Turn Your Geothermal System into $20,000–$40,000+ in REC Revenue
Ground-source heat pump installations in Pennsylvania qualify as Tier II alternative energy systems under the AEPS. A typical commercial geothermal system generates $20,000–$40,000 over its eligibility window. Here's how to calculate yours.
Why Geothermal Systems Excel for Tier II RECs
High kWh Savings = High REC Revenue
Geothermal systems reduce heating and cooling energy by 40–70%, producing 5+ kWh savings per square foot — among the highest of any qualifying measure.
15-Year Measure Life
Ground-source heat pumps have one of the longest measure lives of any Tier II technology — 15 years of annual credit production from a single installation.
$20,000–$40,000+ Over Eligibility
A typical 80,000 sq ft geothermal installation can generate $20,000–$40,000+ in total REC revenue over its eligibility window.
Stack with Utility Rebates
You can claim both PA utility rebates from PPL, PECO, or FirstEnergy AND PA Tier II RECs for the same geothermal project. They're separate programs.
Qualifying Geothermal System Types
Closed-Loop Vertical
Bore holes with ground heat exchangers — most common for commercial
Closed-Loop Horizontal
Horizontal ground loops for facilities with available land area
Open-Loop / Standing Column
Groundwater-based systems using wells or standing column wells
Hybrid Geothermal
GSHP combined with cooling towers or boilers for peak loads
Revenue Examples by Facility Size
Facility
40,000 sq ft School
Annual Savings
200 MWh/yr
Annual RECs
$4,400/yr
Lifetime (15 years)
$66,000
Facility
80,000 sq ft Office
Annual Savings
400 MWh/yr
Annual RECs
$8,800/yr
Lifetime (15 years)
$132,000
Facility
120,000 sq ft Hospital
Annual Savings
600 MWh/yr
Annual RECs
$13,200/yr
Lifetime (15 years)
$198,000
Based on $22/MWh market price. Actual revenue depends on system size, efficiency, and operating conditions.
Maximize Your Geothermal REC Revenue with Energy Monitoring
Installing energy monitoring equipment on your geothermal system provides real-time verification of energy savings — the strongest possible evidence for your REC application. Submetering the heat pump compressors, ground loop pumps, and supplemental heating shows exact kWh reductions compared to baseline.
Buildings with M&V data consistently receive faster approvals and stronger savings verification, translating to higher credit volumes and faster time-to-revenue.
Calculate Your Geothermal REC Revenue
Submit your geothermal project details for a custom evaluation. We'll estimate your annual REC revenue and total lifetime value.
Get Custom Estimate