Geothermal Installers: How to Talk to Your Customers about GRECs
Most homeowners choose geothermal systems for practical reasons that go far beyond sustainability alone. Many are looking for lower utility bills, more predictable energy costs, quieter operation, and a long-term HVAC solution that requires less maintenance than traditional systems.
What many homeowners still do not realize, however, is that their geothermal system may also qualify for ongoing income through Maryland’s Geothermal Renewable Energy Credit (GREC) program. For installers, this creates an opportunity to strengthen the financial case for geothermal and help customers better understand the full value of their investment.
As federal incentives have come to an end, Maryland’s state-led geothermal incentive program has become an increasingly important part of the conversation. In many cases, GRECs can provide substantial long-term value that continues years after installation, helping offset the overall cost of the system while giving homeowners confidence that they are maximizing available incentives. ClearPath Renewables can help you explain and provide this program to your potential clients to help you sell even more systems.
1) Start by Explaining What a GREC Is
GRECs are environmental commodities that electric utilities purchase to remain in compliance with the state’s renewable energy goals. GRECs represent the clean energy created by the geothermal system as a geothermal system typically extracts 4 times more energy from the ground than it uses. Maryland utilities purchase these credits in order to comply with the state’s Renewable Portfolio Standard, which requires utilities to source a portion of their energy from renewable technologies.
For homeowners, the process can initially sound technical or confusing, which is why clear explanation matters. In simple terms, geothermal systems reduce strain on the electrical grid by using the stable temperatures underground to efficiently heat and cool a home. Because of this efficiency, Maryland recognizes geothermal systems as a renewable energy resource that can generate tradable credits.
2) Calculate How Many GRECs The Home Will Earn Annually
The number of GRECs a home earns annually depends on several factors tied to the property and system installation. These factors typically include the size of the home, the type of heating system being replaced, whether the home previously used fossil fuels, and certain water heating characteristics.
In general, larger homes tend to generate more GRECs because they require larger geothermal systems. Homes converting from oil, propane, or other fossil fuel heating systems may also qualify for additional credit value compared to homes converting from electric heat pumps.
The average Maryland geothermal homeowner earns approximately 40 GRECs per year, although each property is different. Installers can use ClearPath Renewables’ GREC calculator to provide customers with a clearer estimate of what their specific system may qualify for over time. Reach out to ClearPath’s owner and founder, Wade Sewell, at wade@clearpathrenewables.com or 443-910-4613 for access to the calculator.
3) Determine the Value to the Customer
One of the most effective ways to discuss GRECs with homeowners is to frame them as a long-term financial benefit tied directly to the geothermal system they are already installing. Many customers understand tax credits because they reduce upfront costs, but GRECs are often more compelling because they can generate value year after year.
The market value of GRECs can fluctuate over time based on Maryland legislation and supply-and-demand conditions within the renewable energy market. While exact future pricing cannot be guaranteed, homeowners appreciate understanding that the program exists to create ongoing financial value tied to the clean energy their system produces.
Providing a realistic projection using ClearPath Renewables’ calculator helps homeowners better understand how GRECs may contribute to reducing the effective lifetime cost of their geothermal installation.
4) ClearPath Renewables Offers A Lump Sum Buyout Option
Some homeowners prefer ongoing quarterly payments, while others are more interested in receiving a larger payment upfront. ClearPath Renewables offers a lump sum buyout option that allows homeowners to transfer ownership of their GRECs in exchange for a one-time payment.
The buyout amount varies depending on several factors, including expected production and market conditions, but it is often roughly equivalent to several years of projected GREC payments. This option can be especially helpful for homeowners who want immediate financial flexibility following installation.
Contact ClearPath Renewables at info@clearpathrenewables.com to determine what the buyout value is.
5) Why Installers Partner With ClearPath Renewables
For many installers, the challenge is not introducing GRECs but explaining the enrollment and management process in a way that feels simple and trustworthy to the customer. Homeowners are often interested once they hear about the opportunity, but they may hesitate if the process feels overly technical or difficult to manage. Wade Sewell, the owner and founder of ClearPath Renewables, onboards every new GRECs customer, explains the program and process thoroughly, and puts together every GREC application.
ClearPath Renewables handles the entire GRECs program, from initial application all the way through payments to residential and commercial geothermal owners. This allows installers to confidently introduce the opportunity without needing to become experts in the ongoing administration of the program.
The process is designed to be straightforward for both installers and homeowners. Customers enroll through ClearPath Renewables using the installer’s referral code, and installers receive visibility into the customers they refer while also participating in referral incentives.
A Simple Way to Start the Conversation
Many homeowners have never heard of GRECs before meeting with a geothermal installer, so the best conversations are usually the simplest ones. The goal is not to explain every market detail, but to help customers understand that their geothermal system may provide value beyond energy savings alone.
Here is an example of how installers can naturally introduce the topic during a consultation:
“In addition to lowering your monthly energy costs, your geothermal system may also qualify for Maryland’s Geothermal Renewable Energy Credit program. These credits can create ongoing financial value over time, and we work with ClearPath Renewables to help homeowners enroll and manage the process from start to finish.”
Conclusion: Help Customers Understand the Full Value of Geothermal
Many homeowners already understand that geothermal systems can lower utility bills and improve long-term comfort. What they often do not realize is that Maryland’s GREC program may provide an additional layer of financial value that continues long after installation.
When installers confidently explain GRECs in a clear and practical way, it helps homeowners feel more informed and more comfortable moving forward with geothermal. If you want help estimating GREC eligibility, projecting potential value, or simplifying enrollment for your customers, ClearPath Renewables can walk you through the process step by step.