Renewable Energy Certificates, or RECs, are certificates that represent proof of 1,000 kilowatts, or 1 megawatt, of electricity generation through renewable energy. This certificate is either traded or sold. The new owner of the renewable energy certificate can claim that he/she purchased renewable energy. The source of the renewable energy is typically photovoltaic, wind, rain, tide, geothermal, biofuels or hydroelectric.
The theory behind Renewable Energy Certificates (REC) is to counter a carbon tax and increase implementation of renewable energy sources. Instead of taxing carbon emissions, a government can require entities to purchase a certain percentage of electricity from renewable sources. This will be the case in many states within the next few years. For example, California requires 1/3 of electricity to come from renewable sources by 2020. If utility companies cannot install enough renewable energy by then, they will be forced to buy RECs.
The value of a REC depends on the cost of generating electricity. Since renewable energy is fairly consistent and local, the price of production is much more consistent than fossil fuels. But prices vary by local areas. If you are looking at selling RECs or buying RECs, it is best to contact a broker.
Here are two brokers:
Evolution Markets
Element Markets
Renewable energy is the direction our world is heading. Since it is such a new and rapidly changing field, it is best to stay up to date on energy policy and events so one can prepare for energy rate hikes.
Renewable Energy Certificates Rich Hessler
Learn how to sell solar panels.
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