Renewable Energy Certificate (United States) - Wikipedia, the free


** Renewable Energy Certificate (United States) **

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*Renewable Energy Certificates* (*RECs*), also known as *Green tags*,
*Renewable Energy Credits*, *Renewable Electricity Certificates*, or
*Tradable Renewable Certificates* (*TRC*s), are tradable, non-tangible
energy commodities in the United States that represent proof that 1
megawatt-hour (MWh) of electricity was generated from an eligible renewable
energy resource (renewable electricity). Solar renewable energy
certificates (*SRECs*) are RECs that are specifically generated by solar

These certificates can be sold and traded or bartered, and the owner of the
REC can claim to have purchased renewable energy. According to the U.S.
Department of Energy's Green Power Network,^[1] RECs represent the
environmental attributes of the power produced from renewable energy
projects and are sold separately from commodity electricity. While
traditional carbon emissions trading programs use penalties and incentives
to achieve established emissions targets, RECs simply incentivize
carbon-neutral renewable energy by providing a production subsidy to
electricity generated from renewable sources. It is important to understand
that the energy associated with a REC is sold separately and is used by
another party. The consumer of a REC receives only a certificate.

In states that have a REC program, a green energy provider (such as a wind
farm) is credited with one REC for every 1,000 kWh or 1 MWh of electricity
it produces (for reference, an average residential customer consumes about
800 kWh in a month). A certifying agency gives each REC a unique
identification number to make sure it doesn't get double-counted. The green
energy is then


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