From energy project to AEC payment in 5 steps
Pennsylvania's Tier II Alternative Energy Credit (AEC) market lets building owners, CHP operators, and energy efficiency project developers turn verified electricity savings into recurring revenue. The process runs through the PennAEPS portal and PJM's Generation Attribute Tracking System (GATS). Here's exactly how it works — and where Emergent Energy manages each step for you.
Project eligibility review
Determine whether your project qualifies for Tier II AECs. Qualifying project types include: LED lighting retrofits, HVAC system upgrades, variable frequency drives (VFDs), building envelope improvements, combined heat and power (CHP) systems, and other measures producing measurable kWh savings. Projects must be located in Pennsylvania and must have been completed within the past 10 years. Emergent Energy conducts a free eligibility assessment and revenue projection before any agreement is signed.
PennAEPS application & PUC certification
Submit an application to the Pennsylvania Alternative Energy Portfolio Standard (PennAEPS) program, administered by InClime on behalf of the PA PUC. The application documents project type, location, equipment specifications, and measurement and verification (M&V) methodology. Emergent Energy prepares and submits the full application package on your behalf.
PJM-GATS registration
Once the PUC certifies your project, it is registered in PJM's Generation Attribute Tracking System (GATS) — the official registry for AEC issuance and tracking in Pennsylvania. Emergent Energy manages all GATS account setup and project registration. Typical timeline from application submission to GATS registration: 60–120 days.
Monthly AEC issuance
After registration, your project generates one AEC for every 1,000 kWh of verified electricity savings or generation. AECs are issued monthly into your GATS account. Projects carry a deemed operating life of 15 years, meaning a qualifying project generates AECs and associated revenue for up to 15 years.
Market sale & payment
Emergent Energy aggregates your AECs and executes market sales to Electric Generation Suppliers (EGSs) and utilities that need Tier II credits to meet their PA AEPS compliance obligations. You receive payment net of our aggregation fee. We handle all compliance documentation, transfer records, and GATS account management.
Typical timeline
Ready to start?
Submit your project details for a free eligibility review. No obligation — we'll tell you exactly what your project is worth before any agreement is signed.
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