Who is eligible to receive renewable energy credits for non-residential geothermal heating and cooling systems?
To qualify for non-residential RECs, the geothermal heating and cooling system must be installed in a non-residential facility. Non-residential facilities include commercial buildings and multi-family housing units. Supporting documentation must be provided to prove that the system is not for a single residential home.
Starting January 1, 2023, a person can receive renewable energy credits based on the amount of thermal energy saved by a geothermal heating and cooling system if the person: 1) Owns and operates the systems; 2) Leases and operates the systems; or 3) Contracts with a third party who owns and operates the systems.
What can I do if I installed my non-residential geothermal heating and cooling system before January 1, 2023?
According to Public Utilities Article § 7-704(h)(1), a non-residential geothermal heating and cooling system that was placed in service on or before December 31, 2022, is still eligible for RECs. In 2023, Maryland’s Renewable Portfolio Standard requires 31.9% from Tier 1 renewable generation, including residential and non-residential geothermal systems; at least 0.05% of that portion must be derived from post-2022 geothermal systems.
What are the criteria for determining whether a non-residential geothermal heating and cooling system was installed after to January 1, 2023?
The system must be installed at the property on or after January 1, 2023. Documentation of passed final inspection must be provided to prove the date of installation.
What are the eligibility criteria for the non-residential geothermal heating and cooling systems?
The non-residential geothermal energy facility must be installed:
1) At a commercial building; or
2) At multi-family housing units that qualified as low or moderate income housing on the date the system was installed on the property; or
3) At institutions that primarily serve low or moderate income individuals and families, including i) schools with a majority of students who are eligible for free and reduced prices meals; ii) hospitals with a majority of patients eligible for financial assistance or who are enrolled in Medicaid; and iii) other facilities that serve individuals and families where a majority of those is enrolled in Federal or State Safety Net Programs.
4) A system with a 360,000 BTU capacity is eligible for geothermal renewable energy credits only if the Company installing the system provides for its employees:
• Family-sustaining wages;
• Employer-provided health care with affordable deductibles and co-pays;
• Career advancement training;
• Fair scheduling;
• Employer-paid workers’ compensation and unemployment insurance;
• A retirement plan;
• Paid time off; and
• The right to bargain collectively for wages and benefits
The applicant is required to submit an affidavit that describes the eligibility and provides all supporting documentation (e.g. paystubs) to prove the eligibility. Incomplete applications or missing documentations will cause delay in the processing of applications.
How do I know if a geothermal heating and cooling system is considered “low or moderate income”, and how do I provide the information in my renewable energy credit application and why is it important to include this information in my renewable energy credit application?
Low or Moderate Income (LMI) Housing is affordable housing for a household with an aggregate annual income that is below 120% of the area median income.
To qualify for residential LMI single housing carve-out, your two most recent consecutive pay stubs must be provided to prove the LMI eligibility. To qualify for non-residential LMI carve-out (e.g., multi-family housing units and institutions that serve LMI families), two most recent consecutive pay stubs from each household must be provided to prove the LMI eligibility. Incomplete applications or missing documentation will be rejected and cause delays in the processing of applications.
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