Pennsylvania commercial building energy efficiency project eligible for Tier II RECs
    Solar & Energy Efficiency Credits

    Pennsylvania
    SRECs & Tier II AECs

    Turn solar generation and completed energy efficiency projects into recurring credit revenue — we handle PennAEPS enrollment, PJM-GATS registration, and market sale.

    Market classification
    PA Tier I & II
    Solar & efficiency specialists
    Asset lifecycle
    15 Years
    Act 129 claimable-life cap
    Market share
    0.5%
    Efficiency share of Tier II credits retired
    Liquidity forecast
    2028
    PUC-projected Tier II shortfall
    Weighted average
    $26.92
    Avg Tier II AEC price, 2024–25
    Range high
    $41.00
    2024–25 high
    Ceiling
    $45.00
    Alternative Compliance Payment
    Credit duration
    TRM measure life
    By measure type — Act 129 caps claimable life at 15 years

    Source: Pennsylvania Alternative Energy Portfolio Standard Program (PennAEPS), 2024–25 compliance year.

    SRECs & Tier II AECs

    Solar RECs (SRECs)

    Generated by
    PA-sited solar PV, any system size
    Credit basis
    MWh generated
    Geographic rule
    PA-sited only — Act 40 of 2017
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    Tier II AECs

    Generated by
    Energy efficiency, geothermal, CHP, demand-side management
    Credit basis
    MWh generated or conserved
    Geographic rule
    PA-sited only — Act 114 of 2020
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    How It Works

    From Project to Revenue

    Our streamlined 3-step process takes your completed energy efficiency projects and converts them into monetized RECs.

    01

    Register

    We submit the project for REC creation, registration, and prepare for liquidation to qualified purchasers.

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    02

    Report

    RECs are certified and tracked in the registry, ensuring full compliance and audit-readiness.

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    03

    Monetize

    RECs are cleared through RFPs, generating monetary incentives. Revenue is shared between asset owner and Emergent.

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    Generation assets — solar PV, CHP and other distributed generation — also carry ongoing monthly GATS reporting for the life of the system, which we handle under the ROA or Schedule A.

    Market Data · 2025 PUC AEPS Report

    PA Tier II REC Pricing Trends

    Total AEPS compliance costs hit $702 million in 2025. Tier II prices reached $26.92/MWh with the PUC projecting a supply shortfall beginning in 2028.

    $702M

    Total Compliance Cost

    2024/25 reporting year

    $26.92

    Tier II Avg Price

    per MWh · weighted avg · up 1,300% since RY2020

    25.0M

    Credits Retired

    across Solar, Tier I & Tier II

    2028

    Supply Shortfall

    PUC projected Tier II deficit

    Tier II Weighted Average Price History

    RY2015–RY2025 · $/MWh weighted average (PUC AEPS Annual Reports)

    Tier I vs Tier II vs ACP

    Recent compliance years · Weighted avg $/MWh

    Total AEPS Compliance Costs

    2020–2025 · $ Millions by tier

    Tier II Credit Sources (2025)

    Energy efficiency is 0.5% of Tier II credits retired

    PUC Projects Tier II Supply Shortfall by 2028

    The 2025 PUC AEPS Report projects a likely shortfall in Tier II credit supply beginning in 2028 as waste coal facilities — 50.5% of RY2025 Tier II credits retired — continue to retire. With the 10% compliance obligation requiring 13.6M+ credits annually and 100% sourced from Pennsylvania, prices could approach the $45 ACP cap. Energy efficiency accounted for just 0.5% of RY2025 Tier II credits retired, signaling massive untapped opportunity for building owners to register qualifying projects now.

    Why Tier II Prices Are Rising

    Act 114's in-state requirement, retiring waste coal generators, and a 10% compliance obligation have driven Tier II weighted-average prices from $1.92/MWh in RY2020 to $26.92 in RY2025 — a 1,300% increase in five years, with RY2025 essentially flat against RY2024's $26.47. Total Tier II compliance costs rose from $3.6M in 2020 to $367.6M in 2025. As prices approach the $45 ACP cap, now is the optimal time to register and monetize your energy efficiency projects.

    Source: PA PUC 2025 AEPS Annual Report · Compliance year ending May 31, 2025

    Start with your project type

    Choose your project below to begin a custom evaluation.

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    Transparency

    How We're Compensated

    No upfront fees. No retainers. Just results.

    1

    We review your project documentation and estimate REC production.

    2

    Our compensation is a percentage of the REC revenue generated. You receive the majority of proceeds.

    3

    If your project doesn't generate RECs, you owe us nothing. Our incentives are fully aligned with yours.

    Common questions about PA Tier II AECs