A Renewable Portfolio Standard for post-2021 Geothermal Heating & Cooling (GHC) Systems
The State of Maryland has a specific requirement in it's renewable portfolio standard (RPS) that requires its electricity suppliers to purchase geothermal renewable energy credits (GRECs) to remain in compliance with the RPS. This change was brought about specifically by HB 1007, which created a tradable market for these environmental assets.
The buyers are energy companies, who need to purchase a number of credits per energy year; the penalty for non-compliance is paying a fine known as the alternative compliance payment (ACP). The sellers are investors, including residential and commercial, who generate these tradable commodities within the PJM GATS tracking system.
GRECs have value because they represent a finite amount of energy savings; an investor who installs a geothermal ground source heat pump, despite the system not generating electricity, is rewarded by Maryland's RPS because his/her utility company does not have to send electricity to their property, achieving the goal of sustainability by reducing demand and load.
1.00 MD GREC (Tier I REC) = 1,000 kWh of energy savings
Flett Exchange's role in this market:
1. Streamlined application process for generators
2. Asset Management within PJM GATS; payments are issued 4 times yearly, or upon request
3. Interfacing with buyers to help them fulfill their RPS compliance requirements with the state
Registration Process
How to get paid for your Maryland GRECs with Flett Exchange
Maryland residents who have installed a geothermal heat pump can streamline the registration, generation, and management of their GRECs by registering for a GREC Manager account. When you sign up for the managed account option, Flett Exchange registers your system with the state database and a $100.00 application fee is deducted from your first GREC payment.
Customers will also have the option to get paid for their system's lifetime generation of GRECs upon successful GATS registration completion. Payment amount depends on the system's remaining useful life, and date of install. Contact us for more information.
Process and Timeline for you to get paid:
Your Tasks:
1. Register for Flett Exchange GREC Manager, and provide your Installer's contact information
2. Sign the Schedule A document, and customer affidavit emailed to you upon registration; this allows us to manage your facility within the PJM GATS system
How does GREC generation work, and what are my expected yearly cash flows?
Questions?
For more information on how to register your geothermal system for GREC generation, or to learn more about the process, please contact our team at cflett@flettexchange.com or info@flettexchange.com