How does an SREC save me money in Virginia?

The Virginia SREC Landscape

This report provides a comprehensive analysis of Virginia's Solar Renewable Energy Credit (SREC) program for residential homeowners. It details the regulatory framework, market dynamics, and strategic considerations necessary for homeowners to make informed financial decisions regarding their solar energy investments. The analysis is grounded in current state laws, market data, and industry practices, offering an expert-level guide to navigating the entire SREC lifecycle, from system installation to revenue generation.

Introduction to SRECs

At its core, a Solar Renewable Energy Credit (SREC) is a tradable, non-tangible certificate that represents the environmental attributes of electricity generated from solar power.[1, 2] For every one megawatt-hour (MWh), which is equivalent to 1,000 kilowatt-hours (kWh), of electricity produced by a qualified solar energy system, one SREC is created, or "minted".[2, 3, 4, 5] This certificate serves as proof that a specific quantity of renewable energy was generated and delivered to the power grid.[6]

A critical distinction for any solar owner to understand is that SRECs are entirely separate from the physical electricity the solar panels produce. The electricity generated on a rooftop directly reduces the homeowner's utility bill through self-consumption and, for any excess power sent to the grid, through net metering credits.[2] SRECs, conversely, represent the "green" or "renewable" quality of that power. They are monetized through a separate transaction, creating an additional and distinct revenue stream for the system owner.[1, 2, 7, 8] This dual-benefit structure means homeowners are compensated twice for the same solar generation: once for the energy itself (via bill savings) and once for its environmental attributes (via SREC sales). This is not considered "double-dipping" but is rather a fundamental design of the incentive program, accounting for and incentivizing clean energy generation in different ways.[2]

The creation and verification of SRECs are managed through a rigorous tracking system to ensure market integrity. The process begins with measuring a solar system's output. In Virginia, this requires a revenue-grade meter, a highly accurate device that records the total energy produced.[9, 10] Alternatively, verification can be achieved by granting an SREC broker or aggregator secure access to the system's online monitoring platform, which tracks production data from the inverter.[2] This verified data is then reported to a regional registry, which mints the official SRECs.

The Virginia Clean Economy Act

The existence of a valuable SREC market in Virginia is not a natural market phenomenon but a direct result of state policy. The foundational legislation is the Virginia Clean Economy Act (VCEA), which was passed in 2020 and fundamentally reshaped the Commonwealth's energy landscape.[3, 9, 11] The VCEA created a robust, state-mandated market for SRECs by establishing a mandatory Renewable Portfolio Standard (RPS).[3, 4]

An RPS is a state law that requires utilities to source a progressively increasing percentage of the electricity they sell from renewable energy sources.[1] The VCEA's RPS sets ambitious targets for Virginia's two largest investor-owned utilities: Dominion Energy must achieve 100% carbon-free energy generation by 2045, and Appalachian Power (APCo) must do so by 2050.[4, 9]

To ensure the growth of small-scale, local solar projects, the VCEA includes a specific provision known as a "solar carve-out".[1] This carve-out mandates that a certain portion of the RPS must be met specifically with energy generated from solar facilities. For Dominion Energy, the law requires that at least 1% of its RPS obligation be fulfilled using SRECs from in-state, distributed generation (DG) solar resources with a capacity of 1 MW or less.[9, 12, 13] This category explicitly includes residential rooftop solar systems, making homeowners a key source of supply for the utility.

Utilities have two primary methods to comply with the RPS: they can build their own large-scale renewable energy projects, or they can purchase SRECs from independent producers, including homeowners.[1, 4] If a utility fails to acquire the legally required number of SRECs in a given compliance year, it must pay a substantial fine, known as a Solar Alternative Compliance Payment (SACP), for every MWh it falls short.[4, 11] This penalty mechanism creates the economic incentive for utilities to purchase SRECs from the open market, thereby generating demand and giving the certificates their monetary value.

The structure of the VCEA means that the SREC market's health is intrinsically linked to the legislative and regulatory environment in Virginia. The program is not a permanent entitlement but a market-based policy tool. Any future legislative actions that modify the VCEA, adjust the RPS targets, or alter the SACP structure will have a direct and immediate impact on SREC prices and the overall financial viability of the program for homeowners.

