Renewable Energy Certificates (RECs)
To document and report that you consume renewable energy in the United States and Canada, you must buy Renewable Energy Certificates (RECs). In the US, RECs are used for compliance reporting and voluntary consumption. Ecohz also offers Green-e Energy certified RECs across North America.
How RECs work
In the grid, renewable energy is mixed with fossil and nuclear power. Renewable Energy Certificates (RECs) are market-based instruments that track clean electricity and its environmental benefits.
Each REC represents 1 MWh generated by a renewable power plant and includes essential information about that unit of electricity, including the date, technology, and place of production. Consumers can then buy RECs to substantiate renewable energy claims.
RECs and their associated environmental attributes can be sold together or separately from the underlying physical electricity.
Types of RECs
In the United States, RECs are used for voluntary and compliance purposes. Organisations buying RECs should also consider other variables, such as additional certifications, different registries, and state-wide regulations.. Ecohz can deliver every type of certificate and tailor energy solutions for your business all over North America.
Voluntary RECs allow organisations to meet the requirements of their stakeholders and corporate sustainability standards such as the GHG-P Scope 2 Guidance and the RE100.
Utilities and energy retailers purchase RECs to comply with state-specific regulations, such as renewable portfolio standards (RPS), which require retail electricity suppliers to provide a minimum percentage of renewable power.
Compliance schemes use RECs as their primary reporting tool and consider penalties for those who fail to observe the rules. These policies can also vary considerably from one state to the next.
RECs tracking systems
There are ten tracking systems or registries across the United States and Canada. These systems issue and retire certificates to ensure transparency and legitimacy and avoid double counting.RECs certified with Green-e
Green-e Energy is the leading renewable energy certification program in North America. Corporate environmental standards like Leadership in Energy and Environmental Design (LEED), The Climate Registry (TCR), and B Corporation, among others, recommend or require RECs accredited by Green-e.
RECs certified with Green-e are also used for compliance purposes and can be combined with state-specific certification schemes for additional benefits.
Why purchase RECs?
RECs add momentum to the energy transition. While state-led policies incentivise clean electricity growth, corporations play an essential role in channelling additional revenue to green energy producers.
Consuming documented renewable electricity also makes businesses more appealing to investors and builds loyalty with an increasing share of environmentally minded customers.
RECs allow you to:
- Document consumption of renewables and reliably claim GHG emissions reductions.
- Trace the origin of electricity and choose between technologies, such as solar, wind, hydro, geothermal or bioenergy.
- Comply with renewable portfolio standards (RPS) and other state-specific regulations.
- Earn points towards LEED certification and reduce the environmental impact of buildings.
- Align with voluntary corporate environmental standards, such as the Greenhouse Gas Protocol Scope 2 Guidance.
- Improve your company’s sustainability rating.
- Contribute towards de UN Sustainable Development Goals (SDGs).
Buying RECs with Ecohz
We simplify how companies procure clean electricity and provide them with an energy mix tailored to their needs. Our purchasing process follows these simple steps:
- Based on your location and volume of consumption, we discuss how we can help you reach your renewable energy ambitions.
- You receive an offer with a specific rate and expiry date. Upon acceptance, we secure the quoted price.
- Once the offer has been accepted, we deliver a standardised contract.
- We provide you with an invoice and documentation for reporting.
The price of RECs
Multiple factors determine the pricing of RECs. Compliance certificates, associated with regulatory pressure, are usually more expensive than those in the voluntary market. RECs issued in already low-carbon grids are also cheaper than those in areas with high fossil energy predominance because the latter are perceived to be more impactful in displacing dirty energy.
Buyers should also consider market fluctuations driven by supply and demand, weather patterns, and policy developments. Ecohz’ sourcing team monitors the market constantly to provide our customers with the most cost-effective solution.