RENEWABLE THERMAL IN STATE RENEWABLE PORTFOLIO

RENEWABLE THERMAL IN

STATE RENEWABLE PORTFOLIO

STANDARDS

Prepared for the

The RPS Collaborative

Samantha Donalds

Program Associate

Clean Energy States Alliance

Revised, July 2018

About This Report

This report was produced for the RPS Collaborative, a project of the Clean Energy States

Alliance (CESA), that is generously supported by the U.S. Department of Energy and the Energy

Foundation. The views and opinions stated in this document are the author’s alone.

This is a revised and updated version of the report, which was originally published in April 2015.

Acknowledgements

CESA Research Associate Georgena Terry contributed to this updated report.

Warren Leon provided guidance throughout the course of this project and reviewed several

drafts of this report. Deborah Donovan of Sustainable Energy Advantage shared her extensive

knowledge on this topic in the early stages of the project. Jenny Heeter of NREL and Val Stori

and Maria Blais Costello of CESA reviewed and commented on drafts of this report.

The following individuals reviewed and edited the RPS program summaries for their states: Ray

T. Williamson of the Arizona Corporation Commission; Samantha Meserve of the Massachusetts

Department of Energy Resources; Kim Lighthart of the Nevada Public Utilities Commission;

Elizabeth Nixon of the New Hampshire Public Utilities Commission; Luke M. Forster of the New

York State Energy Research and Development Authority (NYSERDA); Sam Watson from the

North Carolina Utilities Commission; Rebecca Smith from the Oregon Department of Energy;

Scott Gebhardt of the Pennsylvania Department of Environmental Protection; David Smithson

of the Texas Public Utilities Commission; Blake Thomas of the Utah Office of Energy

Development; Andrew Perchlik and Joanna White from the Vermont Public Service

Department; and Andrew Kell of the Wisconsin Public Service Commission.

Disclaimer

This report was prepared as an account of work sponsored by an agency of the United States

Government. Neither the United States Government nor any agency thereof, nor any of their

employees, makes any warranty, express or implied, or assumes any legal liability or

responsibility for the accuracy, completeness, or usefulness of any information, apparatus,

product, or process disclosed, or represents that its use would not infringe privately-owned

rights. Reference herein to any specific commercial product, process, or service by trade name,

trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorse-

ment, recommendation, or favoring by the United States Government or any agency thereof.

The views and opinions of the authors expressed herein do not necessarily state or reflect

those of the United States Government or any agency thereof.

 
 
       Renewable Thermal in State Renewable Portfolio Standards  2     
 
 
Contents 
 
Introduction: Renewable Thermal in RPSs ................................................................................................... 3 
Eligible Renewable Thermal Technologies.................................................................................................... 3 
Assigning a REC Value to Renewable Thermal Energy .................................................................................. 5 
Monitoring and Metering Renewable Thermal Energy Production ............................................................. 6 
Classifying Renewable Thermal in the RPS ................................................................................................... 7 
States with Renewable Thermal in the RPS .................................................................................................. 8 
ARIZONA .................................................................................................................................................... 8 
DISTRICT OF COLUMBIA ............................................................................................................................ 9 
INDIANA .................................................................................................................................................. 10 
MARYLAND .............................................................................................................................................. 11 
MASSACHUSETTS .................................................................................................................................... 12 
NEVADA ................................................................................................................................................... 13 
NEW HAMPSHIRE .................................................................................................................................... 14 
NORTH CAROLINA ................................................................................................................................... 15 
OREGON .................................................................................................................................................. 16 
PENNSYLVANIA ....................................................................................................................................... 16 
TEXAS ...................................................................................................................................................... 17 
UTAH ....................................................................................................................................................... 18 
VERMONT................................................................................................................................................ 18 
WISCONSIN ............................................................................................................................................. 19 
Sources for More Information .................................................................................................................... 20 
 
 
 

Renewable Thermal in State Renewable Portfolio Standards 3

Introduction: Renewable Thermal in RPSs

State Renewable Portfolio Standard (RPS) programs have historically focused on electricity

generation. However, some states have incorporated renewable thermal power for heat

generation into their RPS as a way to support the development and market growth of solar

thermal, biomass thermal, geothermal, and other renewable thermal technologies. But because

RPS programs were originally designed to measure electrical output, not heat output, it is

complicated to incorporate renewable thermal energy into state RPS programs.

The reasons that some states have added renewable thermal technologies to their RPS include:

• Adding clean energy technologies to an RPS is a powerful way to promote their

development and market growth.

• Using certain renewable energy sources, like biomass, to produce heat is more efficient

than using them to produce electricity.

• Renewable thermal heat achieves a main policy goal of an RPS: it helps people transition

away from fossil fuels to cleaner, renewable and local technologies.

Renewable thermal energy has many of the same benefits as other renewable technologies,

including improved air quality, economic development and job creation, and the promotion of

regional energy security.

Among the fourteen state RPS programs that include renewable thermal, there is significant

variation in terms of (1) which renewable thermal technologies are eligible, (2) how energy

output is measured and monitored, (3) how REC values are determined, and (4) how the

technologies are classified in the RPS.

This paper provides an overview of how states across the country are incorporating renewable

thermal technologies into their RPS programs. Its purpose is not to advocate for including

renewable thermal technologies into RPSs, but rather to provide a general introduction to the

topic.

Eligible Renewable Thermal Technologies

There are several different renewable thermal technologies, but the most common renewable

thermal technologies incorporated into an RPS program are the following:

1. Solar Thermal: Several technologies are included in this category: solar hot water, solar

space heat, solar thermal process heat, solar pool heating, and solar space cooling.

Renewable Thermal in State Renewable Portfolio Standards 4

2. Biomass: Biomass can take three different forms, solid (pellets or chips, usually made of

wood), liquid (biodiesel, pyrolysis oil, ethanol – usually made with plant matter), or gas

(produced by the anaerobic digestion of animal or food waste).

