PJM Energy Credits
PJM Energy Credits
Incentives for Energy Efficiency

PJM Territory Map

Emergent Energy Solutions, PJM Rebates, PJM Energy Credits, energy efficiency, rebates, utility rebates, New construction commercial, LED Lighting Upgrade, LED Lighting, compressed air, compressed air sequencer,

The Capacity Energy Efficiency Program with Emergent Energy Solutions

Emergent Energy Solutions (EES) partners with contractors and building owners who have completed energy efficiency projects and offers them the opportunity to participate in the Capacity Energy Efficiency Program. These energy efficiency projects are recognized by PJM as capacity resources and can be bid into PJM’s capacity market. PJM Interconnection operates the wholesale market for electricity in thirteen states and the District of Columbia. (To learn more about PJM please visit, www.pjm.com)

EES compensates our contractors and building owner partners based on PJM’s capacity market auction results, and so provides a means for owners to receive additional payments for energy efficiency improvements they have already completed. The energy efficiency credit dollars will vary by a projects overall impact on the electrical grid’s peak demand (KW) period. Typically the PJM credits will be about 30% of any available rebates from your local utility.

EES aggregates many smaller and intermediate projects, to achieve a scale that makes participating in the wholesale capacity market possible for all.

For further details on how EES can assist you with PJM Energy credits, please contact us

What is PJM?

PJM Interconnection, LLC is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia. PJM operates the competitive wholesale electricity market and manages the high-voltage electricity grid to ensure reliability for more than 58 million people in its geographic territory extending from New Jersey to Illinois. PJM is the largest wholesale electricity market in the world and handles over $40 billion of electric transaction a year. Membership in PJM includes power generators, transmission owners, electricity distributors, power marketers and large consumers. The organization is headquartered in Valley Forge, Pa.

Emergent Energy Solutions, PJM Rebates, PJM Energy Credits, energy efficiency, rebates, utility rebates, New construction commercial, LED Lighting Upgrade, LED Lighting, compressed air, compressed air sequencer,

The Capacity Energy Efficiency Program

To participate in the program, EES asks for your authorization to bid the demand savings (KW) achieved at your facilities into the PJM capacity market auction. Your contractor will work with EES to complete all the pre-qualification tasks related to bidding the energy efficiency project into the market. Your responsibility, as the project owner, is simply to to complete, sign and return the Capacity Rewards agreement form and provide acknowledgement of continued use of the energy efficiency project for each qualified year.

Compensation is based on the PJM Capacity Auction. While capacity auction results will vary, most newer resources that are eligible can participate in the auctions and receive compensation for up to four delivery years. Capacity rewards are paid to owners over the four delivery years. EES’ compensation is a share of the successful auction proceeds.

This program is separate from utility rebates or state incentives for energy efficiency, and taking advantage does not preclude participation in the other.

What is an Energy Efficiency (EE) Resource

PJM defines an Energy Efficiency (EE) Resource as a project that involves the installation of more efficient devices/equipment, or the implementation of more efficient processes/systems. The EE Resource must achieve a permanent, continuous reduction in electric energy consumption (during the summer peak or winter demand period). Good examples of Energy Efficiency Resources includes the installation of energy efficient LED lighting, compressed air, refrigeration & HVAC system optimization, and new construction that exceeds industry or ASHRAE standards for the site's specific jurisdiction.

What Determines a Project's Value? 

The value of an EE Resource is based upon the project’s expected electric demand reduction (kw savings) and the auction pricing results. The demand reduction is easily calculated; auction pricing always varies. Our PJM Incentive Calculator can provide you with a great starting point to determine the value of your incentives. 

What are the Obligations of Building Owners / Customers? 

Obligations are minimal. Building owners/customers are required to sign a simple one page agreement that acknowledges that an EE project has been completed and authorizes EES to exclusively bid their energy efficiency project into PJM’s capacity market auction.
Finally, the building owner is asked to verify continued use of the energy efficient equipment. 

Who Pays the Building Owners / Customers

EES will provide payment directly to customers for the committed energy efficiency project resources that have cleared in the PJM auction. Payments are made based on the KW saved, according to the terms of agreements.

When Does the Building Owner / Customer Get Paid? What Type of Payment Will It Be? Over What Period of Time Will They be Paid? 

