fee level, a state's ACP generally sets a cap on the value of SRECs. In rare cases SREC prices have approached and even surpassed ACP levels because SRECs can sometimes be recovered by charging more to electricity customers (rate basing), while ACP payments are usually precluded. In many states, the SACP is scheduled to decline over time with the intention of eventually phasing out the solar industry's reliance on SREC sales as an incentive for installing solar. Market Solar RPS requirements are meant to create a marketplace for SRECs and a dynamic incentive for the solar industry. Solar RPS requirements demand that energy suppliers or utilities procure a certain percentage of electricity from qualified solar renewable energy resources in a state. These Energy suppliers and/or utilities can meet solar RPS requirements by purchasing SRECs from homeowners and businesses who own solar systems and produce SRECs. Homeowners and businesses can then utilize the sale of the SRECs they generate to help finance their solar systems. SRECs can be sold a variety of ways, such as on the spot market, at auction, or by negotiating long-term contracts. Supply and demand SREC supply in a particular state is determined by the number of solar installations qualified to produce SRECs and actually selling SRECs in that state. As more solar systems are built, SREC supply will increase. SREC demand is determined by a state's RPS solar requirement, typically a requirement that a certain percentage of the energy supplied into a state originate from qualified solar energy resources. Load-serving entities or organizations that supply electricity into the state are required to meet these requirements. RPS solar requirements in many states are set to increase in the coming decade. States with SREC Markets There are currently 35 states (and Washington, D.C.) with existing Renewable Portfolio Standards (RPS). Of those 36, only 17 have specific solar carve-outs mandated in their RPS. And of the 17 with solar carve-outs, only 7 utilize SRECs as the incentive type. The following table shows 5 of the most competitive SREC markets in the U.S.: Massachusetts has a very competitive SREC market as well, but recently closed new applications to the program in order to transition to a different type of incentive. Ohio is also no longer included in the list despite a previously successful SREC market, because the state passed legislation to eliminate their RPS altogether in 2026. Prices Typically, there