PA Alternative Energy Credit (AEC) Program
The Pennsylvania AEC program is designed to provide an additional revenue source to home and business solar installations to spur the development of solar energy in PA. The state created an Alternative Energy Portfolio Standard (AEPS) that states that an annually increasing percentage of electricity sold to customers be from solar energy sources.
An AEC is created each time a solar system generates 1000 kWh of electricity. The AEC program for the state is run by Clean Power Markets, Inc. They have a very informative site, pennaeps.com. GATS is the company that manages the AECs. That is where the AECs are created and transferred. That site is www.pjm-eis.com.
AECs in PA have a 3-year life. For example, an AEC created in 2015 can be used to satisfy compliance in 2016 and 2017. An AEC year runs from June 1st – May 31st (i.e. the 2016 AEC year runs from June 1, 2015 – May 31, 2016).
AEC prices are determined by the market and a state established penalty rate. The penalty rate is the rate a utility pays if they have not purchased enough SRECs, as defined by their state mandated requirement. The penalty rate calculation is 200% of the average market value of the credits during the reporting period. In reality, prices will be determined by supply and demand.
What we do
Knollwood Energy will manage your account from installation forward. Your installer will get us the specifications of your installation. We will obtain your PA certification and get you certified in OH to provide a couple of options on selling your AECs. After the certifications are received we will set up your GATS account. You will only need to get us monthly meter readings. The process couldn’t be easier.
We work directly with utilities and work hard to get the highest possible prices for our customers. When you join the Knollwood family, you are no longer an individual solar installation. You are instantly transformed into one of the largest institutional sellers in the state. That size translates into high prices, most likely higher than you could get on your own.
Knollwood Energy has been in business since 2006, making us one of the oldest and most established aggregators in the business. We have been and will be around for many years to provide our customers the high level of customer service we have been providing since inception.
AECs are a great way to assist in the payment of your solar system, as they have definite value. Knollwood Energy can assist you in maximizing the revenue from your solar installation.