How do SRECs work in Maryland?

A solar renewable energy certificate (SREC) records the environmental attributes of the electricity your solar system makes. To earn them in Maryland, you certify your system with the Public Service Commission (PSC) and register it in the Generation Attribute Tracking System (GATS).^1,2 State law lets credits be sold apart from your electricity.³ Who holds the rights depends on your agreements.^4,5

An SREC and a net metering credit are two different records

Maryland law defines a renewable energy credit as a credit equal to the generation attributes of 1 megawatt-hour (1,000 kilowatt-hours) of electricity from a Tier 1 or Tier 2 renewable source, and an SREC is such a credit from solar.⁴ Net metering is a billing arrangement for the electricity you send to the grid. The statute treats the credits as a separate asset: a net metered customer-generator or its assignee “shall own and have title to” the renewable energy attributes or credits from the electricity the system produces.⁴

Your utility handles your electric bill. GATS tracks renewable energy certificates (RECs), and a buyer pays for them under a sale agreement.² A credit on your utility bill for exported power isn’t an SREC sale.

Keep the SREC ownership clause with your solar contract. PJM EIS says SRECs typically remain with the property unless the buyer and seller agree otherwise, and the statute’s reference to an “assignee” shows credits can be assigned, so an earlier agreement matters too.^5,4 For how credits fit into the wider picture, see our guides on Maryland solar incentives and whether solar is worth it without the tax credit.

How do you register and sell SRECs?

Certify first, then register. After the PSC certifies your system, you register it in GATS with the state certification number, and the PSC’s guide says to set up the GATS account within 30 days.¹ You can manage the credits yourself or authorize an aggregator. Settle in writing who handles registration, reporting and sales before you sign.²

1. Gather your paperwork. You need the utility’s signed interconnection Certificate of Completion and your system details. The PSC guide requires the utility’s final approval before you file for solar certification.¹ For some larger rooftop and canopy systems, the statute also requires a copy of the final building permit approval.⁶
2. Apply for certification. The PSC’s solar certification page sends photovoltaic applicants to pscrec.com.⁷ Brighter Tomorrow eligibility gets checked during the application.
3. Keep the approval. Save the PSC approval and the certification number, then register the generator in GATS under your own account or through an authorized representative.¹
4. Report generation. Confirm the approved way to report. Save the reporting confirmations and check that credits show up in the account.^8,9
5. Pick a way to sell. PJM Environmental Information Services (PJM EIS), which runs GATS, lists direct sales to a buyer, aggregators or brokers, and auction or exchange platforms.²

The PSC certifies systems but takes no part in SREC trading, according to its guide.¹ PJM EIS’s broker and aggregator listings are a place to start comparing, not an endorsement.²

Before you sign with a broker, get the contract term, fees, payment timing and cancellation terms in writing. Also pin down whether you keep unsold credits and who controls future sales.

The steps shift in three cases: a previous owner kept the credit rights, your system reports with approved estimates, or you need a certified-status review after registering.^5,9,10 Sort those out before you treat a broker quote as income.

What counts as proof of production?

The method depends on how your system is approved to report, so settle that before you buy metering equipment. PJM EIS recommends revenue-quality meter output, subject to state requirements.⁸ Maryland’s regulations also allow approved engineering estimates for qualifying small solar facilities.⁹

The PSC or your GATS representative can tell you which method applies to you and whether your existing equipment meets it.

PJM EIS’s operating rules let non-wholesale solar systems report actual generation, meter readings or approved estimates, depending on state rules.⁸ A display on your equipment or a monitoring app doesn’t automatically satisfy the approved method.

If you replace the production meter, PJM EIS’s FAQ says GATS needs a meter update, and owners should enter the final readings first.⁸ For monitoring or equipment questions, see Soleil’s solar monitoring and maintenance services. Registry eligibility questions belong with the PSC and GATS.

What do SRECs pay now, and how have quotes moved?

No fixed payout exists. On October 25, 2026, Flett Exchange, a broker, quoted Sell Now prices of $40.00 for standard Maryland SRECs from 2023 to 2026 and $58.50 for certified 2025 and 2026 credits.^11,12 The table below lists every vintage.

These are broker quotes, not what any customer received, and they ignore fees. Flett’s pages show no trade time, so each figure is a snapshot. Get a fresh price for your credit class before you sell.

A price history needs the same credit class and vintage on different dates. Internet Archive copies of Flett’s pages make that possible for the 2025 vintage.

