What are the Requirements for Renewable Energy Credits?

Renewable Energy Credits (RECs) are certificates that represent the environmental attributes of energy generated from renewable sources such as solar or wind power facilities. They are not equivalent to buying electricity but rather represent the clean energy attributes of renewable electricity. RECs are produced when a renewable energy source generates one megawatt-hour (MWh) of electricity and delivers it to the grid. For example, if a wind power facility produces 5 MWh of electricity, they have five credits to keep or sell. If you or your business buys those credits, you are buying the “renewable” aspect of the electricity from the wind farm, and you can say that 5 MWh of your electricity use came from a renewable source.

. The requirements for Renewable Energy Credits (RECs) typically include:

1. Generation from renewable sources (e.g., wind, solar).
2. Certification of the renewable energy facility.
3. Accurate tracking and registration.
4. Tradable and marketable.
5. Use in compliance or voluntary markets.
6. Transparency and reporting.

Specific criteria may vary by region and purpose.

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