3. Geothermal: Air, water, and ground source. Geothermal can be used for both heating

and cooling.

Some states allow all these technologies to be eligible under the RPS, and other states include

only specific ones, as shown in Table 1. How states determine which renewable thermal

technologies count towards their RPS has a lot to do with regional resource availability and

local preferences. For example, some states have large quantities of agricultural waste

available, and therefore might include biomass. Some states have suitable geological ground

conditions for extensive geothermal energy use. States in cool climates have more heating

needs and might be inclined to support a wider variety of renewable thermal technologies.

States in warmer climates may need cooling rather than heating, which suggests a different set

of renewable thermal technologies.

Table 1: States that include each of these renewable thermal technologies in their RPS:

All

Solar Thermal

Biomass

Geothermal

AZ, IN, MA, MD,

NH, TX, VT, WI

AZ, DC, IN, MA, MD*,

NV, NH, NC, PA, TX,

UT, WI

AZ, IN, MA, MD**,

NC***, NH, OR***, TX,

AZ, IN, MA, MD, NV,

NH, TX, WI

* Solar hot water only

** Excludes woody biomass

***Only useful thermal energy that is produced as a byproduct by biomass electricity generators is

eligible

The most common renewable thermal technology included in state RPS programs is solar hot

water used in buildings. This is the most widely accepted renewable thermal technology added

to RPS programs, for a variety of reasons: it is a simple, mature technology that is well known

Combined Heat and Power (CHP), also known as cogeneration, produces electricity and useful thermal energy

from the same fuel source. CHP is usually powered by natural gas, but is sometimes fueled by biomass. CHP

qualifies for some states’ RPSs. In most cases, only the electricity generation from CHP systems receives RECs, but

in a few states, such as Massachusetts and Oregon, the thermal output of biomass-fueled systems is eligible for

RECs and those states are included in this paper. Comprehensive information about CHP in RPS programs is

available in the U.S. Environmental Protection Agency’s March 2016 publication “Portfolio Standards and the

Promotion of Combined Heat and Power,” available at https://www.epa.gov/sites/production/files/2015-

07/documents/portfolio_standards_and_the_promotion_of_combined_heat_and_power.pdf.

The same energy sources that generate renewable thermal heat can also be used to generate electricity. This

includes solar thermal electric, geothermal electric, and biomass electric, all of which are included in various state

RPS programs. In the case of thermal electric technologies, their incorporation into the RPS is straightforward.

However, heat technologies, not electric, are the focus of this paper.

Renewable Thermal in State Renewable Portfolio Standards 5

and uncontroversial. By contrast, biomass technologies can be controversial because they

release greenhouse gas emissions and, in the case of woody biomass, may lead to concerns

about particulates and deforestation in certain locations. For this reason, eligible biomass

systems are sometimes restricted to animal waste biomass only and/or non-woody biomass.

Assigning a REC Value to Renewable Thermal Energy

In order to count towards an RPS requirement or goal, the renewable thermal energy

generated must be connected to a value that can be converted into a Renewable Energy

Certificate (REC). RECs were designed to measure electricity, not energy or heat. In most RPS

programs, one REC is equal to one MWh of electricity generated. Because renewable thermal

heat is not measured in megawatt-hours (MWh), states have developed various methods of

assigning REC values for these technologies.

• Some states base RECs for thermal energy on a BTU to MWh conversion. This is

sometimes called the “electric equivalency basis.” In this situation, the heat produced is

measured. A frequent REC conversion rate is 3,412,000 BTUs = 1 MWh = 1 REC.

• Other states calculate RECs based on the MWh of conventional electricity displaced. In

this situation, the electricity displaced is measured. This equation is typically 1 MWh

displaced = 1 REC.

Table 2 below shows how REC values are awarded in different states. How a state awards REC

values can vary by technology and metering type.

Table 2: How REC values are awarded by state

RECs awarded based on energy generated,

1 REC = 3,412,000 BTUs = 1 MWh

RECs awarded based on electricity displaced,

1 REC = 1 MWh displaced

AZ, DC (for metered output), IN, MA, MD,

NV (for solar thermal), NH, NC, OR, TX (for

landfill gas)

DC (for estimated output), PA, TX (for solar

hot water and geothermal), UT, VT, WI

In Arizona and Nevada, 1 REC = 1 kWh, whereas in other states 1 REC = 1 MWh. In Nevada, 1 REC = 1 kWh = 3,412

BTUs. Arizona’s conversion rate is unique: 1 REC = 1 KWh = 3,415 BTUs.

Renewable Thermal in State Renewable Portfolio Standards 6

Monitoring and Metering Renewable Thermal Energy

Production

Approaches to monitoring and metering renewable thermal systems vary by state and by

technology, as well as by the size of the system and whether it is a residential or commercial/

industrial system. Some states have stricter standards for monitoring and metering than others.

Monitoring means verifying that the renewable thermal system is in good working order, as

well as verifying that measuring systems are fully functional. Some states require that indepen-

dent licensed monitors verify and report energy production and technical specifications. In

addition to or instead of monitoring, some states require that renewable thermal systems meet

certification requirements in order to be eligible for the RPS. For example, many states require

solar thermal systems to be certified by the Solar Rating and Certification Corporation (SRCC).

Metering means measuring the heat produced and/or the electricity displaced. Approaches to

metering vary: some states allow estimates of heat production while others require direct

measurement. Most states do a combination of both methods. In Washington, DC, for instance,

heat output is measured only for metered systems; for systems without meters, the electricity

displaced is measured.

Metering requirements can vary by system size. Many states have less stringent metering

requirements for smaller systems because metering equipment is not standard in many smaller

renewable thermal systems and can add significantly to the cost of the system. In some states,

small systems are allowed to estimate output with periodic system verification by independent

monitors, while larger systems are required to perform actual metering overseen by indepen-

dent monitors; variations of this approach exist in the District of Columbia, Nevada, New

Hampshire, Texas and Wisconsin.

