Since its start in 2008, Maryland has been one of the most stable SREC markets in the country. However, in early 2016, the market took a turn, and SREC prices have falling drastically. This drastic decrease in SREC pricing was caused by an oversupply of SRECs in the market compared to the modest demand for solar in the state’s renewable portfolio standard (RPS).
Early in 2017, the state’s legislature overrode Governor Hogan’s veto of the Clean Energy Jobs Act. Under this Act, Maryland’s renewable portfolio standard increased to 25% by 2020, and the solar carve out increased to 2.5% by 2020. While the bill may not have raised the demand for SRECs by enough to offset low prices, it showed strong support for Maryland’s RPS. Environmental groups and industry are beginning discussions about a 50% RPS in Maryland so the state can join other East Coast leaders in renewable energy such as D.C. and New York.
We offer Sol Annuity, Sol Upfront, and Sol Brokerage contracts in the Maryland market. You can learn more about our contract options here. Contract options and pricing are subject to change on a monthly basis.
Solar installers interested in receiving up-to-date monthly pricing can subscribe to our Sol Circuit newsletter by visiting our contact us page.
|May 2019 Contract Options|
|Sol Annuity 3||3-year fixed rate||$50/SREC|
|Sol Annuity 5||5-year fixed rate||$40/SREC|
|Sol Upfront 15||One time, lump sum in exchange for 15 years of SRECs||$50/kWdc|
|Sol Brokerage||Market rate||Current price: $60/SREC|
Maryland’s Renewable Portfolio Standard
- Maryland’s renewable portfolio standard (RPS) requires that 25% of the state’s electricity be sourced from renewable energy by 2020 with a 2.5% carve-out specifically for solar energy.
- The Maryland market is incredibly oversupplied. To date, approximately 74% of the market has consisted of residential and small commercial solar energy systems under 2MW in size; the other remaining 26% has come from utility-scale projects.
- The solar alternative compliance payment (SACP), the penalty fee levied on compliance buyers who do not meet the state’s solar targets, is currently set at $195 per megawatt hour (1000 kWh) and decreases until 2024, at which point it is set to $50. However, given the oversupply of SRECs in the market, the ACP is not currently a driver of price.
- SRECs up to three years old can be sold in Maryland. Therefore, customers who have registered their solar energy systems independently or through an aggregator will still be able to sell their SRECs, provided they were minted in the last three years.
- If you’d like to learn more about Maryland’s RPS you can visit the Maryland Public Service Commission’s website.
- Customers must submit copy of their signed interconnection agreement and a signed contract before we can register the system.
- Upon receipt of all documentation, Sol Systems will register a customer’s solar energy system with the Maryland Public Service Commission and the Generation Attribute Tracking System (GATS), the regulatory body that mints SRECs.
- Sol Systems does not charge a registration fee.
- Approval by both the MD PSC and GATS generally takes up to 4 months.
- In Maryland, SREC eligibility dates back to the solar energy system’s interconnection date, so long as the system’s registration is submitted to the state within that same calendar year. Systems not registered within the same calendar year will be eligible for SRECs in January of the year in which you are registered.
- For example, a solar energy system interconnected in June 2017 and registered in October 2017 will receive credit back to June 2017.
- A system interconnected in June 2017 but registered in February 2018 will be eligible back to January 1, 2018, the beginning of the calendar year.
- Systems smaller than 10kW AC in Maryland that do not have a revenue grade solar meter have production estimated by GATS with a tool called PV Watts. Systems that are larger than 10kW AC are required to have a dedicated revenue grade solar meter and generation data must report from this meter.
- Both solar thermal and photovoltaic technologies are eligible for SRECs.
Sol Systems makes payments to Sol Annuity, Sol Brokerage, and Sol Combo customers on a quarterly basis according to the following schedule.
|Generation Quarter||SREC Payment|
|Q1: January, February, and March||May|
|Q2: April, May, and June||August|
|Q3: July, August, and September||November|
|Q4: October, November, and December||February|
For example, Sol Systems will issue payments to Sol Annuity or Sol Combo customers whose energy production passes a 1000 kWh threshold in Quarter 1 (January-March) on the last business day in May. Sol Brokerage customers will also receive payment in May if Sol Systems is able to secure a competitive pricing ahead of the May payment cycle.
Sol Systems customers can receive their payment via paper check or direct deposit.