Pennsylvania Tier I Overview
The Pennsylvania Tier I (PAT1) Market is an open market where prices are determined by market forces. Key factors include the Alternative Compliance Payment and supply and demand based on the Renewable Portfolio Standard (RPS). This is a subsection of the Pennsylvania SREC Market open for all eligible systems located in the PJM Grid which include all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Tennessee, Virginia, West Virginia and the District of Columbia.
CSG will register systems in the highest-priced market that your system is eligible to receive.
ACP and Market Trend
The PAT1 Market is ever changing which is reflective in the pricing for RECs. The market has been trended up throughout the 2022 energy year. The Solar Alternative Compliance Payment (SACP) is set by the RPS and can be viewed as a soft benchmark for what the REC will be valued at. The SACP (or ACP) is a fee imposed on utilities and mandated purchasers for shortfalls in REC procurement.
The Alternative Compliance Payment (ACP) for Tier I is $45/SREC.
Retroactivity / Eligibility Start Date
Facilities on estimates will earn credit beginning with the first full month following application submission to the PennAEPS.
REC Shelf Life
PA SRECs have a shelf life of 3 years.
Example: A SREC generated in 2022 can be counted towards the 2022, 2023, or 2024 compliance periods.
SREC Payment Structures
Full Upfront - One Upfront Lump-Sum Payment
This option is one payment upfront. This is a “pre-payment” for 25 years of SRECs generated. We calculate this payment based on your DC size. The price is discounted from the current market price and payment is made within 45 days of all registrations being approved.
Short Term Locked-In Rate - Fixed Price per SREC With a Shorter Term
The timing and amounts of the payments will fluctuate with the market. We will sell your SRECs (based on the actual production) at least once per year. Payments will be made within 45 days of the sale of the SREC and a set commission will be deducted from your payment.
Market-Based - Current Market Rate Minus Commission
The timing and amounts of the payments will fluctuate with the market. We will sell your SRECs (based on the actual production) at least once per year. Payments will be made within 45 days of the sale of the SREC, and a set commission will be deducted from your payment.
Overview of the Process and Timeline
The registration process will begin after a system has been interconnected and the solar owner has signed a REC contract. PA requires systems to be registered with the state of Pennsylvania and PJM GATS (A REC generating and tracking system). This process generally takes between 1 - 3 months. Payment to the customer is dependent on the payment option chosen during contracting.
System Eligibility Requirements
- A facility must use actual, metered production if the facility is equal to or greater than 15kW, has a revenue-grade PV meter installed, or if the facility is composed of adjustable tilt PV modules or laminate PV modules, or if the facility was interconnected on or after May 18, 2017.
- The system must either have online monitoring or a dedicated solar meter (separate from the utility meter) to capture solar production.
Systems in-state can qualify for the PA SREC Market. Out-of-state systems can qualify for the PA Tier 1 Market if in the PJM Grid.
- The PJM Grid includes all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.
- System Details / Array information
- Complete Certificate of Completion signed by the Utility
- Access to Online Monitoring or a solar dedicated meter
- Certificate of Good Standing if the owner is a corporation
- Photograph of the panels in which all panels can be counted
- Photograph of the inverter showing the nameplate/make/model (online monitoring screenshot showing make/model acceptable)
- Photograph of the meter showing the lifetime production (online monitoring screenshot acceptable)
We appreciate the opportunity to work with you.
Carbon Solutions Group Contact Information