Renewable Energy Credits (RECs) are a tradable commodity that represents the environmental and social attributes of renewable energy generation. The requirements for RECs can vary depending on the specific program, jurisdiction, and the purpose for which they are being used. However, there are some common elements and requirements associated with RECs:
- Renewable Energy Generation:
RECs are typically associated with electricity generated from renewable sources, such as wind, solar, biomass, geothermal, and hydroelectric power. The energy source must meet the criteria established by the relevant certification program.
- Environmental Attributes:
RECs represent the environmental benefits of renewable energy, such as reduced greenhouse gas emissions and air pollution. Therefore, the energy source must result in these environmental benefits.
- Certification:
The renewable energy facility must be certified or verified as meeting specific standards for renewable energy generation. Common certification programs include the Green-e Energy program in the United States.
- Accounting and Tracking:
Accurate accounting and tracking systems are essential to ensure the proper attribution of RECs. This includes monitoring the generation of renewable energy, verifying its environmental attributes, and creating RECs for each megawatt-hour (MWh) of renewable energy generated.
- Registration:
In many cases, RECs need to be registered in a centralized system to ensure their authenticity and prevent double counting. For example, the Generation Attribute Tracking System (GATS) in the United States is used to register and track RECs.
- Tradable and Marketable:
RECs should be tradable and transferable. This means that they can be bought and sold separately from the physical electricity. This allows organizations to purchase RECs to offset their own energy consumption or to meet renewable energy goals.
- Compliance and Voluntary Markets:
RECs are used in both compliance and voluntary markets. Compliance markets are associated with regulatory requirements, such as Renewable Portfolio Standards (RPS) that require utilities to source a certain percentage of their energy from renewables. Voluntary markets are where organizations and individuals purchase RECs to support renewable energy and reduce their carbon footprint.
It's important to note that specific requirements for RECs can vary from one region or country to another. Therefore, the exact criteria and regulations governing RECs may differ. Organizations and individuals interested in using RECs should consult with local authorities or certification programs to ensure they are meeting the relevant requirements.
Want to know what financing option is best for purchasing solar systems, read the full article on our website:
Solar Financing Loans: Secured or Unsecured Solar Loan (solarsme.com)
Want to know about the cost of solar panels, read the full article on our website:
Cost of Solar panels: Understanding the Expense of Going Solar (solarsme.com)
