What are Renewable Energy Credits?

Renewable Energy Credits, often referred to as RECs, are a part of a program designed to represent the generation of energy from renewable sources like solar and wind power. It's essential to understand that purchasing RECs doesn't mean you're buying actual electricity; instead, RECs serve as a way to symbolize the environmental benefits associated with renewable energy.

Both homeowners and businesses have the option to acquire RECs to support clean energy production. Each REC represents the generation of one megawatt-hour (MWh) of electricity from a renewable source, which is then integrated into the local power grid. These RECs are essentially marketable, intangible assets.

These certificates also go by various names, such as Green Tags, Tradable Renewable Certificates (TRCs), Renewable Electricity Certificates, or Renewable Energy Credits.

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What are Renewable Energy Credits (RECs)? - SolarSME Inc.