GREC 101 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.

What States are Eligible?

Maryland is currently the only state with a specific carve-out for geothermal energy. However, Virginia is also in the process of adding a carve out. The entire PJM region can participate in their RPS and will be eligible as a lower-class REC. States include: 

• Delaware 

• Illinois

• Indiana

• Kentucky

• Maryland

• Michigan

• New Jersey

• North Carolina

• Ohio

• Pennsylvania

• Tennessee

• Virginia

• West Virginia

• District of Columbia

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 system's market eligibility. There are sometimes different payment structures in different states. 

The quantity of RECs is based on a system's energy efficiency. Based on these factors, a system will generate a set number of RECs annually. 

How Do Payments Work

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. 

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.

We appreciate the opportunity to work with you.

Carbon Solutions Group Contact Information                                                       

Schedule A Call To Connect

Phone: 888-316-GREC

Email: GREC@carbonsolutionsgroup.com