GREC Crash Course: About Geothermal Renewable Energy Credits

What are GRECs

To encourage a gradual transition to clean energy states like Maryland have set up a Renewable Energy Portfolio Standard, which requires energy companies to use a specific percentage of Renewable Energy Credits (RECS) yearly. Maryland is currently the only state with a specific carve-out for geothermal energy. However, in other states such as Virginia and Pennsylvania geothermal technology will be eligible as a lower class REC. System size, fuel type replacement, installation date, property specification, and other home energy efficiency factors are all factors of eligibility and determining the quantity and value of the RECs a system will generate.

Geothermal heating and cooling systems are rated in a BTU capacity where 1 MW = 3.412 mmBtu/hour.

What is the Value of a GREC

RECs generated from geothermal energy systems are valued based on the market eligibility of the system.

The quantity of RECs is based on the energy efficiency of a system. A System will generate a set number of RECs annually based on these factors. 

What are my Payout Options

Full Upfront - One Upfront Lump-Sum Payment

This option is one payment upfront. This is a “pre-payment” for 25 years of GRECs generated. We calculate this payment based on the size of the system and the energy efficiency of a system. Determining factors include the total conditioned square footage, the type of heating system being replaced, water heater type, and other home energy efficiency factors. Payment is made in full within 60 days of all registrations being approved. 

Market-Based - Current Market Rate Minus Commission

Payments will be made by January 31 for the previous years REC delivery. Pricing per REC will be the current market value and a 5% commission will be withheld from payment.

What is the Registration Process

The registration process will begin after a system has been installed and inspected and the system owner has signed a REC contract with Carbon Solutions Group. Carbon Solutions Group will collect the system information and documentation and register the system with any applicable states and PJM GATS (A REC generating and tracking system). This process generally takes between 4-6 weeks. Payment to the customer is net 30 from the system registration date in PJM GATS.