Unlocking the Value of Geothermal: Renewable Energy Credits and Homeowner Incentives
Unlocking the Value of Geothermal: Renewable Energy Credits (GREC) and Homeowner Incentives
As energy costs rise and sustainability becomes a priority, homeowners across Maryland are turning to geothermal heating and cooling systems. Not only do these systems offer incredible efficiency and year-round comfort, but they also open the door to valuable geothermal tax credits and incentives in Maryland, including Renewable Energy Credits (RECs), commonly known as GRECs in Maryland.
At Total Comfort Heating & Air Conditioning, we want to help you understand how GRECs work, why they matter, and the different ways you can recoup funding when you choose a geothermal system.
What Are Geothermal Renewable Energy Credits (GRECs)?
A Geothermal Renewable Energy Credit (GREC) represents the environmental benefits of one megawatt-hour (MWh) of clean, renewable energy produced by your geothermal system. Maryland was the first state to include geothermal heating and cooling (GHC) in its Renewable Portfolio Standard (RPS) as a Tier 1 renewable source under House Bill 1186 (2012) and expanded incentives through House Bill 1007 (2021).
How Do GRECs Work for Homeowners in Maryland?
Here’s what that means for homeowners:
How GRECs Are Generated?
Every MWh of thermal energy your system generates earns you a GREC.
What Can I do with GRECs?
GRECs can be sold in Maryland’s open energy market for additional income.
How Much Are GRECs Worth?
As of June 2023, GRECs were valued between $85–$95 each, often exceeding the value of solar RECs
How Homeowners Can Earn Money from GRECs
There are two main ways homeowners can receive payments for their GRECs:
1. Full Upfront GREC Payment
You receive a lump-sum payment soon after installation and registration.
Payment is based on your system size (measured in “tons”).
- For example, a 5-ton system replacing fuel oil heating could receive $3,300 per ton, totaling $16,500 upfront.
2. Market-Based GREC Payments
- GRECs are sold periodically at market value.
- Payments fluctuate with demand and pricing, minus a small commission (typically 5–10%).
- This option may yield more money over time if GREC prices rise.
Who Qualifies for Geothermal Incentives in Maryland?
To qualify for GRECs in Maryland:
- Your geothermal system must be installed on or after January 1, 2023.
- It must meet ENERGY STAR® standards for geothermal heat pumps.
- Both residential and non-residential properties qualify, including multi-family housing and commercial facilities
How to Register for the Maryland GREC Program
According to the Maryland GREC program guidelines, the process typically includes:
- Installation – Your geothermal system is installed by a certified contractor.
- Application – The system details are submitted for GREC registration.
- Contracting – A GREC contract is signed with an aggregator like Carbon Solutions Group.
- Approval & Payment – Within 6–8 weeks, your system is approved, and payments begin.
Why Geothermal Systems and GRECs Are a Smart Investment
By installing a geothermal system, you:
- Lower your energy bills with ultra-efficient heating and cooling.
- Boost your home’s value with a clean energy upgrade.
- Earn extra income through Maryland’s GREC program.
At Total Comfort Heating & Air Conditioning, we specialize in geothermal solutions that maximize your comfort, reduce your carbon footprint, and ensure you receive every available incentive.
Get Started with Geothermal Installation and Incentives
If you’re ready to install a geothermal system or want to learn more about GRECs:
- Contact Total Comfort Heating & Air Conditioning at asktotalcomfort.com
- Ask about available rebates, incentives, and renewable energy credits
- Let us guide you through the installation and registration process so you can start saving immediately.