Pennsylvania Alternative Energy Portfolio Standard (AEPS) mandates 8 percent Tier I renewables by 2027, supported by a compliance SREC market. PA residential solar earns SRECs that trade on the market for $25 to $60 per MWh, adding $200 to $400 a year to a 6 kW system payback. Federal 30 percent ITC stacks with PA AEPS SRECs.
AEPS Tier I and Tier II
AEPS Tier I covers new renewable generation: solar, wind, geothermal, low-impact hydro. The mandate: 8 percent of PA retail load by 2027.
Tier II covers existing renewables and certain efficiency measures. The mandate: 10 percent by 2027. Residential solar produces Tier I SRECs.
PA SREC market mechanics
Each MWh of residential solar generates one SREC. The SREC trades on the PA market for $25 to $60 per MWh in 2026.
A 6 kW system generating 7,200 kWh/yr produces 7.2 SRECs annually. At $40 average per SREC, that adds $288 to annual savings.
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Further reading