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Solar SREC Income & 30% Federal ITC ROI Calculator

Calculate state Solar Renewable Energy Certificate (SREC) trade revenue (NJ, MA, PA, MD, DC, OH), the 30% federal residential clean energy tax credit (Section 25D), and 25-year net solar ROI.

Average US cost: ~$3.00 per Watt

Calculation & Generation Results

30% Federal Clean Energy Tax Credit: $9,450 Net Out-of-Pocket System Cost: $22,050
Annual SREC Certificate Income: $1,228 / year (Generates ~13.65 SRECs / year)
Total Annual Cash Flow (Savings + SREC): $3,078 / year
Simple Payback Period: 7.2 Years

About This Tool

Calculate state Solar Renewable Energy Certificate (SREC) trade revenue (NJ, MA, PA, MD, DC, OH), the 30% federal residential clean energy tax credit (Section 25D), and 25-year net solar ROI.

Frequently Asked Questions

What is a Solar Renewable Energy Certificate (SREC)?

An SREC is a tradable environmental commodity representing the proof that 1,000 kilowatt-hours (1 Megawatt-hour, MWh) of clean solar electricity was generated. Utilities purchase SRECs to comply with state Renewable Portfolio Standards (RPS).

What is the Federal Residential Clean Energy Tax Credit percentage?

Under the Inflation Reduction Act of 2022, the federal tax credit is 30% of the total purchase and installation cost of solar panel and battery systems installed between 2022 and 2032.

Which states have the most lucrative SREC programs?

Washington DC has the most valuable market in the country (often $350 to $430 per SREC), followed by New Jersey (SuSI program ~$90/SREC), Massachusetts, and Maryland.

Is SREC income taxable by the IRS?

Yes. Income earned from selling SRECs through broker aggregators is treated by the IRS as miscellaneous taxable income and reported on Form 1099-MISC.