Yes, grey is in the scrabble dictionary

...and is worth 8 points by itself.

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Grey Definition

adjective

Variant of gray1.
from The American Heritage Dictionary of the English Language, 4th Edition

biographical name

2d Earl 1764–1845 Eng. statesman; prime min. (1830–34).
from Free Scrabble Dictionary
Sir Edward 1862–1933 Viscount Eng. polit.
from Free Scrabble Dictionary
Lady Jane 1537–1554 titular queen of England for 9 days.
from Free Scrabble Dictionary
Zane 1875–1939 Am. nov.
from Free Scrabble Dictionary

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Top Words by points

Points

grey

8

2 letter words with GREY

Points

er

2

re

2

ye

5

3 letter words with GREY

Points

erg

4

gey

7

reg

4

rye

6

4 letter words with GREY

Points

grey

8

gyre

8

Found 9 words in 0.12243 seconds