Pennsylvania's Alternative Energy Portfolio Standards Act (Act 213) was passed on November 30, 2004. This act spurred on renewable electrical energy generation and energy conservation in our state. This is accomplished by accounting for units of energy produced with renewable energy. These units are called Alternative Energy Credits (AECs) or Renewable Energy Credits (RECs). As part of ACT 213 utility companies have thresholds of power generation that have to come from renewable energy. Most utility companies produce power from fossil fuels. They satisfy these requirements set forth by ACT 213 by purchasing Alternative Energy Credits. 

An Alternative Energy Credit or Renewable Energy Credit is defined as being equal to 1,000 KWh (kilo-watt-hours), which is the same as 1 megawatt-hour.     

What does this act mean for an owner or prospective owner of a renewable energy system? 

Individuals are able to monitor and sell these credits on their own or through an aggregator. Aggregators purchase credits from many renewable energy systems and bundle them. Aggregators can generally obtain higher prices for Alternative Energy Credits than individuals. The sale price is dependent on the market demand. Currently Alternative Energy Credits are being sold for roughly $50.00/credit. This additional source of income is completely separate from the money saved from your system's power generation and it is not taxable!  

It is no secret that Alternative Energy Credit values have declined do to an overbundence of credits. Under the current program Alternative Energy Credit values will rise as the current Alternative Energy Portfolio matures. In May 2011 PA House Bill # 1580 was introduced by Representative Chris Ross (R-Chester). This bill is designed to raise the portfolio requirements to better align it with the current solar market status. 

For PA's Solar Future:

Ask your local Representative to support PA House Bill #1580       

SREC Sales http://knollwoodenergy.com/

Phone: 1-800-989-8868