Renewable Energy Certificates (RECs) are a market-based tool used to support and incentivize the generation of electricity from renewable resources such as solar, wind, or wind.
Each REC represents the environmental benefits of generating one Megawatt-hour (MWh) of electricity from a renewable source.
For every MWh of electricity produced by a generator of renewable energy, a REC is created.
RECs are created regardless of whether the electricity is consumed on-site or sold elsewhere.
In other words, RECs represent the environmental attributes associated with renewable energy production, and they can be bought and sold separately from the actual electricity generated. For example, a 10 kW solar system generates approximately 12 RECs per year, which can be sold to utilities or other buyers who want to meet renewable energy goals or offset their carbon footprint.