Payments will be made by check from EES directly to building owner/customers. Each energy efficiency project is unique and is eligible for payment from one year to four years. The eligibility is defined in the commercial arrangement with EES. The Building Owner/Customer is paid in December of the delivery year and the following June.

Is The Program The Same As Utility Rebates or State Grants And Loans? 

No. This is a completely separate program from utility rebates or state incentive programs, and does not preclude participation in either of those. Much of the project detail needed by EES is similar to that required for most rebate programs. Together these programs can all improve the bottom line of energy efficiency projects.

What Type of Projects Will Qualify? 

Energy projects will qualify for energy efficiency credits if it delivers permanent reduction in operational load (KW) for any specific utility service account within the PJM territory. Projects types includes (but are not limited to) lighting, HVAC, Refrigeration, Compressed Air, LEED and other measures that reduces electrical demand on the grid during PJM’s peak hours. For more details regarding the project types and data requirements, please visit the Project Types page.

Some Examples of Possible Projects Include:

A customer completes a custom (non-prescriptive) compressed air project that incorporates a well-integrated sequencer, zero-loss drains, storage, and a new VFD compressor for $150,000. The project is able to obtain $50,000 in utility incentives for the investment. The generated PJM Credits will deliver another $10,000 to 15,000 in additional incentives.

A customer completes a lighting project that includes conversions from Metal Halide high bays and T-8 Fluorescent lighting to LED lighting throughout their facility. At the same time, the site expands and adds an additional 250,000 SQFT of warehouse space that exceeds ASHRAE’s lighting and HVAC efficiency standards for the addition. Since the utility customer both reduced and increased electrical load, this will be handled in 2 different components. On the reduction end, utility rebates and PJM Credits are obtained for the lighting upgrade as KWH and KW reduced. Since the new addition exceeds ASHRAE’s efficiency standards, the new addition is able to once again qualify for utility rebates and PJM credits based on the percent improved using ASHRAE as the baseline condition.

Types of Measures That Will Not Qualify for PJM Rebates

  • Variable Load Devices (Individual Switched Motion Sensors or Daylight Harvesting) - These sensors and their impact on the facility's KW load will not qualify because the customer is not able to guarantee that the lighting capacity will be permanently reduced by the controlled lighting load. As an example, if individual motion sensors are installed in a commercial office building, there is no specific guarantee that all of the offices will not be occupied at the same time, therefore PJM still has to to commit a specific KW load to the facility. The same would apply to the daylight harvesting sensor. The exception to this policy is with a centralized lighting control system that is able to maintain a peak lighting load through dimming and load balancing functionality
  • Demand Response - The temporary load reduction achieved through Demand Response will not qualify. 
  • Onsite Co-Generation or Solar PV - These types of project categories deliver significant benefit to the facility, but will not qualify for load reduction as there is no guarantee that the sun will always shine or the co-gen will always run during the peak delivery period. 

How PJM Works, Simplified

See video for latest detail on current capacity market pricing and demand resources. 

Insights from PJM's 2020 / 2021 Capacity Auction

See video for latest detail on current capacity market pricing and demand resources. 

Utility Companies that Qualify for PJM Capacity Credits (Incentives): 

