Renewable Energy Credits for your Business

Renewable Energy Credits (RECs) have long been a simple solution for companies looking to satisfy renewable energy goals and carbon reduction metrics. Historically, RECs have been an appealing option due to their low cost and ease of purchasing compared to more complex and often expensive renewable energy projects, such as onsite solar.

What is a Renewable Energy Credit?

A renewable energy credit (also called a renewable energy certificate) is a commodity that represents one megawatt-hour (MWh) of renewable electricity generated and delivered to the grid, which in turn reduces average grid emissions. 

RECs come from many different sources such as:

Solar
Wind
Geothermal
Hydro-power
Biomass

Electricity is generated for the grid from many different sources; from wind and solar power to natural gas and nuclear power. Buying RECs provides certified proof that your business is using renewable energy.

How to Purchase RECS

RECs are available in both deregulated and regulated states.

In deregulated states, there is a minimum number of RECs required to cover state-mandated Renewable Portfolio Standards (RPS), though there is no limit to how many you can buy.

In regulated states some utilities will have clean power purchase options or you can buy RECs on the open market.

Buying RECs for your business makes sense for a number of reasons, including:

• Meeting compliance requirements
• Reducing emissions
• RECs qualify for points under the LEED Green Power Credit
• Building/owning on-site generate is not a viable option

Buying RECs is quite simple. All you need to do is:

1. Identify your carbon reduction goals.
2. Measure your company’s baseline energy consumption.
3. Purchase verified RECs from your utility, a supplier, or on the open market.
4. Communicate your purchase publicly.

Additionally, if you are in a deregulated state, you can purchase RECs through a procurement bid and suppliers will bid against each other to earn your business. Through this process your business can save tens of thousands of dollars or more depending on how many RECs you purchase.

RECs can also be sold as a bundled package as part of your electric supply. This way you can take care of your energy procurement and clean energy goals at the same time.

Selling RECs

You can sell RECs that your business generates from on-site generation. 

If you decide to sell your RECs, be aware of what can and can’t be published on the internet and in print, what can be said in interviews, and what claims can be made publicly as there are many restrictions. You are selling the environmental claim of renewable energy, so you can’t also claim it yourself. Failing to control the message could lead to an inability to sell RECs into the marketplace for a premium (Mass Class 1 or Green-e®).

RECs can be sold for future years going out five years and rolling back up to 18 months.

If you help any help selling or purchasing RECs we can help! Fill out the contact form below or call 866-748-2669 and ask for one of our energy experts.