pennsylvania Department of Environmental Protection and begin generating SRECs. For every 1,000 kilowatt-hours (kWh) of electricity generated by the solar power system, the owner earns 1 SREC. These SRECs can then be sold to electricity suppliers in order to help them meet their renewable energy requirements under the AEPS program.
How much $ are SRECs worth?
The price of SRECs in Pennsylvania fluctuates based on supply and demand, but they have historically been sold between $5-$200 dollars. In PA, the current price of an SREC is around $43 dollars. You can check the current price of SRECs on the PA SRECS Exchange market.
The revenue from selling SRECs can help offset the cost of the solar power system, making it more affordable for homeowners and businesses to install and operate. It is important to note that the demand for SRECs is capped, and is expected to decrease over time, hence oversupply can lead to a decrease in the prices.
PA Net Metering Policies
In Pennsylvania, solar net metering policies allow residential and commercial solar energy system owners to receive credit for excess electricity they generate. When a solar system produces more electricity than is consumed on-site, the surplus is sent back to the grid. This excess energy is credited to the owner's utility account, effectively offsetting future electricity consumption.
The net metering policy helps promote solar energy adoption by providing financial incentives and reducing the payback period for solar installations. It enables solar system owners to maximize the value of their solar energy production and encourages the growth of a decentralized, clean energy grid.
Other PA Solar Incentives
In addition to the SREC program, there are other financial incentives available for solar power in Pennsylvania, such as the Solar Energy Rebate Program and the Pennsylvania Sunshine Program. The Solar Energy Rebate Program provides rebates to individuals and businesses that install solar power systems, while the Pennsylvania Sunshine Program provides low-interest loans to help cover the cost of solar power projects.
By taking advantage of these incentives, homeowners and businesses can significantly reduce the upfront costs of installing a solar energy system and recoup their investment faster, resulting in substantial long-term savings.
Enter your zip code to see if you qualify for PA Solar Incentives!
Do I Qualify?
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Get Started With Solar In PA Today!
Overall, the SREC program in Pennsylvania is one of the key policies that have been instrumental in increasing the use of solar power in the state. By providing a financial incentive for the generation of solar power, the program has helped to promote the development of new solar projects and encouraged more people to invest in solar technology.
As the cost of solar power continues to decrease and more states adopt similar programs, it is likely that the use of solar power will continue to grow in popularity and become an increasingly important source of electricity in the future.
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