Converting your home or business to solar energy comes with a variety of benefits, from monthly energy savings to reducing your carbon footprint. But, did you know that you can also earn income from the extra electricity that your solar panel system produces? With Maryland SRECs, you can currently make $77 per extra megawatt hour that your solar system produces. To learn about Maryland SRECs, you must also understand how they operate and how they are affected by Maryland’s Solar Alternative Compliance Payment and Renewable Portfolio Standard.
What Are Maryland SRECs
SREC stands for solar renewable energy credits. These credits are a solar incentive that allows solar owners to earn income from their solar electricity generation. Each SREC is equal to a one-megawatt hour of electricity and currently, the rate for a Maryland SREC is $77. Utility companies trying to reach their state-regulated Renewable Portfolio Standard (RPS) purchase SRECs for the purpose of counting the renewable energy as if the company itself produced it. If you have a solar panel system installed on your home that generates more electricity than your household consumes, you have the opportunity to sell the extra power as SRECs.
What Are SACPs?
An SACP, or Solar Alternative Compliance Payment, is the fee that electricity suppliers are legally obligated to pay per megawatt hour of solar-generated electricity that they are unable to produce themselves. Instead of paying the SACP fee, utilities will purchase Maryland SRECs that were generated from privately owned solar panel systems in order to meet Maryland’s RPS solar requirement.
How Do SACPs Affect Maryland SRECs?
The Solar Alternative Compliance Payment (SACP) will greatly dictate the price of Maryland SRECs and vice versa. If the SACP costs less than it would pay for the SRECs, utility companies would rather just pay the SACP. Because of this, the value of SRECs will always be lower than the SACP. In 2021, Maryland Legislature passed a bill that raises the SACP over the years, from 2023 to 2029. This allows privately owned solar panel arrays to earn additional income on their Maryland SREC production.
Professional Solar Installation
As solar installers, we understand that there is more to the solar process than just the installation of the panels. At Lumina Solar, we guide each of our customers through solar conversion and create personalized solar plans to ensure that the array fits your roof and powers your home. We also provide extensive knowledge of the available solar incentives, including SRECs. If your looking for a professional solar installation service, look no further than Lumina Solar. Call or contact us today to get started.