Maryland GRECs: Geothermal Renewable Energy Credits
A Renewable Portfolio Standard for Geothermal Heating & Cooling (GHC) Systems
The State of Maryland has a specific requirement in its 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
- Streamlined application process for generators
- Asset Management within PJM GATS; payments are issued 4 times yearly, or upon request
- Interfacing with buyers to help them fulfill their RPS compliance requirements with the state
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.
Process and Timeline for You to Get Paid
Your Tasks:
Register and provide your installer’s contact information. Takes less than 10 minutes.
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?
Account Options for Selling GRECs
Flett Exchange bids for RECs on the spot market and offers forward contracts for select REC tags (GRECs incl.)*
| Do-It-Yourself | GREC Manager | |
|---|---|---|
| Who it’s for | Sites with an MD-Cert, already registered with PJM GATS | New registrations - Flett Exchange registers your facility with Maryland Public Service Commission and PJM GATS |
| Trading | Sell on the spot market by logging into your Flett Exchange trading portal and placing a trade | Ease of use: Flett Exchange works with your installer to get all necessary information |
| Updates | Trade status updates sent via email | Regular and predictable payments |
| Registration | Account setup available via portal | No fee; 20–80 day timeframe |
Providing Transparency and Liquidity for Maryland GREC Markets
Customers can log in to Flett Exchange at any time to place trades in GREC specific markets. Currently, Flett Exchange hosts the following markets on our platform:
| Market | Systems |
|---|---|
| MD Tier I REC | Systems installed pre-2022 |
| MD GREC | Systems installed post-2022 |
Email cflett@flettexchange.com for any Maryland GREC specific inquiries.
Get Started with Flett Exchange
Start earning money from your geothermal energy production today. Our team will handle all the paperwork and reporting.
RegisterQuestions? Call us at +1 (201) 209-0234 or email us.