1.3 Key Players and Their Roles

Navigating the SREC program requires an understanding of the primary organizations that shape its function and rules.

• Utilities (Dominion Energy & Appalachian Power): As the entities legally obligated to meet the RPS targets, Dominion and APCo are the principal buyers in the Virginia SREC market.[3, 4, 9] Their annual procurement requirements, dictated by the VCEA's schedule, are the primary force driving demand for SRECs. Beyond their role as buyers, their broader programs, such as net metering, community solar pilots, and interconnection standards, form the operational ecosystem in which residential solar and SRECs exist.[14, 15, 16]

• The State Corporation Commission (SCC): The SCC is Virginia's powerful utility regulatory body. It is responsible for the implementation and oversight of the VCEA. The SCC's duties include approving the utilities' RPS compliance plans, establishing the rules and regulations for programs like Shared Solar, and defining the technical and procedural requirements for interconnecting a solar system to the grid.[9, 17, 18] The SCC's decisions on issues such as net metering rates and interconnection processes can significantly influence the financial attractiveness and complexity of installing solar in the state.[19, 20]

• PJM-GATS (Generation Attribute Tracking System): PJM-GATS is the official electronic registry that serves the regional electricity grid to which Virginia belongs. It functions as the definitive ledger for the SREC market.[9, 21] When a solar system generates a verified MWh of energy, a unique SREC is created ("minted") in the GATS platform. The system tracks the ownership of each SREC from its creation until it is purchased by a utility and "retired" for compliance purposes. This meticulous tracking ensures the integrity of the market by preventing any SREC from being sold or counted more than once.[8, 9, 22] Homeowners do not interact with GATS directly; this function is handled by their chosen SREC aggregator.

The SREC Marketplace

The financial value of an SREC is not fixed; it is determined by dynamic market forces. Understanding these forces, along with the regulatory structure that governs them, is essential for setting realistic expectations and developing a sound monetization strategy.

How the SREC Market Functions

Like any commodity market, SREC prices are governed by the fundamental principles of supply and demand.[3, 23]

• Supply: The supply of SRECs is the total number of MWh produced by all eligible solar systems in the market. When the pace of new solar installations is high, more SRECs are generated, increasing supply. An oversupply, where the number of available SRECs exceeds the utility's requirements, tends to drive prices down.[2, 4]
• Demand: Demand is artificially created by the RPS mandate, which dictates the number of SRECs utilities must purchase each year. If the RPS targets are aggressive and the build-out of new solar projects is slow, the market can become undersupplied, leading to higher demand and rising prices.[2, 24]

To provide a degree of market stability and prevent runaway prices, the VCEA establishes a price ceiling through the Solar Alternative Compliance Payment (SACP). The SACP is the per-MWh penalty a utility must pay if it fails to procure a required SREC.[1, 5, 25] Since a utility will always choose the cheaper option, it will not pay more for an SREC on the open market than the cost of the penalty. This makes the SACP a functional, though not absolute, cap on SREC prices.[1, 4] For Virginia's distributed generation solar carve-out, the SACP was established at $75 in 2021 and is legislatively designed to increase by 1% each year thereafter.[9, 13, 22, 25] This provides a predictable upper boundary for market value.

SREC Pricing

Virginia's formal SREC market is relatively young, having been established by the 2020 VCEA, but it has already exhibited significant price volatility.

• Historical Price Analysis: Before the VCEA, some Virginia solar owners could sell their credits into neighboring markets, such as Pennsylvania's. In 2019 and 2020, as the passage of the VCEA became more likely, anticipation of a strong, state-mandated market drove prices to a peak of nearly $70 per SREC.[2]
• Current SREC Prices (as of 2024-2025): Since the market's formal launch, prices have moderated and fluctuated. Various sources in 2023-2025 have reported a wide trading range, from approximately $20 to $70, with spot market prices in mid-2024 and early 2025 settling in the $22.50 to $40 range.[3, 4, 22, 23, 26, 27] This volatility underscores the dynamic nature of the market and the importance of monitoring current conditions when making sales decisions.

