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For questions about the AEPS Program or this web site, contact:
Clean Power Markets, Inc. Program Administrator
511 Schoolhouse Rd
Suite 200
Kennett Township, PA, 19358
Phone: 1-877-AEPS-773
Fax: (610) 444-9213
Email Support

FAQs

General Questions - The answers below are subject to change as the PUC finalizes any rulemaking orders.

• Who should I contact with questions?
• What is an AEC?
• Who is eligible to participate in Pennsylvania’s Alternative Energy Portfolio Standard (AEPS) Program?
• How do AECs Differ from RECs and Green Tags?
• What is PJM-GATS and how does that relate to this program?
• Who buys Pennsylvania AECs?
• Can Tier I Alternative Energy Credits be used in order to comply with Tier II obligations or vice versa?
• Can someone else manage or sell my AECs for me?
• How often can an AEC be sold?
• What is the difference between the compliance market and the voluntary market?
• What is the energy year?
• How are DSM and EE projects evaluated?
• How does a solar owner participate in this program?
• If I sell my solar AECs, can I still claim that I am solar powered?
• Can I keep my AECs when I sell my home?
• When do AECs start accumulating and when should I apply?
• My utility bill looks incorrect. Who should I contact?
• How do I read my net meter?
• What is the difference between AECs and net metering?
• How are estimates calculated?
• Does a Solar Hot Water system qualify for Alternative Energy Credits (AECs)?
• What constitutes solar thermal as shown in the Tier I list of qualified fuel?
• Can you explain the banking provisions as they apply to EDCs, EGSs, and generators?
• Can you explain some of the fields on the solar application?
• Do I need to include pictures in my application?
• What do I do if I expand my system?
• If I own multiple systems in multiple locations do I need to open a new account?
• When can I expect approval of my system and receive my state certification number?
• What happens if I am missing information on my application that is required?
• The AEPS website lists solar weighted average pricing that is much higher than the average weighted pricing for Tier I AEC. At other places solar systems are listed under Tier I as a Tier I resource. Which pricing would I qualify for with a solar PV system?
• Is there a size restriction on the size of a solar system for it to be eligible to earn AECs?
• What is the maximum size for net metering?
• I am participating in the Sunshine Fund. Can I use estimated values to earn my certificates?
• I have a revenue grade meter installed next to my inverters. Can I use estimated values to earn my certificates?
• What are the facility inspections and what can I expect?
• Why do I need to provide my phone number and email address? Is this information needed if I signed a contract with an aggregator?
• I have an adjustable tilt/tracking system, can I use estimated production for SAECs?
• My system is not grid-tied, can I still earn SAECs?
• How long will the program run for and will there be a requirement for SAECs after the program ends?
• When should I submit my application?

General Questions

• Who should I contact with questions?
  Please contact the PA AEPS Program Administrator, Dina M. Deana at (877) 237-7773 or via email at admin@paaeps.com. If she is unable to answer your question, she will be able to direct you to the appropriate resource.
  
  
• What is an AEC?
  An AEC is an “Alternative Energy Credit”. An AEC is earned when a qualified facility generates 1000kwh (1 MWh) of electricity through either estimated or actual metered production. It is a tradable certificate that represents all the clean energy benefits of electricity generated from your facility. An AEC can be sold or traded separately from the power.
  
  
• Who is eligible to participate in Pennsylvania’s Alternative Energy Portfolio Standard (AEPS) Program?
  In order to earn AECs, your system/facility will need to be qualified and receive a certification number. Please refer to the “Overview” page of the website to see the fuel types that qualify. Fill out the appropriate applications. The application will be reviewed by the Program Administrator and if the facility meets the required qualifications, a certification number will be issued to the facility. The certification number will allow you to register the facility in PJM-GATS and earn the AECs.
  
  
• How do AECs Differ from RECs and Green Tags?
  AECs are no different from Renewable Energy Credits (RECs) and Green Tags. “Green Tags” is a generic term for electricity generated from a variety of renewable energy sources including solar, wind, small hydro and biomass. The PA AEPS Program chose to call their credits Alternative Energy Credits (AECs) which include both renewable energy resources and other Pennsylvania-specific alternative resources. RECs and Green Tags are widely used to meet various state renewable portfolio standards and are traded in both compliance and voluntary programs in wholesale and retail markets across the U.S.
  
