Renewable Energy Credits
Renewable Energy Credits, (RECs) also known as Green Tags are certificates that are sold and traded in the United States. One REC represents 1,000 kWh (Kilowatt-hoREA) that have been generated from a renewable energy source, such as solar, wind, biomass, hydrogen fuel cells or geothermal. The REC is not to be confused with the energy itself; it stands apart.
For example, the State of California has mandated that by 2020, a third of all electricity must be generated by renewable sources. In order to comply with the legislation, the utility may only be able to produce 25% by renewable generation and will purchase the additional 8% in RECs that will allow them to be in compliance and avoid the installation of renewable energy generators.
RECs are sold or traded on a state-by-state basis. The goal is to reduce greenhouse gases in the atmosphere such as carbon dioxide and hydro-flourocarbons that affect climate change and cause global warming.
If you hear a company is "wind powered" or "buying green power" it probably means they are buying enough RECs to match their electricity usage. There is a common myth that you can "buy green power" from a Retail Energy Provider (REP) and that is somehow different from buying RECs. When you buy green power from a REP it means you are buying your delivered power and a REC, bundled together. The electrons from the wind farm aren't all going to your building either way; you are just ensuring that your usage is replaced in the pool with clean energy. RECs are the only way to track and trade grid-sourced green power.
WHY IS SUPPORTING RENEWABLE ENERGY SO IMPORTANT?
Generating renewable energy:
Saves natural resources
Does not create air pollution such as carbon dioxide and mercury
Provides supplemental income for farmers and ranchers who lease their land
Reduces our dependency on fossil fuels
Helps fight global climate change
Helps build demand for building new clean energy projects