The table below provides a snapshot of the Virginia SREC market's price history, illustrating the impact of key regulatory events.

This historical context is crucial. It demonstrates that SREC prices are not static and that promises of sustained high prices should be viewed with skepticism. The price a homeowner can secure today is not guaranteed for the future, a fact that directly informs the strategic choice between locking in a fixed price or selling on the spot market.

2.3 Market Outlook and Risk Considerations

The future of the Virginia SREC market is subject to several significant risks and potential opportunities, primarily rooted in the legislative and regulatory arenas.

• Legislative and Political Risk: This represents the most substantial and immediate threat to the market's stability. As of March 2025, the Virginia Legislature was grappling with a bill, HB1883, designed to amend the RPS program.[28] While the initial bill passed, the Governor returned it with a critical substitution: a proposal to suspend the requirement for utilities to procure RECs for compliance from 2024 through 2027.[28, 29]

  • Potential Impact: If the Governor's amendment is accepted by the legislature, it would effectively transform the mandatory compliance market into a voluntary one for several years. In a voluntary market, utilities have no legal obligation to buy SRECs, which would almost certainly cause demand to evaporate and prices to collapse to near-zero levels until the mandate resumes in 2028.[28] Conversely, if the amendment is rejected and the bill is ultimately vetoed, the original, more favorable RPS structure would remain in place, preserving the market. This ongoing legislative battle creates profound uncertainty and poses a direct risk to SREC revenue in the near term. This situation forces a strategic choice upon homeowners: a spot market contract is an implicit bet that the adverse legislation will fail, while a fixed-price contract is a hedge against this political risk, accepting a lower but guaranteed price. The soundness of that hedge, however, depends on the aggregator's own financial stability and whether their contracts contain clauses allowing them to exit in the event of such a legislative change.

• Evolving RPS Targets: The VCEA contains scheduled increases in the solar carve-out, which are intended to strengthen the market over time. The requirement is set to increase from 1% to 3% in 2026 and to 5% in 2028.[12, 28] These increases in mandated demand should, in theory, exert upward pressure on SREC prices. However, this positive long-term outlook is entirely contingent on the market surviving the immediate legislative risks posed by bills like HB1883.

• Net Metering Policy Changes: A separate but related risk involves the future of net metering. Both Dominion Energy and Appalachian Power have submitted proposals to the SCC to change the compensation structure for new solar customers.[30, 31] The current policy provides a one-for-one credit at the full retail electricity rate for excess energy sent to the grid.[3, 30] The proposals seek to reduce this compensation to a much lower "avoided-cost" rate for future solar adopters.[3, 32] While this change would not directly affect SREC prices, it has two significant indirect effects. First, it creates a "soft deadline" for homeowners considering solar, as installing a system before the rules change would likely allow them to be grandfathered into the more favorable retail-rate net metering policy.[31] Second, for any homeowner who installs solar after a potential negative change, the overall financial return of their system will be lower. This elevates the strategic importance of SREC income, making the maximization and stabilization of that revenue stream a more critical component of the investment's payback calculation.

• Broader Economic Conditions: Macroeconomic trends can also influence the market. An economic forecast from the Cooper Center projected a potential labor market contraction in Virginia for 2025.[33] A broader economic slowdown could temper the pace of new residential and commercial construction, which in turn could slow the rate of new solar installations and affect the long-term supply of SRECs.

The Homeowner's Journey

Successfully participating in the Virginia SREC program involves a series of sequential, time-sensitive steps. A failure at any stage, from system eligibility to registration, can result in a permanent loss of revenue.

3.1 System and Homeowner Eligibility Rules

Not every solar installation automatically qualifies for the SREC program. The following criteria must be met.

