The Delaware Public Service Commission (PSC) has established a system of tradable renewable energy credits (RECs) that must be used by a retail electric supplier to comply with Delaware’s renewable energy portfolio standards. Photovoltaic systems are eligible to receive RECs. One REC is equal to one MWh of electricity produced (1000 kWh); therefore, for each MWh of electricity your photovoltaic system produces, you earn the ability to sell one REC.
Following installation and startup, the energy distribution managers for the northeast electricity grid, PJM Interconnection, will register and certify the unit as a green energy generator and issue the RECs through their Generation Attribute Tracking System (GATS). There is an application process to receive compensation for the accumulated RECs.
Since the RECs are a tradable commodity, the value of a REC may vary. Currently in New Jersey, which has similar rules to those recently established in Delaware, RECs are trading at around $200/MWh ($.20/kWh).
Additional information on Delaware’s renewable portfolio standards and RECs is available at www.depsc.delaware.gov/electric/delrps.shtml. Additional information on PJM GATS is available at www.pjm-eis.com/index.html. The contact person for the RECs at the PSC is Courtney Stewart (302) 736-7532 email@example.com.
For more information about Renewable Energy Credits, see page 24 in the Investment and Cost Guide.