RECs (Renewable Energy Certificates)

Renewable Energy Certificates (RECs) are tradable credits that represent proof a specific amount of electricity was generated from a renewable source, like wind or solar. When a renewable energy producer generates power, they can sell these certificates separately from the physical electricity. Buyers purchase RECs to support renewable energy development or to meet sustainability goals, effectively claiming the environmental benefit of renewable generation. RECs help track and verify renewable energy consumption, enabling organizations and individuals to claim their contributions to a cleaner energy grid without needing to produce the power themselves.