• Ownership is Key: This is the most fundamental rule. To be eligible to earn and sell SRECs, the homeowner must own the solar panel system. Ownership is established through a cash purchase or a solar loan.[3, 23] If a system is acquired through a solar lease or a Power Purchase Agreement (PPA), the third-party company that owns the equipment also owns the rights to the SRECs generated by that system. The homeowner in a lease or PPA arrangement does not receive SREC income.[3, 23]
• System Location: The solar system must be physically located within the Commonwealth of Virginia to be eligible for the Virginia SREC market.[12] While some older systems may have been grandfathered into the SREC markets of other states (like Pennsylvania or Washington, D.C.), all new systems installed in Virginia are expected to participate in the Virginia market.[4]
• Metering Requirement: Participation in the Virginia SREC program requires a revenue-grade meter.[9] This is a utility-grade meter that provides the high-accuracy production data needed to mint SRECs. This is distinct from a standard net meter and is a necessary component that the solar installer should include in the system design and installation.[10]
• System Size: The primary SREC market for homeowners falls under the "distributed generation" category, which includes systems with a capacity of up to 1 MW (or 1,000 kW).[10, 13] This capacity limit is far larger than any typical residential installation, ensuring all home solar systems qualify on this basis.
• Low-Income Provisions: The VCEA and related state and federal programs, such as the Solar for All initiative, include specific provisions aimed at increasing solar access for low-income households.[11, 34] These programs may offer unique incentives, financing, or even their own SREC sub-markets (e.g., "VA Distributed LIQP").[10, 30, 35] Homeowners who meet specific income qualifications should investigate these programs for potentially enhanced benefits.

3.2 The Installation and Interconnection Checklist

The path to generating SRECs begins long before the first credit is sold. It requires a coordinated effort between the homeowner, the solar installer, the local government, and the utility.

• Step 1: Vetting and Contracting: The process starts with selecting a qualified and reputable solar installation company. During the contract review, it is imperative to verify a clause that explicitly states that the homeowner retains full ownership of the system's SRECs.[1, 36]
• Step 2: Utility Interconnection Application: Before any physical installation begins, the installer must submit a formal application to the utility (Dominion or APCo) to connect the system to the grid. This is typically done by filing a Net Metering Interconnection Notification (NMIN) form.[19, 37] This application places the project in the utility's interconnection queue.
• Step 3: Installation and Inspection: After the application is contingently approved, the installer proceeds with the physical installation of the solar panels and associated equipment. Following installation, the system must be inspected and certified. This involves certification by a licensed Virginia electrician and, in most cases, an inspection by the local city or county building authority to ensure it complies with all safety and electrical codes.[37, 38] The installer is responsible for scheduling these inspections and submitting the proof of a passed inspection to the utility.
• Step 4: Permission to Operate (PTO): This is the final and most critical milestone in the installation process. After the utility has received and approved all necessary documentation, including the passed inspection certificate, it will issue a formal "Permission to Operate" (PTO) notification, usually via email, to both the homeowner and the installer.[2, 37] The solar system must not be energized or turned on until this official PTO has been received. Operating the system before receiving PTO can lead to safety issues and complications with the utility.

3.3 SREC Certification and Enrollment

Receiving PTO from the utility marks the end of the installation phase and the beginning of the SREC monetization phase. The actions taken in this stage are time-sensitive and crucial for maximizing financial returns.

• The Critical Registration Window: Virginia's SREC market has a strict rule regarding the start date of eligibility. A system's eligibility to earn SRECs begins on its interconnection date (the date of PTO) only if the system is registered with an SREC aggregator within the same calendar year.[13, 39] If a homeowner receives PTO late in the year—for example, in November 2025—but fails to complete their registration with an aggregator until January or February of 2026, their SREC eligibility will only be backdated to January 1, 2026. The SRECs generated during November and December 2025 will be permanently forfeited.[2, 13] This makes prompt action after receiving PTO essential.

• Step 5: Choose an SREC Aggregator/Broker: Immediately upon receiving the PTO notification, the homeowner must select an SREC aggregator. These are the companies that will manage the SREC certification and sales process on the homeowner's behalf. A detailed comparison of these providers is covered in Part IV of this report.[3, 23]

• Step 6: Provide Required Paperwork to the Aggregator: The chosen aggregator will require a specific set of documents to formally enroll the system. While requirements can vary slightly between providers, the typical paperwork includes:

  • A signed contract establishing the terms of service with the aggregator.[9]
  • A copy of the signed interconnection agreement or the final PTO letter from the utility.[9]
  • System details, such as the make and model of the solar panels and inverter, and the final installed system size in kW.
  • Proof of system ownership (e.g., a copy of the installer's contract).
  • A consent form that authorizes the aggregator to act on the homeowner's behalf within the PJM-GATS registry.[40]

• Step 7: System Registration with PJM-GATS: Once the aggregator has all the necessary documentation, they will handle the final technical step: registering the solar system with the PJM-GATS platform.[8, 9] After successful registration, the system's monthly generation data will be reported to GATS, which will then mint the corresponding SRECs. These SRECs are deposited into the aggregator's master account, where they are pooled with SRECs from other homeowners and sold in bulk to utilities.