Utility NameStatePJM Calculator Name (LDA)
Potomac Electric Power CompanyDCPEPCO
City of Seaford- (DE)DEDPL
City of Dover - (DE)DEDPL
City of Lewes - (DE)DEDPL
City of Milford - (DE)DEDPL
City of Newark - (DE)DEDPL
Delaware Electric CooperativeDEDPL
Delmarva Power and Light CompanyDEDPL
New Castle Municipal Serv CommDEDPL
Town of ClaytonDEDPL
Town of Middletown - (DE)DEDPL
Town of Smyrna - (DE)DEDPL
Commonwealth Edison Co.ILComEd
American Electric Power Co., Inc.INAEP
Indiana Michigan Power Co.INAEP
Paulding-Putman Electric Cooperative, Inc.INAEP
Kentucky Power Co.KYAEP
Grayson Rural Electric Cooperative CorporationKYAEP
Licking Valley Rural E C CKYAEP
American Electric Power Co., Inc.KYAEP
Big Sandy Rural Electric Cooperative CorporationKYAEP
Duke Energy Ohio and KentuckyKYDEOK
Salt River Electric Cooperative CorporationKYEKPC
Shelby Energy Co-op, Inc.KYEKPC
Owen Electric Cooperative Inc.KYEKPC
Clark Energy Cooperative Inc.KYEKPC
Inter County Energy Cooperative CorporationKYEKPC
Jackson Energy Cooperative CorporationKYEKPC
Cumberland Valley Electric, Inc.KYEKPC
Fleming-Mason Energy Cooperative, Inc.KYEKPC
Farmers Rural Electric Cooperative CorporationKYEKPC
South Kentucky Rural E C CKYEKPC
Nolin Rural Electric Cooperative CorporationKYEKPC
Taylor County Rural E C CKYEKPC
Blue Grass Energy Cooperative CorporationKYEKPC
Eastern Kentucky Power CooperativeKYEKPC
Hagerstown Light DepartmentMDAPS
Thurmont Municipal Light CoMDAPS
The Potomac Edison CompanyMDAPS
Town of WilliamsportMDAPS
Somerset Rural Elec Coop, Inc.MDAPS
Allegheny Power SystemsMDAPS
Baltimore Gas and Electric CompanyMDBGE
Easton Utilities CommMDDPL
Choptank Electric Coop, IncMDDPL
Town of Berlin - (MD)MDDPL
A&N Electric CooperativeMDDPL
Delmarva Power and Light CompanyMDDPL
Southern Maryland Elec Coop Inc.MDPEPCO
Potomac Electric Power CompanyMDPEPCO
American Electric Power Co., Inc.MIAEP
Indiana Michigan Power Co.MIAEP
Virginia Electric & Power Co.NCAEP
Atlantic City Electric CompanyNJAECO
City of Vineland - (NJ)NJAECO
Sussex Rural Electric Coop Inc.NJJCPL
Seaside Heights Municipal UtilityNJJCPL
Borough of Butler - (NJ)NJJCPL
Borough of Lavallette - (NJ)NJJCPL
Borough of Madison - (NJ)NJJCPL
Jersey Central Power and Light CompanyNJJCPL
Borough of PembertonNJJCPL & PSEG depending on Zip
Borough of Milltown - (NJ)NJPSEG
Borough of South River - (NJ)NJPSEG
Public Service Electric and Gas CompanyNJPSEG
Borough of Park Ridge - (NJ)NJRECO
Rockland Electric CompanyNJRECO
Consolidated Electric Cooperative Inc.OHAEP
Licking Rural Electric Inc.OHAEP
Ohio Power CoOHAEP
Village of Carey - (OH)OHAEP
Village of Wharton - (OH)OHAEP
Village of Cygnet - (OH)OHAEP
Village of DeshlerOHAEP
Guernsey-Muskingum El Coop Inc.OHAEP
Frontier Power CompanyOHAEP
City of St Clairsville - (OH)OHAEP
Carroll Electric Coop, Inc - (OH)OHAEP
Holmes-Wayne Electric Cooperative, Inc.OHAEP
Village of Arcadia - (OH)OHAEP
North Central Elec Coop, IncOHAEP
Village of Bloomdale - (OH)OHAEP
Village of Plymouth - (OH)OHAEP
Village of Republic - (OH)OHAEP
City of Shelby - (OH)OHAEP
Village of SycamoreOHAEP
South Central Power CompanyOHAEP
City of Jackson - (OH)OHAEP
Buckeye Rural Elec Coop, IncOHAEP
Village of Glouster - (OH)OHAEP
Washington Electric Coop - (OH)OHAEP
Village of New Knoxville - (OH)OHAEP