Metering requirements can also vary by technology type. For instance, biomass systems can be

measured by heat output or by fuel input, whereas the “fuel input” from solar thermal cannot

be measured; a solar thermal system might instead be measured by heat produced or by

electricity displaced. In Maryland, for example, solar and biomass thermal systems must be

metered, while geothermal output is estimated.

Approaches used to estimate renewable thermal heat production can vary. Some states offer

an approved formula for estimating output (“modeled output”). For solar hot water,

performance estimates based on the SRCC’s solar water heating rating system are commonly

used as a proxy for actual system output (as in Arizona, DC, Maryland and Nevada). For biomass

thermal systems, the heat output can be estimated based on the fuel input.

Those states that use the amount of electricity displaced as the basis for awarding RECs often

use the average expected system performance of the electrical system that the renewable

Renewable Thermal in State Renewable Portfolio Standards 7

thermal system is replacing. In Texas, for example, solar hot water and geothermal heat pumps

earn REC offsets based on the average annual MWh of the system they are replacing.

For the states that measure heat output, many specify that only “useful thermal energy” counts

towards their RPS program. Various states define this term differently. Some states use this

term to differentiate between the total amount of heat produced (system output) and the

amount of heat used by the end user, the latter being the amount that should be counted

towards the RPS. Other states use the term “useful thermal energy” to also refer to the need to

subtract the parasitic load (the energy used to run the system) from the total amount of heat

produced in order determine the amount of useful heat that should be applied to the RPS.

Depending on the state and the size of the system, one can either directly meter the parasitic

load or use a percentage estimate of energy lost. What needs to be measured—total system

output or actual energy used—determines where the metering device will be placed on the

renewable thermal system.

Besides parasitic load, another discount factor that is sometimes included when developing a

metering system to measure heat output is a meter accuracy discount factor. This is the

estimated margin of error for the metering system. It is calculated based on the manufacturer’s

guarantee of meter accuracy.

An added factor in the complexity of determining a metering approach is that the U.S. does not

have an official heat meter standard by which thermal energy is measured, although the

Environmental Protection Agency is in the process of drafting one.

In the meantime, many

states have opted to use the European heat meter standard, which measures heat in BTUs

(British Thermal Units).

Classifying Renewable Thermal in the RPS

States have classified renewable thermal technologies into their RPS in a variety of different

ways.

In several states, renewable thermal technologies are classified separately from electricity-

generating renewable technologies. For instance, in Pennsylvania, renewable thermal tech-

nologies are classified as Tier II demand-side management resources, and they earn Tier II

energy efficiency credits. In Arizona, renewable thermal technologies are classified as

customer-sited resources, and in Texas they are classified as generation-offset technologies.

Wisconsin has an RPS tier for non-electric resources which displace electricity, and renewable

thermal technologies fall into this category.

The group that is working on this is ASTM E44.25 Subcommittee on Heat Metering. See:

http://www.astm.org/COMMITTEE/E44.htm

Renewable Thermal in State Renewable Portfolio Standards 8

In other states, renewable thermal technologies are included alongside electricity-generating

renewable technologies. In the District of Columbia’s RPS, for example, solar thermal is

included as a Tier I technology along with solar electric and other renewable technologies.

Renewable thermal technologies are also classified as Tier I resources in Maryland and North

Carolina.

In the case of solar thermal, many states count the energy generated or displaced as part of a

solar carve-out. In these cases, solar thermal may be awarded Solar Renewable Energy

Certificates (SRECs). This is the case in Maryland and North Carolina. In other states, solar

thermal technologies may be eligible for solar multipliers.

How renewable thermal RECs are classified can vary by technology within a state. For example,

in Nevada, solar thermal counts towards the RPS as a renewable resource, while geothermal

counts towards the RPS as an energy efficiency measure.

To promote the growth of renewable thermal technologies, New Hampshire has established a

separate carve-out for these technologies. This ensures that a minimum amount of renewable

thermal energy must be produced. New Hampshire is the only state that has created a specific

carve-out for renewable thermal technologies.

States with Renewable Thermal in the RPS

The following is an overview of the state RPS programs that include renewable thermal tech-

nologies as of May 2018. For the purposes of this paper, all programs are referred to as RPSs,

and all renewable energy certificates are referred to as RECs. However, significant variation

exists among state programs as to what terminology is used.

ARIZONA

RPS Type: Mandatory

Eligible Technologies: Biomass thermal, biogas thermal, commercial solar pool heaters,

geothermal space heating and process heating systems, solar industrial process heating and

cooling, solar space heating, and solar water heaters. Eligible biogas and biomass thermal

systems specifically exclude biomass and wood stoves, furnaces and fireplaces. All eligible

technologies in the RPS must offset conventional energy resources.

RPS Classification: Arizona’s RPS includes two main categories of eligible technologies: “Eligible

Renewable Energy Resources” and “Distributed Renewable Energy Resources,” which are

defined as “technologies that are located at a customer’s premises and that displace

conventional energy resources that would otherwise be used to provide electricity to Arizona

Renewable Thermal in State Renewable Portfolio Standards 9

customers.” Certain specified renewable thermal technologies (see eligible technologies list

above) and wind generators (1 MW or less) are classified as Distributed Renewable Energy

Resources. Arizona’s RPS includes a distributed renewable energy requirement of 30 percent

after 2011, one half of which must come from residential applications.

REC Creation: 1 REC = 1 kWh = 3,415 BTUs

Metering & Monitoring: Arizona’s rules do not specifically require meters to monitor renewable

thermal heat output. Residential solar water heating systems use the Solar Rating and Certif-

ication Corporation’s (SRCC) OG-300 standard as a proxy for actual system output. Larger solar

thermal systems usually include a meter to monitor solar thermal system output. On smaller

commercial (non-residential) systems, Arizona accepts reasonable engineering calculations as a

proxy for actual system output, particularly if they are based, in part, on SRCC’s OG-100

collector ratings.

