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

Starting in 2026: 1.00% of Tier I Renewable Energy in Maryland must be procured through the purchase of GRECs
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.

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?
GREC 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 MD-Cert number from MD PSC, setup facility in PJM GATS Setup Complete, GREC payments issued once per quarter, pricing available daily on Flett Exchange! MD GREC Spot Price: $87.00 Annual GREC count: 41 Gross Cash: $3,567.00 Less Commission: ($123.00) Annual 2025 GREC Income: 3,444.00 Cost: $3.00 per GREC Example of an average MD GREC facility registered with Flett Exchange, (GREC Portfolio AVG FY 2024)

Get Started with Flett Exchange

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

Register

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