The following table summarizes the key steps and documentation required to ensure a smooth process from installation to SREC eligibility.

Strategic Decision-Making

Once a system is installed and eligible, the homeowner faces a critical financial decision: how to sell the SRECs. This choice involves selecting a sales strategy, evaluating providers, and understanding the impact on the overall investment payback.

Choosing Your Sales Strategy

SREC aggregators typically offer three primary contract structures, each with a different risk-reward profile. The best choice depends entirely on the homeowner's financial situation and tolerance for market volatility.

• Upfront Lump-Sum Payment: With this option, an aggregator pays the homeowner a single, one-time payment upon signing the contract. In exchange, the aggregator gains the rights to all SRECs the system produces for a long-term period, often 15 years.[1, 2]

  • Pros: This option provides immediate cash, which can be used to significantly reduce the net upfront cost of the solar installation. It completely eliminates all future market risk for the homeowner; if SREC prices fall to zero, the homeowner is unaffected.[1]
  • Cons: This strategy yields the lowest overall financial return per SREC over the system's lifetime. The homeowner forfeits any potential gains from future SREC price increases, which could be substantial.[1] A simple calculation often reveals a very low implied price per SREC.[41]
  • Best for: Homeowners who are cash-constrained and need to reduce the initial investment barrier to go solar, or those who have an extremely low tolerance for market risk and uncertainty.

• Fixed-Price Contract (Annuity): This model involves signing a contract for a specified term—commonly three, five, or ten years—that locks in a guaranteed price for every SREC generated during that period.[1, 2]

  • Pros: This approach provides a predictable and stable income stream, making it easy to budget and calculate returns. It fully protects the homeowner from any drop in SREC prices during the contract term.[1]
  • Cons: The primary drawback is opportunity cost. If market prices rise significantly above the locked-in rate, the homeowner cannot benefit from the higher prices until the contract expires. Generally, the longer the contract term, the lower the price offered per SREC, as the aggregator is taking on more long-term risk and prices that risk accordingly.[1]
  • Best for: Homeowners who prioritize budget certainty and predictable revenue, and who wish to hedge against the risk of market volatility and potential price collapses.

• Spot Market (Brokerage / "Mint & Sell"): Under this arrangement, the homeowner does not lock in a price. Instead, SRECs are sold on the open market at the prevailing price as they are generated and minted, typically on a monthly or quarterly basis.[1, 2]

  • Pros: This strategy offers the highest potential financial return, allowing the homeowner to capture the full value of their SRECs if market prices are high or rising.[1]
  • Cons: It comes with maximum exposure to market risk. Income will fluctuate with the market, and if prices fall sharply—as they could under adverse legislative scenarios—the revenue stream could diminish significantly or even disappear entirely.[1]
  • Best for: Homeowners with a high tolerance for financial risk who are optimistic about the future of the Virginia SREC market and believe prices will remain strong or increase over time.

4.2 Evaluating SREC Aggregators and Brokers

Choosing the right aggregator is as important as choosing the right sales strategy. The most prominent SREC aggregators serving the Virginia market include Sol Systems, SRECTrade, Flett Exchange, and RECmint.[1, 42] Some solar installers also have partnerships with specific aggregators, such as Solarize Virginia's partnership with Sun Tribe Trading.[43, 44] A thorough evaluation should be based on the following criteria:

