Solar energy systems installed in Delaware are eligible to generate Solar Renewable Energy Credits (SRECs) which can be sold through various programs offered in the state.
What is an SREC?
Solar Renewable Energy Credits, also known as SRECs, are credits generated by a solar system based on the electricity produced by the system. One SREC is generated for every megawatt hour (MWh), or 1,000 kilowatt hours (kWh), of electricity generated by a solar system. These credits can be sold to various entities in Delaware by the owner of a solar system to earn additional income. SRECs represent the “green” and renewable value of the electricity generated by a solar system. It is important to note that SRECs are sold separately from the electricity a system produces.
The market for SRECs exists due to Delaware state law known as the Renewable Portfolio Standard, or “RPS”. The RPS requires Delmarva Power to procure a certain percentage of their power from renewable energy sources. To meet this requirement, Delmarva Power buys SRECs from solar systems across the state. By buying SRECs, Delmarva Power is supporting solar generation and meeting their obligation under the RPS. To learn more about the RPS, visit our Delaware Solar Policy page.
How can I receive payment for the SRECs my system generates?
The state of Delaware has created two primary programs where homeowners, business owners, and others who have installed solar can receive payment in exchange for the SRECs generated by their systems. You can only participate in one of the following programs, and you will need to sign a long-term contract to transfer your SRECs to participate in either program.
If you are a residential customer, your solar installer may apply to one of the following programs on your behalf. Ask your installer if they plan to submit an incentive application for your system, as this may be included in your installation cost.
1. Upfront SREC Purchase through Green Energy Program
The Green Energy Program supports renewable energy development in Delaware and provides a one-time payment after installation of your system and approval of your grant application. This program is open to Delmarva Power customers only. In exchange for the grant, you must agree to transfer all SRECs generated by your system to the Delaware Sustainable Energy Utility for 20 years. Participation in the Green Energy Program prohibits solar system owners from selling their SRECs through other programs. To qualify for the Green Energy Program grant, the solar system must be installed by an approved renewable energy contractor. For more information, please see these instructions for applying. View current incentive rates here.
2. SREC Delaware Procurement Program
The SREC Delaware Procurement Program offers accepted facilities long term contracts to purchase SRECs as the facility generates SRECs. Rather than one upfront payment, SREC Delaware makes payments overtime. Established in 2012, the SREC Delaware Procurement Program procures SRECs for Delmarva Power so they can meet their requirements under the Delaware Renewable Portfolio Standard. Each year, typically in the fall, a competitive procurement is held, and eligible facility owners submit a bid application that includes the dollar amount per SREC that the owner would accept. The lowest bids are accepted until the program is full. The SREC Delaware Program accepts bids from all utility customers in Delaware. For more information on the SREC Delaware Procurement Program, please visit the program website.
Other methods of SREC sale:
It is not required that you participate in either of the SREC purchase programs listed above. You may be able to sell your SRECs through other means. We recommend reading through the PJM-GATS website for more information on how to sell your RECs outside of these programs.
HOW DO I CERTIFY MY SYSTEM TO SELL SRECS?
To sell SRECs in Delaware, the facility must be certified by the Delaware Public Service Commission and registered in PJM-GATS. Please note that some solar installers and/or SREC program administrators will complete the following registrations on behalf of the system owner. System owners should check with all parties they are working with to confirm who handles registration and who maintains SREC rights before filling out any applications.
Delaware Public Service Commission Registration:
All Delaware-sited solar systems wishing to sell their SRECs must register their solar system with the Delaware Public Service Commission or “PSC”. Installers/Aggregators can complete this registration electronically and individual system owners can complete the registration via a paper application. Once registration is complete, the solar system will be issued a unique Delaware State Certification Number that is necessary to generate SRECs. Registration instructions can be found on the Public Service Commission’s website.
PJM-GATS Registration:
To generate SRECs in Delaware, a solar system must be registered in PJM-GATS which records the attributes and characteristics of each solar system. Generator owners can enter their solar system production into PJM-GATS monthly to generate SRECs. Each SREC is stamped with a unique serial number to allow it to be tracked once sold. To complete the PJM-GATS registration the solar system will first need to obtain a Delaware State Certification number from the Delaware PSC (instructions above).
For full instructions on how to register your solar system in PJM-GATS, visit their website. Some solar installers and/or SREC program administrators will complete this registration on behalf of the system owner. Prior to completing this registration, system owners should check with all parties they are working with to confirm who is responsible for completing this registration.