Sources:

• Arizona Administrative Code, Article 18: Renewable Energy Standard and Tariff, Pages

172-178 http://apps.azsos.gov/public_services/Title_14/14-02.pdf

DISTRICT OF COLUMBIA

RPS Type: Mandatory

Eligible Technologies: Solar thermal (solar water heat, solar space heat, solar thermal process

heat and solar space cooling)

RPS Classification: Solar thermal is included as a Tier I technology in the DC RPS, along with solar

electric and other renewable technologies.

REC Creation: When solar thermal heat output uses an approved energy meter, RECs are

awarded based on energy generated. 1 kWh = 3,412 BTUs.

For estimated output of solar thermal heat, RECs are awarded based on kilowatt-hour savings

for the system.

Metering & Monitoring: Behind-the-meter generators with a capacity of less than 10kW may

submit engineering-based estimates of their output if the generator is not directly measured by

a revenue grade utility meter. For solar thermal energy systems that do not generate electricity,

if the output is to be estimated, the Commission will provide PJM-EIS with the output in kilo-

watt-hour savings for the system, based on SRCC’s estimated annual system performance

of OG-300 certified systems.

The energy output of the non-residential solar heating, cooling or process heat property

systems producing or displacing greater than 10 kWh per year is determined by an on-site

Renewable Thermal in State Renewable Portfolio Standards 10

energy meter that meets performances standards established by the International Organization

of Legal Metrology (OIML) and the solar collectors used have a OG-100 certification from the

SRCC, If applicable.

Solar thermal installations must generally use SRCC certified components in order to qualify as

an eligible resource. The Solar Collector Certification Temporary Amendment Act of 2010

requires certification of residential solar thermal systems and certification of nonresidential

solar thermal collectors. Read the full act at

http://dcclims1.dccouncil.us/images/00001/20101129160151.pdf

Sources:

• See page 10 of DC’s RPS Final Rules for details on assigning REC values:

http://www.dcpsc.org/pdf_files/commorders/dcmr15/Chapter29.pdf

• DC PSC RPS page: https://www.dcpsc.org/Utility-Information/Electric/Renewables/Renewable-

Energy-Portfolio-Standard-Program.aspx

INDIANA

RPS Type: Voluntary

Eligible Technologies: Clean energy resources that provide thermal energy for heating, cooling

or mechanical work are eligible for the RPS.

RPS Classification: Renewable thermal technologies are classified alongside renewable

electricity-generating technologies.

REC Creation: For clean energy resources that provide thermal energy, one clean energy credit

(REC) is earned for every 3,412,000 BTUs of useful thermal energy produced. Utilities can seek

approval of an alternative equation to determine the number of clean energy credits earned for

the useful thermal energy produced.

Metering & Monitoring: In order to measure thermal energy for the purpose of goal compli-

ance, it may be measured directly through a meter, calculated using the equation set forth in

IAC 17.1, or a utility may seek approval from the commission to use an alternative equation.

Sources:

• Indiana Administrative Code (IAC) Title 170, Article 17.1, Indiana Voluntary Clean Energy

Portfolio Standard Program http://www.in.gov/legislative/iac/title170.html

Renewable Thermal in State Renewable Portfolio Standards 11

MARYLAND

RPS Type: Mandatory

Eligible Technologies: Residential solar water heating (excluding systems used solely to heat a

pool or hot tub), geothermal heating and cooling, and thermal energy associated with biomass

systems using primarily food waste, crop waste, crops grown for energy production, or animal

manure, including poultry litter, and specifically excluding woody biomass.

RPS Classification: Renewable thermal technologies are classified as Tier I resources. Solar water

heating is eligible for the solar carve out.

REC Creation: Tier 1 RECs for renewable thermal are awarded at a 3,412,000 BTU = 1 MWh = 1

REC conversion rate. SRECs are awarded for solar thermal. A residential solar hot water system

may not produce more than 5 RECs in one year.

Metering & Monitoring: Residential solar hot water can either be measured by a meter that

meets the required standards of the International Organization for Legal Metrology (IOLM) or

measured by the SRCC’s OG-300 thermal performance rating for the system, and certificated to

the OG-300 standard of the SRCC. Non-residential and commercial solar hot water systems

must be measured by an on-site meter that meets the required performance standards of the

IOLM.

Biomass thermal systems must be metered by an on-site meter that meets IOLM performance

standards. Geothermal output is estimated.

Legislative activity: The Maryland Energy Administration’s Thermal Energy Task Force submitted

a report to the legislature in January 2014 with recommendations on how to more fully

incorporate renewable thermal energy sources into the state RPS.

Sources:

• Biomass Thermal regulations http://mlis.state.md.us/2012rs/bills/sb/sb1004f.pdf

• Geothermal regulations http://mlis.state.md.us/2012rs/bills/sb/sb0652e.pdf

• Solar thermal regulations

http://mgaleg.maryland.gov/2011rs/chapters_noln/Ch_407_sb0717E.pdf

• Report of the Thermal Renewable Energy Credit Task Force, Maryland Energy

Administration, January 2014

http://msa.maryland.gov/megafile/msa/speccol/sc5300/sc5339/000113/018000/01893

9/unrestricted/20140015e.pdf

Renewable Thermal in State Renewable Portfolio Standards 12

MASSACHUSETTS

RPS Type: Mandatory

Eligible Technologies: Any facility that generates useful thermal energy using sunlight, biomass,

biogas, including renewable natural gas that is introduced into the natural gas distribution

system, liquid biofuel or naturally occurring temperature differences in ground, air or water.

Facilities using biomass fuel shall be low emission, use efficient energy conversion technologies

and fuel that is produced by means of sustainable forestry practices.

RPS Classification: Renewable thermal energy is eligible for the state’s Alternative Energy

Portfolio Standard (APS), which requires meeting 5 percent of Massachusetts’ electric load with

“alternative energy” by 2020. Massachusetts’ APS is distinct from the RPS, but essentially acts

as a separate tier. The APS also includes non-renewable energy sources, such as CHP, flywheel

storage, and efficient steam technologies.

