What is a Renewable Energy Credit?

A Renewable Energy Credit (REC), sometimes called a renewable energy certificate, represents the environmental benefits of generating one megawatt-hour (MWh) of electricity from a renewable energy source, like wind, solar, or hydropower. Think of a REC as a “proof of purchase” for green energy, it certifies that clean electricity was added to the grid on your behalf.

So even if your home isn’t directly powered by a wind turbine or solar panels, owning RECs means you’re helping to increase demand for renewable energy and reduce your carbon footprint.

How Do RECs Work?

Here’s how it plays out:

1. A wind farm or solar plant generates 1 MWh of clean electricity.
2. That energy goes into the electric grid, blending with energy from all kinds of sources (fossil fuels, nuclear, etc.).
3. Along with that power, the renewable generator also earns 1 REC.
4. These RECs can then be sold separately to individuals or companies who want to support renewable energy, even if the actual electrons powering their home come from the local grid mix.

In short: You can’t control where your electricity comes from, but you can choose to support renewables by buying the RECs linked to clean energy production.

How Are RECs Generated?

RECs are created every time a renewable energy facility, like a solar farm, wind turbine, or geothermal plant, generates one megawatt-hour of power and delivers it to the grid. These RECs are tracked and certified through national or regional systems (like Green-e in the U.S.), which ensures transparency and avoids double counting.

Some RECs are bundled with electricity plans (you buy the power and the REC), while others are unbundled (you buy just the REC to offset your usage separately).

Benefits of Buying RECs

RECs offer an easy, impactful way to:

• Support renewable energy development without needing rooftop solar or special equipment.
• Lower your carbon footprint by matching your energy use with clean power.
• Drive demand for cleaner energy sources and reduce reliance on fossil fuels.
• Demonstrate your values, whether as an individual, household, or business.

Plus, RECs can be part of any electric plan, you don’t have to switch utilities or live near a solar farm to make a difference.

RECs vs. Carbon Offsets: What’s the Difference?

Both RECs and carbon offsets support environmental goals, but they’re used in different ways:

Feature	RECs	Carbon Offsets
Purpose	Match your electricity use with renewable energy	Offset carbon emissions from activities (e.g., flying, driving)
Focus	Clean energy generation	Emission reduction projects (e.g., tree planting, methane capture)
How they help	Pushes more renewable electricity onto the grid	Reduces or removes greenhouse gases elsewhere

How Do I Buy RECs?

Buying RECs is easier than you might think! Here are a few ways to get started:

1. Choose a Green Electricity Plan

Many retail energy providers offer 100% renewable plans, which include RECs automatically. These plans match your electricity usage with RECs from solar, wind, or other sources, easy and hassle-free.

2. Buy Unbundled RECs Directly

You can also purchase RECs separately from platforms like:

• Arcadia
• Green-e Marketplace
• Terrapass

This option is great if you want to stay with your current utility but still support renewables.

3. Look for Local Community Solar Programs

Some utilities or third parties allow you to subscribe to nearby solar projects and receive RECs for your share of the power generated.

RECs give you a powerful way to vote with your dollars and support a cleaner energy future. Whether you’re switching to a new electricity plan or just learning how to live more sustainably, adding RECs to the mix is a simple step with real impact.

FAQs About Renewable Energy Credits