A Renewable Energy Certificate (REC) is a tradable commodity that is issued for each megawatt hour of electricity produced through the use of renewable energy sources. RECs are an EPA incentive to generate renewable energy. Thus, a provider of renewable energy can sell it to a client who receives an REC.
An example of this system could be a wind-farm that generates electricity. For each Megawatt hour of electricity produced, it receives an REC. The energy is fed onto the grid, and the wind-farm can now sell its REC. The REC is used, or ‘retired’ when it is used to comply with regulatory requirements, to lodge renewable energy claims, or sold. Once this has happened, the REC may not be sold or used again.
Share this Term
Let's Make Workplaces Safer!
Subscribe to the Safeopedia newsletter to stay on top of current industry trends and up-to-date know-how from subject matter authorities. Our comprehensive online resources are dedicated to safety professionals and decision makers like you.
Latest Articles
By: Daniel Clark | Safety and Quality Management System Specialist
By: Youssef Nohra, Ph.D. | EHS, Environmental & ESG, and Content Manager