REC Creation: An alternative energy credit (AEC) equivalent to one megawatt-hour of electricity

is earned for every 3,412,000 British thermal units of net useful thermal energy produced. The

Massachusetts Department of Energy Resources may provide a credit multiplier for certain non-

emitting renewable thermal technologies, so as to stimulate the development of new on-site

renewable thermal energy generating sources.

Metering & Monitoring: Energy production must be verified through an on-site utility grade

meter or other means satisfactory to the department. Small systems will not have to meter, but

will instead receive AECs based on a calculation of their expected net thermal energy output.

Legislative activity: On June 2, 2017, the Massachusetts Department of Energy Resources (DOER)

filed Regulation 225 CMR 16.00 with the Secretary of State’s office to add additional eligible

technologies, including renewable thermal, in the APS pursuant to Chapter 251 of the Acts of

2014. The final regulations were promulgated and went into effect on December 29, 2017.

Sources:

• Bill S.2214 188th (2013 - 2014): An Act relative to credit for thermal energy generated

with renewable fuels https://malegislature.gov/Bills/188/Senate/S2214

• 225 CMR 16.00: Alternative Energy Portfolio Standard (APS)

https://www.mass.gov/regulations/225-CMR-16-alternative-energy-portfolio-standard-

aps

• Renewable Heating and Cooling in the Alternative Portfolio Standard

https://www.mass.gov/guides/aps-renewable-thermal-statement-of-qualification-

application

• Alternative Energy Portfolio Standard Guideline on Metering and Calculating the Useful

Thermal Output of Eligible Renewable Thermal Generation Units (December 2017)

https://www.mass.gov/files/documents/2017/12/14/Guideline%20on%20Metering%20

Renewable Thermal in State Renewable Portfolio Standards 13

and%20Calculating%20Useful%20Thermal%20Output%20of%20Eligible%20Renewable%

20Thermal%20Generation%20Units-%20Part%201%20FINAL.pdf

• Commonwealth Accelerated Renewable Thermal Strategy – Final Report, prepared for

the Massachusetts Department of Energy Resources (DOER) (January 2014).

www.mass.gov/eea/docs/doer/renewables/thermal/carts-report.pdf

• Massachusetts Heating and Cooling: Opportunities and Impacts Study, prepared by

Meister Consultants Group for the Massachusetts Clean Energy Center and the

Massachusetts Department of Energy Resources (March 2012).

www.mass.gov/eea/docs/doer/renewables/renewable-thermal-study.pdf

NEVADA

RPS Type: Mandatory

Eligible Technologies: Solar water heat, solar space heat, geothermal electric, solar thermal

electric, solar thermal process heat, geothermal heat pumps

RPS Classification: Renewable solar thermal technologies count towards the RPS as renewable

resources. Geothermal energy systems providing heated water to one or more customers are

classified as an energy efficiency measure.

REC Creation: Solar thermal energy systems are credited with 1 kilowatt-hour of electricity for

each 3,412 British thermal units of heat generated.

The energy, measured in BTUs, generated by a geothermal energy system providing heated

water to one or more customers must be calculated as (F x T) x 500, less the system losses as

calculated by a professional engineer and accepted by the Administrator, where “F” equals the

flow rate, measured in gallons per minute; and “T” equals the change in temperature across a

heat exchanger or system, measured by the difference in temperature of the incoming fluid in

degrees Fahrenheit and the temperature of the outgoing fluid in degrees Fahrenheit after it has

passed through the heat exchanger or system. For heat exchangers used by end-use customers,

it is assumed that no system losses occur, and no calculation of system losses by a professional

engineer is required.

Metering & Monitoring: Solar water heating systems that are not rated by the SRCC must use a

thermal energy meter. For solar water heating systems with an SRCC rating of 34 million BTUS

or more, a thermal energy meter is required. For a solar water heating system that has an SRCC

rating of less than 34 million BTUs, the annual performance estimates of the SRCC for the solar

water heating system may be used.

A solar thermal system that is used for a purpose other than as a solar water heating system

qualifies as a renewable energy system only if the Commission determines that the provider

Renewable Thermal in State Renewable Portfolio Standards 14

can adequately measure or estimate the number of equivalent kWh attributable to the solar

thermal system.

Sources:

• NV-PUC http://puc.nv.gov/Renewable_Energy/Portfolio_Standard/ and

http://puc.nv.gov/Renewable_Energy/RPS/PEC_Trading_Program/

• Nevada Revised Statutes (NRS) 704.7801-704.7828, Portfolio Standard

http://www.leg.state.nv.us/NRS/NRS-704.html#NRS704Sec7802

• Nevada Administrative Code (NAC) 704.8831-704.8937, Portfolio Standard

http://nvrules.elaws.us/nac/chapter704_27_4

NEW HAMPSHIRE

RPS Type: Mandatory

Eligible Technologies: Solar thermal, geothermal (ground source heat pumps), and thermal

biomass renewable energy technologies.

RPS Classification: New Hampshire is the first and only state to require that a portion of its RPS

come from thermal energy (2 percent by 2023 and thereafter). The New Hampshire RPS

includes a Class I sub-class for useful thermal energy. Since 2014, providers of electricity have

been required to meet the Class I thermal RPS obligation.

REC Creation: Thermal RECs are calculated based on the measured thermal output and

converted assuming that 3,412,000 BTUs equals one megawatt-hour of electricity.

Metering & Monitoring: Systems larger than 150,000 BTUs/hr are required to install thermal

meters. Systems smaller than 150,000 BTUs/hr can either install thermal meters or meters to

measure a parameter that can be used to calculate the thermal output such operating hours or

fuel input.

