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 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?
- 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?
- The AEPS website lists average weighted pricing as $230 per Solar AEC and $4.48 per Tier 1 AEC. At other places solar systems are listed under Tier 1. Which pricing would I qualify for with a solar PV net-metering 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?
- What are the facility inspections and what can I expect?
General Questions
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Who should I contact with questions?
Please contact the Program Manager, Dina M. Deana at (877) 237-7773. If she is unable to answer your question, she will be able to direct you to a resource.
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What is an AEC?
An AEC is an “Alternative Energy Credit”. An AEC is earned when a qualified facility generates 1000kwh 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.
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Who is eligible to participate in
Pennsylvania’s Alternative Energy Portfolio Standard (AEPS)
Program?
In order to earn AECs, you 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.
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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.
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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 the 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.
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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.
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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.
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How often can an AEC be sold?
An AEC can be sold whenever they are earned. The AECs can be traded multiple times until they are retired for compliance purposes. No single AEC can be jointly claimed by two parties.
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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 ACP (Alternative Compliance Payment) 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 payment 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.
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What is the energy year?
The energy year runs from June 1 to May 31st.
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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 TRM (Technical Reference Manual) 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.
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How does a solar owner participate
in this program?
A solar owner can register their own system by opening an account on the AEPS website and filling out the required application. They will then receive a certification number to register their facility within GATS to receive their AECs. An individual facility owner can also sign a contract with a broker or an aggregator to sell their AECs on their behalf.
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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.
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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 their own risk.
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When do AECs start accumulating?
AECs start accumulating from the date of completed application.
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My utility bill looks incorrect.
Who should I contact?
Please contact your utility company. They will be able to assist you.
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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.
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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 solar system. If you need additional power beyond that which your solar 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 solar 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 solar system, whether that power was consumed on-site or fed back into the utility grid. Every 1000kwh is equal to one AEC. This is completely separate from your net metering.
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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, please contact the Program Administrator and they can explain this to you.
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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 certificates are not the same as Solar Photovoltaic certificates that are qualified as a separate Tier. Please check the Pricing page to see the weighted average pricing for Tier II certificates.
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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.
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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 certificates 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.
- 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 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 certificate may have a useful life through May 31, 2012 if banked by an EDC or EGS serving an EDC 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. It no longer has a useful life for EDCs or EGSs out from rate caps. It can be used by the EDC or EGS serving an EDC territory under rate caps when they come out from 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.
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Can you explain some of the fields
on the solar application?
As a small facility, there are several fields that are not required:- The EIA Plant Name/Code will not apply, unless there is already a system using your name
- The MSET name/number would also not apply.
- Gen ID: is a free field which you can name your system.
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The AEPS website lists average
weighted pricing as $230 per Solar AEC and $4.48 per Tier 1 AEC. At
other places solar systems are listed under Tier 1. Which pricing
would I qualify for with a solar PV net-metering 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 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 more easily deployed than a wind turbine for example. Therefore, most states create a "solar carve-out" or "solar set-aside" that treats solar as special. In PA, we have 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 fine for Tier 1 as $45, but the fine for solar is 200% of the regional average price of solar. Therefore the price is within the $230-$300 range at the moment.
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Is there a size restriction on the size of a solar system for it to be eligible to earn AECs?
By definition, a solar system can be any size and can earn AECs when the system delivers the electricity it generates to the distribution system of an EDC or to the transmission system operated by an RTO.
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What is the maximum size for net metering?
There is a maximum size limit for eligibility to net meter. Net metering is restricted to customer-generators and system size is limited to 50 kW nameplate capacity at a residential service, and 3,000 kW nameplate capacity at other customer service locations.
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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 participates need to report the meter readings to the GATS system
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What are the facility inspections and what can I expect?
The PAAEPS program does complete random inspections to verify information contained within the application. Sunshine Fund systems will also be subject to inspections related to their Sunshine Fund application. For information regarding Sunshine Fund inspections, or any other Sunshine Fund questions, please contact Rebecca Campbell, DEP at 717-395-6127.
