ACTIVE

Virginia GRECs — a new revenue stream for geothermal owners

Virginia established a dedicated Geothermal Renewable Energy Credit (GREC) carve-out in 2024 under SB 508. Geothermal heat pump systems installed after August 16, 2022 are eligible. Both Dominion Energy Virginia and Appalachian Power Co. are required to procure GRECs, with an Alternative Compliance Payment (ACP) ceiling of $45 per MWh. Emergent Energy handles Virginia GREC registration through PJM-GATS at no upfront cost to system owners.

Virginia GREC Program Key Facts

• Legislation: SB 508, enacted 2024
• Eligible utilities: Dominion Energy Virginia (Phase II), Appalachian Power Co. (Phase I)
• ACP ceiling: $45.00/MWh
• Eligible from: August 16, 2022
• Tracking: PJM-GATS
• Documentation required: Geothermal system purchase receipt, Manual J calculation, self-certification

Eligibility Checklist

Virginia Market Context

Virginia is an emerging GREC market following Maryland's model. The ACP ceiling of $45/MWh establishes the maximum price utilities will pay before opting for the alternative compliance payment. Both Dominion Energy Virginia (Phase II) and Appalachian Power Co. (Phase I) are required to procure GRECs under SB 508.

As credit volumes build, pricing is expected to establish based on utility procurement obligations and ACP dynamics. Early registrants benefit from lower competition for compliance procurement and capture the maximum number of vintage credit years. The Virginia SCC working group report has been described as a potential blueprint for other PJM-region states.

How Emergent Energy Handles Virginia GREC Registration

1. Confirm system specs and installation documentation
2. Submit Virginia SCC application for geothermal facility certification
3. Register with PJM-GATS and obtain VA state certification number
4. Manage monthly GREC issuance and aggregation
5. Execute market sales to Dominion and APCo and remit payment