What are the benefits of renewable energy certificates?
Renewable energy certificates (RECs) give companies, institutions, and individuals a simple way to offset their carbon footprint and support clean energy. Purchasing RECs is equivalent to purchasing renewable energy; if your company buys RECs then you can claim that the energy you use comes from renewable sources.
Why do companies buy renewable energy credits?
Corporations typically purchase them in bulk to cover large percentages of their electricity use. As long as the REC was generated within the eligible 21-month window for the performance period they are being applied to, they will count toward renewable energy goals.
Can I sell my renewable energy credits?
A REC can be sold separately from the actual electricity (kilowatt-hour, or kWh). If you own the RECs associated with your renewable energy project’s electricity output, you can sell these RECs to another party.
How much are renewable energy certificates worth?
Homeowners and commercial businesses earn one SREC for every one megawatt-hour (MWh) of electricity generated. They can then sell these SRECs to electrical utilities. An SREC can be worth $300 or more in certain markets and, for a typical 5 kW home solar installation, you could earn six SRECs in a year.
Do RECs actually work?
It does affect carbon emissions. But those effects are at a systems level; it certainly can’t be reduced to a one-for-one MWh-for-MWh exchange. In short, it’s best to think of buying RECs not primarily as a blow against fossil fuels or carbon emissions, but as a (modest) blow for clean energy.
How much do RECs sell for?
Rates for 2015 to 2017 RECS purchased have averaged between $0.15—$0.045 per kWh produced. In 2021, SREC prices range from $10 to over $400 depending on the state SREC market.
How are RECs priced?
How do renewable energy credits RECs work?
Renewable Energy Certificates (RECs) are a market-based instrument that certifies the bearer owns one megawatt-hour (MWh) of electricity generated from a renewable energy resource. Once the power provider has fed the energy into the grid, the REC received can then be sold on the open market as an energy commodity.
Where can I sell RECs?
How do I sell RECs?
- Advertise credits on the GATS Bulletin Board.
- Check the Buyer’s Bulletin Board for specific purchase requests.
- Work with an aggregator or broker to either purchase the RECs directly, or to assist the REC owner in finding a buyer.
- Use an auction or exchange platform to sell RECs.
Do renewable energy credits expire?
The federal residential solar energy credit is a tax credit that can be claimed on federal income taxes for a percentage of the cost of a solar photovoltaic (PV) system. The tax credit expires starting in 2024 unless Congress renews it. There is no maximum amount that can be claimed.
Are RECs bad?
Cheap RECs actually make the climate problem worse, because they distract us from real solutions. What this boils down to is that RECs are good for marketing. If that’s your goal, a purchase might well serve your needs and provide tremendous bang for the buck.