Renewable Portfolio Standard (RPS)

A Renewable Portfolio Standard (RPS) is a state-level regulation that requires electric utilities to source a specified percentage of their electricity from renewable energy sources by a target date. RPS policies are one of the primary drivers of solar energy growth in the United States.

As of 2026, over 30 states plus Washington DC have enacted RPS policies, with targets ranging from 25% to 100% renewable energy by various deadlines. For example, California’s RPS requires 100% clean electricity by 2045, while New York targets 70% renewable by 2030. Some states include a specific “solar carve-out” within their RPS, requiring a portion of the renewable target to come specifically from solar energy — this creates dedicated demand for solar and drives SREC markets. To comply with RPS requirements, utilities either build or purchase renewable energy or buy Renewable Energy Certificates (RECs) from solar system owners. The existence of an RPS in your state generally supports higher SREC values, stronger net metering policies, and more utility-sponsored solar incentive programs, all of which benefit residential solar customers.