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Pennsylvania Tier I RECs 101

Pennsylvania’s Alternative Energy Portfolio Standard (AEPS) encourages electricity suppliers to source a portion of their energy from renewable resources. While only in-state solar systems are eligible for the Pennsylvania SREC market, solar systems located throughout the PJM transmission network may participate in the Pennsylvania Tier I REC market. Other eligible Tier I resources include wind and biomass energy.

What is Pennsylvania’s Alternative Energy Portfolio Standard (AEPS)?

Pennsylvania’s AEPS requires that:

  • At least 8% of electricity supplied by utilities come from Tier I renewable resources

  • Tier I resources may include out-of-state generators

Which systems are eligible for Pennsylvania Tier I RECs?

Solar systems located anywhere within PJM territory may be eligible for Pennsylvania Tier I RECs.

States and regions within PJM include:

  • OH, PA, NJ, DE, WV, VA, DC, MD

  • Portions of NC, KY, IL, IN, MI, and TN

While solar systems across PJM may earn Tier I RECs, only Pennsylvania-located solar systems are eligible for PA SRECs.

What is required to register a system?

Before Sol Systems can register your system, customers must provide:

  • A signed interconnection agreement, including the utility Permission to Operate (PTO) letter

  • A signed Sol Systems contract

  • A completed GATS Schedule A form

  • Remote monitoring access granted to Sol Systems or a photo of the solar meter

  • Photos of the solar array, with all panels clearly visible

Sol Systems must be able to count each solar panel in the array photo for regulatory approval.

How does registration work?

Once all required documentation is received:

  • Sol Systems registers the system with:

    • Pennsylvania AEPS staff, and

    • PJM’s Generation Attribute Tracking System (GATS), which mints Tier I RECs

The combined registration process may take up to four months.

When does Tier I REC eligibility begin?

Tier I REC eligibility begins the month the system is registered with PA AEPS, not the PTO date.

Example:
If a system receives PTO in January but all documentation is submitted in early March, REC eligibility will begin March 1.

What metering is required?

All systems participating in the Pennsylvania Tier I REC program must report generation using:

  • A dedicated solar meter, or

  • Inverter-based production data

Does Sol Systems charge a registration fee?

No. Sol Systems does not charge a registration fee.

When are Pennsylvania Tier I REC payments made?

Sol Systems issues payments to Sol Annuity and Sol Brokerage customers on a monthly basis, according to the applicable payment schedule.

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