Geothermal Renewable Energy Credit FAQ
Common questions about GRECs, how they're generated, what they're worth, and how Emergent Energy handles registration and payment.
A GREC — Geothermal Renewable Energy Credit — represents the clean thermal energy output of a geothermal heating and cooling system. Unlike solar RECs, which measure electricity generation, GRECs measure thermal energy displacement. One GREC equals one MWh of thermal energy produced by a geothermal heat pump, calculated based on system capacity, efficiency, and the type of fuel displaced. States that include geothermal in their Renewable Portfolio Standard create demand for GRECs by requiring utilities to procure a minimum number each year.
Maryland has the most mature GREC program, with a dedicated Tier 1 carve-out established in 2012 and expanded in 2021. Virginia established a GREC carve-out in 2024 under SB 508. New Hampshire was the first state to include geothermal thermal energy in its RPS in 2012, using the T-REC (Thermal REC) designation tracked through NEPOOL-GIS. Pennsylvania's PRESS Act (HB 501) proposes to elevate geothermal to Tier I of the AEPS framework and is currently pending Senate action.
The number of GRECs depends on your system's capacity (in tons), operating hours, coefficient of performance (COP), and the fuel type your system replaced. The formula is: (system tons × 12,000 BTU/hr × 8,760 hours × COP) ÷ 3,412,000 BTU/MWh × fuel displacement multiplier. A typical 4-ton residential system replacing natural gas generates approximately 430 GRECs per year. Oil and propane replacements yield more GRECs due to higher fuel displacement multipliers. Use our GREC revenue calculator for a personalized estimate based on your system size and state.
Maryland GRECs are currently trading at $87.00 per credit (2025), making it the highest-value GREC market. Virginia's GREC market is still establishing, with an ACP ceiling of $45/MWh. New Hampshire T-RECs have historically traded in the $25–$29 range. Prices fluctuate with market supply and demand, regulatory changes, and ACP schedules. Contact us for a current quote specific to your state.
No. Emergent Energy charges zero upfront fees. We are compensated as a percentage of GREC sale proceeds only. If your system doesn't generate revenue, we don't earn a fee. There is no risk to you — our interests are fully aligned with yours.
The full process from initial assessment to first GREC issuance typically takes 6–12 weeks. The initial free assessment takes 1–3 business days. Documentation collection takes 1–2 weeks. State certification and PJM-GATS or NEPOOL-GIS registration takes 4–8 weeks depending on the state and current processing queue. Your first GRECs are issued in the month following registration approval.
Emergent Energy aggregates your GRECs with our full portfolio and executes market sales to utilities meeting their RPS obligations. You receive payment net of our aggregation fee, typically within 30–45 days of sale. Payments are made via check or ACH transfer. You receive a detailed statement showing GRECs sold, price per credit, and net proceeds.
It depends on the state. Maryland: systems installed after January 1, 2023 qualify for the dedicated GREC carve-out; systems installed after January 1, 2013 qualify for standard Tier 1 RECs. Virginia: systems installed after August 16, 2022 are eligible. New Hampshire: systems operational after January 1, 2013 qualify. In all cases, earlier registration captures more credit-generating years.
Typical documentation includes: installation invoice with system specs (capacity, model, serial number), Manual J load calculation (required in some states), ENERGY STAR certification, proof of installer credentials, and a utility interconnection confirmation (where applicable). Emergent Energy guides you through exactly what's needed for your state — no guesswork.
PJM-GATS (PJM Generation Attribute Tracking System) is the official tracking platform for Renewable Energy Credits in the PJM Interconnection region, which covers 13 states and DC. Maryland and Virginia GRECs are tracked through PJM-GATS. Each GREC is assigned a unique serial number and can only be sold once, ensuring environmental integrity. New Hampshire uses NEPOOL-GIS, the equivalent tracking system for ISO-New England states. See our full GREC glossary for definitions of all tracking and credit terms.
Register your interest with us. Emergent Energy monitors all state RPS proceedings and legislative developments. We maintain enrollment pipelines for emerging states so that when a new GREC program launches, registered owners are among the first to enroll — capturing the earliest vintage credits and maximizing their credit-generating years.
Emergent Energy is compensated as a percentage of GREC sale proceeds only. There are no upfront fees, registration fees, or monthly charges. If your GRECs don't sell, we don't earn. This model aligns our interests with yours — we maximize your revenue because that's how we earn ours.