Renewable energy certificates (RECs) give companies, institutions, and individuals a simple way to offset their carbon footprint and support clean energy. Purchasing RECs is equivalent to purchasing renewable energy; if your company buys RECs then you can claim that the energy you use comes from renewable sources.
Why are renewable energy certificates important?
Because the physical electricity we receive through the utility grid says nothing of its origin or how it was generated, RECs play an important role in accounting, tracking, and assigning ownership to renewable electricity generation and use.
What is the use of renewable energy certificate?
These certificates may be sold and traded and the owner of the REC can legally claim to have purchased renewable energy. RECs incentivize the production of renewable energy by providing a source of revenue to electricity generated from renewable sources.
How much is a renewable energy certificate worth?
Homeowners and commercial businesses earn one SREC for every one megawatt-hour (MWh) of electricity generated. They can then sell these SRECs to electrical utilities. An SREC can be worth $300 or more in certain markets and, for a typical 5 kW home solar installation, you could earn six SRECs in a year.
Can you sell renewable energy certificates?
If you own the RECs associated with your renewable energy project’s electricity output, you can sell these RECs to another party. In doing so, you forfeit the ability to make any claims about “using” renewable energy, but generate a new revenue stream.
Are renewable energy certificates a good investment?
RECs can benefit your business as well, helping you achieve emissions goals and helping promote your commitment to renewables. Buying RECs also supports the renewable energy market, which encourages renewable electricity on a broader scale. The more RECs are in demand, the more renewable energy must be generated.
Do RECs expire?
Energy Certificates can be sold, but are typically used as a credit against their own power usage. The eligibility to use RECs expires at the end of the fifth calendar year following the year they were generated.
How do I get a renewable energy certificate?
How to buy RECs. If you are a customer of one of the 850 utilities in the U.S. that offer a green power program, you do not need to go through an outside supplier to purchase renewable energy. Instead, you can purchase RECs through your electrical utility.
Are RECs tax deductible?
No. The actual dollars spent on renewable energy are not tax deductible. Are buying RECs a permit to pollute? Absolutely not.
Are RECs greenwashing?
While RECs are not necessarily greenwashing, there are much better options to ensure that your facility is not contributing to climate change by using fossil fuels for energy production. … Real change will cost a significantly higher amount of money, and rightfully so – this is why RECs should have higher prices.
What is RECs short for?
rec (countable and uncountable, plural recs) (informal) Abbreviation of recreation. At 11 o’clock, school’s out, and it’s time for rec. (countable, informal) A recreation ground. (countable, informal) A recommendation or suggestion.
What is a ROC payment?
ROCs are essentially the green certificates issued to electricity generators and bought by suppliers to show that they have fulfilled the Renewables Obligation (RO). A ROC is issued to the operator of an accredited renewable energy generating station for every MWh of renewable electricity it generates.