  
• What is PJM-GATS and how does that relate to this program?
  PJM-GATS is the credit registry selected by the state of PA to issue the AECs. Facility owners will use their assigned certification number and create an account in GATS. Readings for the facility will be recorded in the GATS system and the appropriate number of AECs will be issued. The AECs will then be available to transfer to buyers.
  
  
• Who buys Pennsylvania AECs?
  Pennsylvania AECs are generally purchased by EDCs (Electric Distribution Companies) and EGSs (Electric Generation Suppliers) in order to meet the percentages required under the PA AEPS for any given energy year. Please refer to the “Overview” page of the website to see the percentages required for each Tier. Other buyers may include aggregators and brokers, renewable energy marketers, private businesses and individuals interested in supporting the development of solar energy. A list of electric suppliers that are required to purchase AECs, interested ‘aggregators’ and brokers is available on the website. Additionally, the website will list the weighted average price for AECs, updated periodically, to inform buyers and sellers of the going price as this information is made available.
  
  
• Can Tier I Alternative Energy Credits be used in order to comply with Tier II obligations or vice versa?
  It is not permissible to use Tier I AECs to satisfy Tier II AEC requirements or vice versa. The PA AEPS Act and the regulations clearly indicate that EDCs and EGSs have specific obligations for both Tier I and Tier II AECs. Also, there is not a provision allowing substitution.
  
  
• Can someone else manage or sell my AECs for me?
  Yes. If you sign a contract with an aggregator or broker to manage your facility on your behalf, you are required to provide the Program Administrator with a copy of that contract. Some solar electric system owners may have agreements with agents or “aggregators” to handle the disposition or sale of their AECs. However, only one party can claim ownership or rights to an AEC at any one time. For an aggregator to be authorized to sell or trade AECs, the aggregator must provide a written agreement with each system owner that has hired the aggregator to handle their AECs.
  
  
• How often can an AEC be sold?
  An AEC can be sold whenever it is earned. AECs can be traded multiple times until they are retired for compliance purposes. No single AEC can be jointly claimed by two parties.
  
  
• What is the difference between the compliance market and the voluntary market?
  The compliance market is the market in which EDCs and EGSs purchase AECs for compliance with the PA AEPS. The EDCs and EGSs are subject to an Alternative Compliance Payment (ACP) if they do not purchase the required number of AECs in a given energy year. The voluntary market is comprised of individuals or corporations who choose to purchase energy credits for their inherent environmental benefits and are not subject to any ACP. The ACP is generally acknowledged as the “cap” that AECs would be sold for. Because buyers in the voluntary market are not subject to the regulations of the PA AEPS, they would be able to purchase AECs that are no longer valid for compliance and at whatever price they would like.
  
  
• What is the energy year?
  The energy year runs from June 1 to May 31st.
  
  
• How are DSM and EE projects evaluated?
  Until the PUC finalizes the rulemaking regarding these projects, they are evaluated on a project by project basis. Please fill out an application from the AEPS website and explain the project. Please also refer to the Technical Reference Manual (TRM) to calculate savings. The Program Administrator will then evaluate the project and outline the number of AECs the project would qualify for, detail how/when the AECs would be earned, and calculate any depreciation in the number of credits available for each energy year. The Program Administrator can also determine if the program qualifies for receiving all of the AECs in one group, in which case the certification number issued for the project would only be used once. These determinations would be proposed to the PUC and a final course of action would be determined.
  
  
• How does a solar owner participate in this program?
  A solar owner can register the system by opening an account on the AEPS website and filling out the required application. The owner will then receive a certification number to register the facility within GATS to receive AECs. An individual facility owner can also sign a contract with a broker or an aggregator to sell the generated AECs
  
  
• If I sell my solar AECs, can I still claim that I am solar powered?
  No, if you sell your AECs, you have sold the claiming rights for being solar powered. However, you can state that you are “hosting” a solar system on your roof. If you retire those credits within your GATS account without offering them for sale, you are then claiming the environmental benefits of the system and can claim you are solar powered.
  
