What are Geothermal RECs?
Geothermal RECs, Geothermal Renewable Energy Credits, or GRECs are tradable credits that reward the owner of a geothermal ground-source heat pump for the energy their system saves. As states add geothermal to their Renewable Portfolio Standards, electricity suppliers must buy Geothermal RECs to stay in compliance, creating a market that rewards property owners for reducing demand on the conventional electric grid.
Frequently Asked Questions
How are Geothermal RECs created?
+Unlike solar RECs, which come from metered electricity generation, a Geothermal REC is created from the energy a ground-source heat pump saves compared with a conventional heating and cooling baseline. That energy savings is measured, converted into credits, and tracked through PJM GATS or the applicable state program.
How are Geothermal RECs different from Solar RECs (SRECs)?
+An SREC represents solar electricity you generate, while a Geothermal REC represents the thermal energy your heat pump saves. They are separate compliance products with their own markets and prices, so a Geothermal REC (GREC) is not interchangeable with a solar SREC.
Which states have Geothermal REC programs?
+Geothermal REC programs are an emerging compliance mechanism in several states. Currently, the following states have established Geothermal REC programs, each with their own specifications:
- Maryland Geothermal RECs - HB 1007 Tier I carve-out (1 MD GREC = 1,000 kWh of energy savings).
- Virginia Geothermal RECs - SB 252 carve-out (1 VA GREC = 1 MWh of thermal energy delivered).
- Illinois Geothermal RECs - CRGA 15-year GREC delivery contracts.
- Pennsylvania Geothermal RECs (AECs) - issued as Tier II Alternative Energy Credits under the AEPS.
How do I sell my Geothermal RECs?
+You can sell your Geothermal RECs through Flett Exchange. Choose a managed service (REC Manager), where we handle registration, minting, and trading for you, or self-trade on our live order book. There are no long-term contracts and no setup fees. Apply for an account to get started.
What is a Geothermal REC worth?
+Geothermal REC prices are driven by each state's RPS geothermal carve-out and the penalty (Alternative Compliance Payment) utilities pay for non-compliance, and they move with supply and demand. Contact Flett Exchange or view our markets for current Geothermal REC pricing.
- Maryland Geothermal REC Market Prices
- Virginia Geothermal REC Market Prices
- Pennsylvania Geothermal REC Market Prices
- Illinois Geothermal REC Market Prices Coming Soon