One of the biggest financial benefits of going solar in Washington, DC is selling your Solar Renewable Energy Credits (SRECs). But once your system is installed, you’ll need to decide how to sell them and that choice can have a big impact on your savings.
Right now, there are three main ways to sell your SRECs:
1. Spot Market
The spot market is the most common choice for families in DC. You sell your SRECs at the current market rate, which today is around $400 per SREC. This gives you the most value upfront, but the price can go up or down depending on supply, demand, and local politics. With DC’s Home Rule under constant political debate, it’s natural to worry. That said, it’s very unlikely that Congress can roll back DC’s renewable energy goals without 60 votes in the Senate, which makes major changes to the SREC market improbable in the near term.
But here’s the important part: the SREC market is not funded by the DC city budget. It’s a compliance market, which means utility companies are legally required to buy SRECs to meet renewable energy targets. Even if city budgets get cut, that doesn’t affect the value of SRECs.
Good for you if: You want the highest return now and are comfortable with a little market risk.
2. Guaranteed “Annuity” Payments
Another option is to lock in a contract with a brokerage for a guaranteed rate over three or five years. Right now, the annuity version is about $345 per SREC. That’s less than today’s spot market, but it guarantees stability if you don’t want to worry about fluctuations.
Good for you if: You prefer predictability and want to protect yourself from the chance of lower prices later.
3. Lump-Sum Buyouts
Some companies will offer a one-time payment for 15 years’ worth of SRECs upfront. At the moment, that’s only $1,406 per kW installed. To put that in perspective, if you have a 10 kW system, that’s just $14,060 for 15 years of value. On the spot market at today’s prices, that same 10 kW system could bring in around $6,600–$7,000 per year in the first few years alone.
We strongly advise against this option. It’s a raw deal for homeowners and essentially hands over all the future upside of your solar investment.
Which Option Should You Choose?
- Most families stick with the spot market because it offers the highest payout. Even if prices dip a little, you’re still ahead compared to the annuity.
- If you’re more cautious, the annuity option can be a safe bet. It gives you guaranteed income and peace of mind.
- Avoid lump-sum deals. They may sound appealing, but you’re giving up too much value.
Want to See the Latest Numbers?
You can always check live SREC market values at Sol Systems’ SREC pricing page.
Bottom line: SRECs are one of the biggest reasons solar pays off in DC. Whether you want to maximize your return on the spot market or lock in a steady payout, the important thing is to keep your SRECs working for you.