  
• Can I keep my AECs when I sell my home?
  The AECs are expected to remain with the home. Any arrangement made between the buyer and the seller will be at the risk of both parties.
  In order to update the AEC ownership, both parties must fill out the System Change Form in the Apply For section. The form should be emailed to the administrator at admin@paaeps.com
  
  
• When do AECs start accumulating?
  AECs start accumulating from the date of completed application. Any kWh accumulated prior to the date of application cannot be claimed for AECs in Pennsylvania. The application asks for an accurate reading from the inverters or the revenue grade production meter at the time of the application. Therefore it is very important that you fill out the application as soon as the system is turned on. Applications cannot be accepted prior to the system being operational. AECs start accumulating from the date of completed application. Any kWh accumulated prior to the date of application cannot be claimed for AECs in Pennsylvania. The application asks for an accurate reading from the inverters or the revenue grade production meter at the time of the application. Therefore it is very important that you fill out the application as soon as the system is turned on. Applications cannot be accepted prior to the system being operational.
  If an application is submitted more than 30 days after the listed online date the application must include a meter photo (if a revenue grade kWh meter is installed) or inverter photo attachment(s) capturing the total kWh logged as of the time the application is submitted. This verified meter reading submitted at the time of application will be the starting point to earn PA AECs.
  
  
• My utility bill looks incorrect. Who should I contact?
  Please contact your utility company. They will be able to assist you. If you are unsuccessful in your efforts to reach your utility company, please contact the Pennsylvania Public Utility Commission’s Energy Line at 717-425-7584 or by email at ra-aeps@state.pa.us.
  
  
• How do I read my net meter?
  Please refer your question to your electric utility company. There are a number of different meters that are installed.
  
  
• What is the difference between AECs and net metering?
  Net metering refers to the amount of electricity you are being billed for by your utility company after you are credited with any electricity you feed back to your utility company that was generated with your alternative energy system. If you need additional power beyond that which your alternative energy system generates, you will draw that power from the grid and be billed for the usage. If you don't need all of the power your alternative energy system generates and you are feeding the grid electricity, this will appear on your bill as a credit. AECs are earned based on your total production from your alternative energy system, whether that power was consumed on-site or fed back into the utility grid. Every 1000 kWh is equal to one AEC. This is completely separate from net metering.
  
  
• How are estimates calculated?
  The Program Administrator calculates estimates for each solar facility using the PV Watts Version 1 algorithm, which is a program maintained by the National Renewable Energy Laboratory, which can be found at http://rredc.nrel.gov/solar/codes_algs/PVWATTS/. The estimates take into account the size and location of the solar system, the orientation (toward south), and the tilt. For details on your specific estimates or for estimates of a non-solar system, please contact the PA AEPS Program Administrator for further explanation.
  
  
• Does a Solar Hot Water system qualify for Alternative Energy Credits (AECs)?
  A Solar Hot Water system will qualify for Tier II Energy Efficiency Credits provided that the system has replaced an electric hot water system for which the electricity savings would need to be proven in kilowatt-hours, not BTU output. Please note that these credits are not the same as Solar Photovoltaic credits that are qualified as a separate Tier. Please check the Pricing page to see the weighted average pricing for Tier II credits.
  
  
• What constitutes solar thermal as shown in the Tier I list of qualified fuel?
  A solar thermal system is a solar collector type of system that generates electricity.
  
