Virginia GREC Market Overview

Market Details

The Virginia Renewable Energy Credit (REC) market encompasses various types of renewable energy technologies, including geothermal heat pumps. RECs are incentive credits that allow owners of geothermal systems to monetize the environmental benefits of their systems' energy efficiency. Carbon Solutions Group (CSG) partners with local installers to create a seamless offering that gives customers a direct line to collect their REC incentives.

Virginia S.B.508 passed the legislature in March 2024 and is awaiting signature by the Governor. The bill would establish geothermal energy as eligible for compliance with the state’s renewable energy portfolio standard requirements.

The Alternative Compliance Penalty (ACP) for utility providers is set in VA at $45/MWh.

Eligibility

For residential systems, the purchase of a Geothermal system and a Manual J calculation is required.

Retroactivity / Eligibility Start Date

Facilities on estimates will earn credit beginning with the first full month following application submission and we can register systems installed after 8/16/2022.



Contract Options for Customers

Full Upfront - One Upfront Lump-Sum Payment

This option is one payment upfront. This is a pre-payment for the renewable energy credits generated over the system's useful life. We calculate this payment based on the size of the system and the energy efficiency of the 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 30 days of all registrations being approved.

Registration

Overview of the Process and Timeline

The registration process will begin after a system has been installed and the system owner has signed a REC contract with Carbon Solutions Group. The system registration process generally takes between 4-6 weeks. Payment to the customer is net 30 from the system registration date.

Required Information

• System Details and cut sheets for original and GHP equipment
• Proof of installation document (Building permit, paid invoice, etc)
• System Specs (typically on the proposal/sales contract)
• Manual J
• System Photo
• Schedule A (provided by CSG)
• *Corporation Only (non residential) - Certificate of Good Standing and Installer Engineering Study

We appreciate the

opportunity to work with you.

Carbon Solutions Group

Contact Information

Phone: 888-316-GREC

Email: GREC@carbonsolutionsgroup.com