Hancock-Wood Electric Cooperative Inc.OHAEP
Village of Ohio CityOHAEP
Paulding-Putman Electric Cooperative, Inc.OHAEP
City of St Mary's - (OH)OHAEP
Midwest Electric, Inc.OHAEP
Midwest Energy CooperativeOHAEP
City of Wapakoneta - (OH)OHAEP
Adams Rural Electric Cooperative, Inc.OHAEP
American Electric Power Co., Inc.OHAEP
City of Columbus - (OH)OHAEP
City of Dover - (OH)OHAEP
City of Westerville - (OH)OHAEP
City of Woodsfield - (OH)OHAEP
Village of ObetzOHAEP
Village of Shiloh - (OH)OHAEP
Village of WaynesfieldOHAEP
Union Rural Electric Coop, IncOHATSI
Mid-Ohio Energy Cooperative, Inc.OHATSI
Clyde Light & PowerOHATSI
Village of ElmoreOHATSI
Village of Genoa - (OH)OHATSI
Village of Oak Harbor - (OH)OHATSI
Village of Pemberville - (OH)OHATSI
Village of WoodvilleOHATSI
City of Bryan - (OH)OHATSI
North Western Elec Coop, IncOHATSI
City of CustarOHATSI
Village of Edgerton - (OH)OHATSI
Tricounty Rural Elec Coop Inc.OHATSI
Village of Montpelier - (OH)OHATSI
City of Napoleon - (OH)OHATSI
Village of Pioneer - (OH)OHATSI
The Toledo Edison CoOHATSI
City of Oberlin - (OH)OHATSI
Lorain-Medina R E C, Inc.OHATSI
Village of Wellington - (OH)OHATSI
Village of Lodi - (OH)OHATSI
Seville Board of Public AffairsOHATSI
Ohio Edison CoOHATSI
City of Newton FallsOHATSI
Village of Beach City- (OH)OHATSI
Village of Marshallville - (OH)OHATSI
City of Orrville - (OH)OHATSI
Village of Greenwich - (OH)OHATSI
Village of Lucas - (OH)OHATSI
Firelands Electric Cooperative, Inc.OHATSI
American Transmission Systems, Inc.OHATSI
City of Amherst- (OH)OHATSI
City of Bowling Green - (OH)OHATSI
City of Cleveland - (OH)OHATSI
City of Columbiana - (OH)OHATSI
City of Cuyahoga Falls- (OH)OHATSI
City of GalionOHATSI
City of HubbardOHATSI
City of HudsonOHATSI
City of Niles - (OH)OHATSI
City of PainesvilleOHATSI
City of WadsworthOHATSI
Cleveland Electric Illum Co.OHATSI
Northwestern Rural E C A, Inc - (PA)OHATSI
Prospect CorporationOHATSI
South Vienna CorporationOHATSI
Village of Bradner - (OH)OHATSI
Village of Brewster - (OH)OHATSI
Village of Grafton - (OH)OHATSI
Village of Haskins - (OH)OHATSI
Village of Milan - (OH)OHATSI
Village of Monroeville - (OH)OHATSI
Village of Tontogany - (OH)OHATSI
Pioneer Rural Elec Coop, Inc. - (OH)OHDAY
Logan County Cooperative Power & LightOHDAY
Village of Lakeview - (OH)OHDAY
Butler Rural Electric Coop Inc - (OH)OHDAY
City of Arcanum - (OH)OHDAY
Darke Rural Electric Cooperative, Inc.OHDAY
Village of Jackson Center - (OH)OHDAY
City of Piqua - (OH)OHDAY
Village of VersaillesOHDAY
Village of Yellow SpringsOHDAY
City of CelinaOHDAY
Village of Minster - (OH)OHDAY
City of Tipp CityOHDAY
Dayton Power and Light co.OHDAY
Village of Eldorado - (OH)OHDAY
Village of New Bremen - (OH)OHDAY
City of Mendon - (OH)OHDAY or AEP depending on Zip
Village of BethelOHDEOK
Village of Blanchester - (OH)OHDEOK
Village of Georgetown - (OH)OHDEOK
Village of Hamersville - (OH)OHDEOK
Village of RipleyOHDEOK
City of Hamilton - (OH)OHDEOK
City of Lebanon - (OH)OHDEOK
Duke Energy Ohio and KentuckyOHDEOK
West Penn Power CompanyPAAPS
Central Electric Coop, Inc - (PA)PAAPS
Tri-County Rural Elec Coop IncPAAPS
Allegheny Power SystemsPAAPS
Borough of ChambersburgPAAPS
Borough of Tarentum - (PA)PAAPS
Mont Alto BoroughPAAPS
Pennsylvania Power Co.PAATSI
