---
title: Pennsylvania Tier I RECs 101
description: 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.
---
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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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