What are the Renewable Energy Credits (RECs)?

Renewable energy Credits (RECs), also known as Green Energy Certificates or Tradable Renewable Certificates, are a market-based instrument that represents the environmental and social attributes of electricity generated from renewable energy sources. They are a way to track and trade the "green" or renewable aspects of electricity separately from the electricity itself. Here are some benefits of RECs:
1. Environmental Attributes: RECs primarily represent the environmental benefits associated with electricity generated from renewable sources. These benefits include reduced greenhouse gas emissions, reduced air and water pollution, and the conservation of finite fossil fuel resources.
2. Separation of Attributes: When electricity is generated from a renewable source, the generator is issued one REC for each megawatt-hour (MWh) of electricity produced. These RECs can then be sold or traded separately from the physical electricity, allowing consumers or organizations to purchase and claim the renewable energy attributes without physically consuming the renewable electricity.
3. Verification and Certification: RECs are subject to verification and certification to ensure their legitimacy. Independent organizations often certify RECs to guarantee that the associated renewable energy was produced and delivered according to established environmental and legal standards.
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What are Renewable Energy Credits (RECs)? - SolarSME Inc.