What Is the Difference Between RECs and SRECs in Delaware?

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RECs and SRECs are both tradable renewable energy certificates, but the key difference is the type of renewable energy they represent. In Delaware, a REC represents one megawatt-hour of qualifying renewable electricity, while an SREC specifically represents one megawatt-hour of electricity generated from a qualifying solar photovoltaic system.

For Delaware homeowners considering a Delaware solar installation, this distinction matters because a qualifying solar system can generate SRECs that may have additional market value.

REC vs. SREC: What Is the Difference?

A Renewable Energy Credit, or REC, represents the renewable attributes associated with one megawatt-hour of eligible renewable electricity. Eligible resources under Delaware's renewable portfolio standards can include solar, wind, ocean, geothermal, certain hydroelectric resources, and other qualifying technologies.

An SREC is specifically associated with solar photovoltaic generation. Delaware law defines an SREC as a tradable instrument representing one megawatt-hour of retail electricity sales derived from solar photovoltaic resources.

REC SREC

Represents qualifying renewable energy Specifically represents solar generation

Can come from several renewable technologies Generated by qualifying solar PV systems

Used toward Delaware's renewable portfolio requirements Used toward Delaware's solar-specific requirements

Broader renewable-energy certificate Solar-specific certificate

How Do SRECs Work in Delaware?

Delaware's Renewable Energy Portfolio Standards require utilities to obtain a specified percentage of their electricity from eligible renewable resources, including a specific solar component. For 2026, the statutory schedule calls for 25.5% of eligible energy resources, including 3.75% from solar photovoltaics, with the requirements increasing toward 40% renewable energy and 10% solar by 2035.

This creates demand for qualifying renewable energy credits and SRECs.

Homeowners with eligible solar systems can potentially participate in the SREC Delaware program after their system has been properly certified. DNREC states that eligible systems must be certified by the Delaware Public Service Commission before they can sell renewable energy credits. Once certified, sellers can establish an account through PJM's Generation Attribute Tracking System (GATS), which tracks renewable energy credit transactions.

Can Delaware Homeowners Sell SRECs?

Yes, eligible system owners can sell SRECs. Delaware's program provides a mechanism for buying and selling these certificates, and the Delaware Public Service Commission administers the state's renewable portfolio standards.

The SREC Delaware market can provide an additional financial benefit beyond electricity-bill savings. However, homeowners should not assume a fixed SREC value because market prices and available procurement opportunities can change.

DNREC notes that Delaware's SREC program releases an annual procurement program each spring to accept bids for credit sales.

Homeowners should therefore consider SRECs when evaluating whether solar panels are worth it in Delaware, but they should calculate the investment using realistic assumptions rather than relying on projected SREC revenue alone.

What About Net Metering?

SRECs are separate from net metering.

Net metering concerns the electricity produced by your solar system and how excess generation is credited on your electric bill. SRECs represent the environmental attributes of qualifying solar generation and can potentially be sold separately.

This means a homeowner may benefit from both solar electricity savings and SREC revenue, subject to applicable program rules, ownership arrangements, and contractual terms.

How Do Incentives Fit In?

Homeowners should also compare Delaware solar incentives, Delaware solar panel rebates, Delmarva solar incentives, and financing options when calculating the overall economics of a solar system.

It's important to check the fine print on incentive programs. For example, DNREC's Contact us Green Energy Program requires grant applicants to assign their SRECs to the Delaware Sustainable Energy Utility.

That means receiving an incentive can affect who owns or receives the value of the SRECs.

Do Batteries Generate SRECs?

A battery itself does not create an SREC simply because it stores electricity. SREC eligibility is tied to qualifying solar generation. However, homeowners considering EcoFlow home battery storage or other best energy storage systems can evaluate batteries separately as a way to store solar energy and improve energy resilience.

If you're comparing EcoFlow Delta Pro cost or an EcoFlow Delta Pro power station with a permanently installed solar-plus-storage system, consider differences in capacity, installation, backup configuration, warranties, and intended use.

Ultimately, the value of a Delaware solar system should be evaluated using the complete picture: electricity savings, available incentives, net-metering treatment, SREC opportunities, financing, and long-term system performance.

When comparing solar installers in Delaware or the best solar companies near me, ask whether the installer can explain SREC eligibility, certification, ownership, and the process for selling credits. A knowledgeable installer should make these details clear before you sign a contract.

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