Legislative activity: Legislation requiring the creation of a renewable thermal RPS sub-class was

passed in July 2012 with subsequent amendments. The New Hampshire Public Utilities

Commission finalized the rulemaking in December 2014, but RECs were issued retroactively

back to January 1, 2014. Order No. 25,978 (1/17/2017) reduced the Thermal Class I obligation

from 1.3 percent to 0.6 percent.

SOURCES:

A detailed case study of thermal technologies in the New Hampshire RPS is included as chapter three in Jenny

Heeter et al., Case Studies of RPS Best Practices: Solar Carve-Outs, SREC Tracking, and Thermal Inclusion

(Montpelier: Clean Energy States Alliance, 2018), https://www.cesa.org/resource-library/resource/case-studies-of-

rps-best-practices-solar-carve-outs-srec-tracking-and-thermal-inclusion.

 
 
       Renewable Thermal in State Renewable Portfolio Standards  15     
•  NH PUC – RPS Class I Thermal Renewable Energy Certificate Program 
http://www.puc.state.nh.us/Sustainable%20Energy/Class%20I%20Thermal%20Renewab
le%20Energy.html  
•  PUC 2500 Electric Renewable Portfolio Standard 
http://www.puc.nh.gov/Regulatory/Rules/Puc2500.pdf 
•  Metering and Measurement of Thermal Energy – Draft Report (Antares Group for the 
New Hampshire Public Utilities Commission, September 2013) 
www.puc.state.nh.us/sustainable%20Energy/RPS/Class%20I%20Thermal/NH%20Therm
al%20Metering%20Report%20V4.pdf  
 
 
NORTH CAROLINA  
RPS Type: Mandatory  
Eligible Technologies: Solar thermal, and waste heat derived from a renewable energy resource 
(biomass, including poultry waste) and used to produce useful, measurable thermal energy at a 
retail electric customer's facility.   
RPS Classification: Solar thermal is included in the solar-specific target.  
REC Creation: Renewable energy certificates shall be earned based on one certificate for every 
3,412,000 BTUs of useful thermal energy produced.  
Metering & Monitoring: The useful thermal energy may be measured by meter, or if that is not 
practicable, by other industry-accepted means that show what measurable amount of useful 
thermal energy the system or facility is designed and operated to produce and use. Meter 
devices, if used, shall be located so as to measure the actual thermal energy consumed by the 
load served by the facility. 
Sources:  
•  NC Code 62-133.8 Renewable Energy and Energy Efficiency Portfolio Standard (REPS) 
http://www.ncleg.net/EnactedLegislation/Statutes/HTML/BySection/Chapter_62/GS_62
-133.8.html 
•  NC Code, Chapter 8, Electric Light and Power, Pages 88-102 
http://www.ncuc.net/ncrules/Chapter08.pdf  
•  North Carolina Utilities Commission – Renewable Energy and Energy Efficiency Portfolio 
Standard webpage http://www.ncuc.commerce.state.nc.us/reps/reps.htm  
 
 
 

Renewable Thermal in State Renewable Portfolio Standards 16

OREGON

RPS Type: Mandatory

Eligible Technologies: Biomass electric facilities that generate useful thermal energy as a

byproduct.

RPS Classification: “Thermal Renewable Energy Certificates” (T-RECs) are treated as a sub-

category of RECs.

REC Creation: “Thermal Renewable Energy Certificate” (T-REC) means a REC created in

association with the generation of 3,412,000 British thermal units of qualifying thermal energy,

which is equivalent to one REC created in association with the generation of one megawatt

hour of Qualifying Electricity.

Metering & Monitoring: Meters measuring thermal output are required for large facilities (those

that can produce at least one T-REC – 3,412,000 BTUs of qualifying thermal energy – per hour).

Small systems (generating less than one T-REC per hour) must also meter delivered qualifying

thermal energy. However, certain directly measured parameters with low variance may be

evaluated on an annual basis and used as a constant in the calculation methodology.

For complete details on Oregon’s metering and monitoring requirements for thermal energy,

see pages 6-8: https://www.oregon.gov/energy/Get-

Involved/rulemakingdocs/2016%2012%20TRECs%20Rules.pdf.

Legislative activity: In 2016, SB 1547 added thermal energy as an eligible resource. The Oregon

Department of Energy filed their final rules incorporating thermal energy into the RPS in

December 2017.

Sources:

• Oregon Department of Energy’s RPS webpage: http://www.oregon.gov/energy/Get-

Involved/Pages/RPS-Rulemaking.aspx

• OAR 330-160-0080: Thermal Energy from the Generation of Electricity Using Biomass

https://secure.sos.state.or.us/oard/view.action?ruleNumber=330-160-0080

• Draft Rules for Thermal Renewable Energy Certificates (R-RECs) Companion Issues

Document https://www.oregon.gov/energy/Get-

Involved/rulemakingdocs/ODOE_TRECs_Draft_Rule_ISSUES-August2016.pdf

PENNSYLVANIA

RPS Type: Mandatory

Eligible Technologies: Solar hot water. Other renewable thermal technologies might be

considered for inclusion on a case-by-case basis.

Renewable Thermal in State Renewable Portfolio Standards 17

RPS Classification: Solar thermal technologies that do not produce electricity (e.g., domestic

solar water heaters) are considered Tier II demand-side management resources. A solar hot

water system will qualify for Tier II Energy Efficiency Credits provided that the system has

replaced an electric hot water system for which the electricity savings would need to be proven

in kilowatt-hours, not BTU output. Please note that these credits are not the same as Solar

Photovoltaic credits that are qualified as a separate Tier.

REC Creation: RECs for renewable thermal are assigned based on the electricity displaced. 1 REC

= 1 MWh of electricity generated or displaced.

Metering & Monitoring: Solar hot water systems must have a meter demonstrating energy

savings.

Legislative activity: In October 2016, the Pennsylvania Public Utility Commission voted to

implement modified regulations related to the AEPS Act of 2004, including defining the term

"useful thermal energy" to mean thermal energy created from the production of electricity.

