Renewable Energy Credits

Renewable Energy Credits (RECs) are certificates that represent the environmental benefits of generating electricity from renewable sources like wind, solar, or hydro. Each REC corresponds to one megawatt-hour of clean energy produced. When a renewable energy generator produces electricity, it earns RECs, which can be sold or traded. Businesses and utilities buy these credits to meet regulations or showcase their commitment to sustainability, effectively allowing them to claim use of renewable energy even if their actual electricity comes from conventional sources. In essence, RECs help promote clean energy growth and provide economic support to renewable projects.