First of all, one should remember that the value of PECs is market-driven. As with any other asset, historic prices don’t guarantee anything in the future. Should the demand for certificates fall or the supply grow, the price will go down. Penalties that each state implements for not meeting renewable portfolio targets also affect the price of PECs: at some point a company will be better off financially simply paying the fine.
If we set aside minor details that vary from state to state, the whole process doesn’t look very complicated:
- Register your system with the Public Utilities Commission or another organisation designated by the state’s authorities. The process usually includes filling out an application form and physical examination of your system.
- Start generating energy with your solar array. PECs will be created automatically. You can monitor your certificates via the tracking platform used in your state.
- Sell PECs via the very same platform or contact a broker like SRECTrade or SolSystems for that. Keep in mind that the life of PECs is limited – your certificates will typically expire in 5 years.
So, how much can you actually earn selling PECs? The answer will vary depending on the state and may significantly fluctuate with time, so do not forget that your future earnings are not 100% secure. Below we provide price information for 4 US states so that you could form a general picture. The calculations are based on the 2021 data and assume that you own a 10 kW solar panel system.
- Pennsylvania – $210 - $273 per year, with a single PEC selling for $21
- Maryland – $750 - $975 per year, with a single PEC selling for $75
- District of Columbia – $4,250 - $5,525 per year, with a single PEC selling for $425
- Ohio – $100 - $130 per year, with a single PEC selling for $10