  
• Can you explain the banking provisions as they apply to EDCs, EGSs, and generators?
  They are as follows:
  • Generators own their AECs until they are voluntarily transferred. Generators do not "bank" their certificates
  • Generators do not have a limit on the number of years credits can be generated. They can generate credits as long as they maintain certification and environmental compliance.
  • Utilities not under rate caps can bank credits for use in the compliance year of generation plus two additional compliance years. Credits will not be valid for compliance requirements anytime after the second compliance year subsequent to the year they are generated.
  • If a utility bought credits while under their rate caps, they must use them in the year they come out from rate caps, or in the following compliance year.
  • If a utility bought credits while under their rate caps, they must use them in the year they come out from under rate caps, or in the following compliance year.
  • A credit is considered valid during compliance years not calendar years. For example, if a credit is dated October 2007, it is considered part of the 2008 compliance year. Under banking provisions, this credit's "life" will expire at the end of CY 2010 (May 31, 2010), not October of 2009. However, this credit may have a useful life through May 31, 2012 if banked by an EDC or EGS serving an EDC’s service territory, where caps expire on January 1, 2011.
  • Scenario #1: A credit is issued/generated in April 2008 and is therefore part of the 2008 compliance year. If it was purchased by a utility or EGS not under rate caps they must use it during the 2008, 2009 and 2010 compliance years. After this time, it is no longer able to be used for compliance purposes by EDCs or EGSs not under rate caps.
  • Scenario #2: A credit is bought by an EDC still under rate caps. The credit is dated April 2006, therefore part of the 2006 compliance year. At this time it no longer has a useful life for EDCs or EGSs out from under rate caps. It can be used by the EDC or EGS serving an EDC’s territory under rate caps, when they come out from under rate caps for the compliance year they enter or the following year. After this time, the credit is no longer valid for compliance by any EDC or EGS not covered by rate caps.
  • Scenario #3: A credit is issued/generated in April 2006. The generator is shopping for a buyer. If Scenario #2 is correct, only a company still under rate caps would be able to purchase this certificate.
• Can you explain some of the fields on the solar application?
  
  • RTO: The RTO is the Regional Transmission Organization. For PA, NJ, MD, DC, and DE this is the “PJM” Service Territory. There are other states that have portions within the PJM service territory. If you are outside of these states and do not know, please indicate “Unknown” and the Program Administrator will fill this in for you. You can also visit the website www.pjm-eis.com and view the service territory map to determine whether or not you fall into the PJM service territory.
  • Gen ID/Code: This is a free field for you to give an alternate name for your system.
  • Tracking: A tracking system is where your panels move with the movement of the sun automatically. If you have no automatic tracking or if you manually adjust your panels, you would set this to “0”.
  If any field is left blank that is needed, you will be contacted by the program administrator.
  
  
• Do I need to include pictures with my application?
  All applications must include a photo depicting the facility, indicative of the system size and scale. This is a required attachment for all applications. For solar applications, the photos must show the PV modules from the front. Multiple photos may be attached in order to accommodate larger systems.
  If an application is submitted more than 30 days after the listed online date the application must include a meter photo (if a revenue grade kWh meter is installed) or inverter photo attachment(s) capturing the total kWh logged as of the time the application is submitted. This verified meter reading submitted at the time of application will be the starting point to earn PA AECs.
  
• What do I do if I expand my system?
  If you expand your system you need to create an “aspect” of your current system. If you are adding panels to an existing array that is already certified, you will fill out an application under the “Apply For” “A New Facility”. Within the application it asks if you are creating an aspect of an existing system. Fill out the information including tilt, orientation, size, module information etc. The Administrator will then approve the aspect as part of your existing certification.
  
• If I own multiple systems in multiple locations do I need to open a new account?
  No. If you have a new system to add, you would apply for the second facility within the same account. Please note that this is not considered an “aspect” of an existing system, but would be a new facility with a new certification number. Be sure to select the option to provide a physical address for the plant, if the plant is not located at the address which is linked to the owner account.
  
• When can I expect approval of my system and receive my state certification number?
  The Program Administrators strive to approve the system within 30 business days unless there is missing information.
  
• What happens if I am missing information on my application that is required?
  The Program Administrator will notify system owners of deficiencies within the application. The Program Administrator also leaves a note within the pending application indicating what is missing from the application. The PUC allows up to one year from the date of application to complete missing information without penalty. After one year, your application will be deleted and you will not receive credit for any production accumulated during that year.
  
