Unleashing the Power of Renewable Energy Certificates: A Guide to RECs and Their Benefits

2 min readMar 21
Credits: Mr. Kosal


The transition to renewable energy is crucial for a sustainable future, and Renewable Energy Certificates (RECs) play a pivotal role in this shift.

As a market-based instrument, RECs incentivize the adoption of clean energy sources while providing businesses with opportunities to support green initiatives.

Financely Group is here to help you navigate this landscape and harness the benefits of RECs for your company.

What are Renewable Energy Certificates (RECs)?

RECs represent the environmental, social, and other non-power attributes of one megawatt-hour (MWh) of electricity generated from renewable energy sources. They are created when renewable energy is produced and can be traded separately from the electricity itself.

This flexibility allows for the growth of a market that values the environmental benefits of renewable energy.

There are different types of RECs, each representing various renewable energy sources such as solar, wind, or biomass.

How RECs Work: A Step-by-Step Guide

  1. Renewable energy project development: A renewable energy project, such as a solar farm or wind turbine, is built and begins generating electricity.
  2. REC issuance and registration: For each MWh of renewable energy produced, a corresponding REC is issued and registered with a tracking system.
  3. Trading and purchasing RECs: RECs can be bought and sold on the open market or through private transactions, allowing businesses to support renewable energy projects.
  4. Retiring RECs for compliance or voluntary purposes: After purchasing, RECs can be retired to demonstrate compliance with regulatory requirements or to voluntarily support renewable energy.

Benefits of RECs for Businesses

By engaging with the REC market, businesses can reap numerous benefits:

  • Supporting renewable energy growth: Purchasing RECs helps fund new renewable energy projects and drives demand…

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