Stack Utility Rebates + RECs from the Same Project
You can claim both PA utility rebates from PPL, PECO, or FirstEnergy AND PA Tier II RECs for the same energy efficiency project. They're completely separate programs — learn how to stack these incentives.
See What Combined Rebate + AEC Revenue Looks Like
Rather than a static example, we maintain a full worked model with current pricing and complete arithmetic.
See a worked model with full arithmetic →Qualifying Energy Efficiency Measures
LED Lighting Retrofits
Interior, exterior, high-bay, parking garage, and signage upgrades
Typical savings
2.5–4.5 kWh/sq ft
HVAC System Upgrades
RTUs, chillers, heat pumps, boiler replacements
Typical savings
3.0–5.0 kWh/sq ft
Variable Frequency Drives
VFDs on fans, pumps, compressors, and process motors
Typical savings
1.5–3.5 kWh/sq ft
Compressed Air Optimization
Leak repairs, VSD compressors, pressure reduction
Typical savings
1.0–2.5 kWh/sq ft
Building Automation Systems
BAS, EMS, scheduling, and controls upgrades
Typical savings
1.0–2.0 kWh/sq ft
Building Envelope
Insulation, windows, air sealing, cool roofs
Typical savings
0.5–1.5 kWh/sq ft
How Incentive Stacking Works
These programs are administered by different entities with independent eligibility. You can — and should — pursue all available incentives from a single project.
Utility Rebate
One-time incentive from PPL, PECO, or FirstEnergy
Type
One-time payment
Typical Value
$15,000–$30,000
PA Tier II RECs
Annual credits through PJM-GATS for 10–15 years
Type
Recurring annual
Typical Value
$5,000–$15,000/yr
Federal Tax Incentives
179D deduction or ITC for qualifying equipment
Type
Tax benefit
Typical Value
Varies by project
Strengthen Your Application with Energy Monitoring
Installing energy monitoring and submetering on your upgraded systems provides real-time M&V data that strengthens both your rebate applications and REC registrations. Verified kWh data accelerates approvals and maximizes credit volumes.
Whether you're metering lighting circuits, HVAC systems, or VFD-controlled motors, real consumption data is the gold standard for savings verification.
Recent Projects May Still Qualify
Energy efficiency projects that remain operational and verifiable may still qualify for PA Tier II AEC certification. AEC revenue is generated from certification forward — the sooner a project is certified, the more of its remaining measure life can be monetized.
Model your project's AEC revenue
Start from annual kWh conserved (M&V or Act 129 rebate calculations). 1,000 kWh conserved equals 1 AEC. Add the monthly cost of every uncertified month.
From M&V or Act 129 rebate calculations. 1,000 kWh conserved = 1 AEC.
RY2025 weighted average $26.92. Recent spot near $23.
Annual AECs
2.5k
Annual revenue
$67.3k
Monthly cost of delay
$5.6k
10-year revenue
$673.0k
Modeled estimate. Actual AEC issuance depends on PennAEPS certification, meter placement, capacity factor realized, and contract-assigned attribute ownership. We review these before an application goes in.
Find Out What Your Project Is Worth
Submit your project for a custom evaluation. We'll identify all available rebates and REC revenue.
Get Custom EstimateNot ready to submit a project?
Two lower-commitment ways to stay useful
Reference material for facilities in research mode, and market intelligence for anyone who wants to know when PA Tier II AEC pricing moves.
PA Tier II AEC eligibility checklist
One page. What § 75.62 / § 75.63 require, the documentation PennAEPS asks for, meter-placement questions to settle before an application, and the attribute-ownership contract review. We email it as a PDF.
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Quarterly market update
Current PA Tier II AEC pricing, ACP position, PRESS Act status, regulatory developments worth tracking. Sent when pricing moves outside a stated band or a material regulatory event occurs. Not a marketing list.
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