• Contract Offerings: Does the provider offer all three primary contract types (Upfront, Fixed, Spot)? A provider with a full suite of options allows for a more tailored choice.
• Pricing: For fixed and upfront contracts, how do their offered rates compare to competitors? For spot market contracts, what have their recent settlement prices been? It is important to note that not all aggregators achieve the same spot pricing.[26]
• Fee Structure: This is a critical point of comparison, as fees apply to spot market contracts and can significantly impact net earnings. A homeowner must look beyond the advertised price and analyze the full fee structure, which can include a percentage-based management fee, a percentage-based transaction fee, and/or a flat minimum fee per SREC. A high gross price can easily be eroded by high fees.[26, 41, 42, 45, 46]
• Payment Schedule: How frequently does the aggregator issue payments? Payouts can be monthly, quarterly, or even annually, depending on the provider and the contract.[8, 9, 40, 42, 47] Faster payments can improve cash flow.
• Contract Terms: What are the standard term lengths for fixed contracts? Are there early termination fees or other restrictive clauses?
• Reputation and Customer Service: Industry longevity and positive customer reviews can be indicators of reliability and responsive service. Checking online forums and reviews can provide valuable anecdotal evidence.[42, 48]

The following table provides a comparative overview of major SREC aggregators based on their publicly available offerings for the Virginia market. Prices and fees are subject to change and should be verified directly with the provider.

4.3 Calculating Your Payback and Total Return

The SREC program's primary benefit is its ability to accelerate the payback period of a solar investment. A precise calculation requires accounting for all costs and all savings, including SREC income.

The fundamental formula for the solar payback period is [54]:
$$\text{Payback Period (Years)} = \frac{\text{Net System Cost}}{\text{Total Annual Savings}}$$

Step 1: Calculate Net System Cost
The net system cost is the out-of-pocket expense after accounting for the primary federal incentive.

• Gross System Cost: The total price of the system as quoted in the installer's contract.
• Federal Residential Clean Energy Credit (ITC): This is a dollar-for-dollar reduction in federal tax liability equal to 30% of the gross system cost. This credit is available for systems purchased with cash or a loan and placed in service through 2032.[3, 23, 38, 55] Any unused portion of the credit can be rolled over to future tax years.[3, 38]
• Net System Cost = Gross System Cost - (Gross System Cost * 0.30)

Step 2: Calculate Total Annual Savings
Total savings come from two distinct streams: avoided electricity costs and SREC income.

• Annual Electricity Bill Savings: This is the value of the electricity the homeowner no longer has to buy from the utility. It is determined by the system's production and the local utility's electricity rates.
• Annual SREC Income: This is the revenue generated from selling SRECs. It is calculated as: (Estimated Annual SRECs) x (Price per SREC). A conservative rule of thumb for estimating annual SREC production is to multiply the system's size in kW by a factor of 1.2 or 1.3. For example, a 10 kW system can be expected to produce approximately 12 to 13 SRECs per year.[1, 4, 38]
• Total Annual Savings = Annual Electricity Bill Savings + Annual SREC Income

The tangible impact of SRECs on the investment timeline is best illustrated with an example. The following table models the payback period for a typical 10 kW residential solar system in Virginia, showing the calculation both with and without SREC income to highlight its importance.

As the calculation demonstrates, the inclusion of a modest, conservative SREC income reduces the investment's payback period by nearly two years. This acceleration of the return on investment is the core financial value proposition of the SREC program for Virginia homeowners.

Consumer Safeguards and Resources

While the SREC program offers significant financial benefits, it operates within a complex market that can be confusing for consumers. Understanding legal protections and knowing where to find reliable information is crucial for a successful experience.

Your Rights as a Consumer

The Virginia Consumer Protection Act (VCPA) is a cornerstone of consumer rights in the Commonwealth. It is designed to promote fair and ethical business practices and applies directly to transactions related to solar installations and SREC brokerage services used for personal, family, or household purposes.[56]

