Renewable Energy Certificate (REC)
A renewable energy certificate (REC) is a market-based instrument that represents the property rights to the environmental, social and other non-power attributes of renewable electricity generation in the U.S.
REC certificates are a part of the machinery of U.S. electricity markets, used to demonstrate renewable electricity purchasing, delivery, and use within the broader context of functioning voluntary and compliance renewable electricity markets. The physical electricity we receive through the utility grid says nothing of its origin or from which source the electricity was generated. REC certificates play an important role in accounting, tracking, and assigning ownership to renewable electricity generation and use. REC certificates are issued when one megawatt-hour of electricity is generated and delivered to the electricity grid from a renewable energy resource in the U.S.