One of the current important issues is the management of used textiles. One method is recycling, but the processes are characterized by a high environmental burden and the products obtained are of lower quality. Used textiles can be successfully used to produce SRF (solid recovered fuels). This type of fuel is standardized by ISO 21640:2021. In the paper, an analysis of used textiles made from fibers of different origins was performed. These were acrylic, cotton, linen, polyester, wool, and viscose. A proximate and ultimate analysis of the investigated samples was performed, including mercury and chlorine content. The alternative fuel produced from used textiles will be characterized by acceptable parameters for consumers: a lower heating value at 20 MJ/kg (class 1–3 SRF), mercury content below 0.9 µg Hg/MJ (class 1 SRF), and a chlorine content below 0.2% (class 1 SRF). However, the very high sulfur content in wool (3.0–3.6%) and the high nitrogen content in acrylic may limit its use for power generation. The use of alternative fuel derived from used textiles may allow 3% of the coal consumed to be substituted in 2030. The reduction in carbon dioxide emissions from the substitution of coal with an alternative fuel derived from used textiles will depend on their composition. For natural and man-made cellulosic fibers, the emission factor can be assumed as for plant biomass, making their use for SRF production preferable. For synthetic fibers, the emission factor was estimated at the level of 102 and 82 gCO₂/MJ for polyester and acrylic, respectively.