Renewable Energy Credits (REC)

Renewable energy credits (RECs) and other similar Energy Attribute Certificates in global markets (such as European Guarantees of Origin [GOs]) are how renewable energy is tracked and traded around the world. First developed in California in 1999, RECs convey the environmental attributes of renewable generation, and may be bundled with electricity or sold separately on the open commodity market. Voluntary purchasers of green power must have RECs in order to make claims to the clean generation they represent. While no longer a significant source of revenue to projects in the United States, RECs underpin global markets, provide valuable market signals for future renewable energy development, and may provide financial additionality to projects in emerging markets