Renewable Energy Certificates (RECs)

An excerpt from the Environmental Protection Agency:

A renewable energy certificate, or REC (pronounced: rěk, like wreck), is a market-based instrument that represents the property rights to the environmental, social, and other non-power attributes of renewable electricity generation. RECs are issued when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity grid from a renewable energy resource.

Because the physical electricity we receive through the utility grid says nothing of its origin or how it was generated, RECs play an important role in accounting, tracking, and assigning ownership to renewable electricity generation and use. On a shared grid—whether the electricity comes from on-site or off-site resources—RECs are the instrument that electricity consumers must use to substantiate renewable electricity use claims. The short video below describes the importance and role of RECs in making green power possible for electricity consumers nationwide.