RECs help track and verify the production of renewable energy. Without RECs we cannot know and validate the amount of renewable energy on the U.S grid. Importantly, RECs provide a way for businesses and individuals to support renewable energy even if they can’t produce it themselves.

Renewable Energy Certificates (RECs) play a crucial role in supporting and incentivizing the development of renewable energy facilities. Here’s how RECs benefit the owners of these facilities:

  1. Revenue Generation: RECs provide an additional revenue stream for renewable energy facility owners. Owners can sell these certificates to utilities, businesses, and individuals looking to voluntarily balance their carbon emissions, thus earning extra income beyond the sale of the electricity itself.
  2. Market Expansion: By creating a market for renewable energy, RECs help expand the demand for renewable energy. This market demand encourages the development of new renewable energy projects, as developers can count on the revenue from REC sales to make their projects financially viable.
  3. Environmental Impact Recognition: RECs enable the separation of the environmental benefits of renewable energy from the physical electricity. This allows renewable energy facility owners to monetize the environmental benefit of their clean energy production, making it clear that their facilities contribute to reducing greenhouse gas emissions and other pollutants.
  4. Encouraging Investment: The existence of a robust REC market can make renewable energy projects more attractive to investors. Knowing that there is a market for RECs provides assurance that the project will have multiple revenue streams, thus reducing financial risk and encouraging investment in renewable energy infrastructure.