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 Renewable Energy Credits (RECs).
What Is a Tier II REC?
A Renewable Energy Certificate (REC) represents one megawatt-hour (MWh) of electricity generated or saved from qualifying sources. In Pennsylvania, Tier II RECs 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 RECs 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 RECs Matter
For hospitals, universities, and multi-location commercial facilities, these RECs present an opportunity to:
- Generate Recurring Revenue: Past or current energy improvements may be generating RECs that can be monetized on a monthly basis.
- Claim Value Without Cost: There's no out-of-pocket expense to assess or claim RECs—we handle the process.
- Support Sustainability Goals: Monetizing RECs 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 REC 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 Recs may be able to provide revenue for projects already completed.
