Alternative Energy Credits (AECs) for Tier II Renewable Energy

The Pennsylvania Alternative Energy Portfolio Standard (AEPS) governs energy pricing and compliance rules and is tasked with overseeing transition to renewable sources of energy.

Since Act 213 was signed into law in 2004, The AEPS has maintained the guidance that electric suppliers must cover 10% of annual retail electric sales with Tier-II AECs in a manner colloquially known as "compliance". The cap on the alternative compliance payment (ACP) is $45/mWh and will remain so indefinitely.

1.00 AEC (Tier II REC) = 1,000 kWh of energy savings

Energy Efficiency (EE) Applications and AEC Generation Timeline

The Commonwealth of Pennsylvania recognizes that certain Demand-side Management (DSM) technologies can generate AECs.

Flett Exchange facilitates the application, registration, generation, tracking, and purchase of AECs for multiple different types of Demand-side Management systems. The Public Utility Commission (PUC) processes Energy Efficiency applications and approves generation schedules for the following classifications of DSM technology:

1. Ground Source Heat Pumps (GHSP)

2. Air Source Heat Pump (ASHP)

3. Packaged Terminal Air Conditioners (PTAC)

4. Packaged Terminal Heat Pump (PTHP)

5. Central Air Conditioners (CAC)

The semantics of AEC generation by technology type is laid out in the PUC Technical Reference Manual; all Tier II AEC credits are based on energy savings, not energy generated.

Registration Process
How to get paid for your AECs with Flett Exchange

Pennsylvania residents who have installed a geothermal system, or any other form of energy efficiency upgrade, can streamline the registration, generation, and management of their AEC credits by registering for a REC Manager account.

Process and Timeline for you to get paid:

1. Register for Flett Exchange REC 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 AEC generation work, and what are my expected yearly cash flows?
AEC Generation Timeline > 10 mins REC Manager signup and signature on Schedule A, customer affidavit 1-3 days We gather system info from Installer, collect installer affidavit 1-2 weeks We acquire PA-Cert from PENN AEPS, setup facility in GATS Setup Complete, AEC payments issued once per quarter, pricing available daily on Flett Exchange! Tier II AEC Spot Price: $32.50 Annual AEC count: 17 Gross Cash: $552.50 Less Commision: ($42.50) Annual AEC Income: $510.00 Example of an average AEC facility registered with Flett Exchange

Get Started with Flett Exchange

Start earning money from your geothermal energy production today. Our team will handle all the paperwork and reporting.

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Questions? Call us at +1 (201) 209-0234 or email us.