• Standard 2025 vintage
• Certified 2025 vintage

View the data as a table

Date of page capture	Standard 2025 vintage	Certified 2025 vintage
May 18, 2025	$51.00	$76.50
July 8, 2025	$50.00	no capture
December 14, 2025	no capture	$70.00
January 24, 2026	$50.00	no capture
June 16, 2026	$40.00	no capture
October 25, 2026	$40.00	$58.50

Both classes quote lower in October 2026 than in the earliest capture, and the standard quote fell between the January and June 2026 captures. The pages don’t say why, and nobody can responsibly forecast the next move.

Do certified Brighter Tomorrow SRECs pay more?

They count for more with buyers. Under Public Utilities Article section 7-709.1, a certified SREC has a compliance value of 150 percent for electricity suppliers meeting their solar requirement, and the PSC says buyers set the resulting revenue.¹⁵ Eligibility, PSC certification and a real buyer’s offer all matter before you count any income.

For a homeowner, check these conditions against the current application.

The PSC’s April 2026 fact sheet gives two different cutoff dates in different places: January 1, 2028 on its eligibility slide, which matches the statute above, and July 1, 2028 in its FAQ answers.¹⁶ The PSC can confirm which date applies to your project and whether program capacity remains.

How long does an SREC last, and what about missed months?

Maryland law says a renewable energy credit “shall exist for 5 years from the date created.”³ The PSC’s April 2026 FAQ says that five-year life also applies to credits that previously had three years, and that matters when you check how old a credit is.¹⁸

The Code of Maryland Regulations (COMAR) section on solar REC creation, 20.61.03.02E, still reads as a shorter window: the calendar year of generation plus the following 2 calendar years. Check credit age against the statute and the PSC’s FAQ.⁹

Initial registration and retroactive certified status are separate questions. The five-year life is a limit on how long a credit exists, not a promise that earlier months of production can be claimed.¹⁰

• First-time registration. PJM EIS’s operating rules allow retroactive generation entries within a reporting year, subject to the state’s rules. That doesn’t fix your Maryland start date.¹⁰
• Certified status. The PSC’s FAQ describes retroactive updates to certified status, back to January 1, 2025, for eligible systems that are already registered and complete the application process.¹⁰ It doesn’t promise unlimited recovery of production from before initial registration.

If you’re asking about missed months, bring your utility approval date, your PSC application and certification records, and your production records.

Why do SREC prices move?

Buyers and sellers set SREC prices. Maryland law says a supplier that misses the renewable portfolio standard pays a compliance fee into the Maryland Strategic Energy Investment Fund, not to homeowners.¹⁹ The statute’s schedule lowers the solar compliance fee in later years.¹⁹ That shapes market incentives without fixing any one sale price.

Public Utilities Article section 7-705 sets these fees for each kilowatt-hour of solar shortfall, in the statute’s own units.¹⁹

Fee for each kilowatt-hour of solar shortfall

• Compliance year 20264.5 cents
• Compliance year 20273.5 cents
• Compliance year 20283.25 cents

View the data as a table

Compliance year	Fee for each kilowatt-hour of solar shortfall
Compliance year 2026	4.5 cents
Compliance year 2027	3.5 cents
Compliance year 2028	3.25 cents

A lower scheduled fee doesn’t tell you what a broker will offer, and today’s quote isn’t yearly income for the life of the system. Before any sale, get a current offer and read the agreement that governs your credits.

Selling the house: who keeps the SRECs?

The purchase agreement, any earlier SREC assignment and the GATS transfer records answer it. PJM EIS’s FAQ says SRECs typically remain with the property unless buyer and seller agree otherwise, and the registry requires documents that show the agreement.⁵ A house closing alone doesn’t finish the registry’s transfer procedure.²⁰

Say a buyer purchases a home with owned panels and expects future SRECs. Before counting that income, the buyer should check whether an earlier credit contract assigned the rights elsewhere. This is a document-review example, not a customer story or a legal conclusion.