Borough of WampumPAATSI
Borough of ZelienoplePAATSI
American Transmission Systems, Inc.PAATSI
Borough of Ellwood City - (PA)PAATSI
Borough of Grove CityPAATSI
Borough of New Wilmington - (PA)PAATSI
Borough of Pitcairn - (PA)PADUQ
Duquesne LightPADUQ
UGI Utilities, IncPAMetEd
Adams Electric Cooperative Inc.PAMetEd
Borough of GoldsboroPAMetEd
Borough of Kutztown - (PA)PAMetEd
Borough of Lewisberry - (PA)PAMetEd
Borough of Middletown - (PA)PAMetEd
Borough of Royalton - (PA)PAMetEd
Metropolitan Edison CompanyPAMetEd
Borough of Hatfield- (PA)PAPECO
Borough of LansdalePAPECO
Somerset Rural Elec Coop, Inc.PAPENELEC
Hooversville Boro Elec Lgt Co.PAPENELEC
United Electric Coop, Inc - (PA)PAPENELEC
Warren Electric Coop IncPAPENELEC
Northwestern Rural E C A, Inc - (PA)PAPENELEC
Valley Rural Electric Coop IncPAPENELEC
New Enterprise R E C, Inc.PAPENELEC
Borough of Smethport - (PA)PAPENELEC
Wellsborough Electric CoPAPENELEC
Sullivan County R E C, Inc. -(PA)PAPENELEC
Claverack Rural Electric Cooperative Inc.PAPENELEC
Bedford Rural Electric Cooperative, Inc.PAPENELEC
Borough of Berlin - (PA)PAPENELEC
Borough of East ConemaughPAPENELEC
Borough of Girard - (PA)PAPENELEC
Borough of Summerhill - (PA)PAPENELEC
Pennsylvania Electric CompanyPAPENELEC
Citizens Electric Co - (PA)PAPPL
Pike County Light & Power Co.PAPPL
Borough of Blakely - (PA)PAPPL
Borough of CatawissaPAPPL
Borough of Duncannon - (PA)PAPPL
Borough of EphrataPAPPL
Borough of Lehighton - (PA)PAPPL
Borough of Mifflinburg - (PA)PAPPL
Borough of Olyphant - (PA)PAPPL
Borough of PerkasiePAPPL
Borough of Quakertown - (PA)PAPPL
Borough of Schuylkill Haven - (PA)PAPPL
Borough of St Clair - (PA)PAPPL
Borough of Watsontown - (PA)PAPPL
Borough of Weatherly - (PA)PAPPL
PPL Electric UtilitiesPAPPL
Kingsport Power Co.TNAEP
American Electric Power Co., Inc.TNAEP
South Kentucky Rural E C CTNEKPC
Cumberland Valley Electric, Inc.TNEKPC
Virginia Tech Electric ServiceVAAEP
Central Virginia Electric CoopVAAEP
City of Bedford - (VA)VAAEP
American Electric Power Co., Inc.VAAEP
Appalachian Power Co.VAAEP
City of Danville - (VA)VAAEP
City of Martinsville - (VA)VAAEP
City of Radford - (VA)VAAEP
City of Salem - (VA)VAAEP
Town of Richlands - (VA)VAAEP
Town of Front RoyalVAAPS
Northern Virginia Elec CoopVADOM
Rappahannock Electric CoopVADOM
Northern Neck Elec Coop, IncVADOM
Town of Culpeper- (VA)VADOM
Town of ElktonVADOM
Shenandoah Valley Elec CoopVADOM
Town of BlackstoneVADOM
Town of Wakefield - (VA)VADOM
Prince George Electric CoopVADOM
Mecklenburg Electric Coop, Inc.VADOM
Southside Electric Coop, Inc.VADOM
Virginia Electric & Power Co.VADOM
Community Electric CooperativeVADOM 
Craig-Botetourt Electric CooperativeVADOM 
BARC Electric Cooperative Inc.VADOM 
City of Franklin - (VA)VADOM 
City of Harrisonburg - (VA)VADOM 
City of Manassas - (VA)VADOM 
A&N Electric CooperativeVADPL
Delmarva Power and Light CompanyVADPL
Wheeling Power CoWVAEP
American Electric Power Co., Inc.WVAEP
Appalachian Power Co.WVAEP
Black Diamond Power Co.WVAEP
City of New Martinsville - (WV)WVAEP or APS depending on Zip
Harrison Rural Elec Assn, Inc.WVAPS
Philippi Municipal ElectricWVAPS
Monongahela Power Co.WVAPS
The Potomac Edison CompanyWVAPS
Allegheny Power SystemsWVAPS
Craig-Botetourt Electric CooperativeWVDOM or APS depending on Zip