Renewable Energy Credit (REC)

A Renewable Energy Credit (REC) is a certificate that represents the environmental benefits of producing one megawatt-hour (MWh) of electricity from a renewable source like wind or solar. When a green energy generator produces power, it can sell the REC separately from the electricity itself. Purchasers of RECs can then claim they support renewable energy, helping to meet renewable energy goals and reduce carbon footprints. In essence, RECs provide a way to financially support and track renewable energy development, even if the electricity is used elsewhere.