DC Mayor Muriel Bower sent the following letter to the DC City Council on Grow DC Fiscal Year 2027 (FY27) budget. In it the Mayor specifically singled out the cost of the RPS renewable portfolio standard and the high price of DC SRECS. They said that the cost of SRECs adds $20 a month to all DC electricity bills, doubling to $40 a month in 2029 and continuing to rise in the future.
“While each new fee or tax hike mandated by the Council may seem small in isolation, over time they add up to thousands of dollars in additional costs to our residents and businesses. An example of this is the Renewable Portfolio Standards (RPS) that impact everyone who pays an electricity bill. The District's RPS requirements are unique: Local electricity suppliers, like Pepco, are legally mandated not only to buy renewable energy, but a portion of that renewable energy must come from solar in the District. DC's extremely ambitious targets are the highest in the nation. Likewise, DC's solar renewable credits (SRECs) are the highest in the country – and they add $20 to every electricity bill. DC's energy laws result in all DC electricity ratepayers subsidizing a small portion of residents – regardless of their income – to have solar panels on their homes. If the 4 Council takes no action to rightsize SRECs and align their cost with the rest of the country, the $20 on every electricity bill will double to $40 by 2029 and then continue growing every year.”
DC SRECs are the highest in the country with them trading at $367.50 per mw hour on Flett Exchange. Prices are trading $350 for delivery in 2029.
Political risk is the most significant factor in environmental attributes.
We will alert our customers as to any other developments that may affect DC SREC prices.