• RECs serve as a crucial part in accounting, tracking, and designated ownership to renewable electricity production and consumption.
• REC Arbitrage is a green power attainment idea used by electricity purchasers to hit two objectives.

A renewable energy certificate, or REC is a market-based tool that denotes property rights to the environmental, social, and non-power characteristics of renewable electricity production. RECs are released when one megawatt-hour (MWh) of electricity is produced and sent to the electricity grid from a renewable resource.

RECs have various data traits, including:

• Certificate data
• Certificate kind
• Tracking system ID
• Renewable fuel kind
• Renewable facility area
• Nameplate capability of project
• Project name
• Project build date
• Certificate generation
• Certificate unique identification number
• Utility to which project is related
• Eligibility for certification
• Emissions rate of renewable resources

Because the physical electricity obtained through the utility grid does not announce the origin or how it was produced, RECs serve as a crucial part in accounting, tracking, and designated ownership to renewable electricity production and consumption. On a shared grid, RECs are the tool that electricity buyers need to use to uphold renewable electricity use claims. RECs are assisted by various governmental levels, regional electricity transmission officials, nongovernmental organizations (NGOs), and trade associations, including in U.S. case law.

REC Arbitrage

REC Arbitrage is a green power attainment idea used by electricity purchasers to jointly hit two objectives:

1. Lower the price of renewable electricity consumption; and
2. Uphold renewable electricity use and carbon footprint decrease claims.

The concept is used by purchasers installing individual-financed renewable electricity projects or buyers who acquire renewable electricity right from a renewable electricity project, like through a power purchase agreement (PPA).

What is the importance of RECs?

• RECs are the currency of renewable energy trades in compliance and voluntary markets.
• They give access to, grant, and claim use of renewable production on a combined grid.
• RECs Influence electricity market dynamics by providing an outlet for buyer preferences for certain types of electricity produced from renewables.
• REC attainment lowers available REC supply putting forth a demand signal to the market to create a greater supply.
• They inspire new renewable energy production.
• Individual states can drive production through mandated programs (Solar renewable energy certificate programs).
• RECs are an instrument used for hitting corporate objectives for greenhouse gas reporting and for state policy requirements under Renewable Portfolio Standards (RPS).