Tier 1 REC Voluntary Sale

Following the Order Modifying Clean Energy Standard Tier 1 Obligations [PDF] , NYSERDA will sell Tier 1 renewable energy certificates (RECs) to voluntary purchasers using a hybrid approach for the voluntary sales program which includes long-term contracting, an annual Tier 1 REC Presale, and an annual Tier 1 REC Resale.

Tier 1 RECs are now open to all – not just load serving entities (LSEs). Organizations can leverage Tier 1 RECs to meet their respective needs, whether to support sustainability goals, comply with scope 2 emission requirements, or to support renewable energy development.

How It Works

In accordance with the Phase 5 Implementation Plan [PDF]  filed on August 30, 2023, NYSERDA has been authorized to engage in 3 types of voluntary sales approaches for Tier 1 RECs.

1. Long-Term Contracting

NYSERDA may enter into long-term contracts with creditworthy entities for the purchase of Tier 1 RECs. The terms and conditions of the contracts will include, but will not be limited to contract length, Tier 1 REC quantity, Tier 1 REC price, and payment terms.

The terms and conditions will be memorialized within the individual contracts. Under any long-term contract, participants would be required to purchase Tier 1 RECs at the NYSERDA net-weighted average price, plus any administrative adder approved by the Commission for that compliance year.

2. Annual Tier 1 Presale

NYSERDA will hold an annual Presale in July/August prior to the start of the next Tier 1 Compliance year, with delivery of the Tier 1 RECs in February following the end of the calendar year. Through this Presale, NYSERDA will offer a percentage of the net expected Tier 1 REC inventory for the following compliance year for sale. For example, the first Tier 1 compliance year under this new approach will be 2025, the first Tier 1 Presale will occur in August 2024 based on a projection of VDER and NYSERDA Tier 1 RECs described above, and it will offer a percentage of the net expected Tier 1 REC inventory for 2025.

NYSERDA will announce the quantity of Tier 1 RECs available for sale, Presale price, and Presale process no later than July 15 each year, through the end of the existing Tier 1 program. The sale will conclude 14 days after its commencement. NYSERDA will deliver the Tier 1 RECs to purchasers in approximately February of the year following the vintage sold. For example, vintage 2025 Tier 1 RECs will be delivered February 2026.

NYSERDA will set a Tier 1 REC price each year which will be based upon the forecasted net-weighted average price of the projected Tier 1 REC inventory that NYSERDA will place for sale.

NYSERDA will allocate Tier 1 RECs equal to an organizations REC order if the total demand ordered is less than the total inventory of RECs available. If total demand is greater than total inventory, a proportionate share of an organization’s order will be allocated.

Participation

The Annual Tier 1 Presale is open to commercial, industrial, municipal, institutional and educational purchasers as well as load serving entities (LSEs). To participate, a purchaser will be required to have a NYSERDA Customer Number as well as a New York Generation Attributes Tracking System (NYGATS) account.

A NYSERDA Customer Number can be obtained by filling out the NYSERDA Customer ID Intake Form [PDF].

A NYGATS account can be obtained by following the directions to Register for new users.

3. Annual Tier 1 Resale

NYSERDA has the ability to hold a Tier 1 REC Resale at the end of each compliance year if there is sufficient demand for such and NYSERDA has a sufficient volume of Tier 1 RECs.

NYSERDA may hold an annual Resale in February following the end of the calendar year. At the end of the compliance year, NYSERDA will announce the Voluntary Resale for Tier 1 RECs, which will conclude 14 days after its commencement.

NYSERDA will set a Tier 1 REC price each year which will be based upon the net-weighted average price of the total Tier 1 REC inventory that NYSERDA possesses at the time of the sale. Please note, NYSERDA may not have the full Tier 1 REC inventory at the time of the sale.

NYSERDA will allocate Tier 1 RECs equal to an organizations REC order if the total demand ordered is less than the total inventory of RECs available. If total demand is greater than total inventory, a proportionate share of an organization’s order will be distributed.