• Purpose of the Act: The VCPA makes it unlawful for businesses to engage in fraudulent acts, misrepresentations, or other deceptive practices in connection with a consumer transaction.[56] This provides a legal backstop against misleading sales tactics or unfulfilled promises from solar installers or SREC aggregators.
• Prohibited Practices: The law is specific about what constitutes a violation. Prohibited practices relevant to the solar industry include:
  • Misrepresenting the characteristics, uses, or benefits of goods or services (e.g., exaggerating energy savings or guaranteeing SREC prices without a binding contract).[56]
  • Making false or misleading statements about the reasons for or amounts of price reductions.[56]
  • Using any form of deception, fraud, false pretense, or false promise in connection with the transaction.[56]
  • Using unenforceable contract clauses, such as certain penalty clauses or waivers of legal defense.[56]
• Consumer Data Protection: The legal landscape for data privacy is also evolving. Recent amendments to Virginia law, such as those inspired by Washington's My Health My Data Act, signal a growing focus on protecting personally identifiable information, which is relevant in an industry that handles sensitive customer utility data, financial information, and contracts.[57, 58, 59]
• Filing a Complaint: Homeowners who believe a business has violated the VCPA have legal recourse. They can file a formal complaint with the Investigations Unit at the Virginia Attorney General's Office of Consumer Affairs. This agency is empowered to investigate claims and take action against offending businesses.[56, 58] Knowledge of the VCPA transforms a homeowner from a passive customer into an empowered consumer who can demand transparency and hold providers accountable for their claims and contractual obligations.

5.2 Glossary of Terms

• ACP (Alternative Compliance Payment): A penalty paid by utilities for failing to meet their renewable energy quotas. It acts as a price cap for RECs.
• APCo (Appalachian Power Company): One of Virginia's two largest investor-owned utilities.
• DG (Distributed Generation): Smaller-scale power generation, such as rooftop solar, located at the point of consumption.
• GATS (Generation Attribute Tracking System): The electronic registry managed by PJM that creates, tracks, and retires SRECs.
• ITC (Investment Tax Credit): The federal tax credit for renewable energy systems, currently 30% for residential solar.
• kWh (Kilowatt-hour): A unit of energy consumption; 1,000 kWh equals 1 MWh.
• MWh (Megawatt-hour): The unit of energy production for which one SREC is created (1 MWh = 1 SREC).
• NMIN (Net Metering Interconnection Notification): The application form submitted to a utility to connect a solar system to the grid.
• PJM (PJM Interconnection): The regional transmission organization that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia, including Virginia.
• PPA (Power Purchase Agreement): A financing arrangement where a third party owns the solar system and the homeowner buys the power produced. Homeowners with PPAs do not own their SRECs.
• PTO (Permission to Operate): The official authorization from a utility to turn on a grid-connected solar system.
• REC (Renewable Energy Certificate): The general term for a certificate representing 1 MWh of renewable energy from any source (solar, wind, etc.).
• RPS (Renewable Portfolio Standard): A state regulation that requires utilities to produce a certain percentage of their power from renewable energy sources.
• SACP (Solar Alternative Compliance Payment): The specific penalty for failing to meet the solar portion of an RPS.
• SCC (State Corporation Commission): The Virginia state agency that regulates utilities.
• SREC (Solar Renewable Energy Credit): A specific type of REC generated only from solar power.
• VCEA (Virginia Clean Economy Act): The 2020 state law that established Virginia's mandatory RPS and robust SREC market.

5.3 Directory of Key Agencies and Resources

• Regulatory & Government:

  • Virginia State Corporation Commission (SCC): https://www.scc.virginia.gov/ [17]
  • Virginia Department of Energy: https://energy.virginia.gov/ [34]
  • Database of State Incentives for Renewables & Efficiency (DSIRE): https://www.dsireusa.org/ [17, 23]
  • Virginia Attorney General, Consumer Protection: https://www.oag.state.va.us/consumer-protection/ [58]

• SREC Aggregators:

  • Sol Systems: https://www.solsystems.com/ [1, 49]
  • SRECTrade: https://www.srectrade.com/ [1, 8]
  • Flett Exchange: https://www.flettexchange.com/ [1]
  • RECmint: https://app.recmint.com/ [1]
  • Sun Tribe Trading: srec@suntribetrading.com [43, 44]

• Advocacy & Information:

  • Solar United Neighbors (SUN): https://www.solarunitedneighbors.org/virginia/ [60]
  • Solarize Virginia: https://www.solarizeva.org/ [43, 44]

• Technical Tools:

  • PVWatts Calculator (NREL): https://pvwatts.nrel.gov/ [44]