This technology and fuel neutral definition of useful thermal energy essentially allows CHP

facilities to qualify as a Tier II resource, however, this definition expressively prohibits

combined-cycle electric generation facilities from being considered as an eligible resource.

Sources:

• PA Code Chapter 75, Alternative Energy Portfolio Standards

http://www.pacode.com/secure/data/052/chapter75/chap75toc.html

• Pennsylvania Alternative Energy Portfolio Standard Program website

http://www.puc.pa.gov/consumer_info/electricity/alternative_energy.aspx

TEXAS

RPS Type: Mandatory

Eligible Technologies: Solar hot water, geothermal heat pumps, and landfill gas.

RPS Classification: Solar hot water and geothermal heat pumps are classified as generation

offset technologies.

REC Creation: Solar hot water and geothermal heat pumps earn REC offsets based on the

average annual MWh output of the system they are replacing.

For a municipally owned utility operating a gas distribution system, any production or

acquisition of landfill gas that is directly supplied to the gas distribution system is eligible to

produce RECs based upon the conversion of the thermal energy in BTUs to electric energy in

kWh using as the conversion factor the system wide average heat rate of the gas-fired units of

the combined utility's electric system as measured in BTUs per kWh.

Renewable Thermal in State Renewable Portfolio Standards 18

Metering & Monitoring: Customer-owned eligible renewable energy generating units with a

rated capacity of less than 1MW operating on the customer’s side of the utility meter may

report generation based on metered or estimated output. For all other generating units, the

output of the facility must be readily capable of being physically metered and verified in Texas

by the program administrator.

Sources:

• Texas Code 25.173, Goal for Renewable Energy

http://www.puc.texas.gov/agency/rulesnlaws/subrules/electric/25.173/25.173.pdf

UTAH

RPS Type: Voluntary

Eligible Technologies: Solar thermal and geothermal.

RPS Classification: There are no tiers in Utah’s program of voluntary renewable energy goals.

Renewable thermal technologies are classified as renewable energy sources, but are

categorized separately from electricity-generating sources.

REC Creation: REC value is determined by the equivalent kilowatt-hours saved, except to the

extent the commission determines otherwise with respect to net-metered energy.

Metering & Monitoring: Utah does not engage in the inspection or awarding of REC values. The

Western Renewable Energy Generation Information System (WREGIS), which tracks RECs in

Utah, allows small, customer-sited distributed generating units to self-report generation data.

Sources:

• Utah Code Chapter 17, Energy Resource Procurement Act

http://le.utah.gov/UtahCode/section.jsp?code=54-17

• WREGIS Operating Rules

https://www.wecc.biz/Corporate/WREGIS%20Operating%20Rules%20072013%20Final.pdf

VERMONT

RPS Type: Mandatory

Eligible Technologies: All renewable thermal technologies are eligible.

RPS Classification: Eligible thermal technologies are classified as Tier 3 “energy transformation”

technologies, defined as measures that produce energy-related goods and services and result in

a net reduction in fossil fuel consumption and greenhouse gas emissions, but do not generate

electricity. Examples include cold-climate heat pumps, weatherization, and wood pellet boilers.

Law requires utilities to hold Tier 3 RECs, which are not tradable. Distributed biomass projects

Renewable Thermal in State Renewable Portfolio Standards 19

count towards Tier 2 (distributed generation requirement) if they produce combined heat and

power.

REC Creation: For Tier 3, RECs are created as MWh equivalents of displaced fossil fuels. A

technical advisory group determines how much fossil fuel is displaced by eligible technologies

and converts the displaced fossil fuel to a MWh equivalent based on the utility’s individual mix

of power supply resources. Utilities can also submit savings claims outside of the technical

advisory group process, but they run the risk of the Vermont Public Utility Commission not

accepting the claims. Thus, the utilities are generally deploying technologies that have agreed-

on savings values. If an energy transformation project is funded by both a distribution utility

and the state’s efficiency utility, the Commission allows credits to be shared between the two.

Metering & Monitoring: There is no metering requirement for renewable thermal systems.

Monitoring and verification are performed annually through audits of utility claims and

empirical studies of measured savings.

Legislative activity: In June 2015, Vermont H.40 established a mandatory renewable portfolio

standard. The first compliance year was 2017. Prior to H.40, Vermont’s voluntary renewable

goal did not allow thermal systems to earn RECs.

Sources:

• Vermont Statutes, Title 30: Public Service, Chapter 89: Renewable Energy Programs

http://legislature.vermont.gov/statutes/chapter/30/089

• State of Vermont Public Utility Commission – Renewable Energy Standard

http://puc.vermont.gov/electric/renewable-energy-standard

WISCONSIN

RPS Type: Mandatory

Eligible Technologies: All categories of renewable thermal technologies are eligible.

RPS Classification: Renewable thermal technologies count towards the RPS as non-electric

resources to the extent they displace electricity from conventional resources.

REC Creation: Under the RPS, electricity providers, or customers who own displacement facilities,

may create and sell or transfer both Renewable Resource Credits (RRCs) and Renewable Energy

Certificates (RECs). An RRC is defined as either 1) a REC that exceeds a utility's minimum

requirements or 2) a certificate representing one MWh of displaced conventional electricity. To

create a RRC, displaced electricity must be multiplied by a displacement percentage that

represents only the portion of electricity from conventional resources. The displacement

percentage is determined by the Public Service Commission (PSC) on an annual basis per

administrative code. Details at http://docs.legis.wisconsin.gov/code/admin_code/psc/118/09.

Renewable Thermal in State Renewable Portfolio Standards 20

Metering & Monitoring: Metering is required for utility-owned systems. For customer-owned

systems, estimating the amount of displaced electricity is allowed through methods approved

by the PSC.

