How to Submit a PA Tier II REC Application: A Step-by-Step Guide for Building Owners

Submitting Your First PA Tier II REC Application

If you've completed an energy efficiency project in Pennsylvania — whether it's an LED retrofit, HVAC upgrade, VFD installation, or geothermal system — you're sitting on a revenue opportunity that most building owners miss entirely.

The PA Tier II REC program allows you to convert verified energy savings into tradeable Renewable Energy Credits worth $22+ per MWh on today's market. But the application process involves multiple steps, specific documentation requirements, and coordination with PJM-GATS (the Generation Attribute Tracking System).

This guide breaks down exactly what's required at each stage.

Step 1: Verify Your Project Qualifies

Before starting the application, confirm your project meets these criteria:

• Location: The project must reduce electricity consumption at a facility located in Pennsylvania.
• Timing: Projects completed within the last 10 years are eligible. The sooner you apply, the more vintage years of credits you can capture.
• Project type: LED lighting, HVAC systems, variable frequency drives, geothermal heat pumps, CHP systems under 5 MW, compressed air optimization, building automation systems, and building envelope improvements all qualify.
• Savings verification: You'll need documentation proving the energy savings — utility bills, rebate paperwork, engineering calculations, or [energy monitoring data from submeters](https://kwmetering.com).

Step 2: Gather Your Documentation

The application requires supporting evidence of energy savings. The stronger your documentation, the smoother the approval process. Key documents include:

• Utility bills: 12 months of pre-project and post-project electric bills showing the reduction in kWh consumption.
• Invoices and spec sheets: Equipment invoices, contractor proposals, and manufacturer specifications for the installed measures.
• Rebate documentation: If you received utility rebates from PPL, PECO, or FirstEnergy, the rebate approval documents contain pre-calculated savings figures that strengthen your application.
• Engineering calculations: For projects without rebate documentation, engineering estimates of annual kWh savings based on equipment specifications and operating hours.
• M&V data: If you have [energy monitoring equipment](https://kwmetering.com) installed, real-time metering data provides the strongest possible evidence of savings.

Step 3: PJM-GATS Registration

Your project must be registered as a generating unit in PJM-GATS — the same system used to track all renewable energy credits in the PJM interconnection territory. This involves:

Completing the generator registration form with facility details, project specifications, and savings methodology.

Submitting to the Pennsylvania Public Utility Commission (PA PUC) for Tier II certification.

Receiving your PA certification number, which links your project to the AEPS compliance framework.

Step 4: Generation Schedule Development

Once registered, a generation schedule is created that maps out your expected credit production over the project's measure life (typically 10–15 years). This schedule determines how many RECs are issued each month based on your verified annual savings.

Step 5: Credit Issuance and Monetization

As credits are generated monthly in PJM-GATS, they become available for sale to electricity suppliers who need them for AEPS compliance. Current market prices exceed $22/MWh, with the Alternative Compliance Payment (ACP) cap at $45/MWh providing a price ceiling.

Why Most Building Owners Use an Aggregator

While it's technically possible to navigate this process independently, most building owners work with a REC aggregator like Emergent Energy Solutions because:

The registration process requires specialized knowledge of PJM-GATS and PA PUC requirements.

Small individual projects are difficult to sell on the open market — aggregation into larger portfolios commands better pricing.

Ongoing credit management, vintage tracking, and market timing require dedicated attention.

Ready to get started? [Submit your project](/#submission) for a custom evaluation. We'll review your documentation and estimate your annual REC revenue.