Understanding Renewable Energy Credits (RECs): A Quick Guide

By Caitlin Albright on January 23, 2024

In a world increasingly focused on sustainable living, Renewable Energy Credits (RECs) have emerged as a key player in promoting the use of clean and green energy sources. Let’s delve into what RECs are and how they contribute to a more sustainable future.

What Are Renewable Energy Credits?

Renewable Energy Credits, commonly known as RECs, are tradable certificates that represent the environmental benefits of electricity generated from renewable energy sources. These sources include solar, wind, hydroelectric, and geothermal, among others.

Each REC represents a specific amount of these environmental benefits, typically equivalent to one megawatt-hour (MWh) of renewable energy generation. These RECs can be bought and sold separately from the actual electricity. This separation allows businesses and individuals to support renewable energy even if they are not directly connected to a green energy facility.

What Are the Benefits of RECs?

Support for Renewable Energy

Purchasing RECs provides financial support to renewable energy producers. This helps them continue investing in clean energy projects and expanding the share of renewable energy in the market.

Environmental Impact

By buying RECs, individuals and businesses contribute to reducing the overall carbon footprint. The purchase effectively represents a commitment to offsetting conventional energy consumption with an equivalent amount of clean, renewable energy.

Renewable Energy Goals

Many businesses and governments set renewable energy goals to increase sustainability. RECs offer a practical way to meet these goals without having to physically source renewable energy for on-site consumption.

Renewable Energy Credits are a valuable tool in promoting and accelerating the adoption of renewable energy. By understanding and participating in the REC market, individuals and businesses can make a meaningful impact on the transition to a more sustainable and environmentally friendly energy future.

If you would like to enroll in an electricity program that uses 100% Renewable Content via RECs, check out NOPEC’s pricing options at nopec.org/checkrates or call our Customer Care Center at 855-667-3201.