PJM EIS’s transfer information sheet (an undated PDF created August 11, 2025) calls for buyer and seller signatures on the ownership-transfer form. It tells sellers to report a final meter reading as of closing, and sellers may keep selling credits already in their accounts after the system transfers.²⁰ For Maryland systems, it also tells buyers to ask the state about its amendment process, submit the required authorizations and confirm GATS has completed the generator transfer before taking over reporting.²⁰

If the seller keeps the future rights, PJM EIS’s FAQ requires the sale agreement documenting that arrangement, the signed transfer form and an authorization from the buyer.⁵ Your closing professional and SREC representative should reconcile those papers. If the papers disagree, an attorney can help, and a monitoring login alone isn’t evidence of who owns the credits. If you’re buying a home with panels already on the roof, our guide to buying a house with solar panels covers the wider checklist.

Are SREC sales taxable income?

Internal Revenue Service (IRS) Publication 525 says that in most cases an amount included in your income is taxable unless it is specifically exempted by law.²¹ That’s the general rule, not SREC-specific filing instructions, so ask a tax professional how it applies to SREC proceeds.

Selling environmental credits and claiming an installation tax credit are different transactions. The IRS says the Residential Clean Energy Credit is not available for any property placed in service after December 31, 2025, while the statute’s termination clause refers to expenditures made after that date.^22,23 Have a tax professional check any tax credit, and give them your sale contract, transaction statements and fee records so they can say how to report your situation on your federal and Maryland returns.

Talk through the solar project behind the credits

For the installation process, see Soleil’s residential solar assessment and installation service and the solar FAQ. SREC registration and trading stay with the PSC, GATS or the representative you choose, so the representative you choose handles the application and sale records.

Book a free consultation or call (301) 953-4140.

Solar savings and incentive eligibility depend on your roof, your usage, your utility, and your tax situation. Incentive programs change and some have limited funding. We are not tax advisors — we will review your bill with you and tell you what you may qualify for. Confirm any tax credit with a qualified tax professional.

Sources (23)

1. Maryland PSC, Solar Photovoltaic Application Guide (GuideBT_2-4-25), application steps and next steps. https://psc.maryland.gov/wp-content/uploads/2025/11/GuideBT_2-4-25.pdf ; read October 25, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵

2. PJM EIS, How do I sell RECs? https://www.pjm-eis.com/getting-started/how-do-I-sell-recs ; read October 25, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵

3. Maryland General Assembly, Public Utilities Article §7-709(b) (credit may be sold or transferred) and §7-709(d) (five-year life). https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu&section=7-709 ; read October 25, 2026. ↩ ↩²

4. Maryland General Assembly, Public Utilities Article §7-701(m) (definition of renewable energy credit) and §7-306(g)(5) (customer-generator or assignee owns and has title to renewable energy attributes and credits). https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu&section=7-701 and https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu&section=7-306&enactments=false ; read October 25, 2026. ↩ ↩² ↩³ ↩⁴

5. PJM EIS, FAQs, General GATS Questions A2. https://www.pjm-eis.com/getting-started/faq ; read October 25, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵

6. Maryland General Assembly, Public Utilities Article §7-709.1(e), (g) and (h). https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu&section=7-709.1&enactments=false ; read October 25, 2026. ↩ ↩² ↩³ ↩⁴

7. Maryland PSC, Solar Renewable Energy Certification page. https://psc.maryland.gov/regulated-utilities/electricity/renewable-energy/solar-renewable-energy-certification/ ; read October 25, 2026. ↩

8. PJM EIS, GATS Operating Rules, Revision 12 (January 26, 2024), section 6.3.3. https://www.pjm-eis.com/-/media/DotCom/pjm-eis/documents/gats-operating-rules.pdf . PJM EIS, FAQs, Generation Entry. https://www.pjm-eis.com/getting-started/faq . FAQ page accessed October 21, 2026; read October 25, 2026. ↩ ↩² ↩³ ↩⁴

9. Code of Maryland Regulations (COMAR) 20.61.03.02(C) (estimation method for qualifying small solar facilities) and 20.61.03.02(E) (validity window: calendar year of generation plus the following 2 calendar years), current online text (undated page), https://regs.maryland.gov/us/md/exec/comar/20.61.03.02 ; read October 25, 2026. ↩ ↩² ↩³ ↩⁴

10. PJM EIS, GATS Operating Rules, Revision 12 (January 26, 2024), section 6.3.3(f). https://www.pjm-eis.com/-/media/DotCom/pjm-eis/documents/gats-operating-rules.pdf . Maryland PSC, April 2026 Brighter Tomorrow FAQ, page 6. https://psc.maryland.gov/wp-content/uploads/2026/04/New-SB783-Fact-Sheet-and-FAQs-042026.pptx.pdf; read October 25, 2026. ↩ ↩² ↩³ ↩⁴

