How can your organization participate in trading Renewable Energy Credits (RECs)?

The Commonwealth of Pennsylvania is on the forefront of promoting renewable energy standards. Pennsylvania's Act 213 requires that a certain percentage of the electric energy sold to retail customers in Pennsylvania by electric distribution companies and electric generation suppliers be derived from alternative energy resources. This includes, but is not limited to: solar, wind, hydropower, geothermal and biomass. The PA Public Utility Commission (PUC) is charged with implementing and enforcing Act 213.

Pennsylvania is unique in the fact that energy efficiency and energy control can be registered and traded as a Tier II Renewable Energy Credit, or REC. This means that for every 1000 kW your organization reduces or intelligently controls as a commercial consumer, you will be entitled to one REC. If you reduce at least 100 kW, you can aggregate this amount and get a portion of a REC as well. Under a new law, Pennsylvania's electric utilities and other suppliers selling electricity to Pennsylvania customers are required to provide a percentage of the electricity they sell from renewable energy and other alternative forms of electricity generation.

A registry, approved by the Public Utilities Commission called the Generation Attributes Tracking System (or GATS) has been set up to track the creation, transfer and sale of renewable electricity credits or RECs. The utilities and electricity suppliers will need to show that they have purchased enough RECs each year to meet the goals established in the law. As a result, utilities and electricity suppliers may be interested in paying for your RECs. Participating in the REC process will not affect your systems function or its ownership in any way, nor will it affect how your local utility is billing you or your eligibility for performance-based retrofits.

This REC process is just getting started in Pennsylvania. GATS is brand new, the registration process is brand new, and everything is being tried for the first time. It is unclear how many utilities and electricity suppliers will be shopping for RECs at this time - or what they are willing to pay for these RECs. There is no guarantee that your RECs will be sold immediately if you choose to sell them.

Interested in registering for energy efficiency RECs?

If your business or organization is interested in learning more about registering energy efficiency RECs, please Register.