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Renewable Energy Credits (RECs) |
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Learn more about RECs by |
The REC market was designed to allow power generators to sell the “marketing rights” of any renewable energy sources to individuals or businesses that want to support or promote the use of renewable energy. For the most part the REC market is regional; however, the CCX has created a national RECs futures market that can help fund projects. The only catch is that the project must be in place and delivering RECs by the “future” date or be able to deliver similar RECs (purchased from another source). The entity that generates RECs can never market or communicate that they are producing renewable energy. They give up the right to market to the person or company that purchases the RECs. Whoever owns the environmental rights can create the RECs Green-e certification is strongly recommended (unless selling to the Compliance Market) because they are the most widely accepted. For example the USGBC only accepts Green-e RECs for LEED points. RECs can be wholesaled to brokers or sold directly to the end user. There is a 21-month window in which RECs must be sold. At the end of every year, REC generators must submit to an audit by a CPA. Green-e must also approve any marketing materials promoting RECs. RECs are measured in Mega Watt hours generated on an annual basis. |