• The AEPS website lists solar weighted average pricing that is much higher than the average weighted pricing for Tier I AEC. At other places solar systems are listed under Tier I as a Tier I resource. Which pricing would I qualify for with a solar PV system?
  Tier 1 encompasses solar as a technology. Generally, all renewable energy is categorized as Tier 1 or Tier 2. Solar is not treated as a separate Tier, but part of Tier 1. Due to the nature of solar being so expensive, there is an incentive in place to drive the price of solar credits up. Also, it is considered the “greenest” and it is more easily deployed than other resources, such as wind energy. Therefore, most states create a “solar carve-out” or “solar set-aside” that treats solar as special. In PA, there is a “solar carve-out” which means that the utility has to purchase 2% (or whatever the percentage is for that energy year), but .005% must come from solar. The .005% is “carved out” or deducted from the 2%. The PA AEPS Act defined the alternative compliance payment (ACP) for Tier 1 as $45, but the ACP for solar is 200% of the regional average price of solar. Therefore the price is currently within the $230-$300 range.
  
  
• Is there a size restriction on the size of a solar system for it to be eligible to earn SAECs?
  By definition, a solar system can be any size and can earn SAECs when the system delivers the electricity it generates to the distribution system of an EDC or to the transmission system operated by an RTO.
  
  
• What is the maximum size for net metering?
  Net metering is restricted to customer-generators whose system size is limited to 50 kW nameplate capacity at a residential service, and 3,000 kW nameplate capacity at other customer service locations. Systems up to 5MW which meet certain conditions may be eligible to net meter. Please contact the PA Public Utility Commission at 717-425-7584 or ra-aeps@state.pa.us with any questions net metering questions.
  
  
• I am participating in the Sunshine Fund. Can I use estimated values to earn my certificates?
  No. Because the Sunshine Fund requires a revenue grade meter, Sunshine Fund participants must report the meter readings to the GATS system. Any system with a revenue grade meter installed to total their inverters must utilize the meter.
  
  
• I have a revenue grade meter installed next to my inverters. Can I use estimated values to earn my credits?
  No. Because you have a revenue grade meter, you must report the meter readings to the GATS system. Any system with a revenue grade meter installed to total the system’s inverters must utilize the meter as this is the most accurate way to record credits.
  
• What are the facility inspections and what can I expect?
  The PA AEPS program does require random inspections to verify information contained within the application. Sunshine Fund systems will also be subject to inspections related to their Sunshine Fund applications. For information regarding Sunshine Fund inspections, or any other Sunshine Fund questions, please contact the Sunshine Fund Program. A contact for them can be found on the Links page of the PA AEPS website.
  
  
• Why do I need to provide my my phone number and email address? Is this information needed if I signed a contract with an aggregator?
  If you have an aggregator, the aggregator will always be the first point of contact for any questions related to your system. However, if the PUC needs to get in touch with facility owners, rather than their representative, we require your phone number and email address. Therefore, no matter the situation, the Program Administrator will always need an up-to-date phone number and email address. Please be assured that these are confidential and will only be used for program related information.
  
• I have an adjustable tilt system/tracking system that I adjust manually; can I use estimated production for SAECs?
  No. Because we cannot be guaranteed that you will adjust your system to the exact dates and tilts you specify, we cannot accurately calculate estimates for your system. If your system has automatic tracking, we can accurately calculate estimates.
  
• My system is not grid tied, can I still earn AECs?
  The alternative energy resource does not need to be directly tied to the grid (i.e. the electric distribution system or the electric transmission) however; the facility (home or business using electricity) connected to the alternative energy resource must to be connected to the grid.
  
• How long will the program run for and will there be a requirement for AECs after the program ends?
  The law states that the alternative energy obligation levels shown in the 2021 energy year are for “2021 and beyond”. Please note the legislature may change the levels by proposing new legislation which may affect this language.
  
• When should I submit my application?
  You should submit your application the day your system is operational. If your system qualifies for net metering, you do not need to wait until the net meter is installed. Applications submitted prior to the online date will be deleted and will need to be resubmitted. Systems are not considered online until the system begins running test power and installation is complete. This includes a passed electrical inspection.
  

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