Sources:

• Chapter PSC 118, Renewable Resource Credit Tracking Program

http://docs.legis.wisconsin.gov/code/admin_code/psc/118.pdf

• Wisconsin State Legislature 196.378 Renewable Resources

http://docs.legis.wisconsin.gov/statutes/statutes/196/378

Sources for More Information

WEBINARS

Renewable Thermal Technologies in the Massachusetts APS

Clean Energy States Alliance, January 2018

https://www.cesa.org/webinars/renewable-thermal-technologies-in-the-massachusetts-aps

Since 2014, the Massachusetts Department of Energy Resources (DOER) has been working on

designing rules and regulations for including renewable thermal technologies in the Alternative

Portfolio Standard (APS). This webinar featured a presentation on the draft regulations by

Samantha Meserve, Renewable Thermal Program Coordinator at DOER.

State Leadership in Clean Energy: Award-Winning Programs in New Hampshire and Rhode

Island

Clean Energy States Alliance, July 2016

https://cesa.org/webinars/state-leadership-in-clean-energy-award-winning-programs-in-new-

hampshire-and-rhode-island/

This webinar highlighted two winning programs from CESA’s 2016 State Leadership in Clean

Energy Awards, including New Hampshire’s Useful Thermal Energy Certificate (T-REC) Program.

Elizabeth Nixon and Barbara Bernstein from the New Hampshire Public Utilities Commission

Sustainable Energy Division presented.

State of the States – Biomass Thermal Policy Incentives on the State Level

Biomass Thermal Energy Council Webinar, August 2014

https://vimeo.com/102768333

This webinar provides an overview of state-supported biomass thermal incentives and rebates

across the country, including renewable portfolio standards. Guest speaker John Ackerly from

Renewable Thermal in State Renewable Portfolio Standards 21

the Alliance for Green Heat discussed residential incentives; Adam Sherman from the Biomass

Energy Resource Center discussed commercial incentives; and Ellen Burkhard and Ryan Moore

from NYSERDA discussed a new renewable heat program in New York State.

Massachusetts Renewable Thermal Opportunities and Impacts

Clean Energy States Alliance, May 2012

www.cesa.org/webinars/cesa-rps-webinar-renewable-solar-thermal

The webinar reported on the findings of the "Massachusetts Renewable Heating and Cooling:

Opportunities and Impacts Study." Guest speakers were Bram Claeys, Renewable Energy Policy

Director, Massachusetts Department of Energy Resources; Christie Howe, Project Manager,

Massachusetts Clean Energy Center; and Neil Veilleux, Senior Consultant, Meister Consultants

Group.

Solar Thermal Trends, Performance-Based Incentives, and RPS

Clean Energy States Alliance Webinar, March 2012

www.cesa.org/webinars/joint-cesa-state-federal-rps-collaborative-webinar-solar-thermal-

trends-performance-based-incentives-and-rps

This webinar featured three presentations looking at solar thermal from different vantage

points. Les Nelson of the International Association of Plumbing & Mechanical Officials summar-

ized market and costs trends for solar thermal technologies. James Critchfield discussed U.S.

EPA’s initiative to work with stakeholders to create a U.S. Heat Meter Standard, which will set

requirements for the instrumentation and application of equipment used to measure the

energy generation of thermal energy systems. Sam Watson of the North Carolina Utilities

Commission described his state’s experiences with including solar thermal in its RPS and

discussed lessons learned.

REPORTS

Case Studies of RPS Best Practices: Solar Carve-Outs, SREC Tracking, and Thermal Inclusion

Clean Energy States Alliance, July 2018

https://www.cesa.org/resource-library/resource/case-studies-of-rps-best-practices-solar-carve-

outs-srec-tracking-and-thermal-inclusion

This report’s third chapter, written by Val Stori, is a detailed case study of thermal technologies

in the New Hampshire RPS. It traces the history of the state’s thermal RPS provisions, describes

the results, and identifies the program’s strengths and limitations.

A Summary Guide to Wood Biomass Heating Programs of CESA Members

Clean Energy States Alliance, March 2016

https://www.cesa.org/resource-library/resource/a-summary-guide-to-wood-biomass-heating-

programs-of-cesa-members

Renewable Thermal in State Renewable Portfolio Standards 22

This document surveys current and planned activities of CESA member states that are focused

on the deployment of modern, high-efficiency, wood heating systems.

Portfolio Standards and the Promotion of Combined Heat and Power

U.S. Environmental Protection Agency, Combined Heat and Power Partnership, March 2016

https://www.epa.gov/sites/production/files/2015-

07/documents/portfolio_standards_and_the_promotion_of_combined_heat_and_power.pdf

This publication contains a comprehensive overview of the incorporation of CHP into RPS

programs around the country.

Solar Heating and Cooling Best Practices in State Policies to Support Commercial and

Industrial Market Development

U.S. Environmental Protection Agency, December 2012

https://www.epa.gov/sites/production/files/2014-11/documents/solar-heating-cooling-state-

policy-paper.pdf

This paper reviews policies and implementation programs that support commercial and

industrial applications of solar heating and cooling technologies. For information on eligibility

within the state clean energy standards, see pages 3-8.

OTHER

The Database of State Incentives for Renewables & Efficiency (DSIRE)

www.dsireusa.org

The DSIRE website contains extensive information about state renewable energy policies and

incentives, including RPSs. DSIRE is run by the NC Clean Energy Technology Center.

The Clean Energy States Alliance (CESA) is a national, non-

prot coalition of public agencies and organizations working

together to advance clean energy. CESA members—mostly

state agencies—include many of the most innovative, success-

ful, and inuential public funders of clean energy initiatives

in the country.

CESA works with state leaders, federal agencies, industry

representatives, and other stakeholders to develop and

promote clean energy technologies and markets. It supports

eective state and local policies, programs, and innovation

in the clean energy sector, with an emphasis on renewable

energy, power generation, nancing strategies, and eco-

nomic development. CESA facilitates information sharing,

provides technical assistance, coordinates multi-state

collaborative projects, and communicates the views

and achievements of its members.

Clean Energy States Alliance

50 State Street, Suite 1

Montpelier, VT 05602

802.223.2554

cesa@cleanegroup.org