11. Flett Exchange, Maryland SREC Market Prices, Sell Now column, by vintage. A quote snapshot, not a trade or customer proceeds. https://www.flettexchange.com/markets/maryland/market-prices; broker quotes viewed October 25, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷

12. Flett Exchange, Maryland Certified SREC Market Prices, Sell Now column, by vintage. A quote snapshot, not a trade or customer proceeds. https://www.flettexchange.com/markets/maryland-certified/market-prices; broker quotes viewed October 25, 2026. ↩ ↩² ↩³ ↩⁴

13. Flett Exchange, Maryland SREC Market Prices (Sell Now column, 2025 vintage), archived copies captured by the Internet Archive on May 18, 2025 (https://web.archive.org/web/20250518003930/https://www.flettexchange.com/markets/maryland/market-prices), July 8, 2025 (https://web.archive.org/web/20250708205914/https://www.flettexchange.com/markets/maryland/market-prices), January 24, 2026 (https://web.archive.org/web/20260124020808/https://www.flettexchange.com/markets/maryland/market-prices) and June 16, 2026 (https://web.archive.org/web/20260616183334/https://www.flettexchange.com/markets/maryland/market-prices); archive copies opened October 25, 2026. ↩ ↩² ↩³ ↩⁴

14. Flett Exchange, Maryland Certified SREC Market Prices (Sell Now column, 2025 vintage), archived copies captured by the Internet Archive on May 18, 2025 (https://web.archive.org/web/20250518004054/https://www.flettexchange.com/markets/maryland-certified/market-prices) and December 14, 2025 (https://web.archive.org/web/20251214073003/https://www.flettexchange.com/markets/maryland-certified/market-prices); archive copies opened October 25, 2026. ↩ ↩²

15. Maryland General Assembly, Public Utilities Article §7-709.1(c). https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu&section=7-709.1&enactments=false ; read October 25, 2026. Maryland PSC, April 2026 Brighter Tomorrow FAQ, page 12. https://psc.maryland.gov/wp-content/uploads/2026/04/New-SB783-Fact-Sheet-and-FAQs-042026.pptx.pdf ↩

16. Maryland General Assembly, Public Utilities Article §7-709.1(d). https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu&section=7-709.1&enactments=false ; read October 25, 2026. Maryland PSC, April 2026 Brighter Tomorrow fact sheet and FAQ, eligibility slide (page 2) listing January 1, 2028, FAQ on the official placed-in-service date (page 11), and FAQ answers on the multiplier listing July 1, 2028 (page 13). https://psc.maryland.gov/wp-content/uploads/2026/04/New-SB783-Fact-Sheet-and-FAQs-042026.pptx.pdf ↩ ↩² ↩³ ↩⁴

17. Same statute as ⁶, §7-709.1(i); read October 25, 2026. ↩

18. Maryland PSC, SB 783 Brighter Tomorrow Act Fact Sheet and FAQs, April 2026 version, pages 1 and 8, https://psc.maryland.gov/wp-content/uploads/2026/04/New-SB783-Fact-Sheet-and-FAQs-042026.pptx.pdf; read October 25, 2026. ↩

19. Maryland General Assembly, Public Utilities Article §7-705(b)(2)(i)2, solar compliance fee schedule. https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gpu&section=7-705 ; read October 25, 2026. ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶

20. PJM EIS, Transfer Ownership Information Sheet (undated PDF; file created August 11, 2025), https://www.pjm-eis.com/-/media/DotCom/pjm-eis/documents/transfer-ownership-info.pdf; read October 25, 2026. ↩ ↩² ↩³

21. IRS, Publication 525 (2025), Introduction (page last reviewed April 30, 2026); general income rule, not SREC-specific filing instructions. https://www.irs.gov/publications/p525 ; read October 25, 2026. ↩

22. IRS, Residential Clean Energy Credit (page last reviewed July 4, 2026). https://www.irs.gov/credits-deductions/residential-clean-energy-credit ; read October 25, 2026. ↩

23. Cornell Legal Information Institute, 26 U.S.C. §25D(h) (Termination), as amended by Pub. L. 119-21 §70506(a): “The credit allowed under this section shall not apply with respect to any expenditures made after December 31, 2025.” https://www.law.cornell.edu/uscode/text/26/25D ; read October 25, 2026. ↩