Maryland GREC Prices Are Dropping: What Geothermal Owners Need to Know (2026-2028)
If you own a geothermal heating and cooling system in Maryland installed in 2006 or later, you know that your system generates Geothermal Renewable Energy Certificates (GRECs). These certificates are sold to electric utilities, providing a nice return on your clean energy investment. However, the financial landscape for GRECs is changing. Due to planned adjustments in Maryland’s Renewable Energy Portfolio Standard (RPS), the value of these certificates is decreasing. Here is a breakdown of what to expect over the next few years.
How GREC Values Are Determined
The value of a GREC is directly tied to the Alternative Compliance Price (ACP). This is the fee that electric utilities pay the state of Maryland when they fail to meet their required renewable energy goals. For systems installed in 2023 and later, the ACP was set at a high rate to incentivize geothermal adoption, holding strong at $100 for years 2023-2025. Because processing these certificates involves administrative costs, utilities generally pay a discount to the ACP. This is why, up until 2025, Maryland utilities were typically willing to pay $90 per GREC.
The 2026 Value Drop: What Changed?
This year (2026), the Maryland ACP for geothermal systems installed in 2023 and later drops to $90. Because the maximum penalty (ACP) has dropped, the value of the credits that utilities buy has also dropped proportionally.
Looking Ahead: 2027 and 2028
The decrease is not a one-time event. The Maryland Legislature has designed the program to phase down, with anticipated adjustments to the net value of GRECs:
2027: The ACP drops another $10, down to $80.
2028 and beyond: The ACP falls to $65 and plateaus there.
While these drops mean a lower net value compared to the 2023-2025 period, it is important to remember that these certificates are issued for 20 years from the month of your installation.
Are GRECs Still Worth It in Maryland?
While the peak market pricing is over, Maryland geothermal systems still provide substantial long-term value through energy savings and continued, albeit lower, GREC payments for 20 years from installation. If you have questions about how these changes affect your system or what you should be earning, ClearPath Renewables is here to help homeowners with clear, verified answers based on your specific system and market conditions.
Do you have a geothermal system at your Maryland home? Enroll with ClearPath Renewables and start earning your GRECs today.