If your organization operates in Pennsylvania and has made energy efficiency upgrades—like LED retrofits, HVAC improvements, or combined heat and power (CHP) installations—you may be eligible for a lesser-known but valuable incentive: Tier II Alternative Energy Credits (AECs).
What Is a Tier II AEC?
A Renewable Energy Certificate (AEC) represents one megawatt-hour (MWh) of electricity generated or saved from qualifying sources. In Pennsylvania, Tier II AECs are specifically generated by:
- Combined Heat and Power (CHP)
- Waste coal
- Demand-side management (e.g., LED lighting and HVAC upgrades)
- Small-scale hydropower
These AECs are part of Pennsylvania’s Alternative Energy Portfolio Standard (AEPS), which requires electricity suppliers in Pennsylvania to include a percentage of energy that they sell from Tier II resources.
Why Tier II AECs Matter
For hospitals, universities, and multi-location commercial facilities, these AECs present an opportunity to:
- Generate Recurring Revenue: Past or current energy improvements may be generating AECs that can be monetized on a monthly basis.
- Claim Value Without Cost: There's no out-of-pocket expense to assess or claim AECs—we handle the process.
- Support Sustainability Goals: Monetizing AECs doesn’t compromise ESG claims and can support future investments.
We Can Handle the Entire Process For You.
Constellation Navigator specializes in evaluating energy efficiency projects and managing all steps of the AEC process—from registration to recurring revenue payments. If you’ve made upgrades, you may already be eligible.
Why You Should Consider Acting Now:
Every month that passes is a month of recurring revenue that your organization has lost the ability to claim.
In a world where facilities are seen as a cost center, Tier II AECs may be able to provide revenue for projects already completed.
