Renewable Energy Certificates (RECs)

Renewable Energy Certificates (RECs) are tradable credits that represent proof a certain amount of electricity has been generated from a renewable source, like wind or solar. When a renewable energy facility produces electricity, it creates both the physical power and a REC. The REC can be sold separately from the electricity, allowing businesses or individuals to support renewable energy even if they don’t produce it locally. Purchasing RECs helps promote clean energy development, as it provides financial incentives to renewable generators and allows consumers to claim a share of the environmental benefits associated with renewable power.