PolicyUp to date · Jan 15, 2026
Solar Carve-Out
A provision within an RPS requiring that a specific portion of the renewable target be met by solar energy, creating dedicated demand for solar generation.
Why It Matters
States with solar carve-outs (NJ, MA, MD, DC, IL) typically have the strongest SREC markets, providing solar owners with additional income beyond energy savings.
Related Topics
Related Terms
RPS (Renewable Portfolio Standard)
A state regulation requiring utilities to source a minimum percentage of electricity from renewable resources by a target date. Also called a Renewable Energy Standard (RES).
SREC (Solar Renewable Energy Certificate)
A tradable certificate representing the environmental benefits of generating 1 MWh of solar electricity. Can be sold for additional income in some states.